Budget Message
SILVER FALLS LIBRARY DISTRICT
BUDGET MESSAGE
Fiscal Year 2021-2022
OVERVIEW:
The Silver Falls Library District has only one fund – the General Fund – as defined by Oregon budget law. Most budget requirements are allocated to one Organizational Unit – Library Services – with the remaining unallocated requirements consisting of the Operating Contingency, the Unappropriated Ending Fund Balance, and unappropriated monies Reserved for Future Expenditures.
The District's beginning and ending fund balances are unrestricted, with the only restricted funds activity being the management of Oregon Ready-to-Read grant monies, which are received and expended within the same fiscal year.
The proposed 2021-2022 budget utilizes anticipated annual revenues consistent with prior years - and as projected by the data from Marion County Assessor’s Office - and it continues the District's plan to use the monies designated as Reserved for Future Expenditures. The District has been using the Reserved for Future Expenditures monies gradually over the past several years to address inevitable building maintenance issues, to replace aging equipment and furnishings, and to maintain the expanded service hours that were initiated in September 2012.
RESOURCES:
The services of the Silver Falls Library District are primarily funded by its permanent property tax levy of $0.5748 per thousand dollars of assessed valuation on the properties within its boundaries. There are several factors which affect the District's income from this levy.
The Current Year Property Tax amount levied on properties within the Silver Falls Library District for 2020-2021 increased approximately 4.3 percent from the prior 2019-20 fiscal year. The proposed budget assumes another increase for the coming fiscal year, and one that is significantly greater than in the last ten years. The estimated growth, which was calculated in early April, is 7.64%. The Marion County Assessor’s office forecasts a tax revenue for the District of $988,253 based on the tax rate of 0.5748 on assessed on the $1,719,300,000 in taxable property within District boundaries. While the revenue can be collected at a rate as high as 99%, we have calculated the rate of return at 96% for the current year tax resource amount of $948,723. Up until the current fiscal year, the library has traditionally forecasted at 96% of projected revenue. Last year, with so many unknowns caused by the COVID-19 pandemic, we lowered our projection to 94% but have reinstated the prior percentage projection of 96% for this proposed budget.
Income from Prior Year Property Taxes has been close to our forecasts in the current fiscal year with 87% percent of the predicted revenue of $21,000 collected by March 31st. With more payments anticipated in May, it is likely that prior year taxes will meet and even exceed the projected amount. Prior years’ tax revenue was downgraded for our current fiscal year as there were no anticipated large legal settlements (such as the 3 year payoff with the telecommunications company Comcast) as there had been for several years. As a conservative measure, and with no known pending settlements, the proposed budget keeps prior years taxes static at $21,000.
Both State Timber Lands and Tax Title Land Fund (i.e., foreclosure proceeds) income are highly variable and unpredictable. Oregon timber harvesting is at an unusual place this year. Large salvage logging operations have taken place as a result of the forest fires which burned 10.3 million acres in the fall of 2020. Additionally, there are multiple pieces of Oregon legislation – at this point, none of which have gained traction – that would change the taxing structure for logging companies if passed. With so many unknowns, State Timber Lands forecasting must necessarily remain conservative as these funds have been historically uneven since Oregon’s Timber production scaled down significantly in the 1980s, and they are prone to volatile market forces. For the proposed budget we downgraded our projection as we’re unsure of the fiscal impacts of salvage logging. Our State Timber Lands payments for the current fiscal year are at 96% of projected budget as of March 31st, compared to being at 255% of budget last year, and 543% of budget at the year prior. Foreclosure proceeds for the Tax Title Land Fund are typically small. Whereas we budgeted no income in that revenue line, we have received $97 so far this year.
CCRLS (Chemeketa Cooperative Regional Library Service) assesses taxes on properties within Polk, Yamhill, and Marion Counties at a rate of approximately $0.08 per thousand dollars of assessed valuation. The purpose of CCRLS is to enhance cooperation between member libraries as they provide service to residents of the three counties and the City of Newberg (which is outside of the 3-county area, but contracts with CCRLS for membership) and to develop shared resources. The taxes CCRLS levies fund CCRLS's staffing and operational expenses, provide courier service between the libraries and a shared automated circulation system and online catalog, purchase shared electronic resources, and provide reimbursement funds to member libraries to support their direct services to residents of the area. For the proposed budget year, the anticipated reimbursement has increased a little over $5,000, to $81,685, after remaining flat for two years.
The District's CCRLS Reimbursement income is determined by a formula which factors in (1) the amount of income CCRLS receives from its levy on taxpayers within the Silver Falls Library District and (2) our District's circulation of library materials to CCRLS residents who live outside the boundaries of the Silver Falls Library District. The amount included in the proposed budget reflects the amount approved in the CCRLS 2021-22 budget, but the actual amount received within a fiscal year may vary depending on the timing of the quarterly payments near the beginning or end of a particular fiscal year. Smaller variations may occur if the District receives reimbursement for net lending activity in a particular quarter. As of this writing, the courier for the cooperative is running, although not yet at the full pre-pandemic capacity. Net lending payments have fluctuated more than anticipated as the 17 member libraries in the cooperative are experiencing disrupted patterns of service based on reduced operational hours and from adaptive service models such as curbside pickup. Most member libraries are anticipated to come back to in-person operations over the summer and through the fall. Salem’s remodel of their central library, combined with their governing body’s (the City of Salem) pandemic safety protocols has significantly impeded the flow of library materials between member libraries. The economic impact of the pandemic has also reduced the revenues of multiple member libraries’, resulting in fewer hours and lower FTE for some. These cutbacks may impact the overall flow of library materials in the coming year, which could in turn effect net lending revenues. However, it does not reduce the monies levied for the CCRLS cooperative.
CCRLS also budgets an amount each year to provide electronic resources, including access to various databases and to downloadable materials through the Library2Go service, and has greatly increased its funding of these services to approximately $300,000.00 in recent years. The funding for these resources is spent directly by CCRLS and does not pass through the budgets of member libraries such as our District, which simultaneously reduces the need for electronic materials purchases by our District and increases the use of the available materials by all CCRLS residents. As a result of grant monies awarded to CCRLS from the Institute of Museum and Library Services as part of a Federal CARES Act opportunity, all member libraries have received access to circulating wi-fi hotspots – inclusive of connectivity fees – through the end of 2022.
The State Aid Grant line is an estimate of the amount to be received in Ready-to-Read Grant funds, based on receipts so far in the current biennium. It is mirrored by a corresponding line in Requirements. Ready-to-Read Grant expenditures are limited to the amount actually received, and must be expended in their entirety. Their proposed usage must be approved by both the State Library and the Library Service District. The Ready-to-Read funding is based on demographic data of the number of 0-14 year olds inside a library’s service area.
The amounts in the remaining lines – Interest; Donations; and Fines and Fees – are based on the general pattern of receipts in previous years. Interest income, primarily on funds deposited in the Local Government Investment Pool, has continued to decline as a result of the pandemic. At this time last year, the rate was at 1.75%, falling from the prior year’s all-time high of 2.75%. As of this writing, it has dropped to .60%. Due to the many factors which could impact banking interest rates in the coming months, our projected revenue for the Interest Income line is lowered again this year to just $10,000, a 44% decrease from the prior year.
We continue to reduce the projected income for Fines and Fees. Since April of 2020, CCRLS adopted a new system of automatic renewals of library materials. This greatly reduced library overdue fine revenue for all libraries in the cooperative. Because of the pandemic, due dates for materials continue to be flexible, and we anticipate that this will be the case until most libraries in the consortium – and especially Salem – are running more regularly. Fees for lost or damaged items will continue.
The District's Beginning Fund Balance includes the prior year's Unappropriated Ending Fund Balance, which allows the District to meet its financial obligations during the first four and one half months of the fiscal year before any of the current year's tax payments are received in mid-November.
Also included in the Beginning Fund Balance are those funds Reserved for Future Expenditures. These reserves were created as a result of a bequest from the estate of Inez Green and have been augmented occasionally by unexpected State Timber Lands income and by Board decisions, primarily regarding salary expenditures for raises and increased service hours. These bequest monies are unrestricted.
This budget proposal assumes that the District will levy its full permanent rate of $0.5748 per thousand dollars of assessed valuation.
REQUIREMENTS:
Overview
Requirements for FY 2021-2022 are slightly less than FY 2020-2021. The primary factors around the decrease are due to the retirement of a couple of long-term employees, no major building maintenance projects beyond the planned obsolescence of one to two of our aging HVAC units, and a bit less in in-person programming as the pandemic still impacts our program area. In the budget before you, there is a slight decrease for Personnel costs. The Materials budget is static and the Operations/Services budget is slightly decreased.
Personnel Services
In the proposed budget for 2021-2022, there is a decrease of around one percent in salaries. This is due to the retirement of two longtime employees late last fiscal year, plus the slight reduction in overall workforce hours from FTE 12. 1 to 11.9. Salary increases in this budget are from the annual step wage increase with no additional cost of living increase requested. However, this budget proposes that employees in the Circulation Department receive a fifty cent per hour increase in their wages. With the gradual increase of Circulation wages, the District continues working towards its goal of having entry level jobs that are competitively attractive for the skilled labor that is needed.
Workers Compensation costs for the District have remained stable.
The Social Security line includes the District's assessments for both Social Security and Medicare and is based on the relevant percentages of the Salaries line.
The amount budgeted for Group Health reflects the "not-to-exceed" rate increases announced by our insurance provider for 2021 and current levels of staff participation. This rate is to be contained within a 7% increase for 2021-2022.
The District's overall billing for the PERS retirement system for FY 2020-2021 was 21.06% based on gross payroll amounts for all eligible staff. The PERS employers' rates have increased, with the new rate being 21.35% for the current biennium.
Materials & Services
Most of the line items in this portion of the budget remain stable and reflect current expenditures although due to COVID-19, some expenditures have been pushed from the current budget year to the proposed budget year.
Within the Materials section, the lines for Books, AV, and Microforms remain unchanged. The Electronic Media and Periodicals lines are slightly higher to reflect increases in costs from the vendors.
Building Maintenance is slightly lower this year. There are still five HVAC units that are 24 years old, and will need replacement over the coming years. One total unit and half of another unit failed this year and we anticipate this trend continuing until most or all units are replaced over the next few years. As such, the Building Maintenance budget reflects the anticipated replacement of two more units should they fail during the year. The Minor Equipment and Furnishings line includes expenditures for the replacement of computers nearing obsolescence, as well as for a microfilm reader hardware and software upgrade. This past year, the money that was set aside for the microfilm machine upgrade was used instead to improve the air quality and safety in the building with UV filtration equipment. Repair and maintenance of plumbing and electrical systems are ongoing processes as the building systems age and experience the wear and tear of public use.
Other line items that show decreases include, Postage, and Gas/Electricity. The electric bill decrease is due to switching to LED lights through the SmartWatt program. We anticipate further electricity bill reduction gas as a result of the installation this year of free smart thermostats from a PGE program. Our Conference and Training, as well as Travel line items are decreased as we anticipate another year of largely online conferences that are often lower cost than when attended in-person. Postage continues decrease as we conduct more communications online. The Children’s Program line is decreased to reflect that there are fewer in-person programs this year.
One operating expenditures that increased is that of Contractual Services. The hiring of a consultant for a Strategic Planning process was to take place during fiscal year 2020-21. That project has been pushed to the proposed budget year as the desire was to have the two new Library Board members involved, and also to have a better idea of what post-pandemic library services might look like. Consultant fees have risen somewhat.
The Miscellaneous line item has dropped for the year as the proposal of having a mural from the Silverton Mural Society was interrupted both by the pandemic and the passing of the Society’s founder, Vince Till. We hope to revisit that project in our next budget.
Elections for two positions to be filled on the District's Board of Directors is held in May, every two years. Billing for the District's share of the Election Expense is usually not received until after June 30, but funds have been budgeted and included in the appropriation each year to ensure their availability if the bill is received in either fiscal year. Two positions are up for election in May of 2021.
Contingency
The amount in the Contingency line of the budget is for the purpose of appropriations, so that these funds would be readily available for transfer, by Board resolution, to the appropriate budget line for expenditure in the event of unforeseen expenses, such as the failure of several HVAC units at once or other emergencies impacting library facilities or services. State law limits the amount that can be transferred from Contingency to 15% of the total appropriation in the operating fund, and these funds can only be transferred to an existing appropriation.
Other Requirements
The 2021-2022 proposed budget also includes two categories comprising unappropriated funds, which cannot be spent in the fiscal year without adoption of a supplemental budget or a declared emergency situation.
The first of these is Reserved for Future Expenditures. The funds in this line are primarily from bequest funds, as well as from receipt of State Timber Lands income, which—as mentioned above – is both variable and intermittent, and from conservative fiscal management of available income. The existence of these funds has provided for added service hours, funded equipment purchases and cushioned the impact of PERS rate increases. The District intends to continue using the funds in this line over a number of years for purposes related to both infrastructure maintenance and service enhancements.
Finally, the standard Unappropriated Ending Fund Balance reserves funds for meeting the financial needs of the District during the first third of each fiscal year – before that year's tax revenues begin to be received – without the use of a tax anticipation loan, which would incur interest and processing costs for the taxpayers. Funds are also maintained in this line to ensure coverage of the deductible amounts on the District's flood and earthquake insurance coverage, should there be major damage to the Library building and/or contents.
SUMMARY:
The intent of this proposed budget is to support current and developing programs and services for library users of all ages; to refresh and revitalize the Library's materials collection, both physical and electronic; to plan for, implement, and support evolving technologies; and to provide for the maintenance, repair, and replacement – as needed – of the Library's physical infrastructure elements.
The proposed budget calls for the District to levy property taxes at it permanent rate of $0.5748 per thousand dollars of assessed valuation.
BUDGET MESSAGE
Fiscal Year 2021-2022
OVERVIEW:
The Silver Falls Library District has only one fund – the General Fund – as defined by Oregon budget law. Most budget requirements are allocated to one Organizational Unit – Library Services – with the remaining unallocated requirements consisting of the Operating Contingency, the Unappropriated Ending Fund Balance, and unappropriated monies Reserved for Future Expenditures.
The District's beginning and ending fund balances are unrestricted, with the only restricted funds activity being the management of Oregon Ready-to-Read grant monies, which are received and expended within the same fiscal year.
The proposed 2021-2022 budget utilizes anticipated annual revenues consistent with prior years - and as projected by the data from Marion County Assessor’s Office - and it continues the District's plan to use the monies designated as Reserved for Future Expenditures. The District has been using the Reserved for Future Expenditures monies gradually over the past several years to address inevitable building maintenance issues, to replace aging equipment and furnishings, and to maintain the expanded service hours that were initiated in September 2012.
RESOURCES:
The services of the Silver Falls Library District are primarily funded by its permanent property tax levy of $0.5748 per thousand dollars of assessed valuation on the properties within its boundaries. There are several factors which affect the District's income from this levy.
- Oregon State legislation caps the potential increase in taxable assessed valuation on existing properties at 3% per year. Income increases can surpass that limit due to new construction in the District.
- Increases in property tax revenues for properties within the Urban Renewal District established by the City of Silverton in 2004 are used to fund those activities, rather than being distributed to other taxing entities, such as the Library District. The current impact of the URD is to the District is nominal.
- The maximum total amount allowed for all general government property tax levies on properties in the State of Oregon is $10.00 per thousand dollars of assessed valuation (Ballot Measure 5, passed 1990). The Library District levy is included in this limit. If the District's levy and the tax levies for other entities such as county or city government, fire or water districts, recreation districts, etc., total more than $10.00 per thousand of assessed valuation, the actual amount levied may be reduced on each levy in an established priority. This is known as compression. Currently our District is not under compression, although some properties may be affected at some point as new service districts are established or special operating levies are approved by voters. Conversely, negative effects of compression may be mitigated as new construction takes place within the District.
The Current Year Property Tax amount levied on properties within the Silver Falls Library District for 2020-2021 increased approximately 4.3 percent from the prior 2019-20 fiscal year. The proposed budget assumes another increase for the coming fiscal year, and one that is significantly greater than in the last ten years. The estimated growth, which was calculated in early April, is 7.64%. The Marion County Assessor’s office forecasts a tax revenue for the District of $988,253 based on the tax rate of 0.5748 on assessed on the $1,719,300,000 in taxable property within District boundaries. While the revenue can be collected at a rate as high as 99%, we have calculated the rate of return at 96% for the current year tax resource amount of $948,723. Up until the current fiscal year, the library has traditionally forecasted at 96% of projected revenue. Last year, with so many unknowns caused by the COVID-19 pandemic, we lowered our projection to 94% but have reinstated the prior percentage projection of 96% for this proposed budget.
Income from Prior Year Property Taxes has been close to our forecasts in the current fiscal year with 87% percent of the predicted revenue of $21,000 collected by March 31st. With more payments anticipated in May, it is likely that prior year taxes will meet and even exceed the projected amount. Prior years’ tax revenue was downgraded for our current fiscal year as there were no anticipated large legal settlements (such as the 3 year payoff with the telecommunications company Comcast) as there had been for several years. As a conservative measure, and with no known pending settlements, the proposed budget keeps prior years taxes static at $21,000.
Both State Timber Lands and Tax Title Land Fund (i.e., foreclosure proceeds) income are highly variable and unpredictable. Oregon timber harvesting is at an unusual place this year. Large salvage logging operations have taken place as a result of the forest fires which burned 10.3 million acres in the fall of 2020. Additionally, there are multiple pieces of Oregon legislation – at this point, none of which have gained traction – that would change the taxing structure for logging companies if passed. With so many unknowns, State Timber Lands forecasting must necessarily remain conservative as these funds have been historically uneven since Oregon’s Timber production scaled down significantly in the 1980s, and they are prone to volatile market forces. For the proposed budget we downgraded our projection as we’re unsure of the fiscal impacts of salvage logging. Our State Timber Lands payments for the current fiscal year are at 96% of projected budget as of March 31st, compared to being at 255% of budget last year, and 543% of budget at the year prior. Foreclosure proceeds for the Tax Title Land Fund are typically small. Whereas we budgeted no income in that revenue line, we have received $97 so far this year.
CCRLS (Chemeketa Cooperative Regional Library Service) assesses taxes on properties within Polk, Yamhill, and Marion Counties at a rate of approximately $0.08 per thousand dollars of assessed valuation. The purpose of CCRLS is to enhance cooperation between member libraries as they provide service to residents of the three counties and the City of Newberg (which is outside of the 3-county area, but contracts with CCRLS for membership) and to develop shared resources. The taxes CCRLS levies fund CCRLS's staffing and operational expenses, provide courier service between the libraries and a shared automated circulation system and online catalog, purchase shared electronic resources, and provide reimbursement funds to member libraries to support their direct services to residents of the area. For the proposed budget year, the anticipated reimbursement has increased a little over $5,000, to $81,685, after remaining flat for two years.
The District's CCRLS Reimbursement income is determined by a formula which factors in (1) the amount of income CCRLS receives from its levy on taxpayers within the Silver Falls Library District and (2) our District's circulation of library materials to CCRLS residents who live outside the boundaries of the Silver Falls Library District. The amount included in the proposed budget reflects the amount approved in the CCRLS 2021-22 budget, but the actual amount received within a fiscal year may vary depending on the timing of the quarterly payments near the beginning or end of a particular fiscal year. Smaller variations may occur if the District receives reimbursement for net lending activity in a particular quarter. As of this writing, the courier for the cooperative is running, although not yet at the full pre-pandemic capacity. Net lending payments have fluctuated more than anticipated as the 17 member libraries in the cooperative are experiencing disrupted patterns of service based on reduced operational hours and from adaptive service models such as curbside pickup. Most member libraries are anticipated to come back to in-person operations over the summer and through the fall. Salem’s remodel of their central library, combined with their governing body’s (the City of Salem) pandemic safety protocols has significantly impeded the flow of library materials between member libraries. The economic impact of the pandemic has also reduced the revenues of multiple member libraries’, resulting in fewer hours and lower FTE for some. These cutbacks may impact the overall flow of library materials in the coming year, which could in turn effect net lending revenues. However, it does not reduce the monies levied for the CCRLS cooperative.
CCRLS also budgets an amount each year to provide electronic resources, including access to various databases and to downloadable materials through the Library2Go service, and has greatly increased its funding of these services to approximately $300,000.00 in recent years. The funding for these resources is spent directly by CCRLS and does not pass through the budgets of member libraries such as our District, which simultaneously reduces the need for electronic materials purchases by our District and increases the use of the available materials by all CCRLS residents. As a result of grant monies awarded to CCRLS from the Institute of Museum and Library Services as part of a Federal CARES Act opportunity, all member libraries have received access to circulating wi-fi hotspots – inclusive of connectivity fees – through the end of 2022.
The State Aid Grant line is an estimate of the amount to be received in Ready-to-Read Grant funds, based on receipts so far in the current biennium. It is mirrored by a corresponding line in Requirements. Ready-to-Read Grant expenditures are limited to the amount actually received, and must be expended in their entirety. Their proposed usage must be approved by both the State Library and the Library Service District. The Ready-to-Read funding is based on demographic data of the number of 0-14 year olds inside a library’s service area.
The amounts in the remaining lines – Interest; Donations; and Fines and Fees – are based on the general pattern of receipts in previous years. Interest income, primarily on funds deposited in the Local Government Investment Pool, has continued to decline as a result of the pandemic. At this time last year, the rate was at 1.75%, falling from the prior year’s all-time high of 2.75%. As of this writing, it has dropped to .60%. Due to the many factors which could impact banking interest rates in the coming months, our projected revenue for the Interest Income line is lowered again this year to just $10,000, a 44% decrease from the prior year.
We continue to reduce the projected income for Fines and Fees. Since April of 2020, CCRLS adopted a new system of automatic renewals of library materials. This greatly reduced library overdue fine revenue for all libraries in the cooperative. Because of the pandemic, due dates for materials continue to be flexible, and we anticipate that this will be the case until most libraries in the consortium – and especially Salem – are running more regularly. Fees for lost or damaged items will continue.
The District's Beginning Fund Balance includes the prior year's Unappropriated Ending Fund Balance, which allows the District to meet its financial obligations during the first four and one half months of the fiscal year before any of the current year's tax payments are received in mid-November.
Also included in the Beginning Fund Balance are those funds Reserved for Future Expenditures. These reserves were created as a result of a bequest from the estate of Inez Green and have been augmented occasionally by unexpected State Timber Lands income and by Board decisions, primarily regarding salary expenditures for raises and increased service hours. These bequest monies are unrestricted.
This budget proposal assumes that the District will levy its full permanent rate of $0.5748 per thousand dollars of assessed valuation.
REQUIREMENTS:
Overview
Requirements for FY 2021-2022 are slightly less than FY 2020-2021. The primary factors around the decrease are due to the retirement of a couple of long-term employees, no major building maintenance projects beyond the planned obsolescence of one to two of our aging HVAC units, and a bit less in in-person programming as the pandemic still impacts our program area. In the budget before you, there is a slight decrease for Personnel costs. The Materials budget is static and the Operations/Services budget is slightly decreased.
Personnel Services
In the proposed budget for 2021-2022, there is a decrease of around one percent in salaries. This is due to the retirement of two longtime employees late last fiscal year, plus the slight reduction in overall workforce hours from FTE 12. 1 to 11.9. Salary increases in this budget are from the annual step wage increase with no additional cost of living increase requested. However, this budget proposes that employees in the Circulation Department receive a fifty cent per hour increase in their wages. With the gradual increase of Circulation wages, the District continues working towards its goal of having entry level jobs that are competitively attractive for the skilled labor that is needed.
Workers Compensation costs for the District have remained stable.
The Social Security line includes the District's assessments for both Social Security and Medicare and is based on the relevant percentages of the Salaries line.
The amount budgeted for Group Health reflects the "not-to-exceed" rate increases announced by our insurance provider for 2021 and current levels of staff participation. This rate is to be contained within a 7% increase for 2021-2022.
The District's overall billing for the PERS retirement system for FY 2020-2021 was 21.06% based on gross payroll amounts for all eligible staff. The PERS employers' rates have increased, with the new rate being 21.35% for the current biennium.
Materials & Services
Most of the line items in this portion of the budget remain stable and reflect current expenditures although due to COVID-19, some expenditures have been pushed from the current budget year to the proposed budget year.
Within the Materials section, the lines for Books, AV, and Microforms remain unchanged. The Electronic Media and Periodicals lines are slightly higher to reflect increases in costs from the vendors.
Building Maintenance is slightly lower this year. There are still five HVAC units that are 24 years old, and will need replacement over the coming years. One total unit and half of another unit failed this year and we anticipate this trend continuing until most or all units are replaced over the next few years. As such, the Building Maintenance budget reflects the anticipated replacement of two more units should they fail during the year. The Minor Equipment and Furnishings line includes expenditures for the replacement of computers nearing obsolescence, as well as for a microfilm reader hardware and software upgrade. This past year, the money that was set aside for the microfilm machine upgrade was used instead to improve the air quality and safety in the building with UV filtration equipment. Repair and maintenance of plumbing and electrical systems are ongoing processes as the building systems age and experience the wear and tear of public use.
Other line items that show decreases include, Postage, and Gas/Electricity. The electric bill decrease is due to switching to LED lights through the SmartWatt program. We anticipate further electricity bill reduction gas as a result of the installation this year of free smart thermostats from a PGE program. Our Conference and Training, as well as Travel line items are decreased as we anticipate another year of largely online conferences that are often lower cost than when attended in-person. Postage continues decrease as we conduct more communications online. The Children’s Program line is decreased to reflect that there are fewer in-person programs this year.
One operating expenditures that increased is that of Contractual Services. The hiring of a consultant for a Strategic Planning process was to take place during fiscal year 2020-21. That project has been pushed to the proposed budget year as the desire was to have the two new Library Board members involved, and also to have a better idea of what post-pandemic library services might look like. Consultant fees have risen somewhat.
The Miscellaneous line item has dropped for the year as the proposal of having a mural from the Silverton Mural Society was interrupted both by the pandemic and the passing of the Society’s founder, Vince Till. We hope to revisit that project in our next budget.
Elections for two positions to be filled on the District's Board of Directors is held in May, every two years. Billing for the District's share of the Election Expense is usually not received until after June 30, but funds have been budgeted and included in the appropriation each year to ensure their availability if the bill is received in either fiscal year. Two positions are up for election in May of 2021.
Contingency
The amount in the Contingency line of the budget is for the purpose of appropriations, so that these funds would be readily available for transfer, by Board resolution, to the appropriate budget line for expenditure in the event of unforeseen expenses, such as the failure of several HVAC units at once or other emergencies impacting library facilities or services. State law limits the amount that can be transferred from Contingency to 15% of the total appropriation in the operating fund, and these funds can only be transferred to an existing appropriation.
Other Requirements
The 2021-2022 proposed budget also includes two categories comprising unappropriated funds, which cannot be spent in the fiscal year without adoption of a supplemental budget or a declared emergency situation.
The first of these is Reserved for Future Expenditures. The funds in this line are primarily from bequest funds, as well as from receipt of State Timber Lands income, which—as mentioned above – is both variable and intermittent, and from conservative fiscal management of available income. The existence of these funds has provided for added service hours, funded equipment purchases and cushioned the impact of PERS rate increases. The District intends to continue using the funds in this line over a number of years for purposes related to both infrastructure maintenance and service enhancements.
Finally, the standard Unappropriated Ending Fund Balance reserves funds for meeting the financial needs of the District during the first third of each fiscal year – before that year's tax revenues begin to be received – without the use of a tax anticipation loan, which would incur interest and processing costs for the taxpayers. Funds are also maintained in this line to ensure coverage of the deductible amounts on the District's flood and earthquake insurance coverage, should there be major damage to the Library building and/or contents.
SUMMARY:
The intent of this proposed budget is to support current and developing programs and services for library users of all ages; to refresh and revitalize the Library's materials collection, both physical and electronic; to plan for, implement, and support evolving technologies; and to provide for the maintenance, repair, and replacement – as needed – of the Library's physical infrastructure elements.
The proposed budget calls for the District to levy property taxes at it permanent rate of $0.5748 per thousand dollars of assessed valuation.
