Library committees to consider finance tweaks in response to Village ...

Glenview library officials didn?t seem eager at a recent meeting to accept financial recommendations from the village board, but two committees will consider the issues.

Library Board President M. David Johnson said that although he didn?t necessarily agree with the village trustees? recommendations, which they made Oct. 18, he also didn?t want to sour the relationship between the two governing bodies.

?I don?t want to create an overly unfriendly situation between us and the village,? Johnson said.

Although the library board approves the Glenview Public Library?s budget ? its spending plan for the year ? the village board must approve the library?s tax levy ? the amount of taxpayer dollars requested for a given year.

Library officials in September approved a $6.8 million spending plan. Expenses for 2012 were projected to be 6.3 percent greater than what was budgeted for 2011 and possibly 10 percent more than year-end projections.

They also requested a 0.78 percent levy increase over the current year?s tax collection, just enough to collect taxes on new properties, and a greater increase in its debt service levy. That money would be collected to make mandatory payments on debt accumulated to build the new library in downtown Glenview.

But some village officials, including President Kerry Cummings, objected to some new expenses, including new hires to help with operations and security, and what they saw were a lack of efficiencies in the budget.

They asked library representatives to consider using a potential budget surplus to offset a contribution from the village?s permanent fund for debt service and to rethink a Library Board reserve fund policy to be more in line with the village?s.

?They?re a village board, not a library board. They don?t know how a library works,? Johnson said. ?I understand their position. ? But to commit the taxpayers of Glenview to repay $26.3 million of debt and say they can?t use the library ? that?s just not right.?

Johnson said the library has tried to be as efficient as possible. Staffing was kept at the same level this year, even though the library was in a much larger space. Every new position recommended for next year was carefully considered, said Library Director Vickie Novak.

Some employees who were grandfathered into the library?s 100 percent health care coverage will now have to contribute 15 percent, Johnson said. Plus, he added, full-time staff recently forfeited two personal days per year.

?It?s not like we?re not addressing the issues,? he said. ?We?re not here to eliminate taxes. We?re here to take taxpayers? money and spend it as efficiently as we can. At some point, it?s like shooting ourselves in the foot.?

Johnson said two library committees should take a look at the board?s fund balance policy, which recommends keeping reserves between 40 and 50 percent of budget. Novak said the policy was conceived so the library would have money for paying bills while waiting for tax revenues.

If the library were to use some of its projected surplus to abate the village?s permanent fund contribution to debt service, the library?s reserve funds would fall below 40 percent of budget by the end of next year, officials said.

Library Trustee Ellen Scholly questioned the need to rethink the fund balance policy just because it might fall below target next year.

?We don?t necessarily meet the policy every time,? she said.

Though the library has come up short of its reserves goal in past years, it never intentionally tried to do so, Johnson said. Abating the village?s debt service contribution would amount to the library purposefully drawing down its reserves, and therefore, the board should reconsider its policy, he said.

Scholly and Johnson also criticized the village board for moving up the traditional date of the library?s budget presentation from November to October. Scholly said village officials seemed to have no issues with the library?s finances during preliminary budget discussions.

?I agree,? Johnson said.

The Library Board did not take action, because doing so would have been in violation of open meetings laws. But with the next village Board meeting scheduled for Nov. 1, time is tight for library officials to come to an official decision.

Library staff needs time to assemble data to present to the committees, and the full Library Board must meet to hear the committees? recommendations, Johnson said.

Johnson said he would be contacting Village President Cummings on Friday to say the village?s target dates ?aren?t realistic.?

Source: http://triblocal.com/glenview/2011/10/21/library-committees-to-consider-finance-tweaks-in-response-to-village-board-concerns/

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