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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 08/09/2005 - ALTERNATIVE FUNDING OPTIONS FOR LIBRARY SERVICES DATE: August 9, 2005 WORK SESSION ITEM STAFF: Marty Heffernan FORT COLLINS CITY COUNCIL Brenda Carns SUBJECT FOR DISCUSSION Alternative Funding Options for Library Services. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Is Council interested in alternative funding for library services through the possible formation of a Library District or a Library Authority? 2. Does Council have a preference between a Library District and a Library Authority? BACKGROUND In 2000 Latimer County discontinued funding library services for County residents. Since 1968, the County had provided the City with a small amount of annual funding to provide library services to residents in unincorporated areas of the County. At a study session in September of 2002, City staff, the Library Board and the Council discussed the funding needs of the library and options for securing library funding from residents in the unincorporated areas. The Council directed staff to work with representatives from the County, and other libraries in the County, to discuss the possible creation of a library funding district or authority. In 2003 City and County staff met to explore the idea of creating a library funding authority and library staff met with their counterparts at other area libraries. There was general agreement that all interested parties should meet to explore all alternative funding sources for library services. In 2004 the City convened the Alternative Library Funding Task Force, comprised of staff and other representatives from the County and from cities with municipal libraries in the County (Fort Collins, Loveland, Wellington, Berthed and Estes Park). The Task Force met on three occasions and explored a variety of alternative funding sources. These included: a regional library authority; a library district; a local dedicated tax for library services; a fee for library services; and increased general fund support for libraries. The Task Force concluded that the most effective method of securing stable, long-term funding for library services was through a library district or a library authority. The need for additional funding for library services and an explanation of how this need can be addressed through the creation of a Library District or a Library Authority is set forth in the attached PowerPoint slides. August 9, 2005 Page 2 ATTACHMENTS 1. Alternative Library Funding Options Chart 2. Presentation Slides Staff presentations for Work Session items have been video taped in advance of this meeting. The presentations will be broadcast on City Cable Channel 14 at the following times: Thursday,August 4 7:00 p.m. Monday,August 8 7:00 a.m. & 12:00 noon Saturday,August 6 9:00 a.m.& 8:30 p.m. Tuesday,August 9 4:00 p.m. Sunday,August 7 9:00 a.m. & 8:30 p.m. Videos of the presentations will also be available via a high-speed internet connection at www.fcgov.com by 5:00 p.m.,Friday,August 5. ATTACHMENT ALTERNATIVE LIBRARY FUNDING OPTIONS LIBRARY DISTRICT REGIONAL LIBRARY AUTHORITY Authorized by State Law (CRS 24-90-1 77) Authorized by State Law (CRS 24-90- 110.7) Over 40 Library Districts in Colorado No Library Authorities have been created in Colorado Funded through voter approved property Funded through voter approved property tax tax, sales tax (or combination of both taxes) Can be formed by legislative action of the May be formed by any combination of two City or the County(or by the City and or more governmental units (i.e., City and County together) or by a petition(signed County) by 100 or more voters) submitted to County Commissioners Requires approval of majority of voters New tax revenue requires approval of residing in the District boundaries (at the majority of voters residing in the Authority earlier of the State general election or at the boundaries (at a State general election or election held on the first Tuesday in the election held on the first Tuesday of November of odd-numbered years) November in odd-numbered years) Boundaries can be County-wide or smaller. Boundaries may be County-wide or a portion of the County but must include the entire area of any municipality forming the Authority Existing Districts (Estes Valley, Red Existing Library Districts (Estes Valley, Feather Mountain) and government units Red Feather Mountain) and governmental with libraries (Loveland, Berthoud, units can be excluded or can "opt-out"of Wellington) can be excluded or can"opt- the Library Authority out" of the new District District boundaries could be defined by Authority boundaries could be defined by Poudre School District boundaries the Poudre School District boundaries Board of trustees governs the District (not Board of directors governs the Library the Commissioners or the Council) Authority Board (of 5 or 7 trustees) is appointed by a Make up of the board is determined by the committee comprised of 2 people selected participating governmental units through by each governmental unit forming the the intergovernmental agreement creating District the Authority The board adopts and appropriates its own Purpose and scope of authority is budget determined by agreement between the governmental units forming the Authority May exist solely to collect and distribute tax revenues to existing libraries in the Authority boundaries Owns (or leases) and operates and Does not require a change in the ownership maintains the District libraries or governance of existing libraries Must secure support services (maintenance, Existing libraries can utilize municipal legal, HR, financial) support services (maintenance, legal, HR, financial) Library staff are typically employees of Library staff can remain employees of the the District City 8/l/05 ATTACHMENT ALTERNATIVE FUNDING OPTIONS FOR LIBRARY SERVICES August 9, 2005 City Council Work Session Fort Collins Public Library - Born out of a love of reading and the belief that free access to information is the foundation of democracy h 1 CarnegieThe • , built in 1904, thanks to the effortsof • of concerned Iq B That 1 A • the foundation • • • heavily • library � ISM IJ tJf .J1Jv �11IJ .\.. A; .. LN Demand has again outpaced the City's library resources... In 2004 there were ■ 2,021,353 checkouts ■ 924,002 "in-house" facility visits • 1.6 million online "external" visits Fort Collins Library staff are the most efficient in the state, and deliver services more cost effectively than any other Colorado public library serving 100,000+... ®Fort Collins Cost per visit ElWestminster .00 ElPPLD(Colo.Spgs) $9$ .00 ®Douglas Co.Lib.District $6.00 ■Denver $7.00 ❑Aurora $6.00 ■Pueblo City-Co.Lib.District $5.00 $4.00 ❑Rangeview Lib.District $3.00 ■mesa Co.Lib.District $2.00 A $1.00 ❑Weld Library District $_ ■Arapahoe Lib.District ®Jefferson Co. 2 ... and the cost per item circulated the lowest of any Colorado public library serving 100,000+ More staff, facilities and services are needed to serve 158,000 Fort Collins area residents Despite 12 Spring break puppet shows with nearly 1,600 participants, or 106 at each show, 320 were turned away because of fire code restrictions. 7,265 teens and children participated in summer reading, an increase of 14% over 2003 There was also a 25% increase in teen participation between 2002 and 2004 3 Circulation per Capita ®Arapahoe Library District o Denver(City) 25.00 ❑Fort Collins(City) D Douglas Library District 20.00 ■Westminster(City) D Pikes Peak Library District 15.00 , ❑Jefferson County t 10.00 ■Pueblo Library District ■Mesa Co.Library District 5'QQ • ❑Weld Library District to Aurora(City) 0.00 ❑Rangeview(formerly Adams Co) Per Capita Spending M Arapahoe Library District D Douglas Library District $100.00 ❑Denver(City) $90.00 ❑Weld Library District $80.00 ■Jefferson County $70.00 $60.00 D Pueblo Library District $50.00 ❑Pikes Peak Library District $40.00 ■Fort Collins(City) $30.00 ■Mesa Co.Library District $20.00 $10.00 ❑West r roster(City) $_ •' ❑Aurora(City) ❑Rangeview(formerly Adams Co.) 4 Fort CollinsFrom 111 11 ,. 2001 2002 ,. Circulation —Population Library Budget ■ Circulation of Library materials increased 26.3% ■ Population served increased 5.6% ■ Library Budget increased 3.9% K In 2005: ■ 116,807 Library cardholders regularly use the Library ■ About 15,000 cardholders live outside of Fort Collins 5 Alternative Library Funding Options • Library District . Regional Library Authority Library District . Authorized by State Law (CRS 24-90-107) . Over 40 Library Districts in Colorado . Funded through voter approved property tax 6 Library District . Can be formed by legislative action of the City or the County (or by the City and County together) or by a petition (signed by 100 or more voters) submitted to County Commissioners . Requires approval of majority of voters residing in the District boundaries (at the earlier of the State general election or at the election held on the first Tuesday in November of odd-numbered years) Library District . Boundaries can be County-wide or smaller . Existing Districts (Estes Valley, Red Feather Mountain) and government units with libraries (Loveland, Berthoud, Wellington) can be excluded or can 'opt-out" of the new District . District boundaries could be defined by Poudre School District boundaries 7 Library District . Board of trustees governs the District (not the Commissioners or the Council) . Board (of 5 or 7 trustees) is appointed by a committee comprised of 2 people selected by each governmental unit forming the District . The board adopts and appropriates its own budget Library District . Political subdivision of the State . Owns or leases the library facilities within the District ■ Operates and maintains the District libraries . Library staff are typically employees of the District 8 Library Authority . Authorized by State Law (CRS 24-90-110.7) . No Library Authorities have been created in Colorado . Funded through voter approved property tax, sales tax (or combination of both taxes) Library Authority . May be formed by any combination of two or more governmental units (i.e. city and county) . New tax revenue requires approval of majority of voters residing in the Authority boundaries (at a State general election or the election held on the first Tuesday of November in odd-numbered years) 9 Library Authority . Boundaries may be County-wide or a portion of the County but must include the entire area of any municipality forming the Authority . Existing Library Districts (Estes Valley, Red Feather Mountain) and governmental units can be excluded or can 'opt-out" of the Library Authority . Authority boundaries could be defined by the Poudre School District boundaries Library Authority . Board of directors governs the Library Authority . Make up of the board is determined by the participating governmental units through the intergovernmental agreement creating the Authority 10 Library Authority . Purpose and scope of authority is determined by agreement between the governmental units forming the Authority . May exist solely to collect and distribute tax revenues to existing libraries in the Authority boundaries . Authority may own and operate libraries within the Authority boundaries Library Authority • Does not require a change in the ownership or governance of existing libraries . Existing libraries can utilize municipal support services (maintenance, legal, HR, financial) . City can continue to own and operate its libraries . Library staff can remain employees of the City 11 Funding . District and Authority both provide a dedicated, independent source of funding for library services . Funding could be used to improve library services and for new libraries and associated O&M Funding . Funding could be used to replace some or all of the 3.7 million dollar Library General Fund Budget . Using funding to pay for services now covered by the General Fund may make it harder to get voter approval for a Library District or Authority 12 Funding . Quarter cent sales and use tax generates approximately 5.6 million dollars annually at a cost per resident of $34.11* . One mill of property tax generates approximately 1.5 million dollars annually at a cost per median home of $17.60* *Based on a District or Authority with the same boundaries as Poudre School District excluding the City of Wellington and Red Feather Mountain Library District 13