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Date: December 6, 2006
To: RCPL Board of Trustees
From:
Re: November Budget Narrative
Date: December 6, 2006
To:
From:
Re: November Budget Narrative
I. City budget line items of interest
a. 4118 Temporary Wages
b. 4225 Other Professional Services
c. 4230 Publishing
d. 4252 Repair Equipment
e. 4253 Repair Equipment
f. 4295 Computers and Software
g. 4320 Building and Structures
h. 4350 Furniture & Minor Equipment
i. 4410 - Principal
II. County budget line items of interest
a. 4295 Computers and Software
III. No new Library Board Fund budget items of interest
IV.
Previously discussed
City Budget line items no new information
V.
Previously discussed
VI.
Previously discussed
Library Board Fund budget line items no new information
The Library estimates spending approximately 8.3% of its budget on a monthly basis. To begin November, we should have spent approximately 91.3% or (8.3 * 11). To date we have spent 89.19% of the City budget, 94.54% of the County budget and 53.87% the Library Board Funds budget.
2006 End of year
projections
- City: The library is projecting turning back approximately $50,000. This is about 2.0% of the annual budget. The average turn-back is $43,000 or 2.29% annually.
- County: The County budget is estimated to have around $500 remaining at the end of year or .17% of the annual budget. The expectation for this budget is to fully expend annually as these funds do not carry forward to the next budget year.
- Board Funds: This balance will carry forward into 2007. Previously, the Board approved the Library to expend $50,000 in funding for space use renovations. At this time, the Library has fully expended the $50,000 in approved funding. The proposed 2007 budget outlines expenditures for future space use renovations/purchases.
I.
City budget
line items of interest
a.
Line item
4118 Temporary Wages Reimbursement of $26,000 from the Board Funds
budget will be supplemented back into this line item by the end of the
year. This funding amount was
established in 2002 with the transition of temporary non benefited employee
status to full time benefited employees. The financial impact was shared
between City and Board funds with the city percentage at 70% and library at
30%. This amount will be reflected in the budget report.
b.
Line item
4225 Other Professional Services This line item is over spent due to
the various vacancies throughout the year and the need to bring in temporary
help. Additionally, the increased construction
through the building with the addition of space use projects has created a need
to hire some additionally temporary janitorial help on occasion. However, this line item will have $3,746.50
supplemented back into it by the end of the year due to the reimbursement of
SDLN charges from
c.
Line item
4230 Publishing This line item is used for publishing advertisements
for vacancies throughout the year or outsourcing printing and publications for
the library. Currently, the Library is
having great success posting vacant positions on listservs and other online
sites. Most of the sites used do not
charge a fee for posting which has decreased expenditures in this line item for
the year. While we still outsource some
printing, the need has been lower this year than expected. This line item will be reviewed during the
2008 budget planning process.
d.
Line item
4252 Repair Structures The Library has been able to complete all of
those projects and all invoices will be accounted for by the end of the
year.
e.
Line item
4253 Repair Equipment Some of the approved end of year projects
required maintenance of existing equipment.
Those repairs have been made and will be reflected in the end of year
totals.
f.
Line item
4295 Computers and Software Reimbursement of $10,671.57 for the Gates
Staying Connected Grant will be supplemented back into this line item by the
end of the year. This is not currently
reflected in the budget report.
g. Line item 4320 Building and Structures (Capital Outlay) The $20K requested as a supplemental appropriation from 2005 funding has now been loaded into the 2006 budget. This amount was requested to be used to for the acoustics remediation project. This amount will be moved forward to the 2007 budget. The CIP Committee has tentatively approved the project as a whole pending end of the balance in the CIP budget.
h.
Line item
4350 Furniture and Minor Equipment (Capital Outlay) The purchase of the
3M Self Check machine that was bid in August has been invoiced and
processed. Since the purchase amount was
over $5,000, the item is accounted for as a fixed asset and therefore processed
out of a capital outlay line item. The
funded was projected in the computers and software budget for the year.
i.
Line item
4350 Principal The City replaced the Librarys Automated External
Defibrillator machine this year. The
Finance office is processing payment for these machines and has processed it as
an encumbrance at this time. Additional
payment information will be forthcoming from Finance.
II.
County
budget line items of interest
a.
Line item
4295 Computers and Software This year due to the replacement of the
computer lab in the City budget, there was an increase in software licenses
required. This has increased this line
item but has been accounted for with end of year projections.
III.
Library
Board Fund budget line items of interest
The second tab of the Board Funds budget document outlines space use expenditures. As previously mentioned, the $50,000 approved for space use expenditures has now been fully expended. The 2007 budget, reflects the continuation of space use projects as outlined within the budget.
IV.
Previously discussed City budget line items no new
information
a.
Line item 4111 OT wages Many of the projects for the space use stack
re-configuration required hourly staff to work longer shifts when the library
was closed in order to keep the library in a functional state for the public
during open hours. Preparation for and
working the SDLA conference also increased the amount spent in this line
item. Since the conference and the
initial space use project have been completed, we anticipate minimal overtime
charges throughout the remainder of the year.
This overage has been accounted for in end of year projections.
b.
Line item 4118 Temporary Wages In years past, the Library Board and the City Council
agreed that the Board Funds budget would supplement the City budget to cover
the cost of temporary wages by $26,000 annually. The supplemental appropriation documentation
has been sent forward to City Council for their October meetings to transfer
these funds. The amount will be added
into this line item by the end of the year leaving a remainder in this line
item.
c.
Line item 4111 Overtime Wages Line item 4211 -
General & Auto Liability This was budgeted at $6,832 while actual
expenses are $12,437. This amount is
based on premium information received for the current year for the entire City
of
d.
Line item 4225 Other Professional Services The cost for SDLN, Minitex/OCLC and other professional
services are taken from this line item.
Historically, Rapid City Public Library has paid the entire cost for all
three county libraries usage and was reimbursed by the other libraries. This year, the reimbursement totals
$3,746.50. This will be supplemented
back into this line item by the end of the year. Professional services have also been higher
than originally anticipated due to space use planning and implementation. This line item will go over by years end but
the overage has been accounted for in end of year projections.
e.
Line item 4244 Lease/Purchases Due to a misunderstanding between the Library staff and
City Finance, the amount budgeted for this year was approximately $6K short. Background
information: Ten years ago, the City began an energy
conservation plan with Johnson Controls, which will be completed this
August. Since the plan expires mid-year,
the Library staff was under the impression that the cost would only be for part
of the year and therefore budgeted half of the yearly amount. However, the City took out a loan for this
program 10 years ago and set the yearly payment amount to cover 10 years. This means that even though the coverage is
only good through August, we are required to make a full last installment on
the loan. Additionally, there are a few leases
that will be renewed throughout the year, so this line item will continue to rise
slightly each month. When reviewing the
entire budget at the bottom line level, the savings seen in line item 4110
Salary and Wages should still off-set these additional costs.
f.
Line item 4246 Other Rentals The parking lot contract has been paid for the remainder of
the year. Any further expenses in this
line item will be paid from the County budget.
g.
Line item 4251 Rolling Stock This is a line item that had previously not been used by
the Library. According to City Finance,
we are to use this line item when purchasing parts for the two library
vehicles, such as oil filters, etc.
Historically, we had used line item 4262 Gas, Oil, Fuel for these
small purchases.
h.
Line item 4252 Repair Structures As previously explained, this line item includes the
$39,900 encumbrance for our carpet replacement.
Additionally, earlier in the year there was a misunderstanding of how to
read the budget reports between the Business Office and City Finance, and it
appeared that there were some extra funds within this line item. We have since determined that is not the
case. But with that in mind, we went
ahead and took care of the scheduled maintenance of various items throughout
the building during the first quarter.
Most of the work was preventative and scheduled. We dont anticipate any additional large
expenses from this line item this year.
i.
Line item 4253A Repair Structures Provided is a list of reasons this line item will go over
for the year.
·
Earlier this year, the
main air handler drive and motor went out and needed replaced. The equipment was quite old but was not
budgeted for replacement in this budget year.
However, we were forced to replace it due to inoperability.
1.
Additionally, the
two air handlers run together and will not regulate air temperatures properly
if they are on two different systems.
Due to this, both air handlers needed to be replaced. This unexpected expense totaled about
$8,500.
·
In July, we had to pay
two sizable invoices to Action Mechanical:
1.
$2442 for work
accomplished in 2004 that had been invoiced incorrectly. Apparently through inconsistent collection
efforts from the vendor and incomplete information provided to City Finance;
they were unable to determine which department should be billed. After investigation, it was determined that
is was an invoice due to the Library for work done at the end of 2004 to flush
and clean the heating and cooling system.
2.
$4361 for replace two
of six chillers of the air conditioning system.
The chillers were under warranty but the labor to replace them was
not. Due to the use of the building and
hot temperatures in the area; we were not able to sufficiently cool the
building without all six chillers operating at full strength without straining
the remaining compressors. Therefore,
the chillers had to replaced while they were still under warranty.
j.
Line item 4262 - Gas, Oil, Fuel In 2005, there was an oversight in payment of the gas
bills from June December. This mistake
was caught and corrected in February and therefore we have essentially
overspent this line item. Additionally,
we now have two city vehicles that require fuel and maintenance.
k.
Line item 4263 - Clothing, Food We did not include a separate amount in our projections
for this line item originally but had planned for $500 in spending of uniforms
and safety boots as required for our union members. These funds were included in the line item
4294 Other Miscellaneous Expenses, but upon review from City Finance were
deemed to be taken out of line item 4263.
l.
Line item 4264 Janitorial & Chemical Supplies Last year, we
had implemented some changes in hopes of a cost savings in supplies for the
building. For example, automatic paper
towel dispensers and acquiring more multi-purpose cleaners to avoid stocking a
variety of cleaning supplies. However,
these items have proved to not be a cost savings for the building due to
increased usage and increased hours of operation. Therefore, this line item had been reduced
and will most likely be overspent this year.
We are still looking for further efficiencies and ways to lower costs in
this line item in order to remain within our budgetary guidelines. We also have funding available in County
funds for this line item.
m.
Line item 4282 Natural Gas - Due to the recent jump in natural gas prices, we have seen
a spike in our costs. To date, we have
expended 134.19% of this budget line item.
Our need for natural gas to heat the building has decreased with the
summer months. However, we could see a
rise again in October or November. In
speaking with the City Finance office, this will likely be a problem all City
Departments will face this year and this will be an item up for discussion as a
supplemental appropriation in October pending availability of funds. This concern is being reviewed for our 2007
City budget planning process as well.
n.
Line item 4341 General Materials As previously explained, the Library had been paying all
invoices for materials out of 4341 General Materials until expended and then
moved on to 4342, etc. However, in
conversations with City Finance, from an auditing standpoint, we are unable to
do that at this time. If we want to use
all four line items, we must split each invoice out and have each material
billed to its appropriate budget line.
Since we already do that in our acquisitions system, it would be
duplication and inefficient to do again in the accounting system.
·
City Finances
recommendation was to pay all materials out of 4341 General Materials for the
year. This line item will be overspent
by the amount equal to the other three line items by the end of the year.
·
For 2007, these four
line items have been collapsed into one line item 4341 General
Materials. Therefore, this will not be
an on-going issue in future budget cycles.
V.
Previously discussed County budget items no new
information
a.
Line item 4261 Office Supplies The materials and postage for the letters to county
residents was paid for out of this line item.
The Library purchased envelopes, labels, paper as well as the postage
cost for this mailing to 9,000 residents.
Additionally, partial costs of library cards ordered will be paid from
this line item.
b.
Line item 4264 Janitorial/Chemical This line item was reduced for this year due to some
efficiency implemented by facilities staff in 2005. However, due to increased usage of the
building, the efficiencies implemented were not great enough to out weigh the
cost increase. This line item will
continue to be overspent throughout the year as needed to maintain the building
cleanliness and supplies. The city
budget is also overspent in this line item.
c.
Line item 4281 Telephone These expenses are paid from City and County funds. Periodically through the year, we pay all or
partial phone bills out of the
d.
Line item 4341 General Materials Similarly materials are distributed between both budgets
throughout the year. We have spent about
87% of the County budget but only about 95% of the City budget. We have slowed our spending in this line time
in County funding but will not overspend these line items in either budget.
e.
Line item 4296 - Office Equipment/Furniture This line item is currently budgeted at $5,000 this year
and we have expended $7,856.33. This
amount was moved from our 2005 budget to 2006 due to a miscalculation in our
close-out of 2005. We will not be
incurring any additional expenses in this line item during 2006 due to this discrepancy.
VI.
Previously reviewed Library Board Funds budget items no
new information
This
budget is quite under spent for the year.
This is primarily due to the fact that part of these funds will be used
to implement the Space Use plan once completed.
Additionally, part of these funds will be used to supplement temporary
wages as needed throughout the year.
a.
Line item 4225 Other Professional Services This cost for cutting apart the public services desks has
been processed for payment. The total cost
for this service was $3,610.80.
b.
Line item 4225D Other services (Consultant) This figure represents the invoices paid to date for the
Space Use Consultant.
c.
Line item 4252 Repair Structures - The following
explanation can best be understood by viewing the second tab of the Board Funds
budget document and scrolling to the bottom of the document to the Upcoming
budgeted expenditures for Space Use section.
The original space use budget
recommendation included transposed numbers for trenching the floor, electrical
and concrete patching for the new technology training center and commons
area. Originally stated as $1700, but
should have been $7100. Currently the
Library is in the process of receiving quotes that are within the $7100
range. This expense should be on target
with the actual amount budgeted for this expense.
d.
Line item 4320 Building and Structures The flooring
for the coffee shop has been paid. Background:
The budget was originally proposed with the majority of funding for
the coffee shop in this line item. At
the time of budget submission, we were unable to determine what portion of the
expenses would come from each individual line item. Therefore, we used this as a placeholder for
the funding. However, this is a Capital
Outlay line item, which means expenditures must be over $5,000 in order to be
paid out of it. So far, the costs have
been less than $5,000 and have come out of 4252 Repair Structures.
e.
Line item 4530 Reimbursements (Friends of the Library and
Returned Books) Similar to the City and
County budgets, this line item houses two pieces of information, the
reimbursement of book sales and the refunds for materials. Since the City only has one code for us to
use, both of these items are included in the total paid to date. The Friends are simply a pass through cost
and returns for lost materials dont seem to follow a pattern at this time.