Date: April 5, 2006
To: RCPL Board of Trustees
From:
Re: April Budget Narrative
Date: April 5, 2006
To:
From:
Re: April Budget Narrative
In review of this month’s budgetary reports, there are a few line items that need further explanation. The Library estimates spending approximately 8.3% of it’s budget on a monthly basis. So to begin April, we should have spent approximately 24.9% or (8.3 * 3). To date we have spent 25.70% of the City budget, 23.91% of the County budget and 8.3% of the Library Board Funds budget.
City Budget Review
- 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 85% percent of this budget line item and are only within the first quarter of the year. While this is alarming, it’s important to note that spring is arriving and our need for natural gas to heat the building will decrease tremendously in the near future. 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.
- 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 chose to bump up the timeline on replacement of the four drives on the air handlers to capitalize on energy savings and minimize wear and tear on parts and motors. This will provide will a long term cost savings in this line item. We don’t anticipate any additional large expenses from this line item this year.
- 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.
Because of the delay in receiving the supplemental
appropriation from the City, a spreadsheet has been created to reflect accurate
County spending. This spreadsheet is a
combination of the budget report we receive from the City’s Accounting system
and the budget that was approved by the Board during the January 2006
meeting.
- Line item 4261A – Office Supplies/Library Cards – While this line item appears to be overspent, it in fact is not. For budget planning purposes, the Library separates out this line item into four categories:
4261A- Office Supplies/Library
Cards
4261B - Printing
4261C - Book/AV Processing
4261D - Postage.
- However, the City has only the capability to input a four-digit code into their system, so they are unable to accommodate our 5 digit code. Therefore, the reports we receive from the City will not differentiate between these fields until we go live on the new system in the fall of 2006. At this time, these four line items total $15,950 and we have expended $5,318.88; which is about 33.34%.
Library Board
Funds Review
Again, because of the delay in receiving the supplemental appropriation from the City, a spreadsheet has also been created to reflect Library Board Fund spending. 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.
- Line item 4225D – Other services (Consultant) – This figure represents the invoices paid to date for the Space Use Consultant.
- Line item 4350 – 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 don’t seem to follow a pattern at this time.
EQUAL
OPPORTUNITY EMPLOYER