Date: June 16, 2006
To: RCPL Board of Trustees Finance Committee
From:
Re: 2007 City Budget Adjustments
Date: June 16, 2006
To: Greta Chapman, Terri Davis
From:
Re: 2007 City Budget Adjustments
In recent conversations with City Finance, we were alerted that our original 2007 budget request was approximately $78,000 outside of the 3% operational increase cap. Through research, Library staff was able to determine that the true discrepancy was $43,027. The following is a brief explanation of factors that caused the error and need to rework budget numbers.
- Throughout the budget planning process, several drafts had been presented to City Finance staff. Unfortunately, the final version wasn’t forwarded to the correct person so Finance was working from out-dated data. The Library will now forward all budget information directly to Coleen Schmidt in City Finance.
- Additionally, Library staff was not informed until 6/14/06 that two additional budget line items were not to be included in operational cost calculation:
· Line item 4226 – Interdepartmental charges
· Line item 4262 – Gas, Oil and Fuel
However, since these two line items were included in the 2006 calculations as well as the 2007 calculations, their inclusion had a very small effect on the amount in question.
- Finally, the Library had an incorrect formula in the final spreadsheet, which resulted in a discrepancy of $39,900.
- Clarification of terminology:
- The term “cut” refers to a decrease in funding from 2006. Total cut: $8,500.
- The term “reduced” refers to an amount that is an increase over 2006, but has been scaled back from the original 2007 budget figures. Total reduced: $30,900.
Given these factors, the budget did need to be reworked to take out $43,027 and move those items into the unfunded requests for 2007. Due to a difference in rounding of percentages; the total “reduced and cut” does not fully equal $43,027. It is a slightly lower amount but does place us within a 3% cap of operational budget increase. The revised budget affected the following line items (ranked in order of most affected):
- 4295 Computers & Software – reduced by $26,500 from original request; still $8,500 increase from 2006
- Impacts Library services -- 2 new self-check machines will be listed as an unfunded request. The Library will be asking for one-time purchase request funding since machines are upgradeable.
- 4296 Office Equipment – reduced by $4,150; still increase of $444 from 2006
- Slightly lower than anticipated replacement costs, but Space Use funding could help diminish this affect on services.
- 4270 Travel/Training – cut $2,000 – decrease of $2,000 from 2006
- 4294D Other Miscellaneous Programming – cut $2,275; decrease of $2,275 from 2006
- Historically this line item has not been fully expended.
- 4225E Programming Services – cut $2,000; decrease of $2,000 from 2006
- Historically this line item has not been fully expended.
- 4223 Consultant Services – cut $1,500; decrease of $1,500 from 2006
- Historically this line item has not been fully expended.
- 4265 Minor Tools – cut $500; decrease of $500 from 2006
- Anticipate not requiring as many tools purchased in 2007.
- 4230 Publishing – reduced by $250; same as 2006
- This is neither an increase nor a decrease and should meet the publishing needs for 2007.
- 4292 Dues – cut $500; decrease in $500 from 2006
- Historically this line item has not been fully expended.
In 2001, the Library converted several temporary positions to City funding. The Library agreed to supplement the City budget by $26,000 per year from the Library Board Funds account. However, to date, the City is also allocating funding for these positions. At this time, the City will not be rescinding those funds from the City budget as they have already been calculated in salary projections.
At this time, Library staff feels confident in the budget request and has coordinated directly with Coleen Schmidt to make any required corrections.
EQUAL
OPPORTUNITY EMPLOYER