Date:   July 1, 2008

To:       RCPL Board of Trustees

From:   Greta Chapman

Re:       June 2008 Budget Narrative

 

Date:   July 1, 2008

To:       Greta Chapman, Director

From:   Terri Davis, Public Services Manager

Re:       June 2008 Budget Narrative

 

Date:   July 1, 2008

To:       Terri Davis, Public Services Manager

From:   Kimberly Hodgson, Administrative Assistant

Re:       June 2008 Budget Narrative

 

The Library estimates spending approximately 8.3% of its budget on a monthly basis and at the end of June should have 51% remaining in each budget. There is currently 58.91% remaining of the City budget, 58.71% remaining of the County budget and 73.35% remaining in the Board Funds budget for 2008.

 

Updated Information: IFAS reports are based on Year to Date Expenditures plus any Year to Date Encumbrances.  The Remaining Budget Balance and Percent Budget Remaining amounts reflect all outstanding Purchase Orders which are planned expenditures. However some of those expenditures have not yet been taken place, but the budgets reflect them as spent.  Percentages listed in this narrative, show accurate percentages based on the Total Year to Date Expenses compared to our Current Working Budget.

 

The following is a list of line items of interest for each budget:

 

I.       City Budget

  • 4230 – Publishing - 0% remaining
    • Due to the higher staff vacancies for the year, expenses in this line item have been greater than planned.  We will continue to have costs in this line item as the year progresses and will adjust expenditures in other line items to account for the cost through the end of year budgeting process.

 

  • 4250 – Repair & Maintenance - 9% remaining
    • The encumbrance amount of $8,226.37 for line item 4252 is incorrect due to an IFAS system issue.  The accurate encumbrance amount of $2,549.75 which leaves a 15% remaining balance in this line item.  The over expenditures in this line item has been previously explained as a clerical error for the 3M contract coming out of line item.  This amount will be accounted for in the end of year budget process.

 

    • Expenditures in the 4252 Repair Structures and 4253 Repair Equipment were higher than anticipated for the year to date due to painting and the air handler. The air handler required new tight seal dampers which were planned expenditures. However we were also required us to purchase new actuators, which was new information for us.  Additionally, the full service contract with Johnson Controls was re-instated for cost efficiencies after the 2008 budget cycle was approved. There was also a clerical error which deducted funds in the amount of $16,500 from the 4253 line item for the 3M contract. The $16,500 will be available from the line item that 3M contract was intended to come from for ongoing maintenance expenses for the remainder of the year. The remaining balance for facilities expenditures is $24,000 which we anticipate to cover expenses for the remainder of the year.  

 

  • 4341 - General Materials – 39% remaining
    • Due to the purchasing year ending in October, General Materials may be spent at a higher pace than the other expenditures.  We should be at 40% remaining with 10% of the budget being spent per month.  The encumbrance amount has not yet been paid to the vendors thus leaving a more accurate percentage of 39% remaining which is on track for the year.  

 

II.    County Budget

  • 4341 – General Materials – 41% remaining
    • Due to the purchasing year ending in October, General Materials may be spent at a higher pace than the other expenditures.  We should be at 40% remaining with 10% of the budget being spent per month.  The encumbrance amount has not yet been paid to the vendors thus leaving a more accurate percentage of 41% remaining which is on track for the year.   

 

III. Board Funds Budget

  • 4260 – Supplies & Materials – 32.56% remaining
    • Due to clerical error expenditures were taken out of the 4264 Janitorial & Chemical line item which was not budgeted for.  All remaining expenditures will be taken out of the city or county budgets. 

 

IV. Previously Discussed City Budget Items

·         4210 – Insurance – 49.12% remaining

o    These are fixed costs and we are on track for the year.

·         4220 – Professional Services – 82% remaining

o    The expenditures in this line item are high due to the first quarterly payment made to the South Dakota Library Network.  We are on track for expenditures in this line item for the year.

·         4230 – Publishing – 33% remaining

o    Due to vacancies related to the county contract, two employees transferred to city openings during negotiations, advertising for those vacancies have used funds from this line item.

·         4240 –  Rentals – 84% remaining

o    Maintenance and service contracts approved shall renew at the beginning of each calendar year thus increasing the expenditures in this line item at this time. 

·         4250 – Repair & Maintenance – 51% remaining

o    Johnson Repair maintenance contract has been signed as we have a January to December agreement.  Also, the 3M Self Check Machine contract came out of this line item as a clerical error.  The funds will be supplemented back into the appropriate line item by city finance.

  • 4270 – Travel & Training – 69.81% remaining
    • The costs for this line item are high due to conference travel and training for the staff and Board. However, because expenses for this line item have been budgeted for the entire year, expenditures are on track.

·         4290 – Miscellaneous – 59.21% remaining

o    The expenditures out of this line item include Dues, Other Miscellaneous Expenses, Computers and Software, and Office Equipment.  We have spent $205 out of $1,000 for dues for the year, which are planned expenditures and are on track for the year.  Other Miscellaneous Expenses are overspent by approximately $2,000 due to increased expenditures for expanded youth programming.  Computers and Software are also overspent by approximately $7,900 partially due to the purchase of CybraryN Software for RCPL North which allows for public log-ins for computer use, and also due to the purchase of planned computers and software earlier in the year than expected.  These purchases will also decrease within the next couple of months and the percentage spent will be on track within that same time frame. Office Equipment expenses are on track for the year.

·         4300 – Capital Outlay – 50.93% remaining

o    Expenses out of this line item that are over expended for the year include line item 4320 Buildings and Structures.  Buildings and Structures are over expended due to an accounting error.  $8,000 was budgeted for the new facility vehicle for 2008 out of line item 4350 Furniture and Minor Equipment, however, per City Finance and Chart of Accounts all vehicle purchases are to come out of 4360 Auto and Equipment.  Finance will make a correction to move the purchase from 4320 Buildings and Structures to 4360 Auto and Equipment. There was no money budgeted in this line item, however will be offset by the $8,000 budgeted in 4350 Furniture and Minor Equipment. 

 

 

V.    Previously Discussed County Budget Items

  • 4240 – Rentals – 59.94% remaining
    • The expenditures out of this line item include Lease/Purchases and Other Rentals.  We have spent $931 out of $1,875 for Lease/Purchases for the year, which are planned expenditures.  These expenses are greater at the beginning of the year, and will correct during the course of the rest of the year.  Other Rentals expenses are on track for the year.
  • 4250 – Repair & Maintenance – 0% remaining
    • The expenditures out of this line item have been expended fully for the year.  All remaining expenditures will be taken out of the city budget. 
  • 4260 – Supplies & Materials – 59.34% remaining
    • This line item is over-expended for the year for line item 4264 Janitor and Chemical Supplies; more expenses for this line item have been allocated to the county budget than the city budget.  This will be more evenly distributed between the city and county budgets in the future.
  • 4270 – Travel & Training – 31.75% remaining
    • The costs for this line item are high due to conference travel and training for the staff and Board. However, because expenses for this line item have been budgeted for the entire year, expenditures are on track.

 

VI.    Previously Discussed Board Funds Budget Items

 

  • 4250 – Repair & Maintenance – -19.52% remaining
    • Due to clerical error, the expenditures out of this line item have been over expended for the year.  All remaining expenditures will be taken out of the city budget. 

 

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