610 Quincy St. Rapid City, SD 57701

605-394-6139

www.rapidcitylibrary.org
 
 

 

 

 

 

 

 


Date:   January 5, 2010

To:       RCPL Board of Trustees

From:   Greta Chapman, Director

Re:       December 2009 Budget Narrative

 

Date:   January 5, 2010

To:       Greta Chapman, Director

From:   Kimberly Hodgson

Re:       December 2009 Budget Narrative

 

The Library estimates spending approximately 8.3% of its budget on a monthly basis.  At the end of December, the remaining budget balance should have approximately 0% remaining.  To date the percentages remaining are 3.08% in the City budget, 16.52% of the County budget and 64.27% in the Library Board Funds budget. As planned the County and Board Funds amounts will be carried into 2010 for the ILS and RFID implementations, and an estimated $30,000 from the City Budget will be returned to the city’s General Fund.

 

In February, an End of Year report will be presented to the board to summarize the 2009 Budget year. 

 

The following is a list of line items with primary impacts for each budget:

 

City Budget

·         4100 Salary & Wages – 6.28% remaining and 4110 Benefits – 7.25% remaining

o   Due to vacancy savings, these line items are under-spent as a whole.  Temporary Wages are showing as over spent due to Library Page Wages and Temporary Wages to cover vacancies. However, $41,128 was supplemented by the City from the Board Funds Budget to supplement costs for temporary wages, and will show as over expended until the city’s bookkeeping system has been updated.

·         4210 Insurance – 23.77% remaining

o   General & Auto Liability, Boiler Coverage and Fire & Ext Coverage have all been under-spent due to overestimation by Finance for the 2009 Costs.  The remaining is fixed costs and will account for part of the funds returned to the City’s general fund. 

·         4220 Professional Services - -2% remaining

o   The overage in this line item is due to 4225D Other Services.  As previously reported, expenses in this line item included funding for the building supervisor at RCPL North ($12437.05 annual for FY2008/FY2009).

·         4240 Rentals - -8.59% remaining

o   As previously stated, this line item is over spent due the lease contract payments paid out of 4244 (Lease/Purchases) on the Library’s copiers.  Since the copier/printers were replaced, the monthly fees in this line item have reduced; however, the costs were higher at the beginning of the year, which caused this line item to be over spent. 

·         4250 Repair and Maintenance - -18.35% remaining

o   This line item includes maintenance contracts and repair expenditures for structures and equipment.  As previously reported, there were some unexpected replacements done throughout the year, which in turn, caused this line item to be over-budget. 

·         4260 Supplies & Materials - -37.37% remaining

o   The overage in this line item is due to book processing fees, which was previously reported as expecting to go over-budget.  Prior to 2009, book processing fees were taken out of the General Materials budget.  Due to the inability to pull numbers of previous years’ expenditures, this line item was budgeted too low.  This has been corrected for 2010.

·         4270 Travel & Training – 59.45% remaining

o   This line item is under-spent due to the Mayor’s restriction on out of state travel.  The remaining in this line item will account for a percentage of the funds returned to the City’s General Fund.

·         4280 Utilities – 5.59% remaining

o   There are savings in this line item due to our switch in telephone service carriers. Midcontinent monthly fees are lower than Knology.

·         4290 Miscellaneous – 21.03% remaining

o   The savings in this line item offsets the overage in 4350 (Furniture and Minor Equipment).  The VOIP installation was budgeted to come out of this line item, however, due to auditing purposes, needed to come out of 4350 as a fixed asset.

·         4300 Capital Outlay - -6.50% remaining

o   As stated above, the VOIP installation was not originally budgeted out of this line item, however the savings in 4290 will offset part of the overage.  Also, due to some savings in other areas of the budget, more patron requests for general materials were able to be filled which caused the line item to show as over budget.

 

County Budget & Board Funds Budget

County Budget:

·         4100 Salary & Wages – 33.45% remaining and 4110 Benefits – 34.03% remaining

o   Due to vacancy savings, these line items are under-spent as a whole. Partial savings in these line items were spent on priority expenditures in other line items.  The majority of these savings will roll-over into 2010 for RFID and ILS implementation.

·         4211 Insurance – 100% remaining

o   The minimal amount budgeted in this line item remained unexpended throughout the year.  Historically, the Library has allocated an amount in this line item as a directive from City Finance, however it has gone unexpended the last couple of years and will not be budgeted for commencing in 2011.

·         4220 Professional Services – 5.34% remaining

o   Savings in this line item is accounted for by lower than estimated costs for both SDLN and Minitex.  The savings in this line item will roll-over into 2010. 

·         4250 Repair & Maintenance – 59.59% remaining

o   The savings in this line item is minimal ($596).  This amount helps offset the overage in other line items.

·         4260 Supplies & Materials - -9.29% remaining

o   The overage in this line item is due to book processing fees and office supplies, which was previously reported as expecting to go over-budget.  Prior to 2009, book processing fees were taken out of the General Materials budget.  Due to the inability to pull numbers of previous years’ expenditures, this line item was budgeted too low.  This has been corrected for 2010.

·         4270 Travel/Training - -18.41% remaining

o   This line item has been over-expended.  This offset part of the vacancy savings.

·         4280 Utilities – 6.94% remaining

o   There are savings in this line item due to our switch in telephone service carriers. Midcontinent monthly fees are lower than Knology.

·         4290 Miscellaneous – 23.38% remaining

o   The savings in this line item offsets the overage in 4350 (Furniture and Minor Equipment).  The Microfilm equipment purchase was budgeted to come out of this line item, however, due to auditing purposes, needed to come out of 4350 as a fixed asset.

·         4300 Capital Outlay - -16.59% remaining

o   As stated above, the Microfilm equipment purchase was not originally budgeted out of this line item, however the savings in 4290 will offset part of the overage. 

 

Board Funds Budget:

No new line items of interest.  As stated above, $41,128 was supplemented to the City Budget from this budget, however, IFAS has not been updated yet.  All other savings in this budget will be carried into 2010 for implementation of RFID and ILS. 

 

Previously Reported Line Items

 

City Budget:

·         4100 Salary & Wages:

o    4118 – Temporary Wages – -79.44% remaining 

§  Library Page Wages and Temporary Wages to cover vacancies. $41,128 will be supplemented from the Board Funds Budget to supplement costs for temporary wages, and will show as over expended until that time. The city is scheduled to implement this supplement by the end of the year

·         4110 Benefits:

o    4140 – Workman Comp – 81.67% remaining

§  These are fixed costs defined by the city finance office.  We are on track for the year.

·         4210 Insurance:

o    4211 General & Auto Liability – 24.11% remaining

§  This insurance line item is a fixed expense line item.  Expenditures are calculated and expended by finance.  These expenditures are on track for the year.

o    4212 – Boiler Coverage – 27.08% remaining

§  This is one time yearly expense.  There will be no remaining expenses out of this line item for the rest of the year.

·         4220 – Professional Services:

o    4223 Consultant Services – 22.31% remaining

§  Consultant service expenditures are planned expenditures and we are on track for the year. Most recently, there were expenses related to strategic plan consulting.  Any additional expenses will be balanced between the county and the city budgets.

o    4225 Other Professional Services – -1.04% remaining

§  4225A SDLN - -1.92% remaining

·         There are no additional expenditures to be made out of this line item for the remainder of the year.  The 3rd and 4th quarter payments were made to SDLN for the 2008-2009 Contract and the 1st quarter payment was made for the 2009-2010 Contract.

§  4225B Minitex/OCLC – .34% remaining

·         All contract payments have been expended for the year.  There will be no additional payments made in this line item for the remainder of the year.  

§  4225C Maintenance Services –  11.11% remaining

·         As previously stated, the expenses in this line item include maintenance services fees on equipment including the elevator and microfilm machines.  Also expended out of this line item are the costs for the DOC worker for the facilities department. $11,767 has been planned as a supplement from the Board Funds budget to the City Budget in November to supplement costs for maintenance services for the remainder of the year.

§  4225D Other Services - -26.60% remaining

·         Expenses in this line item include funding for building supervisor at RCPL North ($12437.05 annual for FY2008/FY2009). Savings in 4225A, B, C and E will offset the overage in this line item.

·         4230 Publications:

o    4230 Publishing - -341.06% remaining

§  As previously stated, costs in this line item included Rapid City Journal vacancy advertising, costs for mailings & Rapid City Journal Job Fair advertising; and Rapid City Journal Acoustic Remediation bid advertising. There was a serious delay by city HR in forwarding advertising invoices to our office.  Vacancy advertising expenses from May 2009 were forwarded to us in the past 30 days which caused this line item to be over-expended. 

·         4240 – Rentals:

o    4243 Machinery Rentals

§  This line item is for machinery rentals such as scissor lifts for the changing of the library ballasts.  This line item was not included in the budget as we planned for these expenses to be taken out of 4246 Other Rentals.  For accounting purposes, City Finance requires that we take the cost for the rental of the scissor lift out of line item 4243.  This amount will be offset by the 4246 Other Rentals line item.

o    4244 Lease/Purchases – -.69% remaining

§  This line item is over spent due the lease contract payments on the Library’s copiers.  Since the copier/printers were replaced, the monthly fees in this line item have reduced; however, the costs were higher at the beginning of the year, which caused this line item to be over spent. 

o    4246 Other Rentals – 34.66% remaining

§  The expenditures in this line item are on track for the remainder of the year. The expenditures in this line item consist of the leased parking spaces and the rental of the safe deposit box from US Bank.  The leased parking has been paid through August.

·         4250 – Repair & Maintenance:

o    4252 Repair - Structures – -1.44% remaining    

§  This line item is overspent due to the unexpected replacement of a broken window.  There are no foreseen additional expenditures to come from this line item.

o    4253 Repair – Equipment – -21.55% remaining

§  As previously stated, this line item includes maintenance contracts, including copiers, HVAC, mailing machine, and self-check machines, as well as equipment repairs. During the course of the year there have been necessary repairs done to the HVAC system along with other equipment within the library. For 2010, planned maintenance projects will be scheduled throughout the year, rather than being all done in the first half of the year. 

o    4255 Repair – Water & Sewer - -93% remaining

§  Expenditures in this line item include costs associated with general replacement and repair of restroom fixtures and the drinking fountain.  For auditing purposes these expenditures will be moved by City Finance to line item 4252 Repair – Structures.  After this adjustment has been made, this line item will be on track for the remainder of the year.

o    4255 Repair – Equipment – 2.52% remaining

§  During the past month, the boiler controls failed.  Due to this, the controls had to be replaced.  This caused the high expenditures in this line item.  Expenditures for the remainder of the year will only be made for emergency purposes.

·         4260 Supplies and Materials:

o    4261 Office Supplies – -31.86% remaining

§  This line item includes costs for postage, office supplies, book processing fees for materials, and printing. The overage in this line item is mainly due to the book processing fees, which was previously reported as expecting to go over-budget.  However, the savings in the general materials line item 4341 will offset this overage.

o    4263 Clothing, Food – 38.87% remaining

§  Safety footwear for Janitorial staff was purchased out of this line item according to the union contract.  Expenditures out of this line item are planned and are on track for the remainder of the year.

o    4264 Janitorial & Chemical Supplies – -31.00% remaining

§  As previously reported, this line item will be over expended for the year, but will be offset by savings in other facilities-related line items.       

·         4270 Travel & Training:

o    4270 Travel/Training – 2.29% remaining

§  All travel and training is planned for the year from this budget. These costs are on track.

·         4280 – Utilities

o    4282 Natural Gas – 1.22% remaining

§  Due to a clerical error in city finance, this line item is reporting high.  An electricity purchase request was entered under the natural gas line item.  However the error has been reported to finance and will be corrected immediately.  After this has been corrected, this line item will be on track for the year.

·         4290 Miscellaneous:

o    4292 Dues – -.75% remaining

§  The American Library Association Dues have been renewed for the Director and the Board Members.  These should be the last expenditures out of this line item for the year.

o    4294 Miscellaneous Expenses – 57.85% remaining

§  Expenses in this line item consist of youth services programming materials and supplies.  Programming has been planned for the year and these costs are on track. 

o    4295 – Computers and Software – 1.18% remaining

§  Expenditures in this line item are on track with the replacement cycle of Library equipment. 

·         4300 – Capital Outlay:

o    4341 – General Materials – 1.63% remaining

§  These expenditures are in line with the planned purchasing plan (Jan. to Oct.) for the year. 

o    4350 Furniture & Minor Equipment – 36.41% remaining

This line item is high due to the purchase of a self-check machine.  The self-check machine was a planned expenditure. These funds were encumbered from the 2008 budget.  The funds were supplemented to the 2009 budget from the 2008 budget to offset this expenditure.  The Current Year Working Budget column reflects the approved budget amount plus the

supplement from the encumbered 2008 funds.

o    4350 Furniture & Minor Equipment - -41.26% remaining

§  These expenditures are associated with the Voice Over IP installation. 

 

County Budget:

·         4220  – Professional Services:

o    4225 Other Professional Services – 12.03% remaining

§  4225A SDLN – 15% remaining

·         The 2nd Quarter installment payment to SDLN for the 2009-2010 has been made.  There will be no additional expenditures out of this line item for the remainder of the year.

§  4225D Other Services - -30% remaining

·         This line item will be overspent for the year.  However, savings in other professional services areas will offset the overage.  Expenditures out of this line item include facilities purchases as well as monthly service charges for messages on hold, Rapid City Transit and new employee drug screenings.

·         4220  – Professional Services:

o    4225B Minitex/OCLC - -8% remaining

§  The last payment to Minitex for the year has been paid.  There will be no additional costs to come out of this line item for the remainder of the year.

o    4225 Other Professional Services – 23.10% remaining

§  A quarterly SDLN payment has been paid; this was the 4th installment for the 2008-2009 contract.  Due to auditing purposes, this payment will be switched to come out of the city budget.  After this change has taken place, this line item will be on track for the remainder of the year. 

·         4260 Supplies and Materials:

o    4261 - Office Supplies -  8.97% remaining

§  The overage in this line item is mainly due to the book processing fees, which was previously reported as expecting to go over-budget.  However, savings in other areas will offset this overage.

o    4264 – Janitorial/Chemical – 11.29% remaining

§  The remainder of costs from this line item will be taken out of the City budget.

·         4270 – Travel/Training:

o    4270 Travel/Training – 23.10% remaining

§  All travel and training is planned for the year. These costs are on track.

·         4290 – Other Current Expenses:

o    4294D – Other Miscellaneous – 79% remaining

§  Programming expenses in this line item are on track for the year. 

o    4294 – Other Miscellaneous Expenses – 52.63% remaining

§  Expenses in this line item consist of youth services programming materials and supplies.  Programming expenditures have been planned for the remainder year and these costs are on track. 

o    4295 – Computers & Software - -8.09% remaining

§  It was necessary to replace a staff computer during the past month.  All purchases in line with the replacement plan have been made for the year and there will be no additional expenditures out of this line item. 

·         4300 – Capital Outlay:

o    4341 – General Materials – -.03% remaining

§  There will be no additional purchases out of this line item for the remainder of the year.  This line item has been fully expended.

o    4350 – Furniture & Minor Equipment – 0% remaining

§  This line item is over expended due to the purchase of a micro-film machine.  For auditing purposes, anything purchased costing more than $5,000 (fixed assets) is required to come out of this line item.  With the revised budget, the amount in line item 4296 will offset this difference.

 

Board Funds Budget:

·         4260 Supplies and Materials:

o    4261 Office Supplies – -9.53% remaining

§  This line item has been fully expended for the year.  There will be no additional expenditures out of the board funds budget for office supplies.

·         4270 Travel & Training:

o    4270 – Travel/Training – 70.27% remaining

§  This line item is high due to the conference registration and travel expenses for Librarian I candidate.  Expenditures will be minimal for the remainder of the year.

·         4290 – Miscellaneous:

o    4296 Office Equipment and Furniture - -93% remaining

§  This line item shows as overspent.  However, the Board Funds budget will be adjusted to reflect the actual revenue carryover from 2008.  This update will take place during the supplemental appropriation process through the city. 

o    4296 – Office Equipment/Furniture – -93.41% remaining

§  The Youth Services furniture payment, a planned expenditure, was expended out of this line item per the city for auditing purposes.  Expenditures for this line item and in line item 4350 Furniture and Minor Equipment have been planned for the remainder of the year and are currently on track. 

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