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Potential Library Reallocation Process PresentationPotential Library Budget Reallocation Process CITY COUNCIL STUDY SESSION –SEPTEMBER 22, 2022 Agenda 1.Library Mill Levy Clarification 2.Review Library Budget & Funds Available for Potential Reallocation 3.Review of Recommended Process for Reallocation 4.Discussion of Categorization of Needs 5.Council Discussion Library Mill Levy Clarification •In November, voters will consider a ballot issue to create a library district and approve an associated mill levy •In November, voters will also consider City ballot question 2C, contingent on voter approval of the library district, to repeal the provisions of City Charter related to the Library Commission and Library Fund •Additional Council action required to repeal the associated 0.333 mill levy Council Action to Repeal 0.333 Mill Levy After November election, if voters approve the library district ballot issue and 2C, staff will present Council with an emergency ordinance to revise the 2022 Mill Levy Ordinance to reduce the total City mill levy by 0.333 Current City Library Budget and Reallocation Implications 6 General Fund, $9,225,580 Library Fund, $1,841,775 Library Recommended 2023 Budget 2023 –Transition Year: •City would continue to operate Library as city service through 2023 •Library District would repay the City for the cost of operations, beginning in 2024 •Library District would be fully independent of City beginning in 2024 •Any exceptions would be defined in negotiated Intergovernmental Agreement Reallocation of Library Budget Estimated Savings for Reallocation Projected GF Library Budget, 2024* $9.25 -$9.75 million Other Direct GF Savings $0.50 –1.00 million 0.33 Mill Levy, Projected 2024 $1.5 million Total $11.25 -$12.25 million *Includes North Boulder operating expenses 9/22/2022 2023 RECOMMENDED BUDGET Current City Library Budget and Reallocation Implications 7 General Fund, $9,225,580 Library Fund, $1,841,775 Library Recommended 2023 Budget 2023 –Transition Year: •City would continue to operate Library as city service through 2023 •Library District would repay the City for the cost of operations, beginning in 2024 •Library District would be fully independent of City beginning in 2024 •Any exceptions would be defined in negotiated Intergovernmental Agreement Reallocation of Library Budget Estimated Savings for Reallocation Projected GF Library Budget, 2024* $9.25 -$9.75 million Other Direct GF Savings $0.50 –1.00 million 0.33 Mill Levy, Projected 2024 $1.5 million Total $11.25 -$12.25 million *Includes North Boulder operating expenses 9/22/2022 2023 RECOMMENDED BUDGET Current City Library Budget and Reallocation Implications 8 General Fund, $9,225,580 Library Fund, $1,841,775 Library Recommended 2023 Budget 2023 –Transition Year: •City would continue to operate Library as city service through 2023 •Library District would repay the City for the cost of operations, beginning in 2024 •Library District would be fully independent of City beginning in 2024 •Any exceptions would be defined in negotiated Intergovernmental Agreement Reallocation of Library Budget Estimated Savings for Reallocation Projected GF Library Budget, 2024* $9.25 -$9.75 million Other Direct GF Savings $0.50 –1.00 million Total $9.75-$10.75 million *Includes North Boulder operating expenses 9/22/2022 2023 RECOMMENDED BUDGET Library Costs & Financial Implications Estimated Savings for Reallocation Full City Cost to Operate the Current Library System Additional Future Costs $9.75M -$10.75M $14.40M -$15.70M $0.50M -$1.50M •Amount available for reallocation includes all direct costs to operate system •Does not include indirect costs that would not result in ‘cash’ savings (e.g., parts of existing positions) •Does not include foundational, grant support •Total cost to operate system includes General Fund, Library Fund, and other direct and indirect costs •Includes average annual building maintenance costs and other administrative overhead •Includes rough annual future costs, such as building maintenance, incremental personnel costs, insurance, service expansions, etc. Overview of Recommended Approach Department Inventory of Funding Needs (August-October) Council Reviews Preliminary Process (September) Prioritization of Needs with FSC (November-December) Council Reviews FSC Recommendations (January) Recommendations Inform 2024 Budget (May-Oct 2023) 9/22/2022 102023 RECOMMENDED BUDGET Potential Categorization for General Fund Needs Core Operational Needs Program/Service Enhancements Aligned with Established Policy New Investments Aligned with Established Policy New or Expanded Investments to Meet Emerging Community Needs Tax Relief & Rebate Considerations 9/22/2022 112023 RECOMMENDED BUDGET Core Operational Needs •Critical investments to maintain existing services levels •Lack of funding would implicate service reductions •Example(s): •Facilities maintenance, city facility parking lot maintenance •Snow plowing, median maintenance, pavement management/streets, path maintenance, sidewalk repairs, bridges, bus stop maintenance •Software replacement, fiber maintenance •Parks maintenance, urban canopy, courts, turf, horticulture Program/Service Enhancements Aligned with Established Policy •Continuing investments or enhancements to existing programs associated with adopted policy, such as Department Master Plans •Example(s): •Implementation of Advanced Life Support/Emergency Medical Services •Transportation system additional vision zero safety improvements New Investments Aligned with Established Policy •New investments to achieve goals associated with adopted policy, such as Department Master Plans •Example(s): •Implementation of the Facilities Master Plan, such as debt service associated with the consolidation of city facilities •Expanded programming/activities to meet Climate Action Plan goals New or Expanded Investments to Meet Emerging Community Needs •New or expanded investments to address recently identified community needs •Example(s): •Construction and staffing of a permanent day services center for persons experiencing homelessness •Ongoing needs associated with ARPA-funded initiatives Tax Relief & Rebate Considerations Additional Tax Relief/Rebate Considerations: •Rebate program for certain community members within city boundaries (could be property or sales tax) •Overall reduction in sales tax rate or property tax credit 1 mill = ~$4.2 million 0.1% sales tax = ~$4.5 million Underfunded & Unfunded Ongoing Needs 9/22/2022 17 Program/Initiative Cost Estimate Permanent Behavioral Health Response Program $600,000 -$750,000 Day Services Center Operations >$750,000 Core Operations –Address Current Service Level Demands >$19 million Advanced Life Support/EMS Implementation & Other Fire Master Plan >$2 million Implementation of Facilities Master Plan (“Maintain Well”)>$700,000 Recreation Services $1 million -$2 million Continued Investments in City Staff $1 million -$5 million Permanent Safe & Managed Spaces Program $700,000 -$1 million Strengthening Behavioral/Mental Health Partners >$1 million Economic Vitality Initiatives >$1 million Guaranteed Income Unknown 2023 RECOMMENDED BUDGET Overview of Recommended Approach Department Inventory of Funding Needs (August-October) Council Reviews Preliminary Process (September) Prioritization of Needs with FSC (November-December) Council Reviews FSC Recommendations (January) Recommendations Inform 2024 Budget (May-Oct 2023) 9/22/2022 182023 RECOMMENDED BUDGET | Questions for Council 1.Does Council have questions on the process for reallocation? 2.Are there categories of need Council would like to emphasize for consideration? •Core Operational Needs •Program/Service Enhancements Aligned with Established Policy •New Investments Aligned with Established Policy •New or Expanded Investments to Meet Emerging Community Needs •Tax Relief & Rebate Considerations