BOARD OF TRUSTEES
ST CHARLES PUBLIC LIBRARY
AUGUST 24, 2016
The Finance Committee of the Board of Trustees of the St. Charles Public Library District met at the Library on Wednesday, August 24, 2016, at 6:30 pm. Present: President Tory Haines, Trustee Anne Francissen, Interim Director Donna Dziedzic, Administrative Assistant Virginia Tsipas. Absent: Treasurer Norm Huntley. Staff present: Wendy Kmet.
Mrs. Haines called the meeting to order at 6:31 pm.
- First State Bank Account
Committee members recommend closing the First State Bank account. This item will go before the Board on September 14, 2016, by letter from Library.
- Tentative Budget & Appropriation Ordinance
Mrs. Haines asked about the 3% budgeted for salaries. In prior years the percentages were 2.5% or 3%. Mrs. Haines stated there is an increase in insurance costs and IMRF because IMRF did not perform as expected. Mrs. Kmet stated that salary and IMRF costs rise accordingly since IMRF is a percentage of earned salary.
Mrs. Haines asked if we are reducing printed material to add to audio visuals and downloadables. Mrs. Kmet said there is a lack of space for books. The printed materials budget was spent down well this year and needs to be decreased to put more money into downloadables since we are utilizing more of this type of service. We dropped 15% on books and did increase in downloadables and will adjust budget and appropriations accordingly.
Mrs. Haines said we left automation the same. Mrs. Kmet said we will utilize this through the majority of the year as the transition to SWAN/standalone will not happen until late in our fiscal year.
Mrs. Haines believes we went over budget with water sewer. Mrs. Kmet said when utilities were transferred over, the accounts consolidated so the costs rolled up to one GL account line under utilities. We will go back to breaking out by service next year.
Mrs. Kmet said employee insurance went up a bit so we added 3% to cover the cost.
Mrs. Haines said professional development was down. Mrs. Kmet said we did cut down and budgeted this year based upon the professional development policy in our handbook.
Mrs. Haines said equipment rental is higher for lease on copiers. Mrs. Kmet stated we will be doing the copier leases under contractual since they are on a monthly lease for five years.
Mrs. Kmet said there was a substantial jump in professional service fees due to costs for using professional consultants for vacant management positions this year.
Mrs. Haines said Paychex is going to be absorbed into contractual, and the attorneys will be in professional fees. Mrs. Kmet stated a lot of costs will be allocated into professional fees including attorneys, Interim Director, Management Association, and accountants.
Mrs. Francissen asked if Mrs. Kmet had total of categories and trend she sees for salaries increasing every year while materials are decreasing. Of general fund almost 5% increase when inflation is less than 1%. Hard time voting for anything over 3.5% increase. Mrs. Kmet said we have not padded the budget; we allocated the proper amount of money for salaries. There is a large increase in salaries with the positions we have added. We added 2%-3% for employees’ annual increases.
Ms. Dziedzic asked what percentage of general fund are salaries. Mrs. Francissen said 56%. Ms. Dziedzic said it is typically 70%-75% for salaries, 15% for materials and another 15% covering everything else. Mrs. Francissen said that is not the case in this Library.
Mrs. Haines said when comparing salaries to materials our staff is part of our services to our patrons and for that we just can’t be materials, but the people. Mrs. Francissen said materials are getting less and salaries are going up. Mrs. Haines said we added HR position, IT position and about to add a Facilities Manager. Ms. Dziedzic said Bryan Wood was both Assistant Director and Facilities Manager and those two positions are now split into two separate positions.
Mrs. Francissen said our people are our greatest asset but overall not above 5% in general fund. Mrs. Kmet said we are at 4.98%. Mrs. Francissen said overall it needs to be about 3.5% increase. Ms. Dziedzic said we are experiencing an increase in public programing at the library, and it is labor intensive. Promotion and facilities labor are involved in that. These are projections at this time and likely to change in the course of the year. Same with IMRF and insurance. The percentages are not where you like them but all these things are likely to change. Mrs. Kmet said she does not feel it is padded. She does not want to overspend. It is not that we are going to give 3% raise to everyone.
Mrs. Francissen would like to see total at 3.5% and bigger break down for salaries. Mrs. Kmet stated she would review the salaries again but feels reducing it lower would cause a problem. We could do salary analysis to show our reasoning. We did use salary reports to base our annual projections. Ms. Dziedzic said with salaries, IMRF and health costs; there is moratorium on new positions. Mrs. Kmet said we can always work numbers and do projections on the salaries as we bring people in.
Mrs. Haines asked if 2015/2016 appropriation was $3.7 million and YTD was 3.65%. Mrs. Kmet said yes that is correct. Mrs. Haines said working budget is 3.8% and appropriation cost is 3.9%. Mrs. Haines said we have to consider appropriation tonight too.
Mrs. Kmet said we have a lot of retirements coming; the salaries will come in lower and this will happen more towards December to April. We need to do overall analysis to get a better gear of the retirement pipeline from one year to five years out.
Mrs. Haines said she understands point on Special Reserve. We have major issues coming up but looked at plans to renovate building and could not satisfy what we want to do.
Mrs. Francissen said some things have to give. We can’t justify budget increase of 5% just in general fund; maybe administration or equipment in the general fund.
Ms. Dziedzic said there have been a number of things that have been neglected over the years and should have been spent. We were able to reduce carry over in prior years. Facility cleaning needs and terms in programming and IT is well behind.
Mrs. Kmet said now we have old servers and they are expensive to replace. We replaced 75 desktop computers which we purchased under last year’s budget.
Ms. Dziedzic said range of Ordinance itself is preliminary budget. In the course of the year should certainly be working to what the Board needs.
Mrs. Francissen said general fund working budget $6 million and 1% is approximately $67,000, can you find somewhere across the board to take out 1%. Mrs. Kmet said she feels she can but feels any reduction should be phased annually not as one bulk cut. This would help to not have as large of an effect on operations.
Mrs. Haines would like to recommend to the Board to approve the Tentative Budget and Appropriation Ordinance with a 1% reduction in the general fund.
Motion by Mrs. Francissen, second by Mrs. Haines, to adjourn at 7:03 pm.