June 7, 2005

SUBJECT:       Authorization to Allocate FY 2004-2005 State Public Library Fund Monies, Reallocate Existing State Public Library Fund Monies, and Approve Budget Modification No. 31

REPORT IN BRIEF

Since 1984, the state has funded a grant program for Public Libraries.  This funding is an on-going project to augment not supplant local funding for library services.  Appropriations made by the State on a per capita basis may fluctuate depending on the annual legislative process.  The grant for FY 2004/2005 is $52,983 and staff recommends that; 1) Council accept the $52,983 grant; and 2) that Council approve the appropriation of $40,000 to augment the Children’s Collection; 3) that Council approve the appropriation of $12,983 to augment the Media Collection; and 4) that Council approve the reallocation of the existing State Public Library fund of $549,583 for multi-year expenditures in support of activities related to the Library of the Future, collections, informing the public about library resources, staff development, and improvement to library services.

BACKGROUND

In 1982, the State Legislature adopted State Education Code 18010 which is a section of Chapter 1.5 Public Library Finance, providing State funding to support Public Libraries.  This chapter calls for continuing support each subsequent year, based on the availability of State funds with an allocation formula set by the State.  State Education Code 18025, paragraph D, further stipulates that state funds provided under this chapter shall supplement, not supplant, local revenues appropriated for the public library.  In order to be eligible for these state funds, the total amount of local library revenues appropriated for that fiscal year must be equal to at least the total amount from the previous fiscal year.  Including the amount for FY 2004/2005, the Sunnyvale Library has received $1,939,651 in Public Library Funds from the beginning of the program.

To date, the Public Library Fund has never been fully funded by the State Legislature.  In 1996, the City participated in legislative advocacy efforts that resulted in an increase in state-wide funding for the program.  In 1998, due to the State’s improving economy these funds were doubled and came even closer to full funding.  However, since 2000, economic downturn in California has resulted in a reduction of funds. Funding decreased from $203,975 in FY 2001/2002 to $119,591 in FY 2002/2003 and $59,517 in FY 2003/2004. If fully funded by law, the Sunnyvale Library would have been awarded $313,051 in FY 2004/2005.

Each year, the Library proposes a spending plan for these funds taking into account Council priorities, new library initiatives, special projects, and the need for the availability of funds in times of economic crises.

EXISTING POLICY

The 2005 Legislative Action Policies and Intergovernmental Relations Priorities of the City Council state support for this program in Section 6.1.1, “Support full funding for the State Public Library Fund.”

DISCUSSION

This report seeks authorization to allocate $52,983 in new State Public Library monies in FY 2004/2005 and also to reallocate existing grant funds from previous years.

The Library proposes to use funds for the following special projects which are not currently fully funded by the General Fund, but which will improve the efficiency and effectiveness of library services:

New Funds – Fiscal Year 2004/2005

ITEMS

$40,000	Children’s Materials Acquire and process additional materials for children to address deficiencies identified in the Analysis of Library Materials study which revealed Sunnyvale has the lowest per capita spending per child compared to neighboring cities.  These are the funds Council directed staff to use to replace the $40,000 removed from the children’s materials operating budget in the FY 2004/2005 budget review process.
$12,983	Media Collection Acquire and process additional feature films in order to support revenue generation through the assessment of fees on the use of the Library’s feature film collection.  Circulation and revenue generation requires that this collection be refreshed frequently so that new materials are available to viewers.
$52,983	Total Request for Allocation

Reallocate Existing State Public Library Funds

The City Council had previously authorized the use of Public Library Funds in the following expenditure categories: outreach, staff development, signage, electronic resources, workplace improvement, collections, and public relations/graphics.  Due to uncertain levels of funding, the Library has been careful to expend funds, thereby ensuring that necessary funds would be available in times of economic crises.  In light of fiscal challenges, new directions in service delivery and priorities, staff now proposes a multi-year approach to funding future library projects using all existing Public Library Funds in the following categories.  These categories reflect key goals, policies, and action statements from the recent Library Sub-element of the General Plan.  Currently, there is $549,538 in the FY 2004/2005 Library Foundation Program Grant’s budget.

EXPENDITURE CATEGORIES

$200,000	Library of the Future Conduct community meetings to envision what the library of the future would be.  Funds would also be used to complete a needs assessment and activities related to library facilities.
$158,748	Collections Enhance popular library collections such as the Children’s Collection, Non-English languages, language learning materials, materials for Teens, audiobooks, music, and films.  Funds would be used to acquire and process these items, and to purchase and develop electronic resources which will be beneficial to the community.
$50,000	Inform the Community about Library Resources Explore new methods for providing information about the library for the community.  This includes a Library newsletter for the community and the Library Web page.  Participate fully in a wide range of City and community events and continue programs such as the Library Volunteer Recognition and Library Customer Appreciation Day events.  Develop tools such as electronic notifications, brochures, reading lists and guides, signs, posters and banners to enable customer self-sufficiency in finding and using information.
$40,000	Staff development Provide staff training and development to achieve good customer service through such tools as the annual Staff Development Day, training workshops and conference attendance.
$100,790	Improvements to Library Services Improve the effectiveness of library services by making enhancements to the workplace and the facility.  Facility enhancements may include public service desk redesign and improved lighting.  Technology enhancements may include upgraded equipment such as self-check machines, computers, monitors, and printers.  Process improvements may include ergonomics, improving current processes for increased efficiency and studying innovations in other libraries.
$549,538	Total

FISCAL IMPACT

Each fiscal year, the State Librarian requests verification of eligibility to receive State funds and certifies the population of each jurisdiction to receive State Public Library Fund monies.  The current level of State Public Library Fund monies has brought Sunnyvale’s allocation of funds to $52,983 for FY 2004/2005.  These revenues can only be used to supplement, not supplant local revenues for basic library services.  Staff proposes a budget modification to add these funds to the Library Foundation Program Grant project and to spend these funds for the purposes described in the discussion section of the report.  Since these are multi-year projects, staff has strategically expended funds and a significant amount of Public Library Fund resources will be carried forward into Fiscal Year 2005/2006.

BUDGET MODIFICATION NO. 31

FISCAL YEAR 2004/2005

General Fund	Current	Increase (Decrease)	Revised
Revenues: State Public Library Fund Grant	$0	$52,983	$52,983
Expenditures: Library Foundation Program Grant Project #805150	$549,538	$52,983	$602,521

Conclusion

State Public Library funds provide resources to increase the efficiency and effectiveness of library services above and beyond the scope of services and revenues appropriated by the City.  Acceptance of these funds allows the library to enhance service delivery and respond more effectively to changing community needs.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting the agenda and report on the City’s web page, and the report is available in the Library and the City Clerk’s Office.  The Board of Library Trustees reviewed the Report at their meeting on May 9, 2005.

ALTERNATIVES

1. Council approves Budget Modification No. 31 in the amount of $52,983, the expenditure of State Public Library Funds as presented, and reallocates the existing funds in the amount of $549,538.

2. Council recommends alternative expenditure of funds.

RECOMMENDATION

At their May 9, 2005 Board of Library Trustees meeting, the Board voted unanimously to recommend to City Council Alternative #1 which approves Budget Modification No. 31 in the amount of $52,983, the expenditure of State Public Library Funds as presented, and reallocates the existing funds in the amount of $549,538.

Staff recommends Alternative #1.

Reviewed by:

Deborah Barrow, Director, Libraries

Prepared by: Steve Sloan, Supervising Librarian

Reviewed by:

Mary Bradley, Director, Finance

Approved by:

Amy Chan

City Manager

Attachments