June 20, 2006

SUBJECT:          Authorization to Allocate FY 2005/2006 State Public Library Fund Monies and Approve Budget Modification No. 25

REPORT IN BRIEF

Since 1984, the State has funded a grant program for public libraries.  This funding is an ongoing 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 2005/2006 is $52,263. Staff recommends that Council accept the $52,263 grant and approve the appropriation of new funds to renovate the Children’s section of the Sunnyvale Library.

BACKGROUND

In 1982, the State Legislature adopted State Education Code 18010-18013 which are Sections 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 18024-18025 establishes the Public Library Fund in the State Treasury and 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 2005/2006, the Sunnyvale Library has received $1,991,914 in Public Library Funds since 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 closer to full funding.  However, since 2000, the 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, then to $59,517 in FY 2003/2004, and to $52,983 in FY 2004/2005. If fully funded by law, the Sunnyvale Library would have been awarded $323,931 in FY 2005/2006.

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 2006 Legislative Action Policies of the City Council state support for this program in Section 6.2.1, “Support full funding for the State Public Library Fund.”

DISCUSSION

The Library seeks authorization to allocate $52,263 in new State Public Library monies in FY 2005/2006 for use in the special project described below which is not currently funded by the General Fund, but which will improve the efficiency and effectiveness of library services:

New Funds – FY 2005/2006

ITEMS

$52,263

Children’s Section Renovations The library role of encouraging children to read and learn was identified by the Board of Library Trustees and supported by the Council as part of their approval of the Library Sub-element in 2003.  As such, the role provides a focus for library activities and highlights the Children’s section as an area where the Library seeks to excel.  In the process of engaging the community about the Library of the Future, a number of suggestions were made (e.g., lower book stacks, provide seating for parent and child to read together, install playful décor and signage) to immediately enhance the Children’s area.  Staff proposes to use the new Public Library Funds to create and implement a renovation plan of the Children’s area with the ultimate goal of encouraging children to read and learn.

$52,263

Total Request for Allocation

Existing State Public Library Funds

The City Council previously authorized the use of Public Library Funds for the following multi-year projects: Library of the Future, Collections, Inform the Community about Library Resources, Staff Development, and Improvements to Library Services.  Public Library Funds are budgeted in Special Project 805150 Library Foundation Program Grant in the City’s General Fund.  There is a current budget of $415,919 in the FY 2005/2006 Library Foundation Program Grant’s budget.  Use of these funds through the current accounting period leaves a remaining balance of $381,882.

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 $52,263 for FY 2005/2006.  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 805150 Library Foundation Program Grant special project in the City’s General Fund 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 2006/2007.

BUDGET MODIFICATION NO. 25

FISCAL YEAR 2005/2006

Conclusion

The State Public Library Fund provides 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 1, 2006.

ALTERNATIVES

1.    Council approves Budget Modification No. 25 in the amount of $52,263, the expenditure of State Public Library Funds as presented.

2.    Council recommends alternative expenditure of funds.

RECOMMENDATION

At their May 1, 2006 Board of Library Trustees meeting, the Board voted unanimously to recommend to City Council Alternative 1 which approves Budget Modification No. 25 in the amount of $52,263, the expenditure of State Public Library Funds as presented because children’s services should be a focus of the Library.

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

A.    Draft Board of Library Trustees Meeting Minutes of 5/01/06.