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5-21-13-worksession

St. Charles City-County Library District

Board of Trustees

Minutes FY14 Budget Work Session

May 21, 2013

The St. Charles City-County Library District Board of Trustees met at 7:00 pm on Tuesday, May 21 at the Administrative Offices located at 77 Boone Hills Drive in St. Peters, Missouri.

Board Members present:

  • Jerry Cook
  • Myra Crook
  • Joann Leykam
  • Mary Reese
  • John Thoelke
  • Gail Zumwalt

Board members absent:

  • Debbie Haupt
  • Georganne MacNab
  • Lisa Pelikan

Library Staff present:

  • Jim Brown, Director
  • Richard Schultz, Finance and Support Services Coordinator
  • Maggie Preiss, Children’s Resources and Marketing Coordinator
  • Pat Batzel, Human Resources Coordinator
  • Frank Noto, Coordinator Information Technology
  • Karen Golab, Purchasing and Building Project Manager

President Myra Crook called the meeting to order at 7:15 pm with the Pledge of Allegiance.  Five members of the Board responded to roll call. Joann Leykam arrived shortly after the meeting began.

Formal Agenda

13-26 FY14 Budget Markup-Materials

Jim Brown discussed a few adjustments made to the Materials Budget after it was presented to the Board at the March meeting.  The cost for the online magazine subscriptions from Zinio was slightly increased to cover a few more magazines.  The print Reference budget for adult collections was reduced by a little over $9300 and the funds transferred to the adult print circulating collection.  Total recommended for fy14 materials is:  $3,384,937.  John Thoelke asked if staff expected to lapse funds in the fy13 materials budget.  Jim Brown reported that as of May 19 about 87% of the budget was expended.  Additional orders were being placed and some funds for items published after July 1 would be encumbered at the end of the year.  Joann Leykam asked if any requests for materials had not been included in the proposed budget because ultimately our mission is to provide materials.  Jim Brown reported that staff had not requested additional funds for the materials budget.  A taskforce is looking at electronic resources and the fy15 budget may reflect some changes in that line item but resources would be re-allocated to meet current needs.

13-36 FY14 Budget Markup-Furnishings/Equipment

No changes were made to the budget recommendations presented at the May meeting.  Total recommendation for FY14 Furnishings/Equipment is $352,625.

13-37 FY14 Budget Markup-Technology and Telecommunications

No changes were made to the budget recommendation presented to the Board at the May meeting.  $536,019 is the total recommended for technology and telecommunications software, consulting fees, cabling, training and equipment.

13-38 FY14 Budget Markup-Personnel

There was a slight adjustment to the budget presented at the May meeting.  Two positions had been entered at the base salary instead of the current step.  Joann Leykam inquired if staff evaluations were current.  Pat Batzel reported 100% compliance in evaluations for October through February.  A few had lapsed because of staff on leave.  John Thoelke asked what percent of staff are on step 6 and would not receive step increases.  Pat Batzel reported 46% (190 employees) were on step 6.  Two options for the FY14 Personnel Budget were provided-one with 0% increase in the salary schedule and one with a 1% increase in salary schedule.  Joann asked if employees with performance below expectations were still given increases.  Jim Brown reported past practice had been to hold salary step increases and provide corrective counseling.  Pat Batzel reported this approach is covered by current policy.  Costs for leave liability, workers compensation and increased health benefit costs can fluctuate and also impact the personnel budget.  Pat Batzel reported she is working with the Safety Wellness and Training group to promote wellness in a walking program.  233 employees are involved. Total fy14 personnel budget without a salary adjustment is $10,838,055.  A 1% salary adjustment would be a total of $10,930,263.

13-39 FY14 Budget Markup-Operations

The Board reviewed the line items that are included in expenditures for Operations.  Rick Schultz provided a final fy11 through projected fy13 comparison of expenditures for operations.  The Board reviewed several line items that looked as though they were either under budgeted in fy14 or might lapse funds in fy13.  Rick Schultz reported some projects were underway but not totally completed and some budgeted items are reimbursed by grants.  Joann Leykam inquired if there was a maintenance schedule for such items as roofs, carpets, parking lots and so forth.  Rick Schultz reported that roofs are evaluated yearly, and the HVAC contractor keeps a list of units to determine whether equipment should be repaired or replaced in case of a breakdown, an electrician is looking at branches to determine future needs, and there are reserve funds in the Administrative budget for replacement.  Joann Leykam recommended budgeting for yearly projects as scheduled.  Jim Brown reported one of the Strategic Initiative groups was preparing a schedule for maintenance that would aid in budgeting.  Total recommended FY14 Operations budget is $2,796,796.  In addition to operations, the budget includes $215,000 in capital projects and $150,000 in building projects.

Rick Schultz provided a spreadsheet with actual and projected beginning cash & investments balances for fy03 through fy14.  Figures for actual and projected, revenues, expenditures, capital expenses, and resulting decrease/increase in reserves for FY03 through projections for fy13 and fy14 were also provided.  The Board also received a list of possible capital projects for the next 1 to 10 years with estimated costs.  The Board is interested in a more definitive time table and ranking for capital projects that will be integral to the tax rate that is requested and explains the purpose of growth in reserves.  As these projects are undertaken, they are budgeted in capital projects using reserve funds.  Expenditure and transfer of funds from capital projects or reserve funds requires Board approval.

The FY14 budget will be presented at the June Board meeting for final review and approval.

MOTION:  Gail Zumwalt moved to adjourn the meeting.  Mary Reese seconded.

Motion approved six affirmative, zero negative, zero abstentions and one absent.

The meeting adjourned at 9:00 pm.

Respectfully submitted

Margaret A. Preiss, Acting Recording Secretary

Approved:

 

Secretary Board of Trustees      Date