By Scott Smith, Kokomo Tribune staff writer
scott.smith@kokomotribune.com
Kokomo/Howard County Public Library patrons and staff will be feeling the pinch of an expected property tax shortfall over the next six months, in the form of shorter library hours and new fees for services.
Faced with the task of cutting more than half a million dollars by year's end, library board members approved a package of cost-cutting and revenue-raising measures Monday.
Changes for the public will include a new 50-cent fee to check out audiovisual materials (including CDs, DVDs and videos), and shorter library hours during the week, library director Charles Joray announced Wednesday.
"The ... community is experiencing difficult financial problems. We, at the library, do not like this; nevertheless, we are determined to deal with our budget shortfall in the best way possible," Joray said. "We are going to take our 'hit,' but then pull together and make the most of it."
Starting Aug. 3, the new AV checkout fee will go into effect, as will the new library hours.
Monday through Saturday, all three library branches (Main, South and Russiaville) will open one hour later, at 10 a.m.
And Monday through Thursday, all three branches will close one hour earlier, at 8 p.m.
In addition the library will take the following steps:
• Close the facilities to the public the day after Thanksgiving, New Year's Eve, Columbus Day (Oct. 12), and Veterans Day (Nov. 11), and require all staff to take those days off unpaid.
• Reduce the hours for the Genealogy Department (and department staff) by 20 hours per week. The new hours of operation for that department haven't been released yet.
• Reduce the amount of money the library will transfer from operations to its building fund by more than 50 percent.
• Reduce the amount budgeted for new materials (books, AV, periodicals, etc.) by more than $100,000.
• Allow four part-time positions and one full-time position to go unfilled.
Board won't borrow
Board president Susan Luttrell said the decisions were difficult, but in keeping with the board's long-standing policy against acquiring debt.
The library is one of several local taxing units hit hard by the non-payment of $12.2 million in property taxes by Chrysler LLC.
Early this summer, the company sold its assets to the Chrysler Group LLC, led by Italian automaker Fiat SpA, in a government-financed bankruptcy proceeding. But the "old" Chrysler made no provision to pay its 2008 personal property taxes, due this year.
The library board, in taking action Monday, became the first local taxing unit to deal with the tax shortfall. Howard County and Kokomo city officials, along with local school officials, are still formulating plans.
The good news, Luttrell said, is that the library still has almost $5 million in its building fund. That money can't be used to bolster the library's operating budget. Rather, it is dedicated to a planned renovation of the Main Library.
"We are getting a renovated library for the city's downtown, and it's being done without any additional taxing," Luttrell said Wednesday.
Like the city, the county and the schools, the library board had the option of borrowing the amount of the shortfall from the state, but board members opted not to take the loan.
"We knew right away we didn't want to borrow, because we didn't know if the money would be there in the future [to pay back the loan]," Luttrell said.
Joray also said taxpayers should be reminded that past library boards built the Russiaville and South branches without borrowing.
"With the renovation, we'll have done three major building projects totally with [cash reserves], without bonding, and that's part of the full story," Joray said. "Has any school building been built without a bond issue?"
Budget challenge
Luttrell said the board isn't certain how long the measures agreed to Monday will stay in place. She said they'll be evaluated over the next six months, and adjustments could be made.
By Wednesday, Kokomo city officials were hearing about the library board decision, mainly from patrons upset about the 50-cent AV checkout fee, city director of operations Randy Morris said.
Morris said it was good that the library board "is taking a proactive approach to the Chrysler situation," but was critical of the checkout fee.
"Imposing user fees in an already recessionary economy can only reduce the usage of the facility," Morris said.
Even accounting for decreased use of AV materials due to the checkout fee, library officials expect the fee to raise about $75,000 over the next six months.
Meanwhile, the library board is getting ready to put together the 2010 library budget, and both Joray and Luttrell said they expected the budget will include a pay freeze for library employees.
In addition, Luttrell said the board will address employee benefits. Currently, employees on a single health insurance plan contribute nothing toward their premium. Luttrell said that arrangement is likely to change.