ARCHBOLD WEATHER

Finances Big Part Of Library Board Meeting




Discussion of finances was a big part of the Wednesday, March 11, Archbold Community Library Board meeting.

Joyce Klingelsmith, library director, told the board the state of Ohio has started its two-year budget process.

“There’s good news and bad news, and the good news ends up being bad news,” she said.

Under the proposal of John Kasich, Ohio governor, plans call for the Public Library Fund, the account that distributes state money to libraries, will increase 5.7% for Fiscal Year 2016 (July 1, 2015 to June 30, 2016) and another 3.9% for FY2017.

Klingelsmith estimated it would mean an additional $11,954 in FY2016 and an extra $8,645 for FY2017.

However, there is also a proposal to completely phase out some tax reimbursements the library receives.

The library receives money from the state to make up for the funds the library lost when the state phased out the tangible personal property tax and the public utility personal property tax.

In previous years, libraries were told they would receive the funds into perpetuity.

If the phase-out proposals are adopted, Klingelsmith calculated the library would lose $3,560 in calendar year 2015, $10,679 in 2016, and $15,724 in 2017.

That, she said, means the library would lose $9,364 over three years.

Klingelsmith pointed out state budget negotiations are still ongoing, and the figures could change.

“I’m not counting on the 5.7%,” she said.

Jay Budde, library board president, asked what effect a net loss would have on the library.

Jennifer Harkey, library fiscal officer, said the library budget is tight.

“It’s been tight, because that’s the way we run the library. We watch every penny,” Harkey said.

Harkey said a $9,364 loss of revenue “does not seem like a lot in the big picture,” but spending would have to be cut to fill the hole.

The general assembly and the governor must approve a two-year budget by July 1.

Klingelsmith said if state lawmakers cut funds to libraries, “We would probably either make a lot of cuts, or raise more money in taxes.”

The board approved the fi- nancial report.

Palmer Funds

Board members discussed, but took no action on, the fate of the Carolyn Palmer fund.

The fund, established by her family, honors the late Carolyn “Keck” Palmer, a long-time teacher at Archbold Elementary School.

The fund is comprised of about $12,800 invested in a Certificate of Deposit, plus 100 shares of PENNREIT stock valued at about $2,000.

PENNREIT is a real estate trust.

Interest payments from the fund are earmarked to purchase childrens books, but interest rates are so low now, the fund can only purchase two books a year.

Klingelsmith said she spoke to a member of the Palmer family, who said they would like to see the fund continue, but that they would not oppose selling the PENNREIT stock.

Klingelsmith said state auditors have recommended the library sell the stock.

“They don’t like the idea that we have stock,” she said.

Budde said he had found a library policy for endowment funds, but no policy on investments. Klingelsmith said the library can’t invest in many financial instruments.

“CDs are about all we can invest in,” Klingelsmith said.

“There are other things we can legally invest in, but we don’t have the money,” Harkey said.

Klingelsmith passed out samples of a logo that were prepared by Metzger’s Printing & Mailing, Toledo. She told the board the library had to pay the company to develop the logos.

She asked for guidance from the board whether to continue to work with Metzger’s, or find another company.

Leah Fruth, a board member, said she would try to develop some logo options on her own.

Helen Row, a board member, suggested the logo include the fact the library will celebrate its 100th anniversary next year.

The board granted Klingelsmith authority to contract with NORWELD, the Northwest Ohio Library District. Klingelsmith said she had not received this year’s NORWELD contract, but said it runs about $1,500 a year.

She told board members NORWELD membership entitles the library to discounts on book purchases and provides web hosting for the library website.

“If we have any problems, we just call them,” Klingelsmith said.

Approve Budget

The board approved the permanent budget for the library for 2015, at $458,293.44.

Gerald Short, the newest member of the board, asked if there was a “fudge factor” built into the budget.

Klingelsmith said library officials “used to do that.”

Several years ago, the budget figures “were inflated so bad,” but she said, “you can’t do that anymore.”

Harkey said she builds a small “fudge factor” into the budget through the payroll accounts.

All board members were present; all votes were unanimous.

The next meeting is Wednesday, May 13, 7 pm, at the library.–David Pugh



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