Although the Sundre Municipal Library is facing another budget deficit, the manager says he and the board’s trustees are confident the situation can and eventually will be reversed.
Jamie Syer addressed council during the May 14 meeting, when he presented a breakdown of the 2017 financials as well as some statistics and information about on-going and new programs.
The library board had budgeted for a $9,327 deficit in 2017 but actually ended up $13,644 in the red. By taking $5,235 from reserves, it lessened the deficit to $8,409. In 2018, it is budgeting for $214,792 in revenues and $239,204 in expenses, leaving a deficit of $24,412. It does plan to lessen that though, to $14,412 by taking money out of reserves.
While the majority of funding comes from the Town of Sundre, there is also additional financial support through Mountain View County as well as — to a lesser extent — the provincial and federal governments. Additionally, the library is well supported by local people, organizations and companies, he said.
The bulk of the library’s costs largely go to salaries, with other major expenses including utilities, rent, as well as purchasing new materials, he added.
Mayor Terry Leslie inquired whether statistics that indicate where users reside are tracked.
There’s a roughly 50-50 split between town and county residents that tends to lean towards the latter. Computers available at the library are frequently in use, and there is an assumption that many of those users come from areas in the county where quality, high-speed Internet services are lacking, he said.
The primary reason behind increased expenses this year was a recent decision by the library board to approve the creation of a maker space that will be devoted to fostering creativity through making available technical equipment and programs, he said, citing as examples a 3D printer as well as computer coding classes.
“It’s all part of the idea that the library is not just a place where you come to find information, but a place where you come to create with the information that you find.”
The maker space expense will be covered by a reserve fund specifically for technology enhancements. If everything goes as forecast, the library will have unrestricted cash reserves of about $64,000 and restricted cash reserves of $34,000, he said.
Notwithstanding the deficit, the manager said he and the board felt the budget is responsible given the level of available reserves, he added.
“We’re not an organization which is in business to make money.”
Additionally, ongoing negotiations between the Town of Sundre and Mountain View County regarding the new culture and recreation funding agreement could result in additional funding for the library, he said.
“We are not reflecting that hope in this budget, but we are awaiting the results of those negotiations.”
Coun. Richard Warnock inquired whether trustees were concerned by the $14,000 deficit and if reserves could dry up if the situation is not turned around.
“The trustees are very aware that it’s not sustainable,” said Syer about the deficit.
“If in the worst case the agreement does not result in a larger contribution from the county, obviously we will need to make some adjustments in how the library budget is organized. However, I believe that this is an accurate reflection of what it presently costs to operate the Sundre library with all that we’re doing.”
Coun. Cheri Funke wondered if contingency plans are place should no additional county funding materialize.
“Personally, as the library manager, I think that our reserves are too high,” Syer said, basing his opinion on other non-profit organizations that he has worked with.
“I think that it is not appropriate for the library to be maintaining a $100,000 cash surplus without any specific plan for using that.”
So using some of that surplus to invest in the library’s programs and services is “entirely appropriate,” he added.
The board could look to reduce any future deficits and balance the budget by considering options such as staff and hour reductions as well as purchasing fewer library materials, he said.
“There is a short list of what we do have control over and the trustees would need to look at that list.”
Funke followed up to ask if perhaps there are possible options to increase revenue, such as library membership fees, instead of focusing on cutting expenses.
The board decided to stop charging membership fees three years ago in an effort to make the library as inclusive as possible. Should that decision be reversed, Syer said the library would be closer to having a balanced budget.
“Again, my advice to the trustees is that would not be appropriate given the level of our reserves,” he said.
When Syer presented to the former council regarding the municipality’s allocation, he said then councillor Myron Thompson had at the time wanted to know why the library was asking for additional funding when there were substantial reserves in place.
“I thought that was a very good question. I think that the library should not have $100,000 in the bank, that this (the 2018 budget) is an accurate reflection of how the library is operating now, and how much it costs.”
Coun. Todd Dalke, who also sits on the library board, expressed confidence about the current situation even if he is not fond of the deficit.
“I don’t like the negative number at the end of the year, but I know it’s not an ongoing thing,” said Dalke.
The trustees are onboard with Syer’s efforts to introduce new programs and equipment that aren’t available elsewhere in the community, he said.
“The world has changed, and the library is not just about books anymore.”
Following Syer’s breakdown on the library’s statistics over the past year, Dalke motioned to accept the presentation for information, which council carried.
