Our original tax millage was set up so that we collect the millage ahead of the year we expend the funds. The collection stays in Fund Balance until the next year, when we may begin to draw it down for operations.
During a normal 10-year millage cycle, revenues and expenditures change over the millage period. Funds for projects are saved over time as part of our “Pay-As-You-Go” plan. These funds are encumbered and can be drawn down in the latter stage of the cycle for planned capital projects. So we typically see higher surpluses over the first part of our 10-year millage cycle, and then draw down funds for capital projects near the end of the cycle. We are about to enter this final phase of our normal, 10-year millage, which was approved by the voters in 2015.
Interrupting the cycle upsets the financial environment necessary for a Pay-As-You-Go Plan. Adjustments to the timing and reductions along the course of the 10-year millage cycle will lead to cuts in services and capital projects by the end of the cycle.
The Library depends on dedicated Taxes. Our current 11.1 mils dedicated tax was first approved by the votes in 1995, then again in 2005 and 2015. Without the stability that comes from funds collected throughout this 10-year taxing decade, we could not plan, improve infrastructure, etc.
We had expected to continue to working until 2025 within a stable, 10-year funding cycle that included roll-backs, and all plans were made based on these projections. The reductions of 9.5% per year over the next 10 years as outlined in the Rededication Proposition will necessarily affect services the voters already approved in 2015 and that they expect to see realized, as well as severely curtail future projects.
· Millage revenues are based on a City-Parish formula, with certain in-built assumptions. The formula is mandatory and cannot be adjusted.
· A millage rate cannot be adopted that displays a negative cash balance; expenditures cannot exceed the projected revenues. In any case where the projection is showing a negative cash balance, we would be required to cut expenditures accordingly.
· Rollbacks are statutorily required, although the governing body may elect a roll forward option at the time of the rollback. Projections must include the required rollbacks.
· The Library has been a good steward of the tax payers’ money. Voters have acknowledged this at the polls in 1986, in 1995, in 2005, and again in 2015 (8.3 mills in 1986; 11.1 mills in 1995; 11.1 mills in 2005; 11.1 mills in 2015).
· It has been stated by others on more than one occasion that the Library generates the highest tax. This is simply not true. To see what the tax rolls generate, simply look at your tax bill in December—and then add up the numbers for those entities who have more than one tax. See www.ebrpa.org.
· The Library’s dedicated funds cannot be taken away and applied to any other use, no matter how worthy. It is improper and in fact, illegal for dedicated funds to be used for any purpose other than voted upon by the voters.
Since property values are re-assessed every 4 years, agencies who receive dedicated funds may ask that their millage rate be Rolled Forward every 4 years Because assessments on property values have generally increased over the 4 year period, a Roll Forward means that the millage rate remains the same and the agency will actually collect MORE tax revenues than in the previous year.
Conversely, the millage rate can be Rolled Back every 4 years, which means that the millage rate is lowered, but the agency collects approximately the same amount of tax revenues as in the previous year.
The Library does not typically ask to be Rolled Forward. When planning for a new millage, the Library builds anticipated Roll Backs into its 10 year budget projections. The only time the Library has ever Rolled Forward was at the request of the Council in order to accelerate the timeline for a construction project.
The voters approved an 11.1 mil Dedicated Library Tax in 2015, scheduled to run through 2025. We are currently rolled back to 10.52.
The Library surrendered any funds from State Revenue Sharing to the City Parish General Fund years ago. Similar sized parish libraries currently receive between $400,000 and $500,000 per year; over the past 30 years we have already surrendered over $17,000,000 dollars in State Revenue Sharing to the City Parish to be used for other purposes.
The proceeds from our 10-year, dedicated property tax are used to operate and maintain the library system, including books and non-print materials, supplies, technology, staff, maintenance and utilities, and capital projects. We have operated using this tax since 1987; stable funding allowed the library system to plan for the future and construct and operate new facilities throughout the parish. All branches are open 7 days per week. Since we build on the Pay-As-You-Go Plan, all facilities are PAID for with no bonds or indebtedness.
From 1939 until 1987, the East Baton Rouge Parish Library’s operating budget was part of the general fund. Following years of cuts and closures, the Library Board of Control opted to go to the polls and on September 27, 1986, 67% of the voters approved an 8.3, ten year dedicated property tax to operate and maintain the library system. There was no separate tax for capital improvements—it was all rolled into one tax so that the Library’s budget would be more flexible and responsive, rather than being locked in. Because of this, we were able to allocate unspent funds due to salary savings or conservative spending into the Capital Projects Fund and build all branches larger than originally promised. We were also able to budget for three additional construction projects beyond the scope of the original Capital Improvements Plan, replacing Zachary, building Fairwood, and funding the South Branch.
Voters approved an 11.1 millage by a margin of 56% on July 19, 1995. In 2005, the voters renewed the 11.1 millage with 62% approval rate. It was rolled forward in August 2008 so that the Library would have the necessary funds to fast track construction of the Fairwood Library (ahead of inflation); the millage was rolled back in 2012 to 10.78.
We went back to the voters on October 24, 2015. To determine future needs, the Library carefully researched costs and anticipated inflation for all budget lines including maintenance, utilities, technology, books and other materials, salaries, benefits, contractual services, over the next ten years. The voters approved the 10-Year, Dedicated Property tax at 11.1 mils. This millage was rolled back to 10.520 in 2020, as planned.
· The Metro Council appoints seven citizens to the Library Board of Control; they serve as the advisory board for the library system. All meetings are open to the public. Minutes may be found online at http://www.ebrpl.com/lboc/lboc.html and televised screenings of the Board Meetings air on Metro 21 on Saturday evenings at 9:00 pm.
· The Library is a Special Revenue Fund of the City Parish. All library operations, including maintenance and capital construction has been almost entirely funded by a 10-year, dedicated property tax.
· Citizens of the parish have approved this investment in the Library since 1986.
· Library’s Annual Budget is approved by the Metro Council; it includes Operations, Maintenance, Materials, Technology, and Capital Construction.
· Since there is no other source of funding, the Library, like other Special Revenue Fund Agencies, must set aside savings for contingencies and future projects in Fund Balance, which also includes anticipated revenues not yet collected as well as committed but unexpended funds from previous years. When we have a surplus, funds are set aside for future projects and to speed up the construction timeline.
The current Fund Balance as of June 2021 includes:
· However—Fund Balance is not the same as Cash Balance … City Parish Policy requires the Library to show a positive Cash Balance. The amount listed in Cash Balance includes unexpended capital improvement funds. Currently, this includes funds for upcoming projects at Central, Delmont Gardens, Zachary Branches as well as the initial savings for Carver, Pride-Chaneyville and Eden Park. It does not include any savings towards the 2 planned ‘START’ branches in north and south Baton Rouge.
We went through a lengthy strategic planning process, involving input from the public, staff, and stakeholders. The strategic plan was presented in fall of 2014 and may be found at http://www.ebrpl.com/StrategicPlanRevJuly2014.pdf. The Summary is located at http://www.ebrpl.com/lboc/Documents/ebrplstrategicplan2015.pdf. The public weighed in on future plans in public meetings during the spring 2015 prior to the 2015 Dedicated Library Tax Election.
To determine future needs, the Library carefully researched costs and anticipated inflation for all budget lines including maintenance, utilities, technology, books and other materials, salaries, benefits, contractual services, over the ten year period between 2015 and 2025.
By the end of the 2015-2025 tax decade, even the new Fairwood branch will have aged to the point of requiring scheduled large maintenance projects, and older branches will have required significant attention to ensure their viability and responsiveness to the changing needs of the public. Therefore, a Branch Assessment Study was compiled in December 2014/January 2015, examining the 11 oldest of our 14 library buildings to determine what their capital maintenance needs were over the next 10 to 20 years. The Study also suggested possible improvements to renovate or refresh branches to provide some of the same features and amenities found in our newer buildings. The Study included a broad range of estimates for capital construction for each project over the next 20 years.
Finally, a series of Budget Projections were produced for various scenarios, so that the Board could see exactly what happens within each set of circumstances. Scenarios included a number of different millages, different capital expenditures, the possibility of bonding, and different cuts to operations including the materials and maintenance budgets. The Board met in a Special Meeting on March 10 to discuss the various scenarios and voted to send forward a proposal to the Metro Council for 11.1 mills at the Regular Board Meeting on March 19, 2015.
All meetings were open to the public and minutes of all meetings may be found on the Library’s website, www.ebrpl.com.