ALLEGHENY REGIONAL ASSET DISTRICT

Report of the Library Committee

November 27, 2006

 

 

 

Members of the Board:

          Each year the District and the Allegheny County Library Association (ACLA) must agree on how the grant to the Association will be distributed. Of the total grant, funds are allocated to ACLA for basic library services and to regional projects including the operation of the electronic information network, bookmobile services for special needs population, reimbursement to libraries for serving residents outside their service area and for ACLA administration. The largest category, basic services, represents some 53% of the total grant and requires the adoption of a formula for how that money will be distributed to individual libraries.  The initial formula proposal submitted by ACLA this year had to be withdrawn and amended as a result of actions at the state level.

The Committee spent considerable time reviewing the initial proposal and the amendments as well as correspondence and testimony at various meetings. We respect the effort made by the association and recognize the complexities of changing a long established formula. However, we are struck by the fact that continuing dissention in the organization over numerous months has produced a formula recommendation without a clear consensus. Even supporters of the recommendation have now questioned whether it is wise to move ahead on a divided platform.


Given where we are and in the interest of keeping funds flowing to library services, the committee recommends that the Board authorize the distribution of 2007 funds allocated to ACLA under the attached summary and that we also authorize continuance of the payment of basic services funds under the formula already approved for 2006.   

Clearly, the Association, in consultation with the District, needs to examine not only the basic services formula but also the process used to arrive at the approval decision. Therefore, in accordance with the performance audit provisions of the agreement with ACLA, we recommend requiring that ACLA engage the services of an independent consultant to assist in evaluating those issues. Hopefully, fresh eyes will assist the Association in arriving at a process and proposal with a stronger consensus among its members. The increase in support the District is providing to ACLA can be used to cover the costs of such an engagement.

Library service in Allegheny County is substantially improved over the last decade. ACLA members are to be commended for their efforts in that regard. We believe that additional time and expertise spent in getting the formula issue resolved will only enhance that spirit of cooperation and thus improved library service.   

 

 

Submitted by:

Dan Griffin

Stan Parker

                                                                   Connie Yarris

 

 

 

 

 

 

ACLA OPERATIONS SUMMARY

RAD ACTIVITY CATEGORIES

2006 Budget

2007 Projected Spending

Basic Services (based on 2006 formula)

$4,102,400

$4,150,000

Regional Use Reimbursement

800,000

     840,000

Electronic Information Network

 2,355,000

 2,380,000

Administration -ARAD Supported

   149,500

    150,000

Bookmobile - ARAD Supported

    256,600

     260,000

Additional Funds to Regional Use Reimbursement

 

                       37,000

Total

$7,663,500

$7,817,000

NON-RAD ACTIVITIES

 

 

State Aid Pass through to libraries and system

$4,302,099

$4,710,187

Access PA (pass through to libraries)

      700,000

      700,000

LSTA State grants

       42,000

        30,000

Knowledge Connection Program

      438,078

      468,146

Bookmobile Program

     197,540

      276,637

System Services

      249,672

      547,147

System Branches (Robinson Twp)

              0

      130,000

Grant Projects

        63,000

        62,000

Administration –other (some expenses shifted to System Services in 2007)

     349,843

        59,705

GRAND TOTAL –ALL OPERATIONS

$13,985,732

$14,800,822

 

*The basic distribution formula is an estimate until state reports are certified.

 

Special Conditions

 

1.     In order to be eligible for participation in ACLA program, libraries must be eligible for state aid. Libraries may not use District funds to obtain initial state aid status.

 

2.     If any otherwise eligible library elected not to participate in the basic services distribution, the funds will be shifted to the regional use reimbursement category.

 

3.     Basic Service Funds up to 30% may be reserved or escrowed for capital projects as long as three conditions are met:

 

a.     There is an existing plan in place for renovation/improvement

 

b.     The money is spent within a three year period

 

c.      Funds cannot be used for marketing or fundraising

 

 

4.     Funds held in reserve must be invested in accordance with District requirement and interest earned must be used for the benefit of the library.