FONDULAC DISTRICT LIBRARY

BOARD OF TRUSTEES

MINUTES OF THE REGULAR MEETING

November 27, 2006

 

 

            Members of the Fondulac District Library Board of Trustees met in regular session on Monday, November 27, 2006.  President Herring called the meeting to order at 6:30 p.m.

 

            On roll call the following members were present:  Mrs. Cole, Mr. Goff, Mrs. Herring, Mr. Johnston, Mr. Lasswell and Mr. Mingus.  Also present were Ms. Falasz-Peterson, Director, Miss McKeever, Assistant Director and Mrs. Geier, Administrative Assistant.  Kevin Heid from First Midstate was also in attendance.  Mr. Brimberry was absent.

 

            M/S/P (Lasswell/Johnston) to accept the minutes of the October meeting of the Board of Trustees.

 

            The bills were presented for payment.

 

            M/S/P (Johnston/Cole) to accept the Treasurer’s Report and payment of bills subject to audit.

 

            Treasurer’s Report:

GENERAL FUND CHECKING

10/30/06  Balance                                                                                23,539.80

10/05/06  ACH transfer fee                                                                       (48.07)

10/31/06  Interest 3066700474                                                                   20.28

11/02/06  Checks issued – Payroll                                                      (22,094.45)

11/03/06  Deposit – Fines, fees, misc.                                                      351.43

11/03/06  Deposit – LSTA Weed & Feed                                             3,000.00

11/03/06  Deposit – LSTA Financing Our Future                                 4,500.00

11/06/06  Deposit – County Taxes                                                    344,166.68

11/07/06  Deposit – CD                                                                       16,221.20

1/09/06  Transfer – Checking to Investment                                    (344,650.00)

11/10/06  Deposit – Fines, fees, misc.                                                      346.22

11/16/06  Checks issued – Payroll                                                      (21,949.62)

11/16/06  Check issued – Credit card                                                  (1,060.52)

11/16/06  Checks issued – Life ins.                                                           (52.00)

11/21/06  Deposit - Fines, fees, misc.                                                       967.79

11/27/06  Transfer – Investment to checking                                      91,000.00

11/27/06  Checks issued – Bills                                                          (69,860.64)

11/27/06  Balance                                                                                24,398.10

 

 

 

GENERAL FUND SAVINGS

10/30/06  Balance                                                                                  3,501.31

10/31/06  Interest 3619307057                                                                       .40

11/27/06  Balance                                                                                  3,501.71

 

GENERAL FUND INVESTMENT

10/30/06  Balance                                                                              368,335.28

10/31/06  Interest 7139120393                                                              1,362.43

11/09/06  Transfer – Checking to Investment                                   344,650.00

11/27/06  Transfer – Investment to Checking                                    (91,000.00)

11/27/06  Balance                                                                              623,347.71

 

WORKING CASH FUND

11/30/06  Balance                                                                              259,202.08

10/31/06  Interest 7139120401                                                                 963.53

11/27/06  Balance                                                                              260,165.61

 

RESERVE FUND

10/30/06  Balance                                                                           1,416,009.81

10/31/06  Interest 7139120419                                                              6,218.95

11/27/06  Balance                                                                           1,422,228.76

 

ENTERPRISE FUND

10/30/06  Balance                                                                                28,397.56

10/31/06  Interest 6900342215                                                                     5.81

11/03/06  Deposit – Rent                                                                          670.00

11/27/06  Checks issued – Bills                                                               (141.19)

11/27/06  Balance                                                                                28,932.18

 

            Mrs. Geier made two authorized transfers in November.  The first one on the 9th was from the checking account to the investment account for $344,650.  The second one on the 27th was from the investment account to the checking account for $91,000.

 

            Ms. Falasz-Peterson reported that two staff members, Dominica Rogers and Betsy Bladel have resigned their positions as part time desk assistants to pursue educational opportunities.  We will be advertising the positions on our web site and on the ALS web site.

 

            Ms. Falasz-Peterson reported that Kevin Heid, a financial planner, from First Midstate was in attendance as part one of our LSTA grant.  She also asked the board for dates for part two of the grant on fundraising.  Ms. Falasz-Peterson would like to contact Liz Livingston-Howard with some dates to finalize this part of the project.  The dates that were decided on by the board are January 10th and February 8th.  Ms. Falasz-Peterson will contact Ms. Livingston-Howard and get back to the board.

 

            Three people have picked up petitions for the open board positions in next April’s election.  Mr. Brimberry has stated that he will not be running again and Mr. Mingus has not yet decided if he will run again.  Both have stated that they will continue to be advocates for the library.  Ms. Falasz-Peterson will mention in her next article that there are openings on our board.

 

            There was discussion on refuse pick-up.  Mr. Goff will give us some names of people who may be able to get us a deal on trash pick-up.

 

            Ms. Falasz-Peterson and Mrs. Herring met with Randy Gibson on November 15th to come up with a plan for the referendum publicity.  Mr. Gibson feels it is very important that on January 2nd the model be on display across from the circulation desk along with brochures, handouts and copies of the floor plan.  They set up times to hold community board meetings which will include tours of the building.  The dates are January 27th at 2:00 p.m., February 25th at 2:00 p.m. and March 19th at 7:00 p.m.  Ms. Falasz-Peterson is hoping that most of the board will be able to attend these meetings.  Mr. Gibson will also be in attendance.  There are still some details to be decided upon.  Mr. Gibson is working on PR ideas.  He suggested the board come up with an action plan, some goals that we can do to further the campaign.  Mrs. Herring stated that we need to put talking points together and make sure all the board members have them.  She feels is it very important that everyone is saying the same thing to the public.  Jeff Giebelhausen has offered to work with us on developing brochures.  The board will give him the information we want in the brochures.  Mr. Giebelhausen has also offered to be a chair for us, therefore, he will be bringing some people together.  Mrs. Herring has asked Mr. Goff to work with Jeff Giebelhausen.  Ms. Falasz-Peterson asked the board members for goals for the campaign.  Mr. Mingus asked if we could put a sheet in the library for patrons to sign up to have signs in their yards.  Ms. Falasz-Peterson will check with our attorney to see if we can.  Mrs. Herring stated that Mr. Giebelhausen said he would place the signs in prominent places around the city.  Mr. Mingus feels that if we can have a sign up sheet, it may make the public feel like they are involved.  Mr. Lasswell suggested we mention it to Mr. Giebelhausen.  Mrs. Cole asked if we could do something on public access.  Mr. Lasswell stated that the library will be producing a Community Focus program.  Mrs. Cole asked if we can do something on our web site, like a FAQ.  Mr. Mingus suggested a kickoff event.

 

            Ms. Falasz-Peterson informed the board that she and Miss McKeever will be visiting parent’s club meetings.  She asked the board if they felt it would help to have a board member who has children in the district speak.  The director and assistant director would be at the presentation to be available for questions.  They are already scheduled to attend the Armstrong/Bolin club on March 20, 2007.

 

            M/S/P (Lasswell/Johnston) to approve payment of the December bills and have two board officers’ sign.

 

            M/S/P (Lasswell/Mingus) to approve Christmas gifts in the form of Chamber checks for staff in the amounts of $100 for full time staff and $50 for part time staff.

 

            M/S/P (Lasswell/Cole) to approve the 2007 board meeting dates.

 

            Kevin Heid, a financial planner, from First Midstate discussed with the board different types of funding, referendum options and what his company has to offer during the referendum process.  He informed the board that for the April election, they must take action no later than February 13, 2007.  This is the last day the board can approve a question for the April ballot.  The question has to be filed in Tazewell County.  He reported that bonds must be paid back within 20 years.  As a library there is no debt limit.

 

            Mr. Heid discussed a couple of different types of bonds that can be issued.  The first was the building bond.  In this case, a dollar amount is voted for, not a tax rate.  Of course, when communicating with the public, we will have to figure what that tax rate is going to be.  The bond levy will pay back the bonds over the length of the term, but at the end of the term the library no longer has that additional money.

 

             The alternative to building bonds is to raise the operating funds sufficiently to cover debt service and then once the bonds are paid off, the money continues.  There are statutory limits on operating funds.  The next type is an alternate revenue bond.  This would be recommended if the library board wanted to increase the operating levies.  It is the most secure to the investor and would provide the best interest rate for the library.  This is a combination of the property tax bond and a revenue type of bond, where the library board is using a pledged revenue source.  In this case, the pledged revenue source would likely be the corporate fund.  If the corporate fund does not generate enough money to pay the bond, then the library board would be allowed to levy a property tax over and beyond PTELL to make up the deficiency.  If the board would decide to go with raising operating levies instead of a regular bond issued, he would recommend the alternate revenue bond because this would provide the lowest borrowing cost. 

 

            When legislation was passed to create the alternate bond, the legislature wanted to make sure businesses weren’t borrowing too much, so the law requires that the pledge of revenue must be 125% of the debt service.  Mr. Heid’s company sends a reminder letter each year to their alternate revenue bond clients reminding them that they must abate their taxes.  There is a built in tax levy that is already on file with the county clerk when a bond ordinance is filed.

 

            There is a special levy projects that the library could have a referendum to levy.  This levy is basically for construction of a library and paying back that debt and can be up to 8.33 cents and only stays as long as the debt.  Right now, the library levies at 25 cents.  If the library would use all 35 cents of the max towards the building, that would generate based on the current EAV, $1,178,000 a year.  That would basically take care of the debt services based on $11.925 million, if the library board would finance the entire amount.  This does not assume any kind of fundraising and does not leave a lot left over for operating expenses.

 

            One concern with having two questions on the ballot, i.e. a bond question and a question to raise operating rates, is one could pass and the other may not.  Mr. Heid started considering the alternate revenue bond approach.  He feels this is the best approach long term, if the library can make it work and live within the limits.  The limits are tight; there isn’t a lot of extra money.  The debt service on $12 million is a little over $1 million a year.  That generates $1.178 million, there will be some growth but under PTELL the library won’t receive all of it.  Mr. Heid suggested that the board may also want to look at other sources of funding to bring down the financed amount. 

 

            If the board decides to go with building bonds, there are several preliminary ordinances to the referendum that an attorney will take care of.  Things like site plans, general plans and specifications that need to be adopted before the board can adopt the election question or at least before the bond resolution is adopted. 

 

            Bonds are not like home mortgages, in the sense that the principal is amortized down to the penny.  Bonds are sold in $5,000 denominations of principal.  Payments per year will not be the level like home loans, the first year the most interest is paid.  Time must be permitted for the tax levy to be collected if it needs to be collected.  It’s possible with an alternate revenue bond to change it a little and “unload” the levy.  Mr. Heid’s concern is that the debt service will take roughly $1,030,000 a year if the rates are 5.75%, which will leave approximately $140,000 to $150,000 a year for additional operating expenses if the board puts a maximum question on the ballot which would be about a 35 cent increase. 

 

            If the board decides to try for an operating expense referendum, the tax rate and what it will cost a person on their taxes based on a $100,000 home will be right in the question.  If they seek a bond issue, a tax rate will not be in the question as the rate is figured each year depending on the EAV. 

 

            Mr. Heid informed the board that First Midstate does work on a no pass, no pay basis.  First Midstate works with Chatman & Cutler, a bonding attorney.  He also reported that he has had great services placing bonds in this area.  They would also be willing to come to any open house we may have to help people understand and help them calculate their tax impact.

 

            Ms. Falasz-Peterson reported on a meeting with some state library people on November 16th regarding construction grants.  Although there are none at this time, they suggested that it may be in the library’s best interest to send a letter of intent, if these grants were offered in the future.

 

            After some discussion on the fact that the board will need to have a decision on a ballot question by February 13th, Mr. Mingus wondered about a special meeting.  The board decided to hold a special meeting on December 14th at 6:30 p.m.

 

            The meeting was adjourned at 8:10 p.m.