ORDER NO. 293 88 COMMITMENT TO FUND 'h OF OPERATIONAL BUDGET FOR LIBRARY Came to be heard this the 26th day of September, 2005, with a motion made by Commissioner Letz, seconded by Commissioner Williams. The Court unanimously approved by vote of 4-0-0 to: Make the commitment to make additional expenditures from the County Budget to fully fund '/z of the Operational Budget for the Library, after the City Council or City staff has presented a Budget, and after making any modifications that we agree to after discussions regarding same; all of which will be done after the fiscal year through a budget amendment process. Any additional funds shall not come from the County Reserves). I3 z~"~,. COMMISSIONERS' COURT AGENDA REQUEST ~ ~ `~ ~ ~ PLEASE FURNISH ONE ORIGINAL AND TEN COPIES OF THIS REOUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Dave Nicholson MEETING DATE: September 26, 2005 OFFICE: Commissioner, Pct. 4 TIME PREFERRED: SUBJECT: Consider, discuss and take action on OS-06 budget change recommendations. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Commissioner, Pct. 4 ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared far the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towazds you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. 20`" September 2005 County Judge and Commissioners: Attached are my notes on proposed spending reductions that I had intended to discuss today. I have included this as an agenda item on next Monday's Court meeting. Dave Nicholson KERR COUNTY OS-06 Budget Facts Ken• County Government is too expensive. The problem is not that tax revenues aze too low. The problem is that costs aze too high. >Property tax revenues increased $1.3 million (18.2%) >Costs increased $2.3 million (15.5%) The revenue loss due to the over 65/disabled freeze is not significant. >$140 thousand is 7/1 Oths of 1% of total costs >$140 thousand is 1.3% oftotal tax revenue The deficit budget is being funded in part by: >Spending $500 thousand from the Reserve Fund -down $2 million in 2 yeazs >Spending the $500 thousand from the expired Court House Improvements Note >A 1 '/a cent tax rate increase Why aze costs too high? >Compared to all Texas Counties of 40,000 - 50,000 population: 1. Kerr is the most expensive county. 2. Kerr has the most employees and largest payroll >Juvenile Detention Center costs $763 thousand >Extravagant spending on contracts with City of Kerrville The deficit spending cannot continue. Costs must be reduced. KERR COUNTY OS-06 Budget Reduction Opportunities Commissioners' Court has made an effort to reduce the budget deficit through staff reductions and other cost cutting. These efforts have fallen short of what is needed. The reserve fund balance will fall below 20% in OS-06; it is down nearly $2 million in two years. These additional cost reduction steps aze recommended: 1. Reduce by 10% the salaries of the thirteen elected officials and appointed department heads whose current salary is above $40 thousand per yeaz. $75,000 Savings 2. Abolish nine additional positions: County Clerk 2 Treasurer 1 Tax Assessor 2 Sheriff 1 Env Health 1 Mtc 1 JP1&3 1 $220,000 Savings 3. Abolish Trapper Contract, cut Extension Service and County Sponsored by 20% $65,000 Savings 4. Negotiate a new, mid-yeaz contract with the City to eliminate the $400,000 EMS loss due to underchazging and undercollecting. $200,000 annual, $100,000 net Total Savings = $460,000 -/~ -o KERR COUNTY 2005-2006 Budget Summary Requested Fund Est. Bal. Est.05-06 Est.05-06 2005-06 Est. Bal. 9-30-05 Tax. Rev. Non Tax Rev Expenditures 9-30-06 General 3,391,981 6,875,664 5,600,860 12,966,527 2,901,978 Fire Protection 74,832 235,090 1,860 232,000 79,782 Public Library 99,019 316,860 2,000 300,000 117,879 Parks 50,277 0 0 35,000 15,277 Indigent Health 78,250 692,942 35,800 770,000 36,992 Juvenile Facility 0 288,846 1,352,844 1,636,431 5,259 2005 Cert of Obligation 5,565 511,779 3,100 473,815 46,629 Contr. Obligation 72,678 140,700 1,650 161,092 53,936 Perm.lmpv. 0 0 0 0 0 Jail Bonds 78,667 536,620 1,470 523,450 93,307 Total 3,851,269 9,598,501 6,999,584 17,098,315 3,351,039 R & B Operating 458,946 833,752 1,222,500 2,120,968 394,230 Flood Control 74,282 0 2,400 0 76,682 Sch. Road Trust 81,103 0 1,200 50,000 32,303 Total 614,331 833,752 1,226,100 2,170,968 503,215 Road Districts 164,336 23,256 0 0 187,592 Lake Ingram Est Rd Dist 0 23,000 0 22,800 200 Law Library 119,849 0 59,200 43,295 135,754 Title IV-E 48,969 0 87,000 84,659 51,310 JP Technology 18,844 0 16,860 14,600 21,104 Records Mgt. 43,663 0 20,900 3,000 61,563 CH Security 7,066 0 44,770 48,360 3,476 Dist. Clerk Records Mgt. 3,992 0 3,400 0 7,392 Records Archival 85,486 0 67,000 22,392 130,094 Att. Dispute Resolution 10,636 0 .12,200 12,500 10,336 Total 502,841 46,256 311,330 251,606 608,821 Total 4,968,441 10,478,509 8,537,014 19,520,889 4,463,075 zq~o KERR COUNTY 2005-2006 Budget Amendments Expenditures Account Description 10-401-563 Computer Maintenance 15-611-111 Crew Salaries 10-560-104 Deputy Salaries 10-512-104 Jailer Salaries 10-512-107 Clerk 10-499-104 Tax Office -Deputy Salaries 10-403-104 Co. Clerk -Deputy Salaries 10-475-103 Co. Attny -Assistants 10-642-331 Vehicle Gas, Oil, Maint. Total nn~~~&~ ~~ ~~ vv~ From To $0 $595 618,309 618,952 1, 373, 378 1,408,115 791,221 791,741 21,071 20,556 290,419 290,409 257,888 258,619 50,133 53 083 ° ` S 13,050 17,050-.~ I 3 i $3,415,469 $3,458,525 Increase(Decrease) $43,056 ~~~ r/ Let the record be clear, I support increased County funding for the Butt- Holdsworth Library for the 2005-2006 fiscal yeaz and will identify certain adjustments to our budget to increase our share of funding. The rest is up to the City of Kerrville. But first, some comments on current events. It appears that even in Kerrville, it has become good sport to play a local version of the "Hurricane Katrina Blame Game" regarding library funding issues. What distresses me most has been the absence of complete budget information, which has been in the possession of the city since mid-year, but not provided to the county, and the current attitude toward county government displayed and articulated by library management. There is no valid reason why, over the course of our budget process, library management has never taken the time nor made the effort to come to Commissioners' Court and explain the library operation and any of its unique or special needs. We are left to read in the newspaper that reduced funding places the library's accreditation or perhaps State funding grants in jeopardy. If indeed this is the case, would it not have been more productive to all concerned to present this information directly to Commissioners' Court at an appropriate time thus preventing your 50-50 funding partner from reading this information with accompanying negative comment in the local newspaper? Common sense and common courtesy suggest this to me. Also, is it unreasonable to expect more than a "Library Fund Budget Summary" that contains no detail on operations sooner than one week before the county budget is finalized and presented for approval? The new library contract, approved by Commissioners' Court last Monday, has the potential to move library support and oversight in a new direction. This is long overdue in my opinion. But also overdue is a frank discussion and the sharing of information about library operations. Finding additional funding at the last minute is not the ultimate solution. The ultimate solution, however, lies in the formation of a county-wide Library District. Chapter 326 of the Local Government Code deals specifically with the creation, funding, operations and oversight of Library Districts; which may include incorporated and unincorporated territory-for our purposes, all of Kerr County. I call upon the Mayor and City Council to work with us to place the issue of creating a Library District, election of directors, and funding to come from existing sales and use tax before the voters at the earliest possible date. Once accomplished, that should forever put an end to city-county squabbling over library funding. It will also allow both the City and the County to reduce our respective tax rates accordingly. The appointment of a task force charged with the task of developing a firm plan of action within the next six months is a very good place to start. Now, the specifics. First, Ken County's share of library funding is not $416, 113 as presented. This amount will be reduced to $398,b 13 by removing a chazge for "Buildings and Structures Maintenance and Repairs." This item is the sole responsibility of the city which owns the building. I propose adjustments to the Kerr County Budget as follows: • Line item 10-401-486, Professional Services-reduce $5,000. • Line item ]0-515-451, Detention Repairs-reduce $5,000. • Line item 10-595-450, Airport Operation-reduce $25,000 of which $9,000 was over-budgeted. • Line item ] 0-660-320, Trapper Contract-reduce $5,000. • Line item 10-666-105, Secretary salary, change to p/t-reduce $10,000. • Line item 31-662-486, Flat Rock Lake Park-reduce $10,000. • Line item 41-634-105, Records Archival-reduce $5,000. • Total reductions to the County budget to be transferred to Library, Line item 19-659-491-$65,000. This brings our funding level to $365,000, leaving a shortfall of $33,613. This amount can be taken from estimated fund balances, reducing yeaz-ending reserves by'/2 of one percent. . - _. -112 `%' 3Ariends >of butt-3fialdswm~itt ~itbrttrq Statement from the Board of Directors of The Friends of the Butt-Holdsworth Memorial Library The Butt-Holdsworth Library has been one of the most vital parts of the educational and cultural life of Kerr County, the City of Kerrville and the surrounding area for decades. Proof of that is in the fact that three times as many people use the library in a year as live in Kerr County, and there are many other arguments in favor of keeping our library funded so that it can continue to perform its important function fully and efficiently and to continue enriching the lives of all who use it. Our library is one reason that we who are blessed by living in this historic and beautiful area are envied by those who reside elsewhere. All of us have heard relatives and other visitors voice amazement that asemi-rural area such as ours has such an impressive facility. Realtors report that persons deciding where to live in the Hiil Country often cite the library among reasons that they chose the Kerrville-Ingram-Hunt area. Therefore, the Board of Directors of the Friends of the Butt- Holdsworth Memorial Library feels fully justified stating as clearly and firmly as possible that it is essential for Kerr County Commissioners and Kerrville City Council members to fund fully their respective shares of the library budget. Further justification for our making this strong statement is the record of the Friends of the Butt-Holdsworth Memorial Library in raising and donating hundreds of thousands of dollars and uncounted hours of volunteer labor to help our dedicated library staff make and keep the library a facility that fulfills its mission fully. 505 Water Street • Kerrville, Texas 78028 In addition to an annual donation that in recent years has been 520,000 per year, the Friends have paid for such things as a study of the computer system by the pre-eminent consultant in library information systems and the current assessment of future library needs by specialists in such analysis. Our members joined other residents in making large donations for fixtures and furniture in the History and Genealogy Center. Our largest single contribution to date is 5360,000, donated to the city for the purchase of the commercial building between the main library and the history center, with the understanding that the property will be used for library expansion. Everyone on our board is adues-paying member of the Friends organization, and most are life members or benefactors who have made and continue to make substantial donations beyond basic fees for individual or family memberships. Thus, in our own behaff and in representing our more that four hundred members, this Board of Directors is firm in stating unanimously our position that the citizens of Kerrville, Ksnr County and those in surrounding areas (who pay an annual fee since they are not county residents) deserve to keep a library of the first class. We emphasize that we do not ask for anything that could reasonably be called a frill or a luxury; only for what is essential to the continued full and efficient operation of this vital facility. For the Board, /J_ ~~ Dorothy Newby, President ~~ Kay Bruce Vice President cJ~:~:~ Nina Weinberg Vice President /J'~ Charles Decker Treasurer h~sucv ~.ePP Moira Attweil Vice President ~~ John Huddleston Secr®tary / // --~ ~~ `~- Jdseph Bnham r~-- Immediate Past President (ex-officio) September 25, 2005