HomeMy WebLinkAbout2011-04-26 - AGENDA REPORTS - SPECIAL LIBRARY TAX (2)i -
Agenda Item: 113
CITY OF SANTA CLARITA
AGENDA REPORT
UNFINISHED BUSINESS City Manager Approval:
Item to be presented by: Darren Hernandez
DATE: April 26, 2011
SUBJECT: SPECIAL LIBRARY TAX
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt a Resolution making the determination to not levy the voter -approved special
tax dedicated to fund library services, effective Fiscal Year 2011-12.
BACKGROUND
On June 3, 1997, the electorate of the Enhanced Service Area of the Los Angeles County Public
Library, which includes the City of Santa Clarita, by a vote of 70.00% in favor and 30.00%
opposed, and the electorate of the City of Santa Clarita, by a vote of 70.97% in favor and 29.03%
opposed, approved a special tax "dedicated exclusively to fund library services within the areas
which are subject to the tax." The initial authorized maximum amount of the special library tax
was established in 1997 at $22 per parcel of property. Each year thereafter, the maximum
amount of the special library tax has increased by 2%, or the percentage change in the California
Consumer Price Index (CCPI) for the prior fiscal year, whichever was less, resulting in a special
library tax rate that is now $27.84 per parcel; this is an increase of 26.5% over 13 years.
On January 11, 2011, the City Council directed staff to place on the agenda for January 25, 2011,
an item to consider calling a special election on the question of reducing the library parcel tax
that was approved by voters in 1997. On January 25, 2011, the City Council continued this item
to the City Council meeting of May 10, 2011, to provide staff additional time to research various
fiscal and budgetary issues related to the financing of the Santa Clarita Public Library.
The Library Ad Hoc Committee and staff has concluded research related to this issue and is
returning this item to the City Council. Following a review of various issues, including the
receipt of updated information regarding property tax revenue for fiscal year 2011-12, the Library
Ad Hoc Committee and staff has determined that levying and collecting the special library tax
approved by the voters of .the City of Santa Clarita in 1997 is not needed to operate the Santa
Clarita Public Library to implement all of the planned service improvements and to repay all
public library start-up costs within ten years. The service improvements to be implemented for
the Santa Clarita Public Library include:
• Increasing the operating hours of the Canyon Country and Newhall libraries by 10 hours
each week. This equates to a 19% increase in weekly hours at these branches.
• Opening the Canyon Country and Newhall Libraries ori Sunday.
• Enhancing the local collections of library materials by increasing the budget for library
materials. As part of the budget for Fiscal Year 2011-12, the City Manager will
recommend a library materials budget of $750,000 which is an increase of $300,000, or
67%, from current expenditures of the County Library.
• Increasing the number of titles available to library patrons by nearly 90,000 titles through
participation in the Inland Library Network partnership of 8 independent library systems.
• Implementing new customer service technology such as radio frequency identification
(RFID).
• Building and fully staffing and stocking with library materials the new library in Old
Town Newhall.
Revenue and Expenditure Projections for Fiscal Year 2011-12
For the fiscal year commencing July 1, 2011, projected revenues and expenditures for the Santa
Clarita Public Library are as follows:
Revenue
Property Tax
$4,650,004
Operating Revenue
$ 135,000
State Funding
$ 40,000
Interest Income
$ 6,250
Total Revenue
$4,831,254
Operatlna Expenditures
Operations Contract $3,117,633
Additional Library Materials $ 135,000 (for a total of $750,000, an increase of 67%)
Information Technology $ 50,000 (installation of additional public computers)
Professional Services $ 25,000
Facility Maintenance $ 400,000
Total Operating Expenditures $3,725,264
Operating Surplus $1,105,990
Repayment to General Fund $ 500,000
Su lus $ 605,990
-2--
The contract with Library Systems and Services LLC (LSSI) for library operations is fixed by
contract for a period of five years (through Fiscal Year 2015-16) and is, therefore, a certain
amount. The assessed value of real property for property tax purposes has stabilized and begun
to recover; as a result, property tax revenue, the primary funding source for the Santa Clarita
Public Library, has begun to increase and is projected to grow at a greater rate than the fixed
increases provided for in the contract with LSSI. Given the known fixed operational costs and
the anticipated growth in property tax revenue, sustained annual surpluses are projected for the
Santa Clarita Public Library in subsequent fiscal years. A five-year projection of revenues and
expenditures is attached to this report.
As many library systems are reducing services and seeking increased taxes, the Santa Clarita
Public Library will enhance public library services provided to the community by increasing
library hours by 19% at the Canyon Country and Newhall Libraries (including opening both on
Sunday), increasing by 67% the budget for library materials and building and fully staffing and
stocking the new library in Old Town Newhall, and paying off start-up and enhancement costs
within ten years. These will be accomplished without levying and collecting the special library
tax.
ALTERNATIVE ACTIONS
Other action as directed by the City Council.
FISCAL IMPACT
Levying and collecting the special library tax approved by the voters of the City of Santa Clarita
in 1997 is not needed to operate the Santa Clarita Public Library, to implement all of the planned
services improvements, and to repay all public library establishment costs within ten years.
ATTACHMENTS
Resolution
Expenditure and Revenue Forecast
3
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA,
MAKING THE DETERMINATION TO NOT LEVY THE VOTER -APPROVED
SPECIAL TAX DEDICATED TO FUND LIBRARY SERVICES
EFFECTIVE FISCAL YEAR 2011-12
WHEREAS, Article XIIIA and Article XIIIC of the California Constitution requires
enactment of a special tax be approved by a two-thirds vote of the electorate voting on the issue;
and
WHEREAS, on June 3, 1997, the electorate of all the areas subject to the special tax, by a
vote of 70.00% in favor and 30.00% opposed, and the electorate of the City of Santa Clarita, by a
vote of 70.97% in favor and 29.03% opposed, approved and authorized a special tax "dedicated
exclusively to fund library services within the areas which are subject to the special tax;" and
WHEREAS, the authorized maximum amount of the special tax per parcel for the initial
fiscal year, July 1, 1997 to June 30, 1998, was established at $22 per parcel of property;
thereafter, the maximum amount of the special tax increases each year by 2%, or the percentage
change in the California Consumer Price Index (CCPI) for the prior fiscal year, whichever is less,
although for any fiscal year, the special tax may be levied at less than the maximum amount; and
WHEREAS, pursuant to the methodology hereinabove described as approved by the
electorate, for the fiscal year, July 1, 2010 to June 30, 2011, the voter -approved maximum
special tax rate is $27.84 per parcel; and
WHEREAS, Section 19100 et seq of the California Education Code, authorizes a
incorporated city in Los Angeles County to withdraw from the county public library system and
assume responsibility for providing public library services; and
WHEREAS, following a duly noticed public hearing conducted on August 24, 2010, in
accordance with the requirements of Section 19100 et seq of the California Education Code, the
City Council of the City of Santa Clarita adopted a resolution to withdraw from the county
library system, effective July 1, 2011; and
WHEREAS, the Board of Supervisors of the County of Los Angeles shall not levy the
special tax within the area of any incorporated city which withdraws from the service area of the
Los Angeles County Public Library, beginning with the first fiscal year after such withdrawal
takes effect; and
WHEREAS, it has been determined that levying and collecting the special library tax
approved by the voters of the City of Santa Clarita on June 3, 1997, is not needed to operate the
Santa Clarita Public Library, to implement planned service improvements, and to repay public
library establishment costs. The service improvements to be implemented by the Santa Clarita
Public Library include: increasing the operating hours of the Canyon Country and Newhall
libraries by 10 hours each week which equates to a 19% increase in weekly hours; opening the
Canyon Country and Newhall libraries on Sunday; enhancing the local collections of library
materials by increasing the budget for library materials by $300,000 to $750,000 which is an
increase 67%, from current levels; increasing the number of titles available to library patrons by
nearly 90,000 titles through participation in the Inland Library Network partnership of 8
independent library systems; implementing new customer service technology such as radio
frequency identification (RFID); and, building and fully staffing and stocking with library
materials the new library in Old Town Newhall.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as
follows:
SECTION 1. All of the recitals herein contained are true and correct and the City
Council of the City of Santa Clarita so finds and determines.
SECTION 2. Effective July 1, 2011, there shall not be levied upon the parcels within the
City of Santa Clarita the special tax dedicated exclusively to fund library services approved by
the voters of the City of Santa Clarita on June 3, 1997.
SECTION 3. This resolution shall become effective immediately upon passage by the
City Council.
PASSED, APPROVED AND ADOPTED this day of
ATTEST:
CITY CLERK
MAYOR
2 —5—
PASSED, APPROVED, AND ADOPTED this day of 2011.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
I, Kevin Tonoian, Acting City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution ' was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2011, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
3 —6-
0
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, , City Clerk of the City of Santa Clarita, do hereby
certify that this is a true and correct copy of the original Resolution 11- adopted by the City
Council of the City of Santa Clarita, California on , 2011, which is now on file in my
office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
2011.
City Clerk
By
Deputy City Clerk
4
81-
-
i
00
to
o
_
N
O
° �t
>
CY)
Lf)O
O
O
O
O
00
O
O
O
O
o O> ,
O
0=.
00
k
Z:E
O
07
.
O
O
O
CD
04
.`9W
E
0
C
¢
qa
3
`�
z w
z
Ca
CO
O
�
M
C)
V
�
N
N
Cl)
tp0
�`,., NSE.
O
000
LL
�
�
E?
69
�
Ef3
EA
64
{
i
r
U'
ani
7
'a
c
N
O
U U
.. �. LL
>
OC
ro
O
0
m
x
0
E
O
x
w
c
m
cC
H
U
t ,
°?
O C
O
'�
O
O
O
LO
N
co
O
O
O
O
O
co
d n
>
N
00
O
O
I�
^
O
a� ='
w U
LO N
O
O
N
M
M
O cq
M
=
a LL
Q
O
OM
h
t0
Q
Q
O'
rLIXI
T.
00
r
}
O
V
6c)
6-3
to
M
Lf)N
N
EA
COO
�1 O,i
Lf)
LL
L()
619�
L'j
crj69
64
64tq
N_�
�i
ty
tR
69..
O
Z
..
J
3
f
O
O
O
O
O
CD
O
0
Of
"�x t`
O
`T-
O
o
rn
z
O
o
o
O
CM
00
O
O
O
Cl)
O
Ld
Ln
N
h
N
f 500
�'
O
Y)t
M
O
LL
69
viLO
69
a��,
k
r
t
LO
O
O
O
O
LO
r—
'IT
O
O
O
O
4 O0 6
p
900
=0;
00
01
A
In
O
o
00
�n
O
V
O
O
00
00
O
o
a
O y
Nrfi
p
O
N',
e-
Np
N
O
O
Ln
M
O
O
L
to
O
�
NN
LO
�M
M>.
LL
ug,Ei
64
691
fR
r
,'.
N
O
O
4"�
CD
0
O
O
00
�-
ryli
C)
O
O
O
Lo
Ct
C140
O
O
O
O
O
,-O)
O
N
p
p
Ip
s"
��
lc
r
V
(D
00
Lf)
LOC)
N
O
n
O
`'Co
O
LL
It
69
64
�
�
6c)
61.k
EA
�
C.�
i —j
tl)
f
Eii
",'
81-
-
>
a
ME)D
cc
k
Z:E
f rQ
.
.`9W
E
0
C
¢
qa
3
`�
z w
z
�oO
l
LL
Baa
y
va
U'
ani
7
'a
c
N
O
U U
.. �. LL
>
OC
ro
O
0
m
x
0
E
O
x
w
c
m
cC
H
U
°?
O C
O
'�
1
..
d
LL
E
d n
>
N
_�
O
Q
O
41
_
O
O
a� ='
w U
LO N
§� H
t
m
O< a
O cq
O
=
a LL
w_
LLXryOEC
•� rQ.Lo
N_�
O
Z
..
J
3
81-
-