Title
Chief Administrative Office and Library recommending the Board:
1) Receive presentation regarding status of library system funding; and
2) Adopt Resolution 099-2012 placing a measure on the November 6, 2012 ballot to:
a) Cease collection of existing library special taxes and benefit assessments in County Service Area No. 10; and
b) Establish a uniform library special tax for County Service Area No. 10 and its zones of benefit to maintain and enhance the library system. (Est. Time: 15 Min.)
Body
Fiscal Impact/Change to Net County Cost
There is no change to Net County Cost. If this recommendation is approved and the ballot measure passes, it will result in a net increase in County Service Area 10 tax revenue estimated at $180,000.
Background
Total library operations are $3,334,010. Of this amount, taxes and other revenues constitute the majority of funding for the libraries (55%). The Fiscal Year 2012-13 General Fund contribution (Net County Cost) for the El Dorado County Library system is $1,488,565 (45% of total library funding).
The system consists of six community libraries that are tied together with a central administrative, technological and programmatic function. Most of the General Fund contribution to the library supports these central operations. The remaining General Fund contribution helps to subsidize individual branch operations as needed to provide basic library services.
In addition to this support from the County General Fund, Government Code 25213(d) expressly authorizes a county service area to provide library services and facilities. In 1993, the Board of Supervisors added library services to County Service Area No. 10, and authorized the creation of zones of benefits. In most zones, voters have chosen to adopt a special tax or assessment to provide an enhanced level of library services.
However, each library tax is a different amount based on a different formula. For example:
Zone D (Cameron Park) pays a $25 benefit assessment on each dwelling unit, with no annual price index adjustments, and no sunset date.
Zone E (El Dorado Hills) pays a $25 special parcel tax, with no annual price index adjustments, and no sunset date.
Zone F (South Lake Tahoe) pays a $17.20 special parcel tax adjusted annually with the Consumer Price Index (or maximum 3%), and a sunset date of 2015.
Zone G (Georgetown) pays a $17.20 special parcel tax adjusted annually with the Consumer Price Index (or maximum 3%), and a sunset date of 2015.
Zone H (Main/Placerville) does not have a tax or assessment.
Consequently, funding for the library system overall is inequitable and unstable. The expiration of a tax in one zone would likely result in a diversion of General Fund support to that branch, and/or an erosion of central services, thereby decreasing General Fund support to other branches in the library system.
Reason for Recommendation
The proposed ballot measure allows the voters to continue choosing a level of library services above what the General Fund can provide. In addition, the proposed library tax in this resolution consolidates and simplifies the current library tax structure. The new structure provides a fair and equitable source of funding for all county libraries, based on a single formula applied evenly across County Service Area No. 10.
Action(s) to be taken following Board approval
1) Chair to sign Resolution
2) Elections to place library ballot question on November 6, 2012 ballot.
Contact: Jeanne Amos, Library Director or Mike Applegarth, Chief Administrative Office
Concurrences: County Counsel has reviewed the attached resolution.