12/19/1988 Meeting - Laserfiche WebLink

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e video rentals, and tickets) would provide insufficient revenue ($200,000) and would have high administrative costs. Mayor Obie explained that the committee sought to avoid suggesting property taxes as a revenue source. Answering Mr. Holmer's inquiry about dedicating increased revenues from EWES's rate increase, Mayor Obie said that increase had already been included in budget projections. Finance Director Warren Wong added that increases in all franchise fees had been factored into balancing the General Fund budget in the Six- Year Financial Forecast. He went on to say that the projections included three percent per year compounded for six years (normal growth related to increases in population) and a six to ten percent rate increase. Mr. Gleason estimated the difference as amounting to $100,000 to $150,000. Tony Mounts, Finance Division staff, said that a four percent overall growth rate was anticipated. That included one percent in increased consumption and three percent for inflation. Mr. Wong reported that the difference between the projections in the forecast and those of EWES was $182,000 in FY89, $171,000 in FY90, and $265,000 in FY91. He said the current year's $182,000 was being applied against the projected General Fund deficit. Mr. Miller asked whether the use of computer technology provided an opportunity for cost savings by reducing the labor intensity of certain library functions. Ms. Hildebrand replied that labor savings from automation have already been realized and how to cut supply costs was being explored. Responding to Mr. Miller's question about user fees for special staff e assistance, Ms. Hildebrand said some services are already charged (overdue fines and reserves). Records and tapes are approximately three percent of the collection and charging for their use would probably not net significant revenue. While some services could be developed and marketed, she said staff hopes to avoid check-out charges. Ms. Hildebrand emphasized that a recent national survey found no public library that charges for a user card. Mr. Holmer anticipated public testimony regarding the accessibility of the 8th and Olive site and asked if lack of accessibility may reduce the need for additional staff. Ms. Hildebrand said increased use could be expected regardless of the library's location, but she suggested that staffing could be phased. Councilors discussed the difficulty of predicting how rapidly expanded use could be expected. Mayor Obie suggested that the council may need to consider re-ordering its priorities and including the library in the General Fund. Mr. Gleason pointed out that the council always has the option to change its priorities and he reminded councilors that $250,000 had been taken from the contingency fund as a result of the failure of the County Library levy. In the absence of a new levy, that $250,000 will have to become internal to the operating account next year. Recognizing that the council already faces a $1 million shortfall in addition to an unexpected $300,000 increased labor bill, Mr. Gleason described the additional $600,000 as a challenge. e MINUTES--City Council December 19, 1988 Page 2 Work Session