Item A: Renewal of Library Local Option Levy

Home Browse Search

per $1000 of assessed value for a typical taxpayer). The measure was approved by 56% of voters participating in the May election. The levy will expire on June 30, 2007. On November 16, 2005, the council held a work session on sequencing of financial measures to be presented to the voters. The council approved a tentative election schedule that included presenting a Library Local Option Levy renewal to the voters in November 2006. Financial and/or Resource Considerations Library services are funded both in the General Fund and the Library Local Option Levy Fund. In FY06, the General Fund portion of the library budget is $4.5 million, or 46% of the total, and the Local Option Levy portion is $5.3 million, or 53%. The current Library Local Option Levy, which expires June 30, 2007, includes a range of service enhancements that were described above under Council Action History. Under the proposed renewal of the Library Local Option Levy, all of these services would continue and no new services would be added. The Library Advisory Board, a Departmental Advisory Committee, was formed in January 2005 and meets monthly to provide citizen advice to staff. Agendas have included discussion of the levy’s role within the Library’s budget, levy sequencing, whether to recommend continuation of current services or enhancements (such as the addition of one or more branches) as part of the levy renewal, and the effect of Measure 5 compression on the levy. The board has unanimously recommended local option levy renewal at the current level of services. The proposed renewal will be for a four-year, rate-based levy for the years FY08 through FY11. This proposal assumes shifting some levy-funded services, valued at $700,000 per year, from levy funding to the General Fund in FY08. Because it will be a rate-based local option tax levy, the amount levied each year will depend on the amount of assessed value in the City. The chart below sets out the gross amount levied, the estimated tax rate and the cost to the median homeowner for FY07 (the last year of the current levy) and for the proposed levy renewal period. Attachment A shows the six year Library Levy Fund forecast assuming the levy is renewed as proposed with the $700,000 shift of services to the General Fund. Existing Proposed Levy Renewal Levy Assuming $700,000 Shifted to General Fund FY07 FY08 FY09 FY10 FY11 Gross Amount Levied $4.9 $4.5 $4.7 $4.9 $5.2 (in millions) Tax Rate per $1000 AV $0.47 $0.41 $0.41 $0.41 $0.41 Cost to Median Taxpayer $66.50 $60 $62 $64 $66 The effect of shifting $700,000 of levy-funded services to the General Fund is a reduction, from what otherwise will be required in FY08, of about $0.07 per $1000 in the tax rate, and a reduction of about $10.25 for the taxes on a median home L:\CMO\2006 Council Agendas\M060412\S060412A.doc