NORTH CANTON PUBLIC LIBRARY
BOARD MEETING MINUTES
June 2, 2009

The Board of Trustees of the North Canton Public Library held a Special meeting on Tuesday, June 2, 2009 at the library.  Mr. Shoup called the meeting to order at 4:04 p.m., noting that the press and public were appropriately notified of the meeting, with the following members present:  Mr. Fonte, Mr. Luikart, Mrs. Rankin, Mr. Shoup, Mr. Smetana, Mrs. Ziarko, and Mrs. Zollinger. Staff:  Karen Sonderman, Kelly Kroll, JoAnn Simon, 13 staff, and 2 guests.
 
Mr. Shoup thanked everyone for attending the special meeting.  He briefly commented on the unusual financial climate we are experiencing at this time.  He stated that the library board approved the 2009 budget in December, 2008 based on the Stark County Auditor’s estimate of state Public Library Funds (PLF) for 2009 of $1,583,466.00.  On December 23, 2008, the County Auditor sent a new PLF estimate for 2009 of $1,412,135.00.  In January 2009, the Board approved a revised budget with $148,000.00 (about 9.5%) in cuts.  It was believed by the Board that these cuts would be enough to carry us through 2009.  However, in May 2009, the Ohio Library Council predicted that 2009 overall PLF revenues will be 15-20% less than 2008 collections for all public libraries in Ohio.  For North Canton Public Library that would require another 10% cut, or $142,000.00.
 
Mr. Shoup asked Mrs. Kroll, the Fiscal Officer, to present the library’s current financial status.  Mrs. Kroll provided a presentation (attached) explaining the PLF, how revenues are collected by the state and distributed to libraries, our 2008-2009 budget timeline, cuts that have been made to date, and election dates for a possible 2009 or 2010 levy.
 
Mr. Shoup explained the immediate need for action by the Board to avoid a deficit in 2009 stating that the anticipated $148,000.00 reduction in revenue would deeply affect our budget, but this would not address our budget issues in 2010.
 
Mr. Smetana asked when we would receive the funds if the Board would put a levy on the ballot in November, 2009 and it was approved by voters.  Mrs. Kroll answered the funds would be received in early 2010.  She noted that levied taxes are collected a year after a ballot issue is approved, therefore a levy passed in 2009 will not solve our 2009 financial problems.
 
Mrs. Zollinger asked if we would consider replacing our one-half mill continuing levy or would we propose a new levy.  Mr. Shoup noted that this would need to be discussed further by the Board. 
 
Mr. Smetana stated library levies are usually supported by voters. Mrs. Kroll agreed and noted that five library levies and two bond issues were on the ballot in the May 2009 election.  Some were renewals, some were new, some were additional levies, and only the two bond issues failed. 
 
Mrs. Kroll is expecting many libraries to place levies the ballot in Ohio in the next couple of years because all libraries are affected by the decreased PLF funds and are  experiencing budget problems.  Mrs. Kroll has worked in public libraries for many years and has never seen this financial predicament for libraries in Ohio before.
 
Mr. Luikart added that it will be very important to note that the majority of the funding for the renovation was through donations or money that was set aside only for capital improvement projects and those funds cannot be used towards ongoing operations.  Mr. Shoup added that we would still have to make budget reductions even if there was no renovation project.
 
Mr. Shoup asked Mrs. Kroll if the revenues continue to at the reduced pace, do we currently have enough money to cover our 3 payrolls in July?  She replied that she does not believe that we would have enough revenues with the current budget status.  Mr. Shoup explained that the Board is facing a terrible decision on where to make the necessary cuts.
 
Mr. Shoup stated that being open on Sundays only costs the library $350.00 per Sunday and would not be anywhere near enough of a savings to help, and Sundays are also one of the library’s highest use days.  He feels there only two places in which to cut the budget in the amount necessary and they are materials and personnel. 
 
Mr. Smetana reported that the Personnel Committee met and has some possible solutions on how to address these issues, however, it would require the Board to convene to Executive Session.

Mrs. Rankin moved, Mrs. Ziarko seconded, to adjourn the meeting to executive session at 4:42 p.m. for the purpose of discussing possible reduction in staff to achieve financial stability for 2009 and 2010.  The roll call was taken as follows:
 
                                    Fonte                                     Aye
                                    Luikart                                   Aye
                                    Rankin                                   Aye
                                    Shoup                                    Aye
                                    Smetana                                 Aye
                                    Ziarko                                    Aye
                                    Zollinger                                 Aye
 
Regular session was reconvened at 6:14 p.m.
 
Mr. Shoup stated that in 2010 we will still have a shortfall in our budget, and therefore we need to increase our revenue.  We can’t continue to avoid purchasing
 
new materials as a long-term solution and so the Board will need to study levy possibilities in the next couple of months.
 
Mr. Fonte feels projecting our long-term needs to be based on realistic projections, operating and capital needs. He added the Board needs to address our levy in future meetings, how much revenue millage will generate and when to put a levy on the ballot.  Mr. Fonte discussed the building renovation project and explained again that the majority of those funds were donated by the North Canton Library Association for capital purposes and cannot be used for ongoing operations.

Mrs. Rankin moved, Mr. Luikart seconded, to reduce the 2009 General Fund budget by $142,000.00 by approving the staff reduction plan in the approximate amount of $61,000-75,000 in payroll (attached) with the balance to be cut from library materials, effective June 14, 2009. Ayes:  Mr. Fonte, Mr. Luikart, Mrs. Rankin, Mr. Shoup, Mr. Smetana, Mrs. Ziarko, and Mrs. Zollinger.
 
The next regular meeting of the North Canton Library Board of Trustees will be Wednesday, June 17, 2009 at 8:00 a.m.
 
Adjournment:
Mrs. Zollinger moved, Mr. Ziarko seconded to adjourn the meeting at 6:29 p.m.  Ayes: Mr. Fonte, Mr. Luikart, Mrs. Rankin, Mr. Shoup, Mr. Smetana, Mrs. Ziarko, and Mrs. Zollinger.

Thomas Shoup, President
Florence Rankin, Secretary