Library’s $4-million reserve questioned
The St. Catharines Public Library is asking city council to bump up its budget to cover the cost of security at its downtown branch after issues with aggressive people and drug users.
But with $4 million saved up in capital and stabilization reserves, library staff and the board had a hard time convincing all councillors Monday that it needs more money.
Coun. Mat Siscoe, chair of the budget standing committee, said the library is holding onto the equivalent of two-thirds of its budget in reserve funding which is “extreme.”
“It’s important to draw back some of that,” said Siscoe, from St. Patrick’s ward. “That’s money that’s been passed on from the city that’s been taken from residents as a form of their taxes. At this point I still think that reserve fund is far too high for a city or commission.”
The library presentation on Monday was followed by the tabling of the city’s 2019 draft operating budget, which council is scheduled to discuss at a special meeting on Dec. 17.
The library asked for a 4.1 per cent increase — two per cent more than the 2.1 per cent guidance set by the budget standing committee for all city departments, based on the rate of inflation. The additional two per cent, about $100,000, is earmarked for two security guard positions that have been contracted to the central library branch since January.
Siscoe said the library was directed last year to draw its reserve fund down to an acceptable level and should be held to the 2.1 per cent increase.
Karen Smith Curtis, the library’s business and facilities administrator, told council the library is drawing down the reserve funds by $250,000 this year and will spend another $140,000 next year to support operations.
She said the library has some fairly substantial capital needs for its central branch coming up in the next few years. They include the replacements of the elevator and dumb waiter original to the building, an HVAC system and an old roof, in addition to upgrades at the Port Dalhousie branch.
She said the reserves will be out of money by 2022 if the library undertakes those projects and doesn’t continue to fund its capital reserve.
Siscoe argued the city has a process for major capital upgrades that generally involves debenturing through the city. He said even reserve funds for city equipment don’t replace assets in a given year.
“The policy of the city has never been for a group to build reserves to the point where they can replace assets outright,” he said.
But Port Dalhousie Coun. Bruce Williamson said the library has the right idea.
“The capital funding model the library uses, to my way of thinking, should be the model the city should look at instead of vice versa,” he said.
By having the library pay for its own capital costs, Williamson
said the city will know what the library budget will be every year and doesn’t have to worry about surprise crises.
St. George’s Coun. Sal Sorrento, though, said he had the same concerns as Siscoe and there are a lot of dollars sitting there.
“Joe Q. Public or Jane Q. Public, they’re going to say, ‘What’s going on with that reserve? That’s our money.’”
Library staff told council if it has to be held to the 2.1 per cent, it will have to cut services and will look at closing on Sundays year round, reducing the security guards, reducing its materials budget, closing the Port Dalhousie branch or some combination of those scenarios.
The city reduced its contribution to the library in 2017 and 2018 after the budget committee learned that there were full-time library positions being funded but not filled and the surplus was being put into the reserves.