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05-10-84 Finance Comm Minutes-.. y 4:00 P. M. May 10, 1984 FINANCE COMMITTEE 06 The committee met on this date in the Conference Room at City Hall. Present were Chair- man Ruiz, Councilmen Palmer and Schindler, Mayor McDowell, Finance Director Swanson, John Burton, Flathead County Library and Board members Pat Wendt and Connie Heckathorne, also some interested citizens. C. Ruiz opened the informational meeting, which was called for the purpose of the Board to address the committee regarding support of services. The Board made the same request last year, but the committee decided not to do anything at that time. Mr. Burton stated that they received 3.204 mils from the County last year and asked the City for consideration of additional mils. Columbia Falls, Whitefish. and Bigfork were appropriating over and above that amount. He stated that the library has a commitment to other communities that something fair and similar will be worked out. He presented charts based on conversion to 1967 dollars (that was the last uninflated year). Actual tax for Kalispell has gone up 37% since 1967; at that time the city tax to library was. 8%, it is now less than 3%. Historically, in 1969 the Carnegie City Library was funded only by the City (the highest ever was in 1967, $2.60 per person-3 mils). When the library was consolidated to Flat- head County Library, the County could only levy 2 mils. In adjusted dollars, per capita support from the City has dropped off considerably. -- Mr. Burton compared City participation to other cities in the state who are contributing additional monies in terms of their responsibilities. He stated that the City can levy up to 7 mils now in addition to the existing levy. The Board feels that people in town 41 use the library more than out of town residents. C. Palmer pointed out that those people are not on the same tax base as city residents. He stated that he was proud of our library and the way it is operated. He uses the library and wants to see it flourish. He says that City residents are paying about 26%. more tax than county. Mr. Burton said that on a reading quotient index, some of the highest communities charted has a reading quotientof 15; Kalispell's is 34! On a per capita basis, ours is heavily used -the highest in the state. He stated that there were several different options for library support such as levying additional funds (2 mils would maintain the status quo), or the City might agree to absorb a portion of maintenance cost. Their electric bill is between $12,000-$14,000 per year (1 mil). The library pays 72% of building heat costs and 91% of water costs. Close to 2 mils would cover lights, gas and water costs. An- other consideration would be Revenue Sharing funding or tax increment funding, use for public buildings could accomplish several needed building improvements. Current renova- tion is federally funded by a grant, $2,000• Flathead County is very supportive of the library and is one of the few counties not at mil levy ceiling but the Board is not going to ask for 5 mils. The library's budget is not yet completed. Mr. Burton further stated thatthe children's program is put on by volunteers. If the community college moves and their contract ends, the money raised by taxes wont pay salaries. Mayor McDowell asked why we have no representative on the Board, was told that the Board would like City representation; and questioned why more branches were being created. fC. Ruiz stated that he can't justify increasing City taxes for inequities between City and County residents, If the library is running into a budget crunch, they should call a halt and maintain the facilities that we have. Question from audience: why is the city so reluctant to support the library? Finance Committee Meeting Page 2 May 10, 1984 Mr. Burton explained that the School District has given the library a free 50 year lease. The District could not have received the building unless public use was in- volved. It was a federal building and was deeded over to the city. C. Ruiz stated that the library situation was unique because it was located in the City but said that in essence, we have donated the building and he feels that was a very good contribution. The meeting adjourned at 5:15 P. M. No decision was made. ms