October 27, 2017 at 4:21 p.m.
Arbitration meeting results in $40K cut to library budget
Arbitration meeting results in $40K cut to library budget
Four of the five district members voted Tuesday to cut the library's budget by about $40,000. This will result in an increase of about $5,000, rather than $45,000, from last year's budget.
The move was not well received by library director Virginia Roberts, board of trustees president Jane Roe or the many library employees and patrons in attendance.
After Dave Kroll of the town of Newbold was elected to chair the arbitration meeting, Roberts addressed the group. She explained the library has to put together its annual budget without having all the required figures from the state or the members of the library district, the towns of Newbold, Pelican, Pine Lake, Crescent and the city of Rhinelander.
"We have to start writing the budget back in July and August so we go with what numbers we have," she said.
Roberts said the proposal that was submitted - $780,188 - did not include the updated figures that have been received since the library board signed off on the matter.
Tracy Hartman of the town of Crescent presented the group with a handout that showed the requested increases for each of the municipalities along with a chart showing the state levy limits for each municipality.
She said the proposed library increase for Crescent was $7,565.88 while the state levy limit is just $4,997.
"So the library would take our entire levy limit plus an additional $2,500," Hartman said, adding that Crescent would prefer to pay the amount it paid last year.
Cindy Skinner of the town of Pine Lake pointed out the library allocation for her town was $9,163.05 while its allowed levy limit increase is only $4,022.
"So it is well over twice as much as we're receiving in our levy limit increase from last year," she said.
According to Skinner, all five municipalities saw their net new construction decrease from last year, resulting in a lower levy limit increase.
"I can't write a budget based on the levy limits," Roberts said. "I'm aware of the levy limits, all I can do is ask for what the library needs. We are currently renovating space, we are raising money for that. So we have a 100-year-old building in the city of Rhinelander that the public, outside of taxable dollars, is paying for to keep going. That is just one expense that this community is not paying."
Alderman Mark Pelletier, representing the city of Rhinelander, noted that the proposed library budget included an increase in insurance premiums of 9.2 percent when that increase will actually be 1.3 percent, and possibly no increase at all. Library employees get their health insurance under the city's policy.
"According to how many times I've refigured it, that would make an adjustment out of the $45,977 of $12,111," Pelletier said. "That's a fourth of it right there and that is figuring at the 1.3 percent rate. I can't guarantee it, but we might end up at zero yet."
It was also pointed out that the county might contribute $8,000 to the library in 2018, but that proposal has only passed at the committee level and still has to survive a vote of the whole county board.
"So, I guess I would ask the municipalities what you're willing to do this year? I mean the arguments on both sides haven't changed, and they never will," Kroll said. "Certainly the library budgets to its needs."
Skinner said the town of Pine Lake conducted a survey of its residents in order to update its comprehensive plan.
"One of the questions had to do with tax rates and should tax dollars for the following town services decrease, increase or stay the same," Skinner said. "In 2001, 18 percent of the respondents said increase the budget, 51 percent said remain the same and 26 percent said decrease the budget. And in 2016, 17 percent said to increase the budget, 19 percent said decrease the budget and 64 percent said remain the same. So around 80 percent said decrease the library's budget or keep it the same, and that is coming from property owners in Pine Lake."
She said the survey was sent with tax bills in both years and there were 870 responses in 2001 and 430 in 2016. Skinner added that the question also covered the town offices, roads and other expenditures in addition to the library.
Kroll noted that any increase in the budget would have to apply to all municipalities equally, and the resulting division would be accomplished by way of the funding formula which is based on the population and equalized value of each body.
He then asked if anyone would make a motion as to what percentage increase the library should receive in 2018. All the delegates appeared hesitant to speak up.
"What we're going to run into is if there is no motion to change (the increase), then the budget that has been offered is going to stand," Kroll said. "So if we are not going to approve the budget as presented, what are we going to approve?"
Roberts noted that budget cuts lead to cuts in services or hours of availability.
"It becomes a circular issue," she said.
Pelletier said all of the local municipalities have that problem and noted that the city's proposed budget for 2018 includes a zero increase on taxes.
"That is because everything has been slashed right off the bat," Pelletier said. "Hit 9-1-1 and see how many people show up. That is part of the system that we offer, too."
He then looked at the percentage of net new construction for each of the five member municipalities, which ranked from a low of .430-percent for the city and town of Pelican to 1.050-percent on the high end for Newbold. After reviewing the numbers, he recommended an increase of .654-percent for the overall library budget after a rate of .82-percent was initially discussed.
"It's going to be hard to get three of the five to go at .82 when three of the five have net new construction below (that)," Pelletier said.
"That number won't even be enough to catch up the retirement system payment," Roberts said.
It was pointed out that the percentage would result in an increase of just over $4,800 from the 2017 budget.
"This is the busiest town or city building outside of the county jail, which I don't want to talk about," Roberts said. "We have an average of 400 people coming in here and actively seeking information and all kinds of things every day."
On a roll call vote, the measure passed 4-1, with Kroll casting the lone nay vote on behalf of Newbold.
"I think we can do better than this," he said, explaining his vote.
The floor was then opened for public comment. At that point, several people argued the city of Rhinelander is better supporting Northwood Golf Course, which owes the general fund over $1 million to date, than it is the library.
It was also pointed out that the library provides needed internet and computer services for low income residents and make such tasks as job searches and creating a resume possible.
"It is unfortunate that people just don't see the value in this," one woman said.
It was also pointed out that tourists utilize the library services and any reduction in services or hours might have a negative impact on those people which, in turn, might result in them going elsewhere to vacation.
"We're dealing with the fact that we're out of money," Pelletier said. "We aren't at our levy limit for the city of Rhinelander, but how many of you can I talk into moving into town and paying the city tax rate? Probably not too many."
He noted property values have been declining in the city since 2007 and are just now returning to where they were at that time.
"I've got three out of 100 people (city employees) getting a 1-percent raise," he said. "And I haven't had a 1-percent raise in a couple of years."
"Mark, you got to quit saying that because..." Roberts started.
"None of these people have," Roe continued.
"Every single city department manager is paid substantially better than our library director is paid," another woman pointed out.
"I'm sorry, but comparing the chief of police to the library director, I don't think qualifies as equal," Pelletier replied.
"The golf course manager is paid almost $10,000 more a year then the library director," the woman said. "And the golf course is losing $1 million."
Kroll said the arbitration committee had made its decision and if the public wants to weigh in on that decision the members should hear what they have to say.
"And simply sit back and take their input on what we've done here tonight," he said.
"I want to know how many thousands of dollars were spent this year on golf carts, and we're looking at 40 grand here," one library employee said. "I would love to know how many of those (carts) were bought and how much they cost."
Jamie Taylor may be reached via email at jamie@rivernews online.com.
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