1 FUNDING COMMITTEE REPORT: REVENUE SOURCES Dennis B. Martinez, Committee Chair Library District...

1

FUNDING COMMITTEE REPORT:REVENUE SOURCES

Dennis B. Martinez, Committee ChairLibrary District Commission Meeting

February 9, 2007

Updated 02-12-2007

2

Makeup of Finance Workgroup

• Library District Commissioners (4)

• Library Staff

• Budget Department

• Finance Department

• Legal Department

• Office of the City Manager

3

Resources

• Bexar County

• Bexar County Appraisal District

• State Comptroller

4

Purpose of Presentation

• SAPL Bench Marks

• Funding Case Studies

• Recap

• Possible Local Sources of Revenue

• Funding Scenarios

5

$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00

Toronto PublicTampa-Hillsborough Co.

St. Louis PublicSt. Louis County Lib. Dist.

Seattle PublicSan Jose City

San Francisco PublicSan Diego Public

San Diego CountySalt Lake County

Salt Lake City PublicSacramento

Phoenix Public (Maricopa)Philadelphia Free

Orange CountyOakland Public

NY PublicMultnomah CountyMinneapolis Public

Milwaukee PublicMiami-Dade Public

LA Public CountyLA Public

King CountyKansas City Public

JacksonvilleIndianapolis-Marion County

Houston PublicHarris County

Fort WorthEnoch Pratt (Baltimore)

El PasoDetroit Public

DenverDallas Public

Corpus ChristiCleveland Public

Cinncinati & Hamilton CoChicago Public

Charlotte & MecklenbergCarnegie of Pittsburgh

Boston PublicBaltimore County

Austin

Per Capita Operating Expenditures 2005San Antonio Public Library spends $13.33 per capita on operations.

The median of these libraries is $35.48.

$13.33

*Source: PLDS Statistical Report 2005

6

Texas Libraries ComparisonPLDS Statistical Report - 2006


Service Population

Items per Capita

Number of Libraries

Population per Library location

Door Count per Capita

Operating Expenditures

Operating Expenditures per Capita

San Antonio

1,575,300 1.3 23 68,491 2.5 $21,006,449 13.33

Austin 687,061 2.4 22 31,230 4.6 $17,232,123 25.08

Dallas 1,224,000 3.4 24 51,000 3.8* $25,691,979 20.99

El Paso 563,662 1.7 12 46,972 3.1 $6,907,232 12.25

Fort Worth* 534,694 2.16 15 35,646 4.8 $13,899,156 25.99

Houston 2,060,555 2.0 38 54,225 2.1 $34,677,745 16.83

7

FUNDING CASE STUDIES

San Francisco Public Library

Las Vegas/Clark County Library District

King County Library System

8

San Francisco Public Library(FY 2006-2007 Budget)

Location: San Francisco, CAJurisdiction: City of San Francisco

(pop. 799,262)

Sources of Revenue: Library Preservation fund (dedicated property tax) City General FundSelf generating fees

Total Revenue: $74.7 MTotal Operating Budget:

Total Capital Budget:$70.4 M$4.3 M

9

Las Vegas-Clark County Library District

(FY 2006-2007 Budget)

Location: Las Vegas, NVJurisdiction: City of Las Vegas & Clark

County (pop. 1,400,000)Sources of Revenue: Property tax

Consolidated sales taxFees & fines

Total Revenue: $66.7 MTotal Operating Budget:

Total Capital Budget:$51.9 M$14.3 M

10

King County Library System(FY 2004-2005 Budget)

Location: Issaquah, WashingtonPopulation Served: King County (pop

1,165,860)Sources of Revenue: Dedicated Property tax

Beginning Fund BalanceTotal Revenue: $79.5 MTotal Operating

Budget:Total Capital Budget:

$74.4 M$7.7 M

11

RECAP

12

How do we

get there?

Increase and stabilize public

funding

Seek new sources of

sustainable funding

Increase and stabilize public

funding

Seek new sources of

sustainable funding

13

Public Funding

Opportunities

Sales tax

Property tax

Impact fees

Unanticipated revenue

enhancements from city-

owned utilities

State funding

Federal funding

Library Authority/District

Sales tax

Property tax

Impact fees

Unanticipated revenue

enhancements from city-

owned utilities

State funding

Federal funding

Library Authority/District

14

What now?

Develop creative

and sustainable

funding mechanisms

to respond to the

needs of the new

century library

Develop creative

and sustainable

funding mechanisms

to respond to the

needs of the new

century library

15

LOCAL SOURCES OF REVENUE AND TRENDS

Possible Under Current PolicyProperty TaxSales and Use Tax Fees and Fines

Possible With Policy ChangeCPS Energy RevenueSAWS Revenue

16

COSA Property Tax Trends

5 Year History-CoSA Property Tax Collection-$ in millions-

137.3146.9

159.9 167.2

178.4

100.0

150.0

200.0

250.0

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

History (4% to 8% growth)

Projection (3% to 4% growth)5 Year Projection-CoSA Property Tax Collection

-$ in millions-

191.0 198.8 205.5 212.4 219.8

100.0

150.0

200.0

250.0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

17

COSA Sales and Use Tax TrendsHistory (2% to 9% growth)

Projection (4% to 5% growth)

5 Year History- General Fund Sales Tax Revenue-$ in Millions-

173.43163.01148.49138.96140.08136.81

$100.00

$125.00

$150.00

$175.00

$200.00

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 (re-estimate)

5 Year Projection- General Fund Sales Tax Revenue -$ in Millions-

$100.00

$125.00

$150.00

$175.00

$200.00

$225.00

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

18

SAPL Fees & Fines

Goal is recovery of materials and access to facilities, not maximizing revenue generation.

Projected Growth Rate: 2% to 3%

FY 2007 Budget:$897,096

19

CPS Energy COSA Payment Trends

Current Policy• Capped at 14% of

gross revenue• General Fund

transfer• Community

Infrastructure Economic Development Fund

(CIED)

History (-7% to 13% General Fund growth, CIED growth NA)

CPS Energy City Payment-$ in millions-

$165.1

$204.0 $189.5$213.4

$237.6

$8.4

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

General Fund

CIED

CPS Energy City Payment-$ in millions-

$219.7 $221.2$227.8 $234.7 $241.7

$7.3 $8.3 $8.6 $8.8 $9.1

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

General Fund

CIED

Projection(-8% to 3% General Fund growth), (-14% to 3% CIED growth)

20

CPS Energy Revenue

CIED Fund Projects Include:• Health Research at UTHSC & electrical

infrastructure for growth at UTSA main campus ($3.6M).

• Westover Valley construction of underground electrical supply lines ($1.3M).

CIED Criteria:• Positive cost-benefit analysis• Non General Fund purpose• Infrastructure or economic development

project

21

SAWS COSA Payment Trends

Current Policy(capped at 5% of gross

revenue)

• General Fund transfer

Capacity• Transfer of 2.7%

has been made each year since 1992

History (1% to 25% growth)

Projection (-5% to 2% growth)5 Year History- SAWS City Payment

-$ in Millions-

9.868.529.589.309.03

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

5 Year History- SAWS City Payment-$ in Millions-

10.308.36.96.36.375.53

$0.0$2.0$4.0$6.0$8.0

$10.0$12.0

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006(Estimate)

22

FUNDING SCENARIOS

23

AssumptionsExample scenarios are presented to stimulate discussion and are not all inclusive. A comprehensive expenditure budget will be presented next month.

Sales Tax (2006 Tax Year)

• Source: Texas Comptroller web site.

• Does not include unincorporated Bexar.

Property Tax (2007 Taxable Value)

• Source: Bexar County Appraisal District.

• Includes all of Bexar County.

• Net of tax assessor/collector fees and 97.5% collection rate.

• Assumes mandatory exemptions.

24

SCENARIO 1

Property Tax per $100 valuation

Operating 4 cent

Capital ½ cent

Revenue Generated

$33,155,410

SAPL’s Current General Fund Budget $24,900,000

$40,076,528

Fees and Fines $897,096

$3,524,022

$2,500,000

Maintenance Fund (CIED/SAWS)

25

SCENARIO 2

Sales Tax (1/8 cent)

Revenue Generated

$20,956,523


Fees and Fines $ 897,096

General Fund (Personnel)

$17,186,096

$2,500,000Maintenance Fund (CIED/SAWS)

$41,539,715

26

SCENARIO 3

Sales Tax (1/8 cent)

Property Tax per $100 valuation

Operating 2 cent

Capital ½ cent

Revenue Generated

$20,956,523

$16,223,188


$44,100,829

Fees and Fines $ 897,096

$ 3,524,022

$ 2,500,000Maintenance Fund (CIED/SAWS)

27

SCENARIO 4

Sales Tax (1/8 cent total)

Operating Share of Sales Tax 60%

Maintenance/Capital Share of Sales Tax 40%

Revenue Generated

$12,573,913


$49,853,618


$8,382,609

$22,000,000

COSA General Fund

Bexar County General Fund $6,000,000

28

SCENARIO 5

Sales Tax (1/8 cent)Property Tax per $100 valuation

Operating 2 cent

Capital ½ cent

Revenue Generated

$20,956,523

$16,223,188


$61,286,925


$3,524,022

General Fund (Personnel)

$17,186,096$2,500,000

Maintenance Fund (CIED/SAWS)

29

$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00

















DenverDallas Public





Austin



$13.33


S1: $23.20

S4: $28.47

S5: $36.67

S2: $26.37

S3: $25.76

30

$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00

















DenverDallas Public





Austin



$13.33


S1: $23.20

S4: $28.47

S5: $36.67

S2: $26.37

S3: $25.76

31

The

Library:

A Powerful

Tool

for

Economic

Developm

ent

Educational Opportunities

Skilled Workforce

Higher Literacy LevelsIncreased

Economic Growth

32

"He who cannot change the very fabric of his thought will never

be able to change reality."– Anwar al-Sadat

1 FUNDING COMMITTEE REPORT: REVENUE SOURCES Dennis B. Martinez, Committee Chair Library District...

Documents

Transcript of 1 FUNDING COMMITTEE REPORT: REVENUE SOURCES Dennis B. Martinez, Committee Chair Library District...