2009 Operating 2009 Operating BudgetBudget

Hennepin County LibraryHennepin County Library

Presented byPresented byPam Dymoke, Sr Administrative Manager Pam Dymoke, Sr Administrative Manager

Rondi Shenehon, Sr AccountantRondi Shenehon, Sr Accountant

2009 Budget Message2009 Budget Message

• A variety of factors –decreasing state and A variety of factors –decreasing state and federal funding, falling property values, federal funding, falling property values, increasing fuel costs, the rising cost of increasing fuel costs, the rising cost of salaries and benefits – are severely affecting salaries and benefits – are severely affecting our ability to do business as usual.our ability to do business as usual.

• We are challenged to provide quality services We are challenged to provide quality services in an environment of more constricted in an environment of more constricted resources.resources.

• County Administrator is asking all County Administrator is asking all departments to find ways to save resources departments to find ways to save resources and focus on core missions.and focus on core missions.

New elements in the New elements in the Library’s Library’s

2009 Budget2009 Budget• Integrating the budget of the Integrating the budget of the

merged systemsmerged systems• Working with Property Services who Working with Property Services who

now manages the buildingsnow manages the buildings

2009 Major Budget 2009 Major Budget ThemesThemes

• Customer ServiceCustomer Service• Innovation and Business Innovation and Business

ImprovementImprovement• External PartnersExternal Partners• Internal CollaborationInternal Collaboration• What do our employees need to What do our employees need to

move through this change?move through this change?

Customer ServiceCustomer Service

• Centered around customer service and Centered around customer service and promoting a lifetime of learningpromoting a lifetime of learning– HCL has 41 libraries that provide services to 1.1 HCL has 41 libraries that provide services to 1.1

Million Hennepin County residentsMillion Hennepin County residents– HCL is innovative and provides electronic access HCL is innovative and provides electronic access

which is shown by over 13 Million website visits in which is shown by over 13 Million website visits in 20072007

– Circulation transactions of 16.1 Million in 2007Circulation transactions of 16.1 Million in 2007– HCL maintains a collection of 5.2 Million materialsHCL maintains a collection of 5.2 Million materials– Over 1700 public computersOver 1700 public computers– Over 1100 staff to provide servicesOver 1100 staff to provide services

Innovation & Business Innovation & Business ImprovementImprovement

• Opportunities for business process Opportunities for business process changechange

• 15 minute brainstorm session (will 15 minute brainstorm session (will occur at end of presentation)occur at end of presentation)

PartnershipsPartnerships

• The Friends of MPLThe Friends of MPL• The Friends of Suburban Community The Friends of Suburban Community

LibrariesLibraries• Library FoundationLibrary Foundation• Other community organizations and Other community organizations and

businessbusiness

Internal CollaborationInternal Collaboration

• Cross departmental relationshipsCross departmental relationships– Property Services and SecurityProperty Services and Security– Adult Correctional FacilityAdult Correctional Facility– Juvenile ProbationJuvenile Probation– Juvenile CourtJuvenile Court– County Home SchoolCounty Home School– Human Services & Public HealthHuman Services & Public Health

Employee EngagementEmployee Engagement

• What training has occurred so far?What training has occurred so far?• What training opportunities should What training opportunities should

be offered?be offered?• What additional support should be What additional support should be

provided to our employees?provided to our employees?

2008 Budget Reduction 2008 Budget Reduction PlanPlan

• The County Administrator has taken The County Administrator has taken steps to minimize the impact of steps to minimize the impact of additional reduced funds in 2009 by additional reduced funds in 2009 by issuing guidelines for the development issuing guidelines for the development of a budget reduction plan in 2008.of a budget reduction plan in 2008.

• The Library is following the County The Library is following the County Administrator’s directive by holding Administrator’s directive by holding vacancies and analyzing budgeted vacancies and analyzing budgeted expenditures.expenditures.

2008 Operating Budget2008 Operating Budget

Staff66%

Property Services

13%

Collection11%

Services8%

Other Charges2%

2009 Operating Budget 2009 Operating Budget ProcessProcess

• AprilApril:: Office of Budget and Finance issues Office of Budget and Finance issues budget instructions to departmentsbudget instructions to departments

• May-JuneMay-June:: The Administrative Council The Administrative Council and other HCL staff determine and other HCL staff determine departmental priorities, complete the departmental priorities, complete the comprehensive budget paperwork, and comprehensive budget paperwork, and submit to OBF by June 30submit to OBF by June 30thth..

• July-Aug:July-Aug: Departments meet with County Departments meet with County Admin and OBF to discuss budget request.Admin and OBF to discuss budget request.

2009 Operating Budget 2009 Operating Budget Process continuedProcess continued

• Sept 9:Sept 9: County Board adopts County Board adopts maximum 2009 property tax levy maximum 2009 property tax levy and tentative budget.and tentative budget.

• Oct-Nov:Oct-Nov: County Board Budget County Board Budget Committee hearings are conducted.Committee hearings are conducted.

• Dec 16:Dec 16: County Board approves County Board approves 2009 budget and levy.2009 budget and levy.

2009 Library Target2009 Library Target

• 2009 Target is $68.6 Million2009 Target is $68.6 Million• 2008 Budget is $66.7 Million2008 Budget is $66.7 Million• Cost of Living, health increases, etc Cost of Living, health increases, etc

amount to approx $2 Millionamount to approx $2 Million• Other factors include increase in Other factors include increase in

energy costs which drives our energy costs which drives our Property Services expenses upwardProperty Services expenses upward

2009 Operating Budget2009 Operating BudgetTalking PointsTalking Points

• The 2009 Budget Request:The 2009 Budget Request:– HCL cannot increase property tax more HCL cannot increase property tax more

than 3.2% over the 2008 property tax than 3.2% over the 2008 property tax amount. That translates to $1,984,199amount. That translates to $1,984,199

– Within the 103.2% property tax target Within the 103.2% property tax target for 2009, HCL is expected to absorb the for 2009, HCL is expected to absorb the rates for personal service increases, rates for personal service increases, including cost of living adjustments, including cost of living adjustments, step/merit increases, and health step/merit increases, and health insurance increases.insurance increases.

2009 Operating Budget2009 Operating BudgetTalking PointsTalking Points

• Total personal services increase for 2009 Total personal services increase for 2009 is $2 Millionis $2 Million

• Other increases (which are in the process Other increases (which are in the process of being identified) include property of being identified) include property services charges for utilities, maintenance, services charges for utilities, maintenance, security, postage and others.security, postage and others.

• HCL must submit a Prioritized Reduction HCL must submit a Prioritized Reduction Schedule that reduces the 2009 property Schedule that reduces the 2009 property tax requirement ($57,100,000) by 3% from tax requirement ($57,100,000) by 3% from the requested level, or $1,713,000.the requested level, or $1,713,000.

Final MessageFinal Message

• ““It is clear that the future of Hennepin It is clear that the future of Hennepin County requires us to be nimble and County requires us to be nimble and resilient, and maintain structural resilient, and maintain structural balance. We must be clear about what balance. We must be clear about what our essential services are and deliver our essential services are and deliver them efficiently and effectively. We them efficiently and effectively. We must develop and implement long-term must develop and implement long-term strategies to deal with structure and strategies to deal with structure and costs.”costs.”

-Richard P. Johnson, County Administrator-Richard P. Johnson, County Administrator

Questions?Questions?

Presented byPresented byPam Dymoke, Sr Administrative Manager Pam Dymoke, Sr Administrative Manager

Rondi Shenehon, Sr AccountantRondi Shenehon, Sr Accountant