FYs 2015 & 2016 Budget Update June 19, 2014

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Key Budget Drivers•Enhanced Capacity for Safe & Welcoming Facilities•Added Custodial and Security Support•Collections Enhancements•Technology Investments•Potential Relocation of Back-of-House Operations•Increases from Labor Agreements

FY 14Budget

FY 15 Proposed

Change from FY 14

FY 16 Proposed

Change from FY 15

Total Expenditures $100.5M $109.9M $9.4M $112.4M $2.5M

Total FTE 652 663 11 665 2

SFPL Budget Overview

Notes: (1) Budget data as of June 1, 2014, which includes $1.3M for the Teen Digital Media Lab in FY15; and, (2) Please see Attachment I for details of the proposed budget investments for budget cycle FY 15 & FY 16, including the details of the Post Occupancy Investments.

• Full implementation of 56 additional branch hours/week as of May 2014

• Additional hours based on equity & accessibility systemwide

• Enables 7 days/week service at 18 of the 27 neighborhood libraries

• Additional hours increase for Library for the Blind & Print Disabled, Deaf Services Center and History Center at the Main Library to 60 hours/week

• Provides 1,370 hours/week systemwide – 13 % more than mandated by City Charter Section 16.109

SFPL Key Initiatives: Expanded Library Hours

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• Completed BLIP with the opening of the North Beach branch library on May 10, 2014

• 16 renovated sites and 8 new buildings• 10 LEED certified libraries

SFPL Key Initiatives: Branch Library Improvement Program

SFPL Key Initiatives: Teen Digital Media Lab

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• Build 4,770 square foot Teen Digital Media Lab at the Main Library• Construction Schedule: Summer 2014 – Spring 2015• Lab will serve as out-of-school & connected learning hub for youth

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Program Status• Phase 1, Tenant Improvements:

o IT Offices: Completeo COM & CPP Office: Complete June 2014o HR Office: Construction start June 2014

• Phase 2, Literacy & Learning Center:o Demolition: Completeo Construction: Winter 2014 – Summer 2014

SFPL Key Initiatives: Teen Digital Media Lab cont.

• Phase 3, Teen Digital Media Lab:o Design: Completeo Construction Re-bid: June 2014o Construction: Summer 2014 – Spring 2015

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Program Budget• Approved budget, February 2014: $5.5M• Estimated funding gap, June 2014: $1.3M

o Program Budget Change Cost Drivers: Changes in construction market Compliance with Americans with Disabilities Act Life safety code requirements Operational staffing needs

o Funding Source: Library Preservation Fundo Pending before Board of Supervisors

• Estimated revised program budget: $6.8M

SFPL Key Initiatives: Teen Digital Media Lab cont.

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• Construct new Literacy & Learning Center at Main Library • Serve 243,000 children and teens through library programs• Outreach to 83,000 students through class visits• Provide summer learning opportunities for children, teens and adults• Provide 125 scholarships for online high school diplomas

SFPL Key Initiatives: Youth & Family Services

Literacy & Learning Center5th Floor Main Library

SFPL Key Initiatives: Collections

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• Collections remain a robust 11% of operating budget

• Enhance digital resources to meet growth in demand for e-materials

• Invest in over 2.9 million print and multi-media resources in more than 50 languages

• Invest in literacy & learning materials for youth and families

SFPL Key Initiatives: Technology & Innovation

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• Help bridge digital divide for all residents by targeting 660,000 hours of public computer use per year

• Free Wi-Fi access at 28 locations• Expand laptop & tablet lending kiosk

program• Upgrade broadband to increase speed:

o 100%-400% bandwidth increase in brancheso 100% bandwidth increase at Main Library

• Technology refreshment of ADA stations, public computers and staff computers

SFPL Key Initiatives: Addressing Socioeconomic Equity*

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• Literacy & Learning :

o Over 10,000 annual volunteer tutoring hours for adult learners (5,000+ served)

o 173,000 participants in early literacy programs for families & caretakers

o 298,000 views of SFPL website in Chinese and Spanish

o 17,000 participants in 2013 Summer Reading Program

o Citizenship Resource website available in 8 languages

* The Board of Supervisors requested information on service provisions addressing equity at its May meeting.

SFPL Key Initiatives: Addressing Socioeconomic Equity

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• Jobs, Career & Workforce Development:

o YouthWorks employment opportunities

o Jobs and Careers Center at the Main Library

o Resume workshops , career tutorials and job seeking workshops

o SFPL.org/JobResources webpage

o Small Business Center

SFPL FYs 15 & 16 Proposed Budget: Sources

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PROPERTY TAX

SETASIDE

GENERAL FUND

BASELINE

MISC. ANNUAL

SOURCESSTATE GRANTS

FUHRMAN

TRUST

LPF FUND

BALANCE

FY 15 PROPOSED BUDGET $109.9M $43.02 $61.63 $3.50 $0.22 $0.40 $1.13

FY 16 PROPOSED BUDGET $112.4M $45.26 $63.70 $2.82 $0.22 $0.40 $-

$-

$10

$20

$30

$40

$50

$60

$70In

Mill

ion

s

Note: Budget data as of June 1, 2014

SFPL FYs 15 & 16 Proposed Budget: Uses by Expenditure Type

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SALARIES BENEFITSRETIREE

HEALTH

NON-PERSONNEL

SERVICES

COLLECTIONSMATERIALS &

SUPPLIES

SERVICES OF

OTHER DEPTS. EQUIPMENT

BLIP DEBT

SERVICECAPITAL RESERVES

FY 15 PROPOSED BUDGET $109.9M $48.34 $23.16 $4.19 $6.02 $11.69 $3.79 $7.55 $0.52 $2.54 $2.10 $-

FY 16 PROPOSED BUDGET $112.4M $50.17 $22.46 $4.28 $6.20 $12.60 $2.48 $7.95 $0.42 $2.54 $0.93 $2.35

$-

$10

$20

$30

$40

$50

$60

In M

illio

ns

Note: Budget data as of June 1, 2014

Board of Supervisors Budget Negotiations & Next Steps

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• Board Analyst’s Reduction Proposals by FY:o FY 15: $418,611o FY 16: $415,971

• Board Analyst’s Reduction Proposals Included:o Other Current Expenses: $6,000o Software Licensing: $35,000o Data Processing Supplies: $150,000o Data Processing Equipment: $25,000o Attrition Savings: $202,611 (FY 15); and $199,971 (FY 16)

• Board Analyst’s Reserves:o FY 15: 190 9th Street rental revenue & rental costs pending lease agreements

• Board Analyst’s Recommendations Accepted in May• Next Steps:

o Board finalizes budget in Julyo Controller’s Office inputs all Board changes in July

Note: Please see Attachment II for details of the Board Analyst’s recommendations for budget cycle FY 15 & FY 16