2009 Operating Budget

Hennepin County Library Presented by Pam Dymoke, Sr Administrative Manager Rondi Shenehon, Sr Accountant

2009 Budget Message

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

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

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

New elements in the Library’s 2009 Budget

• • Integrating the budget of the merged systems Working with Property Services who now manages the buildings

2009 Major Budget Themes

• • • • • Customer Service Innovation and Business Improvement External Partners Internal Collaboration What do our employees need to move through this change?

Customer Service

• Centered around customer service and promoting a lifetime of learning – HCL has 41 libraries that provide services to 1.1 Million Hennepin County residents – HCL is innovative and provides electronic access which is shown by over 13 Million website visits in 2007 – Circulation transactions of 16.1 Million in 2007 – HCL maintains a collection of 5.2 Million materials – Over 1700 public computers – Over 1100 staff to provide services

Innovation & Business Improvement

• • Opportunities for business process change 15 minute brainstorm session (will occur at end of presentation)

Partnerships

• • • • The Friends of MPL The Friends of Suburban Community Libraries Library Foundation Other community organizations and business

Internal Collaboration

• Cross departmental relationships – Property Services and Security – Adult Correctional Facility – Juvenile Probation – Juvenile Court – County Home School – Human Services & Public Health

Employee Engagement

• • • What training has occurred so far?

What training opportunities should be offered?

What additional support should be provided to our employees?

2008 Budget Reduction Plan

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

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

2008 Operating Budget

Collection 11% Services 8% Other Charges 2% Property Services 13% Staff 66%

2009 Operating Budget Process

• • • April: Office of Budget and Finance issues budget instructions to departments May-June: The Administrative Council and other HCL staff determine departmental priorities, complete the comprehensive budget paperwork, and submit to OBF by June 30 th .

July-Aug:

Departments meet with County Admin and OBF to discuss budget request.

2009 Operating Budget Process continued

• • •

Sept 9:

County Board adopts maximum 2009 property tax levy and tentative budget.

Oct-Nov:

County Board Budget Committee hearings are conducted.

Dec 16:

and levy.

County Board approves 2009 budget

2009 Library Target

• • • • 2009 Target is $68.6 Million 2008 Budget is $66.7 Million Cost of Living, health increases, etc amount to approx $2 Million Other factors include increase in energy costs which drives our Property Services expenses upward

2009 Operating Budget Talking Points

• The 2009 Budget Request: – HCL cannot increase property tax more than 3.2% over the 2008 property tax amount. That translates to $1,984,199 – Within the 103.2% property tax target for 2009, HCL is expected to absorb the rates for personal service increases, including cost of living adjustments, step/merit increases, and health insurance increases.

2009 Operating Budget Talking Points

• • • Total personal services increase for 2009 is $2 Million Other increases (which are in the process of being identified) include property services charges for utilities, maintenance, security, postage and others.

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

Final Message

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

Questions?

Presented by Pam Dymoke, Sr Administrative Manager Rondi Shenehon, Sr Accountant