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HomeMy WebLinkAbout1993-02-08 MinutesFayetteville Public Library Board of Trustees Meeting 2/8/93 at 4:00 p.m. Attending were: Cam Crouch, Bobbye Hay, Charles Kirchen and Carol Phillips, Trustees; Linda Harrison, Fayetteville Library Director; Daniel McCormick, CPA; Steve Davis, City Budget Coordinator, Cheryl Zotti, City Public Works Dept.; Mim Neralich and Mary Jo Godfrey, Library staff; Ann Pritchard, citizen. The minutes of the. January 11, 1993 meeting were approved as submitted. Daniel McCormick of Brown & Deskin submitted a Draft of the 1992 Audit for discussion and corrections. He reported that the comparison of the budget to expenditures will not result in another negative comment in the City's audit with relation to expenditures being in excess of budgeted amounts. His accrual of $83,000 in the 1991 audit and our 1992 budget including $100,000 with $18,000 of accrued expenses will prevent a similar statement. Mr. McCormick questioned if interest incomes are budgeted in Expansion & Endowment Funds. President Hay said the only budget is for the Operating Fund (Restricted and Unrestricted) which is submitted to the City. In "Summary of Accepted Accounting Procedures" he pointed out no deductions in the roll -forward of general fixed assets and stated that there is no detail listing by asset. He envisions a listing that includes a description of the asset, date acquired,. and cost. Linda said that we do have that information on paper but not in the form of a computer print-out. It was agreed that the paper record is more difficult to maintain than a print-out in relation to disposal of fixed assets. He recommended a print-out be made available soon for only fixed assets (items costing $500 or more with a life expectancy of 5 years or more). Comments in last year's audit about donations and gifts is being reported better but a few were omitted this year. Specifically, the computer that was donated should have appeared as a gift asset and donation on the financial reports. Linda asked about cost determination when our policy prohibits us from determining a cost. Daniel recommended asking the donor as to it's worth and to limit this practice only to suspected fixed assets. He also recommended adjusting the budget when a large sum is received and spent. As a possible summer project, Daniel recommended developing a new chart of accounts that would include all funds. Our chart no longer agrees with the City's numbering since the City installed its new software in 1992. Steve Davis indicated that they don't, nor do their auditors look at our chart. Mrs. Hay reported that she has asked Linda to investigate Peachtree's ability to set up a separate company for funds not currently appearing on our financial statement. Daniel said his thought would be to include these funds in departmental reports. Mrs. Hay asked if Peachtree is capable of this, what would setting up a new chart of accounts cost the library? Would it be part of our audit fee? Since he doesn't think it would take much of his time and would make his audit task easier, he is willing to donate the necessary time. Since restricted cash is included in an operations account, it is his recommendation that the restricted cash be separated into its own cash fund in the Assets portion of the Balance Sheet. So, his plan in May or June is to first study Peachtree to see if departmental accounting is possible. If it is, we're home -free. If not, we might consider purchasing Data -Pro (a program Brown & Deskin markets) for approximately $800. It will be left to Daniel and Linda to work out details and if there's anything to report, Daniel will return to the Board. Linda reported that we no longer have a 1993 Book Purchases budget. A budget adjustment for $11,500 was approved at the last City Council meeting to cover items that have already been ordered. Steve Davis reported that the sales tax used to fund the Book Purchases budget was overturned by the State Supreme Court. After all available appeals are realized the City intends to have a ballot question to reinstitute the sales tax in May or June. They are assuming the voters will approve and tax money will begin to be received in July_ Then, we'll be strictly on a pay-as-you-go basis. He anticipates that this new tax will generate 5 - 5.5 million in revenues. 25% of that revenue will be discretionary and of that 25% some will be used to offset the property tax millage. Since the fund has approximately 42 million in projects it is estimated that it will take the City 8 - 8.5 years to recover. All projects will go back into the priority ranking system and each will stand on its own merit and compete for a much smaller piece of the pie. The new priority list has not been compiled yet because the City is waiting for the Supreme Court to revisit their decision. If they don't change their decision, then Circuit Judge Hanna has been remanded to determine the disposition of the funds. Judge Hanna's decision could even include a refund to the tax payers. President Hay asked Linda for any suggestions_ At this point all she could suggest was to "beg" and to mention our plight to anyone you come in contact with_ Steve said that the Mayor has formed a committee of citizens to campaign for the sales tax and he recommended contacting the Mayor's office about what can be done and how to help. He believes that people (the Parks Board) are putting together information about what the sales tax means to them and suggested that we do the same. Another CIP item affected is replacement of the annex roof. Steve reported that the Council has passed a few resolutions to shift from operating to capital the funds to cover existing contracts and items that are considered critical. He cautioned that the operating funds can handle maintenance items and minor capital items but can't cover major items. If the election is in May or June, we are faced with. 4-5 months of leaking roof. Steve added that there was a roll -forward of $8,778, a portion of which could be used to repair the footbridge. Cheryl Zotti has not stopped working on this project and expects an up -date from Oakridge (Gordon Reynolds) tomorrow. The anticipated cost for this project is still $2,500-3,000 and construction could begin in March. Mrs. Hay asked if we spend the money on the footbridge, will the remaining 5,000 be for the library if we can get other sources for the roof? Steve said, "Yes and no." He reminded the Board that Mr_ Hailey has requested additional compensation and part of the rationale for the roll -forward was to take care of the sidewalk and any additional compensation to which Mr. Hailey may feel entitled. The money is there if the Board chooses to match it with other funds but Mr. Hailey is mentioned to be sure that everyone is informed about the 3 dsoisicn they are making. Carol Phillips asked if Mr. Hailey was aware of the situation. Cheryl said that he was aware of the sales tax and added that Mr. Hailey had requested $12,000. Carol asked if we need a footbridge more than we need our materials protected if we can get another $7,000. Mrs. Hay stated that she felt that we have the money for the footbridge and we'd better take it. We don't have the full amount for the roof, but it's possible we may have it in July. Linda, when asked about the roof's condition, reported that Franklin & Son had been called twice last month for repairs. Cam recommended replacing the roof and Bobbye asked about an additional source of funds. Since the $16,300 figure for the roof was based on one estimate for budget purposes it was recommended that specifications be written and two additional estimates be received as soon as possible. At that time we can decide what we'll do if Steve can guarantee the $8,778. Steve suggested that if we want to have a conversation with the Mayor that we designate a representative to come back and report to this Board, instead of having a ton of people calling. Mrs. Hay agreed to contact Friends President Mary John Jones and contact the Mayor. There were no comments or questions regarding the Statistical and Financial reports for January. Linda reported that Mary Jo Godfrey has been hired to replace Helen Brannan's vacancy. Pat Harriman, with experience in the North Arkansas Regional System has been hired as the temporary Circulation Services Clerk. An unsolicited bid for the custodial contract was received. Combined with Southland having recently been purchased by Z -Tech, Linda thought this would be a good time to advertize for bids. Bids received were from A -Team for $1125 per month and from Z -Tech for $1525 per month. Z-Tech's bid is down $245 from what we are currently paying them. Asked for her recommendation, Linda said the work currently being done is the best we've had in a long time and recommended we go with Z -Tech in spite of their charging a bit more. Carol introduced a motion that we extend to Z -Tech a three-year contract that was seconded by Cam and passed unanimously. Linda reported that Nancy Murdock has volunteered to serve on the Landscape Committee to fill Helen Brannan's vacancy. The Outline of the Long -Range Planning Committee Meeting was submitted for discussion. Carol brought up one item that Genie Donovan had requested for $200. The purchase with Expansion Funds of the electronic atlas was moved by Carol, seconded by Mr. Kirchen, and passed unanimously. Carol suggested that signs be posted at the service desks and in the stack areas that say "Due to the loss of the Sales Tax there will be no books purchased in 1993". In other business, Cam gave thanks to Genie Donovan for her new book list in 4 the Sunday Times. Carol pointed out the Bank of Fayetteville insert that had an item about the library. There being no further business the meeting adjourned at 5:25. Respectfully submitted, Linda Harrison