The Sequim Library and its three sister branches in the North Olympic Library System continue to feel the financial crunch.
Despite passing a levy lid lift in 2010 worth 50 cents per $1,000 assessed valuation, property taxes across Clallam County decreased from 2011-2014, prohibiting the library system from collecting its allowed 1 percent tax growth amount from the previous year.
Despite the hit, as detailed in the NOLS 2012 business plan, library staff expanded hours and materials at its branches.
With the valuation decline countywide, the revenue decrease led the library system’s board of trustees to consider pulling from reserves in recent years.
“In 2014, it became clear that NOLS’ annual levy was not sufficient to sustain the service levels as implemented in the NOLS 2012 business plan,” NOLS director Margaret Jakubcin wrote to the trustees in the draft 2016 budget.
Trustees approved their 2016 operating budget worth $3.9 million on Nov. 19, but for a third year the budget calls for transferring from reserves.
In 2014, trustees approved a transfer of nearly $79,500 to balance the budget but it was rescinded following staff reorganization. This year, staff projected withdrawing almost $45,000 but they said that likely will be made up through operational efficiencies.
Next year, staff projects transferring nearly $73,000 to balance the budget.
“The significant drop of the assessed valuation in 2012 undermined NOLS’ long term fiscal outlook,” Jakubcin wrote. “Even if property values increase in the future, the most the library can expect to receive is an additional 1 percent each year in property tax revenues (about $35,274 in the current 2016 budget).”
Clallam County’s assessed valuation did rise in 2015 by $60 million and so far the county assessor’s office estimates another increase of close to $265 million ($7.3 billion total countywide).
Jakubcin added that with inflation continually rising it will result in further tightening in the budget and net loss of buying power.
While the purchasing of books and other materials in 2016 is slated at $462,672, it’s a 1-percent increase over 2015. Since the levy lid lift though in 2011, it’s a 46-percent increase over 2010’s materials budget.
Jakubcin wrote that following the increase in funding, the library system has recovered its collection after years of tight budgets.
“At this point it is no longer deemed necessary, operationally feasible or fiscally responsible to continue exponential materials collection growth,” she wrote. “Further growth in the budget for materials is expected to be moderate in the coming years.”
Library staff also has taken a different route with capital project planning. In 2011, the library system did save for long-term plans but didn’t in 2012 or 2013. Now trustees address capital projects in January after timber and forest product revenues are more definite from the previous year.
Jakubcin said any plans for the Sequim Library’s long-discussed building project will be addressed again in January during capital budget discussions.
No changes in hours or services are planned in Sequim but the Clallam Bay Branch Library reduced its hours on November 12.
More on the budget
The library system’s 2016 $3.9 million budget is up nearly $109,000 from 2015, which staff attributes the increase largely to an increase in PERS rates at about $42,000 from this year to next.
Next year, the library system employs 53 full-time employees after filling a vacant management and a part-time customer service position.
Library staff plans to receive $55,000 in fines and fees from users next year along with $90,220 in grants from the four library’s Friends of the Library groups.
Donations will help pay to redesign the libraries’ website ($10,000) and pay for performers and speakers ($32,000).
For more information on the budget, visit nols.org or call 417-8500 or 683-1161.
