Banff’s public library board may be forced to make cuts to programs and services next year unless it can find a way out of financial difficulties.
The library’s board of directors is asking Banff town council to reconsider cuts to the library through its budget decision to stop providing janitorial services.
Officials say they can draw down reserves to maintain operations this year, but that is not sustainable for future years and they may be forced to reduce library hours and cut programs.
“We have great concerns about cuts in this budget and in future budgets,” Jess Harding, chairman of the library’s board of directors, told council, Monday (April 11).
“We want to maintain our current levels of service and we ask you to reconsider the budget cuts. Our organization is as lean as it can be,” he added.
“We’re stretched to the limit. We’re in a whole heap of trouble. It’s unsustainable. We will have to make significant cuts in the future, whether it’s children’s programming, seniors’ programming, reduced library hours.”
During 2011 budget deliberations, council decided against continuing to pay for the library’s janitorial services, but did provide its annual grant to the tune of $365,000 this year.
The Town’s janitorial chargeback to the library is being implemented over three years. In today’s dollars, it means the library will pay $7,000 in 2011, $14,000 in 2012 and $21,000 a year by 2013.
At this week’s council meeting, council made no decision to revisit its earlier budget decision, although Mayor Karen Sorensen said it could potentially be revisited during 2012 deliberations.
Sorensen said this council strongly supports Banff’s library, pointing to this year’s grant of $365,000 and the fact the library is housed in a Town-owned facility.
“We have to make budget decisions based on our financial situation,” she said. “We’re encouraging them to think outside the box in terms of increasing revenues.”
Councillor Grant Canning, who is council’s representative on the library’s board, said the board can try and be creative in raising some money.
“I think as a board we can be creative in addressing some of the financial issues through fundraising,” he said.
“Council and this town’s residents support the library and if we can create opportunities to allow people to support the library, I know it can be successful.”
Harding said the library has established a history of strong fiscal management, but he said a steady decline in purchasing power led to a series of deficits in the operating budget.
He said at times the deficit has been made up through various donations, while at other times through drawing upon the library’s capital reserve.
“The library now has an unsustainable structural deficit. We have cut staff eight per cent this year, we have asked staff for voluntary unpaid time off, yet we still have an operating deficit,” he said.
“This year, we will again have to pay for operational shortfalls from the reserve fund. That will not be possible in future, as the fund will be largely depleted.”
Harding said the increase of the chargeback from $7,000 this year to $14,000 in 2012 and $21,000 in 2013 will compound the erosion of purchasing power.
“Adding these future cuts to the cut in 2011, plus the current operating deficit will have a major impact,” he said.
Harding said the library’s reserves total $160,000, including a small operating reserve and approximately $120,000 sitting in the capital reserve fund.
“The capital reserve will be heavily drawn upon this year to fund essential projects such as upgrading obsolete technological systems, purchasing additional shelving, and minor renovations for the entryway and front desk for patron convenience, accessibility and efficiencies,” he said.
