1. 1 FUNDING COMMITTEE REPORT: REVENUE SOURCES Dennis B. Martinez, Committee Chair Library District Commission Meeting February 9, 2007 Updated 02-12-2007

2. 2 Makeup of Finance Workgroup Library District Commissioners (4) Library Staff Budget Department Finance Department Legal Department Office of the City Manager

3. 3 Resources Bexar County Bexar County Appraisal District State Comptroller

4. 4 Purpose of Presentation SAPL Bench Marks Funding Case Studies Recap Possible Local Sources of Revenue Funding Scenarios

5. 5 Per Capita Operating Expenditures 2005 San Antonio Public Library spends $13.33 per capita on operations. The median of these libraries is $35.48. $13.33 *Source: PLDS Statistical Report 2005

6. 6 Texas Libraries Comparison PLDS Statistical Report - 2006 *Source: PLDS Statistical Report 2005 Service Population Items per Capita Number of Libraries Population per Library location Door Count per Capita Operating Expenditures Operating Expenditures per Capita San Antonio 1,575,3001.32368,4912.5$21,006,44913.33 Austin 687,0612.42231,2304.6$17,232,12325.08 Dallas 1,224,0003.42451,0003.8*$25,691,97920.99 El Paso 563,6621.71246,9723.1$6,907,23212.25 Fort Worth* 534,6942.161535,6464.8$13,899,15625.99 Houston 2,060,5552.03854,2252.1$34,677,74516.83

7. 7 FUNDING CASE STUDIES San Francisco Public Library Las Vegas/Clark County Library District King County Library System

8. 8 San Francisco Public Library (FY 2006-2007 Budget) Location: San Francisco, CA Jurisdiction: City of San Francisco (pop. 799,262) Sources of Revenue: Library Preservation fund (dedicated property tax) City General Fund Self generating fees Total Revenue: $74.7 M Total Operating Budget: Total Capital Budget: $70.4 M $4.3 M

9. 9 Las Vegas-Clark County Library District (FY 2006-2007 Budget) Location: Las Vegas, NV Jurisdiction: City of Las Vegas & Clark County (pop. 1,400,000) Sources of Revenue: Property tax Consolidated sales tax Fees & fines Total Revenue: $66.7 M Total Operating Budget: Total Capital Budget: $51.9 M $14.3 M

10. 10 King County Library System (FY 2004-2005 Budget) Location: Issaquah, Washington Population Served: King County ( pop 1,165,860 ) Sources of Revenue: Dedicated Property tax Beginning Fund Balance Total Revenue: $79.5 M Total Operating Budget: Total Capital Budget: $74.4 M $7.7 M

11. 11 RECAP

12. 12 How do we get there? Increase and stabilize public funding Seek new sources of sustainable funding Increase and stabilize public funding Seek new sources of sustainable funding

13. 13 Public Funding Opportunities Sales tax Property tax Impact fees Unanticipated revenue enhancements from city-owned utilities State funding Federal funding Library Authority/District Sales tax Property tax Impact fees Unanticipated revenue enhancements from city-owned utilities State funding Federal funding Library Authority/District

14. 14 What now? Develop creative and sustainable funding mechanisms to respond to the needs of the new century library

15. 15 LOCAL SOURCES OF REVENUE AND TRENDS Possible Under Current Policy Property Tax Sales and Use Tax Fees and Fines Possible With Policy Change CPS Energy Revenue SAWS Revenue

16. 16 COSA Property Tax Trends History (4% to 8% growth) Projection (3% to 4% growth)

17. 17 COSA Sales and Use Tax Trends History (2% to 9% growth) Projection (4% to 5% growth)

18. 18 SAPL Fees & Fines Goal is recovery of materials and access to facilities, not maximizing revenue generation. Projected Growth Rate: 2% to 3% FY 2007 Budget: $897,096

19. 19 CPS Energy COSA Payment Trends Current Policy Capped at 14% of gross revenue General Fund transfer Community Infrastructure Economic Development Fund (CIED) History (-7% to 13% General Fund growth, CIED growth NA) Projection (-8% to 3% General Fund growth), (-14% to 3% CIED growth)

20. 20 CPS Energy Revenue CIED Fund Projects Include: Health Research at UTHSC & electrical infrastructure for growth at UTSA main campus ($3.6M). Westover Valley construction of underground electrical supply lines ($1.3M). CIED Criteria: Positive cost-benefit analysis Non General Fund purpose Infrastructure or economic development project

21. 21 SAWS COSA Payment Trends Current Policy (capped at 5% of gross revenue) General Fund transfer Capacity Transfer of 2.7% has been made each year since 1992 History (1% to 25% growth) Projection (-5% to 2% growth)

22. 22 FUNDING SCENARIOS

23. 23 Assumptions Example scenarios are presented to stimulate discussion and are not all inclusive. A comprehensive expenditure budget will be presented next month. Sales Tax (2006 Tax Year) Source: Texas Comptroller web site. Does not include unincorporated Bexar. Property Tax (2007 Taxable Value) Source: Bexar County Appraisal District. Includes all of Bexar County. Net of tax assessor/collector fees and 97.5% collection rate. Assumes mandatory exemptions.

24. 24 SCENARIO 1 Property Tax per $100 valuation Operating4 cent Capital ½ cent Revenue Generated $33,155,410 SAPL’s Current General Fund Budget$24,900,000 $40,076,528 Fees and Fines $897,096 $3,524,022 $2,500,000Maintenance Fund (CIED/SAWS)

25. 25 SCENARIO 2 Sales Tax (1/8 cent) Revenue Generated $20,956,523 SAPL’s Current General Fund Budget$24,900,000 Fees and Fines $ 897,096 General Fund (Personnel) $17,186,096 $2,500,000 Maintenance Fund (CIED/SAWS) $41,539,715

26. 26 SCENARIO 3 Sales Tax (1/8 cent) Property Tax per $100 valuation Operating 2 cent Capital ½ cent Revenue Generated $20,956,523 $16,223,188 SAPL’s Current General Fund Budget$24,900,000 $44,100,829 Fees and Fines $ 897,096 $ 3,524,022 $ 2,500,000Maintenance Fund (CIED/SAWS)

27. 27 SCENARIO 4 Sales Tax (1/8 cent total) Operating Share of Sales Tax60% Maintenance/Capital Share of Sales Tax 40% Revenue Generated $12,573,913 SAPL’s Current General Fund Budget$24,900,000 $49,853,618 Fees and Fines$897,096 $8,382,609 $22,000,000 COSA General Fund Bexar County General Fund $6,000,000

28. 28 SCENARIO 5 Sales Tax (1/8 cent) Property Tax per $100 valuation Operating 2 cent Capital ½ cent Revenue Generated $20,956,523 $16,223,188 SAPL’s Current General Fund Budget$24,900,000 $61,286,925 Fees and Fines $897,096 $3,524,022 General Fund (Personnel) $17,186,096 $2,500,000 Maintenance Fund (CIED/SAWS)

29. 29 Per Capita Operating Expenditures 2005 San Antonio Public Library spends $13.33 per capita on operations. The median of these libraries is $35.48. $13. 33 *Source: PLDS Statistical Report 2005 S1: $23.20 S4: $28.47 S5: $36.67 S2: $26.37 S3: $25.76

30. 30 Per Capita Operating Expenditures 2005 San Antonio Public Library spends $13.33 per capita on operations. The median of these libraries is $35.48. $13. 33 *Source: PLDS Statistical Report 2005 S1: $23.20 S4: $28.47 S5: $36.67 S2: $26.37 S3: $25.76

31. 31 The Library: A Powerful Tool for Economic Development Educational Opportunities Skilled Workforce Higher Literacy Levels Increased Economic Growth

32. 32 "He who cannot change the very fabric of his thought will never be able to change reality." – Anwar al-Sadat