Library Board approved April 19, 2006. Revised June 23, 2020.
Library funds not assigned in the General Fund (Operating Fund) or special purpose funds such as the Art Fund, are referred to as unassigned funds.
The unassigned fund balance serves three purposes:
- It provides a working cash buffer to fund library operations prior to receipt of tax collections and when property tax collections are delayed.
- It serves as a funding source for major capital purchases, major automated system upgrades, and other one-time capital expenditures.
- It serves as a building fund / opportunity fund. Major building system upgrades such as the branch library renovations and opportunities such as the down payment for the 1992 purchase of the Grove Avenue property for main library expansion
The unassigned fund balance may increase by the following means:
- Year-end surplus in the General Fund (which automatically reverts to the unassigned fund
- Additional transfers from the General Fund authorized by the Board of Library Trustees.
The unassigned fund balance may be decreased by the following means:
- Year-end deficits in the General Fund.
- Payment of major capital purchases and building / opportunity expenses from the fund.
- Expenditure of unassigned fund balance for one-time expenses. Funds from the unassigned fund balance will not be used to subsidize recurring expenses.
- Pre-funding or purchasing of library referendum bonds to reduce the debt level and thus
the tax levy
The goal for the Library is to maintain the unassigned fund balance at fiscal year’s end within the range of 40% to 48% of the General Fund less bond debt and one-time capital expenditures funded from the unassigned fund balance. The target goal is 42%.
The goal for the combined major capital purchases and building / opportunity portion of the unassigned fund balance should be to maintain a balance within the range of 8% to 12% percent of the General Fund less bond debt and one-time capital expenditures funded from the unassigned fund balance. The target goal is 10%. Identification of large capital purchases and building / opportunity expenses may necessitate Board revision of this balance range and target.
The fund balance will be reviewed annually, both prior to the adoption of the budget as a part of the budgeting process and in January of each year.