HomeMy WebLinkAboutIR 7813 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7813
March 29, 1994
To the Mayor and Members of the City Council
Subject: PUBLIC LIBRARY SERVICES
Members of the City Council requested additional information regarding the cost of
library services at the workshop held at the Central Library. Included in this report
are four attachments which address the City Council's requests.
Attachment No. 1 outlines five options to increase the hours of operation at the
Central Library. Attachment No. 2 are the minutes of the Library Advisory Board
when the level of services of the Library system were discussed. Attachment No. 3
is the comparison of the cost of operating the Meadowbrook Br'anch and operating the
East Regional facility as a Branch Library. Attachment No. 4 is a letter from Charles
Boswell explaining the options for the use of the East Regional bond funds.
If the City Council requires additional information on this subject it will be provided
upon request.
/ bb Terrell
City Manager
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attachment
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
ATTACHMENT NO. 1
FORT WORTH PUBLIC LIBRARY
OPTIONS
CENTRAL LIBRARY HOURS _
CURRENT SCHEDULE (FY 93-94)
53 hours per week - 5 days a week
Tues. , Wed. , Thurs. 9 a.m. - 9 p.m. Fri. 9 a.m. - 6 p.m.
Sat. 10 a.m. - 6 p.m. Sun. , Mon. Closed
*Any increase in Central Library hours will also impact janitorial services in
the T & PW budget.
OPTION 1: Total 69 hours a week - 7 days a week (16 added hours week)
Mon. , Tues. , Wed. , Thurs. 9 a.m. - 9 p.m. Fri, 9 a.m. - 6 p.m.
Sat. 10 a.m. - 6 p.m. Sun. 1 p.m. - 5 p:m.
COSTS: Personnel added $490,194 + current $1,208,204 = $1,698,898
Supplies added 8,900 + current 29,485 = 38,385
Materials added 110,000 + current 389,884 = 499,884
Repairs/Contractual added 17,572 + current 54,703 = 72,275
Utilities added 72,152 + current 175,420 = 247,572
Equipment added 88,936 + current 2,230 = 91,166
(one time)
*TOTALS added $787,754 + current $1,860,426 = $2,648,180
OPTION 2: Total 66 hours a week - 7 days a week (13 added hours week)
Tues. , Wed. , Thurs. 9 a.m. - 9 p.m. Mon. , Fri. 9 a.m. - 6 p.m.
Sat. 10 a.m. - 6 p.m. Sun. 1 p.m. - 5 p.m.
COSTS: Personnel added $363,476 + current $1,208,704 = $1,572,180
Supplies added 6,675 + current 29,485 = 36,160
Materials added 85,000 + current 389,884 = 474,884
Repairs/Contractual added 13,340 + current 54,703 = 68,043
Utilities added 58,624 + current 175,420 = 234,044
Equipment added . 67,110 + current 2,230 = 69,340
(one time)
*TOTALS added $594,225 + current $1,860,426 = $2,454,651
OPTION 3: Total 65 hours a week - 6 days a week (12 added hours week)
Mon, , Tues. , Wed. , Thurs. 9 a.m. - 9 p.m. Fri. 9 a.m. - 6 p.m.
Sat. 10 a.m. - 6 p.m. Sun Closed
COSTS: Personnel added $362,476 + current $1,208,704 = $1,571,180
Supplies added 6,675 + current 29,485 = 36,160
Materials added 82,500 + current 389,884 = 472,384
Repairs/Contractual added 12,429 + current 54,703 = 67,132
Utilities added 54,114 + current 175,420 = 229,534
Equipment added 67,110 + current 2,230 = 69,340
(one time)
.. *TOTALS added $585,304 + current $1,860,426 = $2,445,730 ANo
OPTION 4: Total 62 hours a week - 6 days a week (9 added hours a week)
Tues. , Wed. , Thurs. 9 a.m. - 9 p.m.
Mon. , Fri. , 9 a.m. - 6 p.m. Sat. 10 a.m. - 6 p.m.
Sun Closed
COSTS: Personnel added $249,428 + current $1,208,704 = $1,458,132
Supplies added 4,450 + current 29,485 = 33,935
Materials added 55,000 + current 389,884 = 444,884
Repairs/Contractual added 9,697 + current 54,703 = 64,400
Utilities added 40,576 + current 175,420 = 215,996
Equipment added 45,044 + current 2,230 = 47,274
(one time)
*TOTALS added $464,195 + current $1,860,426 =
OPTION 5: Total 57 hours a week 6 days a week (4 added hours week)
Tues. , Wed. , Thurs. , 9 a.m. - 9 p.m.
Fri. 9 a.m. - 6 p.m. Sat. 10 a.m. - 6 p.m. Sun. I p.m. - 5 p.m.
Mon. Closed
COSTS: Personnel added $125,333 + current $1,208,704 = $1,334,037
Supplies added 1,375 + current 29,485 = 30,860
Materials added 27,500 + current 389,884 = 417,384
Repairs/Contractual added 6,054 + current 54,703 = 60,757
Utilities added 18,038 + current 175,420 = 193,458
Equipment added 22,06 + current 2,230 = 24,296
(one time)
*TOTALS added $200,366 + current $1,860,426 = $2,060,792
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ATTACHMENT NO. 2
FORT WORTH PUBLIC LIBMW
LIBRARY ADVISORY BOARD
CALLED )MING
MAItC$ 16, 1994 -
central Library
Meeting called to order by Judy Hunter, vice Chairperson at 12:40 p.m..
Present Were: Judy Hunter, Martha McPherson, Robert Barbour, Johnnie Staton,
and John McDuff Library advisory Board members.
Library Staff present: Linda Allmand, Library Director, and Cate Dixon,
Assistant library Director.
Linda Allmand and Crate Dixon went over information which had been given to the
City Councflmembers the previous Tuesday.
The items discussed were suffmry of Library Long Range Plan and showed a crap
explaining the proposed future sites. Current hours and support (1993-94), Prior
hours and support (in 1994 $) (1989-90), Desired hours and support, Usage of
libraries, Materials restoration, East Regional schedule for building and
opening.
After worms discussion of the presentation Linda Allmand asked the board to
prioritize what they would like for the Council to do for the Library if funding
were available from the copies of the proposals to restore hours, Meadowbrook
expanded hours, and East Regional which were given to them.
voted on and passed
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1. Not to build the East Regional at this time and restore services before
adding new facilities.
2. Restore all service at Central Library first before branches and
Southwest Regional.
3. Central Hours Restoration: Have the dollars for option 1 - but the
hours for option 2 and the difference of dollars to go into Central materials.
4. Meadowbrook - if expand hours at Meadowbrook voted on option 3 which
is a total 5o hours a meek - 6 days a week (8 added hours week).
5. Bond Money for East Regional - if do not build the East Regional within
3 years, then put the money into finishing out the Central Library.
TOTAL P.02
ATTACHMENT No. 3
FORT WORTH PUBLIC LIBRARY
MEADOWBROOK/EAST REGIONAL
Current cost of the operation of the Meadowbrook Branch
Annual Costs: $298,298
Services and hours remain at existing levels. Hours - 5
day week and 42 hours.
Projected cost of operating East Regional as a Branch Library
Branch Library costs: $298,298
Additional operating
costs for the Regional
facility. 57,328
TOTAL COST $355,626
No Changes in staff, collection or furniture. Does not include any Regional
collection, technology, services nor additional hours.
ATTACHMENT' NO . 4
o
CITY OF FORT WORTH, TEXAS
OFFICE OF THE CITY MANAGER
1000 THROCKMORTON STREET
FORT WORTH,TEXAS 76102
(817) 871-6111
FAX (817) 871-6134
TO: The Honorable Mayor and Members of the City Council
FROM: Charles R. Boswell, Assistant City Manager
DATE: March 22, 1994
SUBJECT: Library Bonds
In view of the questions which have been raised recently as to the advisability of
proceeding with the East Regional Library,I requested legal advice from the City's bond
counsel regarding the use of $2,630,000 in bond proceeds received from the sale of the
Series 1994 General Purpose Bonds. The response from McCall, Parkhurst & Horton
and Kelly, Hart & Hallman is attached.
There are four optional uses of the bond funds:
1) Construct the East Regional Library
2) Hold the funds until economic conditions improve and budgetary
constraints are eased. To meet Federal arbitrage rules, as soon as we
determine the funds will not be spent in 3 years, we will have to "yield-
restrict" them. Since the return on the pool investments is greater than the
interest rate paid on the bonds, the proceeds will have to be segregated in
a separate investment portfolio and invested in a security that yields less
than the bond yield. However, the $2,630,000 can be held indefinitely - if
it is "yield restricted."
3) Transfer the funds to the Debt Service Fund to retire the bonds as they
mature. If this option is chosen, the funds will not be available at a future
date for use in the construction or improvement of library projects. Also,
through the sale of the bonds in January, the City has exhausted the voter-
approved bond issuance authority for library improvements. For future
library improvements to occur,either a new bond election must be held, or
certificates of obligation must be issued, before the projects can be
constructed.
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March 22, 1994
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4) Transfer the funds to one of the two other uses listed in the original
proposition approved by the voters in 1986:
a. Making improvements to the Central Library
b. Constructing a Diamond Hill Branch Library
As a practical matter, the only other authorized use of the $2,630,000
would be to make improvements to the Central Library. The
informational materials provided to the public at the time of the 1986
election specified $3,500,000 for an East Regional Library,but also noted:
". . . the Council shall have the right to abandon or modify a project
if, in the Council's opinion, conditions materially change so that the
project as originally proposed is unwise or unnecessary. In that
event, the Council may direct that the bond proceeds be expended
for other projects within the voted purposes of the bonds."
If you have any additional questions relative to the use of the library bond proceeds,
please let me know.
C?;, P -
Charles R. Boswell
Assistant City Manager
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Attachment
McCALL, PARKHURST & HORTON L.L.P. KELLY, HART & HALLMAN
717 NORTH HARWOOD (A Professional Corporation)
NINTH FLOOR 201 MAIN STREET
DALLAS,TEXAS 75201-6597 SUITE 2500
7ELF2HONF--214 220-2800 FORT WORTH,TEXAS 76102
TELEPHONE:917 3322500
March 9, 1994
Mr. Jim Keyes
Assistant Director of Fiscal
Services
City of Fort Worth
1000 Throckmorton
Fort Worth, Texas 76102
Re: City of Fort Worth, Texas General
Purpose Bonds, Series 1994
Dear Jim:
You have sought our guidance regarding the use of $2,630,000 in bond proceeds
received from the issuance of the captioned bonds. Said amount represents the balance of
bonds authorized by the voters of Fort Worth in 1986 for library improvements within the
City. The proposition language approved by the voters reads, in pertinent part:
"[$10,000,000 in bonds may be issued] for the purpose of
making improvements to the Central Library and expanding the
City's library system by constructing an East Regional Library
and a Diamond Hill Branch Library".
It was contemplated, at the time the captioned bonds were issued, that the City would
expend up to $2,630,000 for the construction of an East Regional Library. You have since
advised us that there is a possibility that the construction of an East Regional Library will
be cancelled.
The effect of the approval of a bond proposition by the voters is that a contract has
been entered into between the City and the voters. A governing body has some discretion
in the manner it may implement the contract, i.e., spend the bond proceeds, but Texas
jurisprudence tends to analyze this type of issue on a case-by-case basis. Thus, the discretion
a governing body may exercise on this type of matter is not unlimited, and, at a minimum,
must be consistent with the intent of the contract.
The intent of the contract may be further established if, at the time the bond election
is held, the City prepares and distributes information explaining the various bond
Mr. Jim Keyes
March 9, 1994
Page 2
propositions and the anticipated costs of the projects to be financed if the bond propositions
carry. Texas courts have held that if the governing body formally approves the preparation
and/or distribution of such materials (e.g.,by resolution duly adopted by the governing body),
such materials will be made a part of the contract and used in the interpretation of the
contract if the governing body exercises discretion in implementing the contract.
In the cur-rent matter, we are faced with the question of whether the $2,630,000 in
bond proceeds may be expended on a project other than the construction of an East
Regional Library. If the City, by action of the City Council, approved the preparation and
distribution of materials which contain estimates of the amount of money to be spent on the
construction of an East Regional Library, our analysis must take that factor into account.
If the City Council did not formally approve election promotional/information
materials, the City can expend the bond proceeds in question on either improvements to the
Central Library, or on the construction of the Diamond M Branch Library. If the City
Council did approve the preparation and distribution of such materials, the City may be able
to expend the bond proceeds in question on the above-cited library improvements, but only
after the City Council formally exercises its discretion, based on changed economic
conditions and/or community needs, to shift such expenditures from the East Regional
Library project to one or both of the other approved library projects. A resolution adopted
by the City Council to address such changed circumstances would constitute the formal
exercise referred to above.
In no event may the City expend the $2,630,000 on a project other than one of the
three library projects referred to in the proposition approved by the voters.
The City also may choose not to spend any of the $2,630,000, and if it chooses that
option, the amount in question immediately should be transfer-red to the Interest and
Redemption Fund and be used to retire the captioned bonds as they mature and come due.
Please be advised that if the City transfers this amount to the Interest and Redemption
Fund, those moneys no longer would be available at a future date for use in the constructing
or improving of the library projects. Furthermore, as the City has, through the issuance of
the captioned bonds, exhausted the voter-approved bond issuance authority for library
improvements, if future library improvements occur, either a new bond election must be
held, or certificates of obligation must be issued, before the projects can be constructed,
unless such projects are to be funded from available cash.
Mr. Jim Keyes
March 9, 1994
Page 3
If you have any further questions, please do not hesitate to contact either of us.
Respectfully,
MCCALL, PARKHURST & HORTON L.L.P. KELLY, HART & HALLMAN
B By:
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Je ey A. uschel Dan Settle, Jr.
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