Library Board Minutes 2023 02-27-23 - FinanceAPPROVED 3/13/23
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Yorkville Public Library
Board Room
Library Finance Committee Meeting
Monday, February 27, 2023- 6:00pm
902 Game Farm Road
The meeting was called to order at 6:04pm by Chairwoman Jackie Milschewski.
Roll Call: Jackie Milschewski-yes, Rosie Millen-yes, Bret Reifsteck-yes
Absent: Darren Crawford
Others Present:
Library Director Shelley Augustine, City Finance Director Rob Fredrickson, Library Board Trustee
Ryan Forristall
Recognition of Visitors: The Chairwoman recognized staff and guests.
Public Comment: None
New Business:
Budget Planning for FY24
Overview:
The purpose of the meeting was to continue the budget process for FY24. The Committee was
presented with the revised budget and 5-year projections as prepared by Finance Director Fredrickson.
Briefly summarizing the report Mr. Fredrickson said it shows the combined Funds 82 (Operations) and
84 (Capital Fund). He projected a $75,000 surplus for this year and Fund Balance of almost $1 million
and next year he predicted a decline of $100,000 with a Fund Balance of $900,000. He said the library
should have adequate cash flow. Looking ahead to 2028, there should be over $500,000 in the two
Funds even with a chiller replacement etc. He feels the library is financially sound.
Library Operations Fund 82
Mr. Fredrickson then went into more detail of the proposed budget. He said Fund 82 looks healthy
through 2028. He predicts a $12,000 surplus for 2023, a $24,000 deficit in 2024 and that this fund
looks healthy through 2028. Chairman Milschewski asked what would cause the deficit for next year.
Outside Repair and Maintenance was increased to $125,000 based on possible equipment replacement.
Revenues:
On page 2 of the budget, property taxes are the largest revenue source at about $900,000. Property
taxes for debt service are based on debt service amounts and will begin to fall away in 2026 when the
bonds are finished. Other revenue sources include personal property tax which have doubled to about
$17,000 and also the state grant in the amount of $31,500. Mr. Fredrickson said miscellaneous income
tax is higher than normal due to insurance proceeds received last week and the proceeds are basically a
wash with the expenses.
Expenditures:
Expenditures include Ms. DeBord's final payout, part-time salaries, and health insurance. New
insurance rates are estimated to increase by 8% for health, 5% for dental and life/vision is staying the
same. One new employee is opting out of the insurance. Katelyn Gregory's administrative chargeback
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of $15,000 is included also.
Mr. Fredrickson detailed some of the other expenses such as training and conferences, chargeback for
building and grounds person Ted Milschewski, Professional Services increasing by about $6,000 to
allow for engineering costs for new HVAC system and office cleaning (a new line item). Outside
Repair and Maintenance is tracking at $130,000, but a large amount will be offset by insurance
reimbursement for the flooding. Ms. Augustine noted $52,000 was for remediation and Mr. Fredrickson
said the Outside Repair will continue to be high. Paying Agent Fees will drop when the bonds are
finished and DVD's, audio books, etc. were moved to Library Operations in 2024. Usually $50,000
was budgeted for books and in 2024, $20,000 was budgeted as this item is phased into Operations. The
bond payments are finished after FY 2025.
Library Capital Fund 84:
Revenues
Mr. Fredrickson said development fees are healthy if building is going strong. In the past, $50,000 was
budgeted and it more than doubled this year.
Expenditures
E-books were budgeted at $3,500, computer equipment and software at $25,000 through FY 2028 and
books, DVD's etc will decrease as this moves to the Operations Fund 82. For Building Improvements,
a lighting upgrade to LED was budgeted at $56,000, for FY2025 he budgeted $250,000 for a new
HVAC system, FY 2027 VAV replacement (variable air valve replacement) budgeted at $200,000. Mr.
Fredrickson encouraged the library to continue to be aware of large expense items for planning
purposes. Overall he thinks there should be about a $60,000 surplus with a $240,000 Fund Balance.
He also predicted some declines in the Fund Balance in the '25 and '27 budget years, but no fiscal
concerns in '24 and '25.
Questions/Comments:
Ms. Augustine mentioned some items not budgeted, but suggested by Mr. Raasch. They include
elevator, plumbing and roof repairs and additional funding for Outside Repair. Currently, $45,000 is
budgeted for HVAC repairs. Mr. Raasch suggested a lighting control maintenance contract at $6,100
and maintenance contract for VAV cleaning at about $3,400. Mr. Forristall said the VAV contract
would be beneficial to buy some time if any problems were detected.
Mr. Reifsteck asked about camera replacement. The library has 12-13 new cameras out of a total of 30.
Ms. Augustine said 5 cameras could be replaced at about $1,000 per camera.
Mr. Forristall said he has looked at the library building and he referred to a building evaluation report
done in 2017. Not much has been spent and he said overall the building is in good condition. He said
Mr. Raasch's suggestions were very accurate. He said the report also showed carpet replacement which
would be very costly. Trustee Forristall said he has concerns with the exterior mortar and other items.
He also said window sealants should be looked at since they fail after about 20 years and he said a mill
and resurface of the parking lot should be considered. He said a Facilities meeting could be scheduled
for March.
Ms. Milschewski asked if there is a monthly maintenance schedule of routine repairs saying it could
help with budgeting. Ms. Augustine and Ms. DeBord have a building checklist, said Mr. Forristall.
Mr. Fredrickson said the library could expect that the city will continue to help with maintenance issues
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Director Augustine would like Mr. Raasch to meet with staff to develop a brief capital needs
assessment plan before he leaves in April.
Summary: Mr. Fredrickson said revisions can be made in March and more firm numbers for health
information will be received also. The Library Board can pass the budget at the April meeting and all
must be completed by the end of April.
Executive Session: None
Adjournment:
There was no further business and the meeting adjourned at 6:38pm
Minutes respectfully submitted by Marlys Young, Minute Taker