Town of Chapel Hill North Carolina Executive Summary
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NORTH CAROLINA


EXECUTIVE SUMMARY

Meeting Date: 1/9/2012
AGENDA #13


Title of Agenda Item: Consider Agreement with Orange County Regarding Library Funding.  (R-12) (O-7)

Background: On November 17, 2011, County Commissioners Valerie Foushee, Bernadette Pelissier, and Barry Jacobs met with Council Members Sally Greene and Gene Pease and Mayor Mark Kleinschmidt to discuss an agreement for County funding of the Chapel Hill Library. Assistant County Manager Michael Talbert, County Library Director Lucinda Munger and I met with them. The group agreed on basic principles that were incorporated into an agreement that was approved by the County Commissioners. The Council Members agreed to place this on the Council agenda for approval January 9. This met the County Commissioners’ interest of an agreement in place before the any additional payments were made to the Town.

The agreement adopted by the Commissioners is attached. It reflects the new starting funding level of $342,986 for 2011-12. The agreement incorporates the County’s intent to increase its contribution to the Town Library by adding 3% each fiscal year to the base sum currently contributed to the Town. Over the life of this agreement, doing so would increase the County’s contribution to the Town’s Library from its current 21% of total County Library System operational costs to 30% in the fiscal year ending June 30, 2015. If this is fulfilled, the County contribution would exceed $500,000 per year at that time. Additional extensions of the agreement could result in additional County contributions.

The agreement also includes a provision that the Parties will direct County and Town managers and library staff to examine methods and determine the most appropriate methods of interoperability between the Orange County Library System and the Town of Chapel Hill Library, to be determined during the term of this Agreement.

The Council Members included in these discussions are comfortable with this agreement.

Fiscal Note: At the time of adoption, the Town's budget for 2011-12 included the provision of charging fees to out-of-town residents rather than funding from the County for library operations.  The resulting shortfall was to be covered by a transfer from the Library Gift Fund.  Replacing those funding sources with the new agreement with Orange County would provide an additional $93,986 in revenues. 

Adoption of the attached budget ordinance amendment would reduce the Town's use of Fund Balance by this amount.

Recommendations: That the Council consider the agreement with the County for library funding and the related budget ordinance amendment.


ATTACHMENTS:
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Resolution
Draft Library Interlocal Agreement as Approved by the OCBOCC on 12-13-11
Budget Ordinance Amendment - Orange Co Library Agreement