Concerned about meeting bond debt requirements, the William F. Laman Public Library System's board of trustees approved $67,100 in reductions in this year's expenditures Monday, without cutting any jobs or library services.
The library's adjusted budget allows $3,650,810 in projected expenditures, down from the $3,717,910 the board approved in December. The revised 2019 budget projects $3,682,500 in revenue, $35,500 less than the original $3,718,000.
The Laman Library system in North Little Rock consists of the main library, 2801 Orange St., and its Argenta Branch, 420 Main St. The system is independent and doesn't receive city money for its operation.
The library pays $417,000 annually on a pair of bond issues for the construction and renovation of the former downtown post office building to open the Argenta branch in April 2014. The remaining bond debts are $1.7 million and $500,000, Library Director Crystal Gates said after the meeting. Both are scheduled to be paid off in 2025.
"We did a five-year forecast with the bond payment and where we would be each year," Gates said. "We want to make sure we keep a good fund balance year-to-year while we have this debt still in place."
Library revenue and expenses have held steady, she said.
"It's just kind of tightening our belt to make sure we're carrying enough year-to-year to continue to pay this debt off," Gates said.
The budget reductions were recommended by a finance committee the board formed last month to review the budget after Gates mentioned concerns that the bulk of current year funding won't come until late in the year.
Board member Charley Baxter, a finance committee member, said the library's financial situation "really calls for hard decisions by the board on the future."
In late 2014, the library faced financial difficulties regarding the bond debt for the $3.5 million Argenta branch -- plus a bond remaining from the main library that's since been paid off -- that led to layoffs of 11 staff members and a reduction in library hours and exhibits. Mayor Joe Smith helped the library by having the city's finance department restructure the bond debt, eliminating two balloon payments and extending the payoff dates by two years.
Board members said they plan to schedule a meeting with Smith to discuss the library's finances.
"We have to tell the mayor what's going on, where we are and what we're trying to do," said Baxter, who is also a part-time city administration official. "We need to keep him informed."
Metro on 06/04/2019