Friday, September 19, 2014

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2014 Approved Budget

 

FREQUENTLY ASKED QUESTIONS ABOUT THE LIBRARY BUDGET

How does the library’s funding work?

There are three main funding sources for our library:

  1. Municipal funds – these are funds from the Borough, derived from the "1/3 of a mil"l property tax assessment. This appears on residents’ local property tax bills. The amount will vary depending on the value of the property. As an example, a house in Red Bank whose taxable value is $474,300 would pay a municipal library tax of $151.78. For a property with a higher or lower taxable value, the library tax would be higher or lower accordingly.
  2. Liquid checking and savings accounts – money from fines and fees.
  3. Bequests – gifts from citizens to be used for specific purposes.

Why do we have a deficit in 2013?

  • Lower property taxes were paid during the downtown of recent years, resulting in decreased funding from the Borough.
  • The library assumed expenses previously paid by the Borough.
  • State Aid to Libraries was cut.
  • Our bequests are one-time gifts from which we can only take a percentage every year. They are not earning significant interest in this economy.

How is the 2013 deficit being addressed?

  • The Library Board has approved use of liquid funds and funds from the bequests to meet expenses.
  • The Library has set up a Foundation to generate more funds.
  • If additional sources of income are not found and the lower tax base continues, the library could eventually run out of the funds needed to operate.

Why doesn’t the Red Bank Public Library join the County Library?

  • This idea was researched by the Borough twice in recent years and decided against due to increased costs, and the possibility of the Red Bank Library being closed.
  • The tax the Borough would be charged to join the County Library would be about the same as the tax collected to fund our municipal library.
  • If the County were to keep our library building, the town would still have to pay some of the costs and the County system could eliminate staff and decrease hours of operation.
  • The County Library has stated it would probably close the Red Bank Library if it joined the system.
  • The Library continues to consider options as appropriate.

 

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