HomeMy WebLinkAboutResolution No. 4265, Creating the Library Depreciation Fund.pdf Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Adopt Resolution No 4265, Creating the Library Depreciation Reserve
Fund
MEETING DATE: July 22, 2010
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution No. 4265, Creating the Library Depreciation
Reserve Fund.
BACKGROUND: At the May 19, 2010 Library Board meeting, the Library Board of
Trustees voted to recommend the establishment of a Library Depreciation Reserve Fund
according to MCA 22-1-305.
22-1-305. Library depreciation reserve fund authorized. The governing body of any city
or county or a combination of city and county in Montana may establish a library
depreciation reserve fund for the replacement and acquisition of property, capital
improvements, and equipment necessary to maintain and improve city, county, or city-
county library services.
22-1-306. Moneys for library depreciation reserve fund. Moneys for the library
depreciation reserve fund are those funds which have been allocated to the library in any
year but which have not been expended by the end of the year. Such moneys include but
are not limited to city or county or city-county appropriations, federal revenue sharing
funds, and public and private grants.
22-1-307. Investment of fund. The moneys held in the library depreciation reserve fund
may be invested as provided by law. All interest earned on the fund must be credited to
the library depreciation reserve fund.
The attached resolution creates this fund; a special revenue fund. All the unspent General Fund
monies appropriated to Library operations during a fiscal year (Divisions 7810-7850) will be
transferred, at year end, into the Library Depreciation Reserve Fund.
At their July 21, 2010 Library Board meeting, the City Manager and the Board crafted the
following language: “In order to best provide for the coordinated maintenance of the Library
building and equipment, all expenditures or transfers from the fund will be budgeted for and
authorized as part of the normal budgetary process by the Library Board and the Bozeman City
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Commission.” This provides an important link and communication between the Library Board,
the City Commission, the Facilities Maintenance division, Information Technology division, and
others generally involved in maintenance of City property, land, and equipment.
UNRESOLVED ISSUES: None.
ALTERNATIVES: 1. Do not establish the fund. 2. Establish the fund, with full spending
authority going to the Library Board. 3. Establish the fund, with full spending authority going to
the City Commission.
FISCAL EFFECTS: At the end of each year, beginning with this fiscal year (FY10), the
General Fund will transfer an amount equal to the unspent appropriations in the Library budget
into this special revenue fund. The Fund will then be used to pay for maintenance of library
property and equipment. The amount estimated to be transferred in FY10 is roughly $75,000,
and is related to position-vacancy savings at the Library. The final transfer will take place after
all FY10 invoices and claims are processed (mid-August.)
The General Fund will no longer directly benefit from any unspent portions of the Library’s
annual budget.
The Library will benefit by have a special revenue fund dedicated to the maintenance of property
and equipment, which they do not have now.
Attachments: Resolution No. 4265
Report compiled on: July 22, 2010
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COMMISSION RESOLUTION NO. 4265
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONTANA, CREATING THE BOZEMAN PUBLIC LIBRARY
DEPRECIATION RESERVE FUND.
WHEREAS, the Library Board has requested the establishment of a Library Depreciation
Reserve Fund, pursuant to M.C.A. 22-1-305, and;
WHEREAS, the City finds benefit in the proper and coordinated maintenance of the City’s
Library property, buildings, and equipment, and;
WHEREAS, the City wishes to create the Bozeman Public Library Depreciation Reserve
Fund, in accordance with M.C.A. 22-1-305 through 22-1-307.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, that
Section 1
The Bozeman Public Library Depreciation Reserve Special Revenue Fund (the Fund) is hereby
established. The balance of the Fund will be invested as provided by law. All interest earnings and
interest charges will be paid or charged to the Fund.
Section 2
Beginning with Fiscal Year 2010 (FY10), at the end of each fiscal year, an amount equal to the unspent
General Fund Library appropriations (Account Divisions 7810-7850) will be transferred into the Fund,
out of the General Fund.
Section 3
The Fund will be used to pay for the replacement and acquisition of property, capital improvements, and
equipment necessary to maintain and improve the City’s Library. In order to best provide for the
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coordinated maintenance of the Library building and equipment, all expenditures or transfers from the
fund will be budgeted for and authorized as part of the normal budgetary process by the Library Board
and the Bozeman City Commission.
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 2nd day of August, 2010.
______________________________________
Jeffrey K. Krauss, Mayor
ATTEST:
_____________________________________
Stacy Ulmen, CMC
City Clerk
APPROVED AS TO FORM:
___________________________________
Greg Sullivan, City Attorney
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