Council concerned for library's financial future

by Nathan Arneal
Published 8/2/23

The city council expressed concerns about the North Bend Public Library’s financial situation at its July 18 meeting. Money is going out of the library’s account faster than it is coming in, and that could force a drastic reduction in services or even closure in years to come if the problem is not addressed.

The funding to operate the library comes from property taxes generated by property located within the North Bend city limits. Last year that amounted to $54,229, which is barely enough to cover payroll.

This year, due to the increase in Nebraska’s minimum wage, all library employees received a $1.50 hourly raise, including those already making more than the minimum wage. That hike will happen again each of the next three years as the minimum wage continues to climb.

“How do you increase the budget?” councilman Alex Legge said. “It’s got to come from somebody else’s budget. It makes it really difficult.”

The library receives 12% of the city’s property tax allotment, as do the pool fund and park fund. The auditorium receives 10% and the police/sheriff fund 14%. The general fund receives 40%.

“None of the funds are doing great,” city clerk Theresa Busse said. “Everybody wants their cut of the pie, but there’s only so much in that pie.”

Before the new library was built and opened in 2012, the library saved money every year and put it into CDs. The new library has been depending on those CDs to operate since it opened in June 2012.
In April 2012 the library fund had $64,392.76 in CDs. Over the last 11 years, that reserve pool has been cut in half. Last month’s treasurer’s report showed the library’s CD balance was down to $32,952.73.

“I’m worried because we’re going to get 5, 10 years down the road,” councilman Ken Streff said, “and it’s going to be out of CD money. They’re going to request budget from us, and it’s going to be over.”

Busse estimated that insurance and utilities costs have doubled at the new building compared to the old Carnegie library building. Payroll has also increased dramatically, with two librarians normally on duty at the new library compared to one at a time at the old library.

Grants from the Library Foundation and other sources help cover the costs of programing like the summer reading program, but they don’t help cover the increased labor expenses to run the program. Busse said payroll can double during the summer reading program because of the extra hours put in by the librarians.

The library is overseen by a library board appointed by the council. Council members say the financial issues and budget shortfalls at the library have been known for years, and the library board needs to come up with other revenue streams.

“They have to develop a plan,” Streff said, “because we’re going to be in trouble before you know it.”

The library currently generates essentially no revenue. Services are free to all comers. The community room rents out for $40, but is rarely rented to paying customers. Non-profit community groups are allowed to use the room at no cost.

Council members suggested charging for library cards or reducing hours as potential steps that could be taken.

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