Fayetteville Library OKs Budget, Looks To Unclear Future

FAYETTEVILLE -- The public library board approved a $4.07 million budget for next year that would maintain current services and freeze employee salaries amid questions over the library's financial future.

The budget is less than this year's by about $500,000, including about $78,000 less for library materials, $100,000 less for small-scale maintenance and a delay in expansion plans. The end result was essentially unchanged from when it was proposed last month.

The library receives more than 80 percent of its operating revenue from the city and a 1-mill assessment that was approved when the library was built 10 years ago, said Stephen Davis, the library's finance director.

Almost two-thirds of the budget goes to employee salaries and benefits, with the rest going toward acquiring check-out materials, computers, maintenance and other costs. The library's dozens of employees could see raises next spring if Fayetteville boosts its employees' pay then, board members said.

"We realize how hard you're working," said Maylon Rice, treasurer. "We'll certainly follow up and raise that."

The library isn't out of money, but board members said reserves could run out in the next couple of years if another source of revenue doesn't come into play.

"We know 2015 is going to be the last year we can comfortably continue doing what we've been doing," said David Johnson, the library's executive director.

One part of that trend simply comes from expanding services and growing maintenance needs in the decade-old building. Another part is the ongoing lawsuit over the old City Hospital's land, which the library hopes to use for an 80,000-square-foot expansion.

The library foundation plans to buy the land from Washington Regional Medical Center, which got the land from the city. The heirs of the Fayetteville couple that donated the land a century ago have contested the purchase, saying the city violated the terms of the donation when Washington Regional took over. If the case drags on in a series of appeals, other plans could be delayed and costs could swell, board members said in November.

Vince Chadick, the library's attorney, told the board the trial is scheduled for early March under Circuit Judge Cristi Beaumont, with a chance for mediation before then.

All of these concerns mean the library is going into "uncharted waters in terms of financing," said Kim Agee, board president. He created a five-member committee including Rice, board member Janine Parry, Fayetteville lawyer Jack Butt, real estate agent George Faucette and an undetermined fifth member to look into how to fix the problem.

The committee won't have many options for a new revenue source, Agee said, adding a new millage assessment seemed most likely.

NW News on 12/16/2014

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