Library Audit Shows Surplus

Library audit shows surplus

$3.3 million surplus is nearly $2 million more than projected.

Contract talks continuing with librarians, clerks

By SUSAN L. OPPAT

NEWS STAFF REPORTER

The Ann Arbor District Library, nearly $1 million in debt two years ago, now has a budget surplus of $3.3 million, according to a new audit.

News of the surplus, nearly $2 million more than originally projected for the fiscal year that ended June 30, comes as the library continues to negotiate with library staff associates who have been without a contract or cost-of-living adjustments since 1996.

Departing library director Mary Anne Hodel credited the surplus to "firm financial controls" and tight spending. But taxpayers also have helped by paying a higher millage to cover the deficit and fund new building projects.

Comptroller Ken Nieman said the surplus will be put into reserves in the library's previously approved 2001-02 budget. Nieman said the library should keep a balance equal to 20-25 percent of the annual budget for emergencies and unforeseen expenses and reductions in revenue.

Nearly $1 million of the surplus came from higher revenues than were projected. More than half of that came from an increase in property-tax income. Expenditures were lower than projected in two categories, including employee benefits.

Information director Tim Grimes said Tuesday that progress is being made in talks with the AADL Librarians Association. But union president Debbie Gallagher, representing 31 clerks and staff and about 20 librarians, said 36 issues remained to be resolved when a state mediator entered negotiations in July.

She said few of them had to do with salary, despite the fact that workers have not had cost-of-living increases in five years. Most issues concern working conditions and benefits, she said.

Gallagher said she hopes the library board takes the departure of Hodel, who leaves for a job in Florida on Jan. 4, as a "golden opportunity" to become involved and resolve the four-year impasse.

The deficit that caused library budget problems two years ago was uncovered when former finance director Donald Dely resigned and was later charged with embezzlement. In the course of the Dely investigation, library administrators discovered financial problems that wiped out a previous surplus and put the library so deep in debt that directors levied a one-year millage to climb out of the hole.

That levy has ended, but a 0.3 mill increase in the levy, to 1.95 mills, will remain in effect, to pay for planned construction of new library branch buildings.

In a related matter, the library's board of directors named an interim director, Josie Parker, at a meeting Tuesday. Parker, public services director at the library, will be promoted Oct. 29.

Parker joined the library as manager of the youth department in 1999, then took on management of the circulation department. In 2000, she was promoted to public services. She is former youth department manager for the Ypsilanti District Library.

Parker is also vice president of membership services for the state library association and last year won a state award for innovative and significant contributions to the library field.

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Susan Oppat can be reached by email at soppat@annarbornews.com or at (734) 482-9455.