2013 Budget Memo - Denver Public Library

+Agenda Item 5
Requested Action: Approval
June 14, 2012
TO:
FROM:
Denver Public Library Commission
Ron Miller, Director of Finance
Subject: 2013 Denver Public Library Budget
The budget was reviewed at the May 31 st Finance Committee meeting and accepted for
distribution to the Commission for review and approval.
The packet includes the following material:
• Cover Memo
• Budget Timeline
• DPL Organization Chart
• General Fund Budget
• Replacement Capital Equipment
• Service Expansion Requests
• Budget Reduction Proposals
• The Commission white paper.
1. 2013 Budget Process
The Library developed a Strategic Budget for 2013 that supports the goals of the Library’s
Strategic Plan and the citywide Strategic Framework.
Budget data will be submitted to the City in two phases this year. (A budget development
timeline is attached.) The first phase was due on May 21 st and included the base budget.
The base budget is comprised of supplies and services costs plus personnel costs directly
controlled by DPL including overtime, shift differential, bilingual pay, and on-call staff. The
base budget does not include capital equipment or base salary costs and related costs such as
payroll taxes and insurance. The City again expects a shortfall of revenues to anticipated
expenditures. Agencies were directed to submit a flat zero-growth base budget that maintains
current-year (2012) levels of service.
The second phase was due on June 4 th and includes decision packages. A decision package is
detailed information for any potential change in total resources that will be allocated to DPL.
The 2013 decision packages include the Westside service expansion, savings from remodeling
Hadley or Barnum, and three cost reduction proposals that eliminate staffing at various
branches to achieve a budget reduction of $2.4 million.
2. General Fund Budget
The 2013 base budget is the estimate for what is needed to maintain programs and services at
their current 2012 level. The personnel budget reflects the City’s estimates for increases in
employee benefits such as medical, dental, life and disability insurance. It does not include a
merit increase. If merit increases are approved, a budget supplement will be executed in
2013.

3. Service Expansions
This year, expansion proposals are again limited to mandatory items or critical items as
determined by each agency. An expansion request will be submitted for the Westside Branch
Library scheduled to open in mid-2013. DPL will be authorized to hire new staff a few months
prior to opening. This request is considered by the City to be a mandatory item.
4. Reduction Proposals
DPL was directed to submit General Fund reduction options totaling $2.4 Million; a 7.5%
reduction from 2012. DPL developed three reduction scenarios to measure the impact of the
reduction.
• Increase 32-hour branch libraries to 40-hours per week. Determine the number of
branches that would need to be closed to keep the remainder of the system operating
at 40-hours after the $2.4M reduction.
• Operate all branches at 32-hours per week. Reduce the hours of the four 48-hour
branches and one 44-hour branch to 32 hours. Determine the number of branches
that need to be closed to keep the remainder of the system operating at 32-hours
after the $2.4M reduction.
• Reduce all branches to 24-hours per week and close Central one day per week.
Determine the additional savings required to meet the $2.4M reduction without closing
any branches.
5. Replacement Capital Equipment
Replacement capital equipment requests are submitted separately from the base budget
request. The City has a separate budget to fund replacement capital equipment. This year’s
request for replacement equipment totals $266,711.
Please contact me if you have any questions or comments. My contact information is:
Phone: 720-865-2020
E-Mail: rmiller@denverlibrary.org