Library board considering creating tax district
The board of trustees for the Lincoln County Library is considering the creation of an independent library district. The district would have the ability to levy property taxes, within statutory limits, outside of the control of county government.
Library director Rick Ball said the intent is to ensure stable funding for the libraries, especially in the face of shrinking county budgets.
“The library board recognizes that library funding needs to be stabilized,” Ball said. “Public libraries are an essential part of maintaining the economic health of our communities. Through information, the libraries empower people and help enhance the quality of life.”
The library’s budget is based up a set levy of 3.49 mills, in addition to discretionary amounts set by the county commissioners each year. In the budget year ending June 30, 2015, the library received less than half of its funding from the voted levy. The rest was made up in discretionary appropriations from the county commissioners. The discretionary appropriation can be altered by the commission from year to year.
“The dollar amounts would be, voted levy of 3.49 mills, or $122,683,” said Lincoln County Clerk and Recorder Robin Benson. The discretionary levy was 4.63 mills, or $162,758.”
The library’s budget, according to information provided by Benson, averages slightly less than $400,000 per year.
Montana law with regard to the funding and management of public library systems has undergone a great deal of change in recent years.
In 1986 the Montana Attorney General issued an opinion, which held that county commissioners had extremely limited authority with regard to library budgets and management. In a memorandum regarding the powers of library boards of trustees dated April 19, 2013, Assistant Attorney General Jim Scheier wrote:
“The Attorney General responded negatively to each question, concluding that the county commissioners had no authority to 1) modify the trustees’ decision concerning wage and salary amounts for library staff, 2) modify the annual budget adopted by the trustees, or 3) within statutory millage limits, refuse to levy the property taxes necessary to satisfy the annual budget adopted by the trustees.”
Three years later, in a 1999 opinion, the Attorney General’s Office maintained the authority of library boards to determine how they allocated their expenditures, but also stated the authority of county commissioners to limit the number of mills allocated to the library.
“While the commissioners have no authority to modify specific parts of the budget submitted by the library board, they do have the authority to ‘limit the overall funding of the budget to five mills as if were being funded pursuant to tax levy under MCA 22-1-304, observing that any other conclusion would allow library trustees to adopt a budget that could assume the entire general fund levy,” Scheier wrote.
The five-mill limit was removed by the Montana Legislature in 2001, which prompted two new opinions, in 2002 and 2012, which reiterated the authority of local governing bodies, such as county commissioners, to regulate the overall budgets of libraries, but also reiterated the authority of library boards of trustees to administer the libraries “in a manner largely independent of city or county control.”
During the past five years, library funding has remained fairly constant, although there have been year-to-year fluctuations. In the fiscal year ending June 30, 2011, the library received $392,786. Funding hit a low point the following year at $360,766, but jumped again during the 2012-2013 fiscal year to $403,501. It fluctuated again the following year, dropping to $382,424 but bounced back to it’s current level of $405,204.
Ball said not only is stable funding an important issue, but also said voters should have a say in the process.
“We believe that the voters should have a say in the process,” he said. “Trustees would be elected byt eh people. Library services to the communities could be better guaranteed and improved with a district.”
In order to create a district, proponents need to circulate an official petition. It must include a description of the proposed boundaries, including a map, the maximum number of mills approved for levy and the number of members to serve on the board of trustees, set by law at either five or seven. The petition must be signed by al least 15 percent of the qualified electors within the proposed district boundaries.
The petition must be then presented to the county clerk for certification. The clerk has 15 days from receipt to either certify or reject the petition. If accepted, it must then be presented to the county commissioners who are required to hold a public hearing on the matter and decide whether to set the matter for election. The election could take place at the next scheduled primary or general election, or via mail as allowed under Title 19 of Montana law.
If the voters approve the district, the board will have the authority to levy property taxes up to the maximum number of mills approved by the voters in the ballot initiative. Any levy beyond that maximum would require voter approval during another election.
Ball said the discuss is at a very preliminary state, but the option on the table now is for a county-wide district. He said the board has also considered asking for a mill levy increase and the creation of separate library districts based upon school district boundaries.