SOURCES OF LIBRARY REVENUE, FY 2003-2004:

In the 2003-04 fiscal year, the Santa Cruz City-County Library System anticipates total revenues of $10,460,862. This money comes from three sources: the quarter cent sales and use tax ($5,880,865) collected throughout Santa Cruz County, member contributions specified in the Library Joint Powers Agreement ($4,222,951), and miscellaneous other amounts, including interest, bequest income, fees and fines, grants for special projects, and a State allocation ($726,162).

The Library Financing Authority allocates the sales and use tax and the member contribu-tions to the City-County Library System and the Watsonville Public Library based upon a population formula that is part of the Library Joint Powers Agreement. This year, the amount is $49.63 per capita, and the Santa Cruz System's adjusted population share is 203,806 people, or 78.45% of the total population and thus total allocation.

The funds allocated by the Library Financing Authority come from the following sources:

SOURCE OF REVENUE	AMOUNT	SANTA CRUZ SHARE
MEMBER CONTRIBUTIONS: City of Santa Cruz @ $1,394,751 City of Watsonville @ $541,684 County Library Fund @ $3,446,745	$ 5,383,180	$ 4,222,951
SALES TAX REVENUE	$ 7,496,595	$ 5,880,865
INTEREST	$ 13,649	$ 10,708
TOTAL	$ 12,893,424	$ 10,114,524

The member contributions of the Cities of Santa Cruz and Watsonville come from those cities' general funds. They are frozen at the 1996-97 fiscal year level. The County Library fund is property tax, designated for library service, collected in the Unincorporated Areas and in the Cities of Capitola and Scotts Valley. The County Library fund can and does increase each year.

THE LIBRARY BUDGET, FY 2003-04

The $10,460,862 in projected revenues is not enough to sustain existing library services. Therefore, with extreme regret, the Library Joint Powers Authority Board agreed to reduce some staff positions (and thus reduce open hours), cut the library materials budget and the funds allocated for making the materials ready for public use, reduce the funds for equipment to the bare minimum, and delay all capital projects (such as Felton Branch construction and Aptos parking lot expansion).

Here is how the Library Budget is allocated:

PERSONNEL 131.87 FTE plus roughly 90 on-call substitutes and pages	$ 7,355,923
SUPPLIES & SERVICES	$ 1,531,335
LIBRARY MATERIALS	$ 850,000
DEBT	$ 275,905
READ TO ME GRANT	$ 82,469
ELLI GRANT CARRYOVER	$ 8,336
ANTICIPATED SAVINGS	$ (192,626)
CITY ADMIN CHARGE @ 5.5%	$ 545,124
TOTAL	$10,456,466

This budget includes eliminating 9.13 FTE positions, a reduction in open hours from 470 per week to 432 per week, and a $350,000 reduction in the library materials budget.

10/06/03