After officials offered differing interpretations of how much money the Niles-Maine Library has in its reserves and how much will be needed for upcoming expenses, a proposal to return $1 million in property taxes to taxpayers failed to pass the Niles-Maine District Library’s heavily divided board recently.
The board previously returned $1 million to taxpayers in May 2020 and reduced the 2021 property tax levy.
On Feb. 16, the board voted 3-3 on a motion to pass a $1 million property tax abatement for the 2021-22 fiscal year. The tie vote caused the motion to fail.
Three trustees who have prioritized cost cutting voted in favor of abating the money, but the library director and the library’s former business manager cautioned that there is less money available than it might appear because certain funds can only be spent on certain needs.
Trustee Joe Makula, the board’s treasurer, called for the abatement, citing what he called “excessive” fund balance revenues in the library’s coffers.
“This abatement is possible because the library has substantial and available funds in reserve,” he said.
After Makula cited various figures, Library Executive Director Cyndi Rademacher expressed concerns.
“I just want to make sure that we’re not overstating the amount of money we really have to spend,” she said.
Rademacher noted that a special reserve fund of approximately $4 million should not be included in Makula’s totals because there are restrictions on how the money can be spent.
Both Makula and Board President Carolyn Drblik stated that the library will have roughly two years’ worth of operating funds on hand — or $15 million — by the end of the current fiscal year in June.
But former Niles-Maine District Library Business Manager Greg Pritz called this statement “grossly inaccurate” in an emailed letter to Pioneer Press/baiduhai.
Pritz said the library actually has a cushion of approximately $4 million, or eight months’ worth of cash. He noted that the fund balance policy requires six months of minimum reserves on hand, or $3.2 million. He also noted that $4 million is in a fund that can only be spent on specific expenses such as repairs, equipment, insurance and taxes. He also said $3.6 million in receivables was already collected last year.
“None of these items are available for the day-to-day operations of the library but are being intentionally misinterpreted and presented by Mr. Makula and Ms. Drblik for shock value,” he wrote.
“If enough people believe these misleading statements, the Niles-Maine District Library will never be able to dig itself out of the financial hole that Carolyn Drblik, Suzanne Schoenfeldt, and Joe Makula are digging for it,” he added.
Pritz resigned from the library in December, citing a number of issues involving the library board and what he called the library’s changing governance, operations and values.
Trustees Becky Keane, Dianne Olson and Patti Rozanski voted against the tax abatement motion on Feb. 16.
Olson said any additional money the library has on hand should be used to end an ongoing hiring freeze that was supported by Makula, Drblik and Trustee Suzanne Schoenfeldt last year. She also cited an “uncertainty” regarding employee expenses, which will only be determined when negotiations with the library’s labor union occur; capital projects that have not been funded, such as replacement of computer hardware; rising legal fees incurred by the library; the lack of a current strategic plan; and the fact that the seventh seat on the board remains unfilled after six months.
“I think it’s a careless thing to do an abatement at this time,” Olson said. “It doesn’t mean it won’t ever come, but at this time, we have other expenses to take care of.”
Rozanski said filling vacant staffing positions should come first.
Keane argued that the library has been spending funds on “things that don’t benefit library patrons,” such as legal fees, and that money should be used for staffing and programs that she argued are currently underfunded.
Additionally, Keane said any decision about abating taxes should be made by a full board.
“This isn’t a decision that should be made by six trustees,” she said. “It’s a decision that should be made by seven trustees with a strategic plan in place.”
In May 2020, the Niles-Maine District Library Board voted to abate $1 million in property taxes due to excess reserve funds.
Olson said the “climate” of the library was different at that time and there had not been budget cuts or unfilled staffing positions.
In addition to reducing the library’s budget last year, the board also lowered the 2021 property-tax levy by approximately 1.1 million over the previous year.