RE: closing community libraries in a cash crunch
[ http://www.startribune.com/stories/462/3749578.html ] :

I hope members of the MPL Board and city leaders will thoroughly consider
more innovative solutions, including those described below (and variations
on the themes), to what is basically a short-term cash flow problem.

The voters have already agreed to tax city residents for these capital
improvements, the current task seems to be how too make it palatable in
today's budget climate, while staying within the confines of the existing
'8% solution.'  One scenario involves shifting some capital dollars to
operating over the short term, as described below; another involves
negotiation with the Hennepin County Board and HC library officials; others
might include both of those options, third parties, and more.  It's got to
be 'outta-the-box' if it's going to work!  Good luck.

Michael Hohmann
Linden Hills

reposted segment...
> -----Original Message-----
> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] Behalf Of
> Michael Hohmann
> Sent: Monday, March 10, 2003 8:08 AM
> To: [mpls]
> Subject: [Mpls] Library Dilemma- long
>
snip
> city leaders are posing good questions as they wrestle with the most
> dramatic budget shortfalls the city has ever encountered.  And,
> all options
> should be on the table.
>
> But, we must also remember that city voters did approve a capital spending
> referendum that included building a new downtown library, while renovating
> neighborhood libraries across the city.  Delaying construction will only
> serve to increase the cost for all projects.  If delayed, taxpayers would
> get much less than they bargained for when they approved the referendum in
> 2000, as construction costs increase over each month of delay.  And the
> operating shortfall has now become VERY significant.  What to do?  Close
> libraries, delay construction, reduce services and operating
> hours?  Typical
> solutions that have been used during hard times past.  But, is
> that what we
> want to pursue this time around?
>
> [Potential Solutions] This library dilemma requires a creative set of
> solutions that benefits taxpayers and library users, rather than
> penalizing
> them-- the proverbial win-win deal.  Perhaps the city could build the new
> downtown library, sell it to another public or private entity,
> then lease it
> back-- in effect removing the debt from the city budget and using the
> proceeds to cover operating costs (including the lease payments).  City
> leaders would have to anticipate such a strategy when planning the bond
> issue, so as to make it all possible-- avoiding problems like we
> encountered
> with Target Center and the restrictions (on use of outside/private money)
> associated with the type of city bonds issued for the project.
>
> Another win-win solution might involve Minneapolis and Hennepin County
> officials working together in some fashion.  Perhaps the city and county
> could negotiate a joint-venture partnership, whereby the city would retain
> capital and operating responsibility for all of the city's neighborhood
> libraries, while the joint-venture would share responsibility for
> building,
> owning and operating the new downtown Central Library.
>
> Currently city residents aren't taxed for the county library system and
> county residents don't pay for the city library system.  By working
> together, in this joint-venture partnership, the new downtown
> library could
> be built on schedule using the $122.5 million in city referendum funds.
> Several scenarios are possible.  City taxpayers could in essence join the
> county library system-- helping fund the county library system, and the
> county library system could operate the new downtown library.
> Granted, such
> a solution might necessitate operational changes in terms of integrating
> information systems and labor contracts, but the net result should be an
> improved, more cost-effective library system for both city and county
> residents-- a solution that benefits taxpayers and library users.  Many
> details would need to be negotiated.  Under this scenario, perhaps the new
> Director of the Minneapolis library system and one or two of the
> Minneapolis
> Public Library Board members could sit on the Hennepin County
> Library Board.
> The size of the Minneapolis Public Library Board could even be reduced--
> placing emphasis on neighborhood library policy, management and
> budgets.  At
> some point, perhaps the entire Minneapolis Public Library Board
> of Trustees
> could be eliminated, and their responsibility for neighborhood libraries
> transferred to city government-- with the Library Director playing a more
> prominent role.  Appropriate city representation on the County
> Library Board
> could be formally assured.  Perhaps the downtown library would just become
> part of the Hennepin County Library system, with the city owning and
> operating the neighborhood libraries?  Improved library services at lower
> overall cost sounds like a win-win deal to me.  What are the posibilities?
>
> The point is-- city residents said they were willing to be taxed to have a
> new downtown library.  It doesn't really matter who owns the
> facility.  Lots
> of options should be thrown on the table for discussion.  The budget cuts
> being proposed at the state and local level require new visions of how to
> better serve taxpayers and residents in a more cost-effective
> manner.  These
> budget cuts present us with new opportunities to move in new directions.
> Old business models often need review, revision, and rewrite; with better
> coordination, less duplication and less costly service delivery being the
> goal.  Better coordination of Minneapolis and Hennepin County library
> systems just might be a step in the right direction.  Maybe there
> are merger
> opportunities, at least where the Central Library is concerned?  Let's get
> all the cards on the table.
>
> Michael Hohmann
> Linden Hills
>
> ~~~~~~~~~~~~~~~~~~~~~~~~~
> For market research,
> financial analysis,
> business planning, and
> project management...
> www.mahohmannbizplans.com
> ~~~~~~~~~~~~~~~~~~~~~~~~~
>
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