The gist: On Tuesday, the council will take up the mayor-president’s renewed push to move $18 million out of the library’s fund balance to infrastructure needs. A transfer that large would likely prevent the addition of a new library east of the Evangeline Thruway.
Get caught up, quickly: Earlier this year, Robideaux introduced a proposal to transfer $18 million of the library’s $26 million unassigned fund balance to roads, bridges and drainage. The council ultimately passed an amended ballot initiative, reducing the total to $10 million — $8 million for drainage and $2 million for parks and recreation. In an April email to council members, Robideaux took aim at furniture purchases for the library’s newest branch opening in Scott this month. Reprising attacks on the library’s financial management, he has asked the council to revise the transfer back to $18 million.
The library board voted to support a northside library Monday. At a special meeting, board members decided to request budget approval from the council to build a new library on the northside. The board will also ask the council to roll forward the two millages — keep the higher millage rate in place after assessed property values increase, essentially — that support the system to offset the revenues lost by a millage renewal that failed last year. In recent weeks, Councilman Kenneth Boudreaux has ramped up calls for a library east of the Evangeline Thruway. Boudreaux has lobbied to use $8 million to put a new library in his district, arguing that his community has been left without ready access to library services and is cut off from the Downtown branch by the Evangeline Thruway. In the last week, he’s pounced on library Director Teresa Elberson, saying she’s ignored his requests for more services for several years. The Scott branch, for reference, cost $7.4 million to build.
“If they’re not willing to take the money and immediately dedicate it to a library purpose for an area that needs it and for a people and a community that deserves it, I cannot support them continuing to sit on this money to do pie in the sky projects,” Boudreaux said Sunday on his Community Hour radio show. “Build the damn library.”
As it stands, the library can afford to build a new library. The library currently has $26 million in unassigned fund balance. If the amended resolution stays the same and gets approved by the public, the library will still have $16 million remaining. The library also has about $18 million in bond authority that it could use with the council’s approval.
But it’s unclear if the library will be able to afford to operate the new library. Next year the library’s revenue is projected to be approximately $2 million less than this year’s budgeted expenses, and that’s without the added cost of operating a new library on the Northside. The library’s board developed four scenarios about the future of the library’s
finances, the best of which still projects the library’s fund balance going negative in seven years.
If Robideaux gets his way, there likely won’t be a northside library. If the $18 million he wants is moved, the library won’t have enough cash to pay for the proposed library. The library still has about $18 million in bond capacity left on $40 million authorized in 2002. Selling those bonds would increase the dedicated millage collected to pay back the debt. So even if technically the library has bonds to sell, it’s not clear if there’s enough political will on the council to approve their sale.
So how does this play out from here? Council members could be swayed by Robideaux’s call to change the rededication from $10 million to $18 million. They could also change that dollar amount to something else, or alter where that money will be moved to. Or they could stick with the existing plan and leave the proposition as is.
What to watch for: First, what happens Tuesday night. Second, what happens during the budget process as it relates to council support for funding of a northside library and allowing the library to roll forward its millages. Third, what happens if some version of Robideaux’s proposal makes it to voters this fall. And fourth, what happens during next year’s property assessment; any decline would have a major impact on the library’s revenue and financial health.