HomeMy WebLinkAboutStaff Report 3.D 04/17/2006&D
CITY OF PETALUMA, CALIFORNIA April 17, 2006
AGENDA BILL
Agenda Title: Resolution to Endorse and Support Proposition 81, Meeting Date: April 17, 2006
the California Reading and Literacy Improvement and Public
Library Construction and Renovation Bond Act of 2006
Meeting Time: ® 3:00 PM
❑ 7:00 PM
Category (check one): ® Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Deaartment:
City Manager
Cost of Proposal: n/a
Amount Budgeted:
Director: I Contact Person: Phone Number:
Michael Bierman I Michael Bierman 778-4345
Attachments to Agenda Packet Item:
Account Number:
Name of Fund:
1. Proposition 81 Background/Proposal by Legislative Analyst's Office
2. Resolution from City of Santa Rosa
3. Petaluma Resolution
Summary Statement: Proposition 81, if passed by voters in June, would allow the state to sell $600
million of general obligation bonds for local library facilities. The state would use these bond funds to
provide grants to local governments to construct new libraries; expand or renovate existing libraries;
acquire land for new or expanded libraries, and provide related furnishings and equipment. Local agencies
would be required to pay 35 percent of the project cost; individual grants could range from $50,000 to $20
million.
The Sonoma County Library system continues to have ongoing needs for public library services, and would
be able to make application for grant funds if the Proposition is passed by the voters.
Recommended Citv Council Action/Suggested Motion:
Approve resolution supporting Proposition 81.
Reviewed by Admin. Svcs. Dir: Reviewed by City Attornev: AmIroved by City Manager:
Date: Date:�%jr Date:
Todav's Date: Revision # and Date Revised: File Code:
Proposition 81: California Reading and Literacy Improvement and Public Library Constru... Page 1 of 2
Submitted February 16, 2006
Proposition 81
California• r and Literacy Improvementand
Public Library Construction and Renovation Bond Act
of t1',
Background
For the most part, cities, counties, and special districts pay the costs of operating and building local
libraries. These libraries do receive some money from the state and federal government for local library
operations. For example, local libraries throughout the state are receiving about $46 million this year
from the state and federal governments for various operating costs.
The state also provides funds to help pay for the construction and renovation of library facilities. This
funding typically is raised through general obligation bonds. For example:
In 1988, state voters approved Proposition 85, which authorized $75 million in general obligation
bonds to fund grants to local agencies for building, expanding, or renovating library buildings.
■ In 2000, voters approved Proposition 14, which provided an additional $350 million in bond
funds for library projects.
Both grant programs required local agencies to pay for 35 percent of the cost of the project with their
own funds. Proposition 14 funded 45 projects, many of which are currently under way. Eligible
applications were submitted for an additional 60 projects which were not funded. These unfunded
applications sought $506 million in state bond funding.
Proposal
This proposition allows the state to sell $600 million of general obligation bonds for local library
facilities. The state would use these bond funds to provide grants to local governments to:
■ Construct new libraries.
■ Expand or renovate existing libraries.
■ Acquire land for new or expanded libraries.
■ Provide related furnishings and equipment.
These grant funds could not be used for (1) books and other library materials, (2) certain
administrative costs of the project, (3) interest costs or other charges for financing the project, or (4)
http://www.lao.ca.gov/ballot/2006/81_06_2006.htm 4/11/2006
Proposition 81: California Reading and Literacy Improvement and Public Library Constru... Page 2 of 2
ongoing operating costs of the new or renovated facility.
This grant program is similar to the 2000 program. For example, local agencies would be required to
pay 35 percent of the project cost and individual grants could range from $50,000 to $20 million.
The new program grants first priority to eligible applications that were submitted but not funded under
Proposition 14. No more than $300 million of the new funding would be reserved for these applications.
The remaining bond funds would be available for new applications. The measure also reserves
$25 million for "joint use" projects serving both a library and a public education institution (such as a
school district or college).
The proposition provides for a seven -member state board to adopt policies for the program and decide
which local agencies would receive grants. In reviewing local applications, the board must consider
factors such as (1) the needs of urban, suburban, and rural areas; (2) the age and condition of existing
library facilities in the area; and (3) the financial ability of the local agencies to operate library
facilities.
Bonds. General obligation bonds are backed by the state, meaning the state Is required to pay the
principal and interest costs on these bonds. State General Fund revenues would be used to pay these
costs. These revenues come primarily from state personal and corporate income taxes and the state
sales tax.
Fiscal Effects
Costs to Pay Off Bonds. For these bonds, the state would likely make principal and Interest
payments from the state's General Fund over a period of about 30 years. If the bonds are sold at an
average interest rate of 5 percent, the cost would be almost $1.2 billion to pay off both the principal
($600 million) and interest ($570 million). The average payment would be about $40 million per year.
Local Cost to Match State Funds. As mentioned above, in order to receive a state grant a local
agency must provide 35 percent of the project cost. Thus, on a statewide basis, local agencies would
need to spend about $320 million. The cost would vary by local agency depending on the cost of the
specific project.
Costs to Operate New Library Facilities. Local agencies that build new or expand existing libraries
would likely Incur additional operating costs. These costs—statewide—could be several millions of
dollars annually.
Return to Propositions
Return to Legislative Analyst's Office Home Page
http://www.lao.ca.gov/ballot/2006/81_06_2006.litm 4/11/2006 3
Bierman, Mike
Page,J of 1
V
From: Sheppard, Suzanne [SSheppard@ci.santa-rosa.ca.us] on behalf of Kolin, Jeff [JKolin@ci.santa-
rosa.ca.us]
Sent: Monday, April 03, 2006 4:05 PM
To: Bob Deis (Sonoma County Administrator); Chet Wystepek (Healdsburg CM); David Brennan
(Sebastopol CM); Jeff Kolin (Santa Rosa CM); Matt Mullan (Windsor Town Manager); Bierman,
Mike; Mike Fuson (Sonoma CM); Steve Donley (Rohnert Park CM); Terry Stubbings (Cotati CM);
Vincent Long (Cloverdale CM)
Cc: Kolin, Jeff
Subject: Library Bond
The Santa Rosa City Council is endorsing the 2006 California State Library Bond effort. Proposition 81 will be on
the June ballot, and if it passes, it will provide over $600 million statewide for libraries and literacy. We are
hoping it passes, and that it will help us build a much needed library in our Southwest area.
I'm hopeful you will share this information with your Councils -- and encourage them to endorse the measure.
I'm sure your needs are the same as ours. Attached is a draft resolution for your use.
Thank you.
4/4/2006 4
Resolution to Endorse and Support
2006 California State Library Bond
Whereas, Governor Arnold Schwarzenegger has signed into law the California Reading
and Literacy Improvement and Public Library Construction and Renovation
Bond Act of 2006; and
Whereas, approval by voters of that bond would authorize the State of California to sell
$600 million in bonds to assist local governments in the construction of public
libraries; and
Whereas, passage of that bond, which will appear on the June 2006 ballot, will permit
many cities and counties across the state to construct library facilities; and
Whereas, the City of Santa Rosa and the Sonoma County Library have initiated a process
to build a new Southwest Santa Rosa Regional Library and Community Center,
and this facility might benefit from the passage of that bond; and
Whereas, the California State Library has identified at least 579 unfunded library
construction projects which total $4.4 billion in need statewide; and
Whereas, the Sonoma County Library will continue to have ongoing needs for public
library services;
NOW THEREFORE, BE IT RESOLVED, that the City of Santa Rosa supports the
passage and funding of the California Reading and Literacy Improvement and
Public Library Construction and Renovation Bond Act of 2006, and urges all
citizens, community leaders, and organizations in Sonoma County to lend their
support to the creation of this public library bond fund.
E
RESOLUTION TO ENDORSE AND SUPPORT PROPOSITION 81,
THE CALIFORNIA READING AND LITERACY IMPROVEMENT AND
PUBLIC LIBRARY CONSTRUCTION AND RENOVATION
BOND ACT OF 2006
WHEREAS, Proposition 81 would allow the State of California to sell $600 million of
general obligation bonds for local library facilities; and
WHEREAS, the state would use these bond funds to provide grants to local governments
to construct new libraries, expand or renovate existing libraries, acquire land for new or
expanded libraries, and provide related furnishings and equipment; and
WHEREAS, the Sonoma County Library system is in need of expanding its facilities
countywide to meet increasing demand for service.
NOW, THEREFORE, BE IT RESOLVED THAT the City of Petaluma supports the
passage and funding of Proposition 81, the California State Library Bond of 2006, and urges all
citizens, community leaders, and organizations in Sonoma County to lend their support to the
creation of this public library bond fund.
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