ST CHARLES, Mo. — The future of the St. Charles City-County Library District is still unwritten. In May, financial concerns and "challenges" led to a widely protested proposal in the district. The plan called for the closure of three branches and dozens of layoffs. While money continues to be the focus of these meetings, this week, board members said it's more about how it's spent.
"I don't think we have a revenue problem at all. I think it's clear we have an expenditure problem," one board member said at Thursday's board meeting.
The President of the Board of Trustees Stacia Alavarez told 5 On Your Side she agrees that expenditure is a problem but that other challenges exist.
"While there are many contributing factors, the ultimate driver of the Library District's current financial challenge is the longstanding escalation of operating costs relative to revenues," Alavarez said.
CEO Jason Kuhl mentioned a similar sentiment during a strategic plan presentation. He listed multiple challenges to revenue and costs. Kuhl points to "unchecked increases in costs of electronic materials" as one of the top reasons to they must get finances under control.
"I don't think it's understood by the greater public," Kuhl said about the rising costs of things like Hoopla, Libby, and Overdrive.
While the board says revenue is okay, it should be noted that revenue challenges were also the focus of Kuhl's strategic plan presentation which described potential risks ahead for the district, the library director points to concerns around property tax freezes being proposed in the state legislature.
"There are a lot of threats to our single revenue stream," Kuhl said.
Community backlash quickly turned the administration's proposal upside down. Library officials held off on making any decisions until June 18th. And now, any vote on the at-risk branches is postponed for potentially months.
Residents in St. Charles County have been actively trying to take control of the narrative of the district's next steps since May 17th. Eager to stay involved and engaged, people have banded together online and in person, begging the administration not to close their branches.
Jason Schroeder lives in St. Charles and said he would be doubly impacted by the proposed closures.
"I am a frequent patron of the McClay branch. My next closest branch is Kisker Road," Schroeder said.
The St. Charles branches are two of the three branches eyed for closure. Schroeder tells 5 On Your Side he has been paying close attention to ongoing developments since the proposal. He says Thursday's meeting was eye-opening for him.
"Having looked at the budgets for the last four years myself, the library system has had a larger surplus each of the last four years after funding operating expenses," Schroeder said. "The overspending is from the capital projects."
There are capital projects like the recently renovated Spencer Road Branch and the renovations underway at the Middendorf-Kredell Branch. The board seemed to acknowledge some of the budget could be adjusted away from project funding.
"If we decide not to spend a dime on capital projects, in fiscal year 25, that will go back into the general fund reserves," one board member said. Still, where budget adjustments will be made remains to be seen. Board President Alvarez says she is determined to make the best decision for the district.
"We are obligated to present a balanced budget and if we continue on the same trajectory, we will soon reach a point where we are in a deficit position annually," Alvarez said.
During the meeting, the board discussed hosting listening sessions with the public and staff members throughout the summer. Those sessions are tentatively scheduled to start in July. Schroeder said because of the planned sessions, he left Thursday's meeting feeling more encouraged than before.
"Some of the realizations reached by the board at Thursday's meeting has given me some hope that my family's branches may still be here in the years to come."
The budget takes effect July 1, but it can be amended following the listening sessions.
Statement from Board President Staci Alaverz following the discussion at Thursday's board meeting:
I can tell you that I agreed with the Trustee who initially expressed the idea that the Library District has an expenditure problem and not a revenue problem. I want to emphasize that my agreement with this idea is not me saying that I believe that the Library District is not being a good steward of our resources or that the District is frivolously spending or otherwise mismanaging the District's resources. To the contrary, the Library Board along with the Library's leadership have taken care to ensure that the Library District's expenditures are kept within our means so that we do not experience a budget shortfall. While there are many contributing factors, the ultimate driver of the Library District's current financial challenge is the longstanding escalation of operating costs relative to revenues. While the Library District is on solid financial footing overall, since at least 2008, the costs of maintaining daily operations at our eleven locations have increased at a rate greater than our revenues have increased. We are obligated to present a balanced budget and if we continue on the same trajectory, we will soon reach a point where we are in a deficit position annually. From my perspective, deficit spending is not responsible and is not something that I would support.
I agreed with the idea that we need to focus on the Library District's operating expenses because the Library District's financial challenge cannot be addressed by focusing solely on the revenue side of the equation. The process we are currently undertaking represents a proactive approach to ensure the Library District does not face serious financial issues or shortfalls in the future. It will also allow us to pay the Library District's staff competitive wages and plan for necessary capital projects in the coming years.
If you would like to share feedback with the St. Charles City-County Board, you can email board@stchlibrary.org or fill out this form.