For Fiscal Year 2008-09, the cost for the County Library to provide library services within Santa Clarita was $6,069,834, the total revenue collected by the County Library was $6,486,502, and the surplus was $416,668. (We estimate that including the property tax and special tax revenue from the unincorporated Santa Clarita Valley, the surplus is actually $2,619,833 for FY 2008-09. On this basis, for Fiscal Years 2003-04 through 2008-09, we estimate the cumulative surplus from the Santa Clarita Valley totals $14,413,637.) In past years we have requested the County Library use the surplus to build new library facilities within the Santa Clarita Valley, in particular the construction of the new library in Downtown Newhall. In each instance we have been informed that the County Library will not fund our new facilities because the funds are being used to provide Library services elsewhere. (It should be noted the County Library financed the tenant improvements for the storefront library in Castaic, the refurbishment of the Valencia Library and the current build out of the Canyon Country Library.)
Should the City choose to withdraw from the County Library, in the first year (FY 2011-12) it is estimated City Library revenue would total $6,343,198. Costs for managing the three library branches vary depending on whether performed through a public/private partnership contact or City employees. Operating the libraries through a public/private partnership contract would cost $3,802,936. Operating the libraries using City employees is estimated to cost $5,047,227.
California Law provides that, at the sole option of the City, any or all of the County Library facilities within the City may be acquired upon withdrawal at "fair market value." An appraisal report dated July 3, 2009, determined the fair market value of the Valencia Library to be $4,620,000. The cost of purchasing the collections of the Valencia Library and Canyon Country libraries from the County Library, and to purchase an opening day collection for the Newhall Library, is estimated at $2,500,000.
Staff has prepared a detailed financial analysis of the two library service options (staffing with city employees or contracting with a private firm).
Public/Private Partnership |
City Staffed |
|
Property Tax: |
$4,674,130 |
$4,674,130 |
Total Revenue:
Library Operations: |
$6,343,198
$3,802,936 |
$6,343,198
$5,047,227 |
Total Expenditures: |
$6,343,198 |
$6,343,198 |
Under a public/private partnership operations contract, $2,540,262 would be available to finance the “start up” costs and facility construction. Start up costs would include purchase of the Valencia Library and purchase of equipment, furnishings and collections for the three branches, as needed. Facility construction could include building of the new library in Old Town Newhall which would permit the Redevelopment Agency to redirect the $25 million currently budgeted for the new library toward other redevelopment activities in Old Town Newhall. Or, instead, the City could use these funds to finance the construction of a new library to replace the existing Valencia library branch.
Library Financial Analysis Reference Documents (PDF 5.5MB)