Library will still cut staff, hours
Andrews – The Andrews Public Library was in danger of being shut down due to non-payment of funds to the Nantahala Regional Library, but officials reached a deal Monday afternoon.
The Andrews Board of Aldermen agreed to pay $140,046 in the 2019-20 fiscal year budget for the Nantahala Regional Library to operate the Andrews Public Library. In April, regional library officials billed the town for the final two quarters of the year, which totaled $70,023.
Regional officials billed the town a few weeks after Emily Malin resigned as town administrator, finance officer and clerk. After her resignation, Sandy Dobson was appointed interim
clerk, while she was also under contract to review the town’s financial records and train staff on proper governmental accounting procedures.
A few weeks prior, Gov. Roy Cooper issued a statewide Stay-at-Home Order, which was only
expected to last until April 29. At that time, no one predicted the business shutdown to continue through spring, nor had anyone predicted a 25 percent decrease in local sales tax revenue. However, no employees worked out of town hall after Cooper issued the shutdown order.
It’s unclear why town officials did not immediately pay the balance owed to the regional library. Aldermen who spoke with the Cherokee Scout could not provide an explanation for the non-payment. Regional library officials say they did not receive an explanation, either.
The Nantahala Regional Library is in the
hole $52,448, according to information obtained through a public records request. Regional library officials say they may have to close the Andrews Public Library if they do not receive the payment owed per the contract.
“We have to be financially responsible for all of our libraries,” said Franklin Shook, director of the Nantahala Regional Library. “If that money [owed to us] starts cutting into other library operations, we’ll have no choice but to close.
“I have to answer to
my governing board, and they’re the ones who expressed that intent. If they can’t meet their financial obligations, we may have to close.”
While the reasoning for not initially fulfilling the financial obligation remains unclear, Andrews officials said they wouldn’t pay the remaining balance until they completely understood how the regional library spends local taxpayer dollars, state aid and county monetary contributions.
Andrews and regional library officials further
discussed the matter Monday afternoon and reached an agreement. Library officials agreed to reduce the money Andrews owes by
appropriating unused allocated funds from this year’s budget and prior years’ budgets.
Library officials reduced the final two payments of the year by 41 percent, leaving Andrews with an estimated balance of $43,045. Officials will know the exact amount the town owes the regional library after closing the books at the end of the fiscal year on June 30.
Although the two parties have reached an agreement, officials will likely reduce personnel working at the Andrews branch and the number of hours it’s open each week.
Andrews is the only branch in the regional system that employs two full-time managers, and
it’s also open more hours than all the other libraries. The town’s 2020-21 fiscal year budget will reduce the payout to the regional library system to about $80,000, which will
result in a loss of both personnel as well as the hours of operation.
Andrews officials expect a 25 percent decrease in sales tax revenue due to COVID-19, which equates
to a loss of about $150,000. All capital outlay not deemed critical and essential has been placed on hold until December. The proposed 2020-21 fiscal year budget suggests a property tax rate of 61.65 cents per $100 valuation, which is 1.46 cents above the calculated revenue-neutral tax rate of 60.19 cents.
Aldermen must finalize the new fiscal year budget by July 1. Once the budget is established, they cannot change the tax rate mid-year. If officials move forward with that property tax rate, they could opt to reduce it in the 2021-22 fiscal year budget.