Pierce County Library System
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Q & A F

Q: What was the restored levy?

A: The restored levy is also known as a levy lid lift. The restored levy would have returned the Library System’s funding to its full legal levy rate of 50 cents per $1,000 of assessed property value.

Q: Why was the restored levy on the November ballot?

A: Costs to operate and maintain library services and libraries are increasing at a faster and higher rate than revenues. In recent years, costs have increased by an average rate of 4-7 percent a year, while property tax revenues have increased at an average rate of 1-3 percent. Property taxes make up approximately 94 percent of Pierce County Library’s revenue.

State law limits local governments, including Pierce County Library, to an increase in property taxes of no more than 1 percent plus property taxes from new construction each year.

In 2006 voters passed the only re-authorized levy in the 72-year history of the Library System. Since 2006 the Library System has met or surpassed all levy promises with funding that was projected to maintain services for up to six years. The Library has stretched that funding for 12 years. 

Since 2006 a 16 percent increase in population (2006: 518,000; 2017: 600,000) and 63 percent increase in library cardholders (2006: 198,000; 2017: 323,000) have increased demands for services.

Q: With 94 percent of the Library’s funding coming from property taxes, where does the other 6 percent come from?

A: The other funds come from the following sources. Annually these are the sources that make up the other 6 percent. Following are the budgeted revenues for 2018.

• 2.7 percent; $858,000: Interest earned on investments, sales of assets such as used furniture and equipment, donations from Friends of Library groups, and reimbursement from the E-Rate program, which is a federal program that reimburses schools and libraries for technology costs such as internet access.
• 1.3 percent; $400,000: Fines the public pays for books and other materials returned late or for lost items. The daily fine for physical items is 15 cents. E-books and downloadable materials automatically delete, thus fines are not assessed.
• 1.1 percent; $350,000: Private individual and organizational contributions from donors and grants to the Pierce County Library Foundation.
• 0.6 percent; $186,500: Payments the public makes for photocopying, printing and faxing in the libraries, and interlibrary loan fees, which some other libraries charge when Pierce County Library borrows materials from them at the request of a Pierce County Library customer.

Q: With higher values and assessments of homes why is the Library’s levy rate and funding not increasing?

A: Increased values and assessments do not result in additional funding for the Library System. By State Law, local governments, including the Pierce County Library System cannot collect more than 1 percent more in taxes from the previous year, regardless of increased values and assessments. The Library is statutorily limited to 50 cents per every $1,000 of assessed value. In 2001 voters approved a 1 percent cap on the year-to-year growth of property taxes for all taxing districts, including libraries.

Because assessed values and costs generally rise more than 1 percent a year, as the 1 percent levy lid is applied to a district's levy collections over time, and as the district’s taxable base (assessed property value) grows, the tax rate a district is allowed to collect drifts downward from the maximum statutory levy rate.

As property values grow faster than 1 percent, the Library can only levy up to 1 percent more than the previous year, which causes the mill rate (tax levy rate) to decrease.

For example, at 50 cents per $1,000 of assessed value, a $200,000 home will pay $100 per year in property taxes for Pierce County Library services. If its assessed value increases by 10 percent the next year, its value is $220,000 and the Library can only levy a 1 percent increase more than the prior year’s taxes. Therefore, the following year it will levy $101 on a $220,000 home. The mill rate is then calculated at 45.91 cents per $1,000 of assessed value, a drop of 4.09 cents per every $1,000 of assessed value.

Note: the mill rate can also increase if property values decrease, which happened in 2011-2016 pushing the Library’s mill rate to 50 cents/$1,000 of assessed property value, while assessed property values decreased by an average of 7 percent annually (2010-2013). In 2017 property values increased and returned closer to 2009 values, and, as a result, the Library’s mill rate again began to decline (2017: 47.70 cents; 2018: 42.94 cents).

Q: How much revenue does Pierce County Library System receive from new construction?

A: Under state law, Washington state governments, including library districts, may collect tax revenue one time on property that is new construction at its previous year’s tax levy rate. Each county’s assessor determines the taxable value for all property, including new construction.

Example: A taxing district has a tax levy rate of 40 cents per $1,000 of assessed value, and the taxing district’s county assessor records $200,000,000 in taxable value for new construction. Next year, the taxing district would receive one-time revenue of $80,000 for the new construction:

$200,000,000 / $1,000 = $200,000 x .40 cents = $80,000

The chart below shows the annual new construction value for the library district in the left column, and the actual amount of revenue the Library received in the right column. 

Current Fiscal Year	New Construction Revenue Calculated from Prior Fiscal Year’s Assessments	Maximum New Construction Revenue that can be Received in Current Fiscal Year
2010	$ 399,308	$ 399,308
2011	238,584	15,923*
2012	223,249	0*
2013	195,370	0*
2014	332,434	0*
2015	374,102	0*
2016	429,718	3,609*
2017	514,939	514,939
2018	619,874	619,874

*Between 2011 and 2016, the Library received partial or did not receive property tax revenue from new construction, because the Library System was at its full taxing authority of 50 cents per every $1,000 of assessed value. The Library may not collect revenue that would exceed its full taxing authority.

Q: Why doesn’t Pierce County Library get its funding another way – from the federal or state government, donations, increased fees on overdue materials, charge people for services, or other ways?

A: The Community Advisory Committee, with community leaders from throughout the Library’s service area, reviewed the Library’s funding and input from the public. It also reviewed and discussed these ideas.

The U.S. and Washington state governments do not fund local library services. From time to time Pierce County Library has applied for and received grants through the federal and state governments. However, a grant is not a sustainable, ongoing funding source.

The Library is on track to receive $350,000 in donations from private individuals and organizations this year. That also is not a stable source of revenue, but very important to extending the Library’s services.

Fine rates for overdue materials is an area the Library reviews periodically. Currently, the Library assesses 15 cents per day for items that are late. This year the Library budgeted $400,000 in revenue for fines on overdue materials and fees for lost books. Even if the Library increased fines to 25 cents a day that would not close an estimated budget gap of $2 million a year. Pierce County Library and other library systems have studied the public’s response to fines and an increased fine can lead to better behavior – with people returning items on time, which would be a good service to return materials for other people to use. However, ultimately that good behavior would lead to fewer fines and less revenue.

By state law, library services are to be offered without a charge for service and rather through a tax assessment, ensuring services are available and accessible to all people. Few services offered by the Library could be charged for use. The Library does charge for services such as photocopying, printing, and faxing, which is estimated to bring in nearly $187,000 in revenue this year. 

Q: How much would the levy have cost homeowners?

A: To the owner of an average home assessed at $320,000* this would have been approximately a $32 increase in 2019**.

* Source: Pierce County and Case-Shiller Home Price Indices based on assessed home values in unincorporated Pierce County and 15 annexed cities and towns.
** Tax Exemptions: Senior citizens and people with disabilities who meet certain income requirements may be exempt from part or all of these local taxes.

To learn more, please call the Pierce County Assessor’s Exemption Hotline at 253-798-2169 or visit www.co.pierce.wa.us/707/How-to-Apply.

Q: What would have been the approximate cost to the average homeowner in 2020?

A: See chart.

Year	Average Home Value	With Restored Levy*	Without Restored Levy*	Net Increase
2019	$ 320,000	$ 160.00	$ 128.77	$ 31.23
2020	335,200	161.60	130.06	31.54
2021	339,300	163.22	131.36	31.86
2022	342,400	164.86	132.68	32.18
2023	346,700	166.51	134.01	32.50
Totals		$ 816.19	$ 656.88	$ 159.31

*Factored 1 percent increase every year after 2019.

Q: Who pays property taxes in the Library's service area?

A: Anyone who owns residential or commercial property in the Library's service area. Also, people who rent apartments, homes or retail spaces often pay for property taxes indirectly through rental payments.

Q: Who voted on the levy?

A: People who are registered to vote in the Library System’s service area which includes all of unincorporated Pierce County and 15 annexed cities and towns including Bonney Lake, Buckley, DuPont, Eatonville, Edgewood, Fife, Gig Harbor, Lakewood, Milton, Orting, South Prairie, Steilacoom, Sumner, University Place and Wilkeson.

Q: When was the election?

A: General election, Tuesday, Nov. 6, 2018.

Q: When would the levy take effect?

A: January 2019.

Q: How long would funding from the levy have maintained services?

A: The Library System projected that a restored levy would have maintained services for up to five years.

Q: What would have happened if voters said yes to restore funding?

A: The Library would continue to invest in serving growing and changing communities, with services the public has said are a top priority:

• Weekend, weekday and evening hours at 20 libraries and 24/7 access to online resources.
• 1.5 million printed and downloadable books, audiobooks and magazines as well as movies and music.
• Staff to help support growth and learning with thousands of classes and events for children and adults.

» Inspire school success: story times, block play, online homework help, and Science Technology Engineering and Mathematics (STEM) classes.
» Guide career success: in-library and online tools and classes to help build career skills and find jobs. 

• Computers, printers, Wi-Fi and technology.
• Public meeting rooms and forums.

Q: What will happen now that voters said no to restore funding?

A: The Library will eliminate and reduce services. It will be open fewer hours, offer fewer books and movies, and close some libraries.

• 10 percent fewer open hours

» Close on Sundays.
» Close on Thursday evenings.
» Close earlier Monday-Wednesday evenings.

• 14-21 percent fewer books, e-books, movies and other materials

» 2017: $6.42 spent per person.
» 2019: $4.60-$5.10 spent per person.

Pierce County Library spends less money per person on books and materials than any other similarly sized library in the region.

• 40 percent fewer classes and events

» 2017: 4,400 story times, STEM classes, job skill classes, technology workshops.
» 2019: 2,600.

• Close libraries

» Close two to three libraries.
» The Library System will conduct a public process to determine which two to three libraries would close.

Q: What services has the Library eliminated and reduced already?

A: To balance its budget, the Library has eliminated, reduced, streamlined or did not offer services and deferred
maintenance totaling $20 million:

• Eliminated bookmobile service.
• Reduced spending on books, movies, music and other materials.
• Deferred facility maintenance and software system updates.
• Delayed implementing a Facilities Master Plan.
• Eliminated downloadable and streaming movies.
• Discontinued online Encyclopedia Britannica.
• Ended the public’s use of meeting rooms when the libraries are closed.

The majority of the library buildings are more than 25 years old and receive more than 2 million visits every year. To manage its budget, the Library has limited maintenance.

In the next five years, 15 of 20 library buildings require maintenance:

• Three roofs
• Seven HVAC systems
• Ten carpet replacements