2.1 Legal Basis
2.2 Open Records & Open Meetings
2.3 Library Hours of Operation
2.4 Facilities Maintenance
2.5 Inclement Weather & Other Emergencies
2.6 ADA Compliance
2.7 Library Financial Management & Fiscal Responsibility
2.8 Investments
2.9 Financial Reserve Fund
2.10 Accounting & Audit Procedures
2.11 Library Procurement & Purchasing
2.12 Capitalization & Depreciation
2.13 Cash Handling & Petty Cash
2.14 Expense Reimbursement
2.15 Gifts & Donations
2.16 Friends of the Library
2.17 Foundation
2.18 Exhibits & Displays
2.19 Distribution of Non-Library Materials and Bulletin Boards
2.20 No Tobacco Policy
2.21 No Weapons Policy
2.22 Food & Drink Policy
2.23 Library Behavior & Conduct
2.24 Children’s Safety Policy & Unattended Children
2.25 Lost & Found
2.26 Disposal of Library Property
2.27 Theft of Library Materials
2.28 Statistics
2.29 Recycling
2.30 Limited Public Forum and Petitions
2.31 Public Relations & Media
2.32 Photography and Videography
2.33 Records Retention
2.34 Capital Financing & Debt Management Policy
2.1 Legal Basis
Rolling Hills Consolidated Library District is a political subdivision of the State of Missouri, formed in accordance with Chapter 182 of the Missouri Revised Statutes for the purpose of providing library services to the residents of Andrew County and those in Buchanan County outside of the 1965 city limits of St. Joseph. The District operates under an eight-member Board of Trustees, four of which are appointed by the Andrew County Commission and four appointed by Buchanan County Commission. The Board has budgetary authority over and oversight responsibility for the operations of the library.
Approved by RHCL Board of Trustees on March 24, 2020.
2.2 Open Records & Open Meetings
It is the policy of RHCL to provide full and complete compliance with Missouri Revised Statutes (RSMo) Sections 610.010 to 610.030, relating to meetings, records, and votes of governmental bodies. All procedures will be followed from Missouri Sunshine Law regarding the conduct of library meetings and availability of records.
The Director is designated as the custodian of all Library records, and may assign record custodian duties to other library employees. Upon the receipt in writing of a request for a public record, the custodian shall evaluate said request and consult with legal counsel as needed to determine if the records sought are those which qualify as closed records or open records; upon such determination response shall be provided to the requesting party, in writing, informing the requesting party of any exceptions to the request, or if such request is so voluminous that it may take more than three business days to fully reply. The written response shall include an estimate for any and all costs for the copying and retrieval of said records as allowed by Chapter 610, RSMo. All records which are not otherwise excepted as closed records pursuant to Sec. 610.021, RSMo shall be made available for inspection and copying.
Each request for access to a public record that is required to be an open record shall be acted upon as soon as possible, but in no event later than the end of the third business day following the date the request is received by the custodian of records. If access to the public record is not granted immediately, the custodian shall give a detailed explanation of the cause for further delay and the place and earliest time and date that the record will be available for inspection.
If the request for access is denied the custodian shall provide, upon request, a written statement of the grounds for such denial. Such statement shall cite the specific provision of law under which the access is denied and shall be furnished to the requester no later than the end of the third business day that the request for the statement is received.
Fees may be charged for paper copies of records, plus an hourly fee for staff time not to exceed the average hourly rate of pay for clerical staff. Requests will be filled without a fee whenever possible.
Approved by RHCL Board of Trustees on March 24, 2020.
2.3 Library Hours of Operation
Library facilities will be open for the full range of services for as many hours as funds and staffing permit. The convenience of the library users and the most economical use of personnel and facilities will be the balancing factors in determining well-planned hours of service.
Regular hours of operation will be determined and posted for each library service location and the administrative offices. The library may be closed periodically for library staff training or for inclement weather or emergencies.
Approved by RHCL Board of Trustees on March 24, 2020.
2.4 Facilities Maintenance
RHCL strives to provide safe, attractive, and well-maintained library facilities for the use of library patrons. A schedule of regular maintenance tasks for each building will be kept in the library administrative offices and shared with management staff. All library staff are expected to contribute to the cleanliness and attractiveness of library facilities by straightening furnishings and picking up trash when they see it. All library staff are required to bring facilities issues other than routine cleaning to the attention of the proper staff so they may receive prompt attention. Long-term or future known issues will be included in the library’s strategic plan in order to make sure the funds and expertise are available to address the work as needed.
Approved by RHCL Board of Trustees on March 24, 2020.
2.5 Inclement Weather & Other Emergencies
When weather may affect the safety of library employees and library customers in their efforts to get to a library facility, the Director or designated staff person, in consultation with library management staff, will decide when or if a facility will be closed. There are no automatic closures tied to other local entities such as a school district or university closure. All efforts will be made to contact library staff and local press outlets when a library facility is closed for inclement weather as early as possible.
In emergency situations, it is not always possible to predict what situations may occur or what the best reaction of the library should be. Library facilities may also be closed for unforeseen circumstances, such as power outages, police incidents, construction or renovation of facilities, and lack of sufficient staff. In all instances, posting or notifying the public of closures will be done as soon as possible. These are some general guidelines for emergencies and other disasters.
1) If local law enforcement or safety officials advise that any library location be closed, then the facility will close upon their advice.
2) If electricity is lost and lights are not back on within fifteen (15) minutes, library users will be escorted out if conditions are safe to do so and entrance doors will be locked with a sign explaining the closure. Staff will remain in the building and notify library administration who will contact the power company and get information on the area of blackout and time frame of power return if possible. If power remains out for an extended period of time, the library facility will likely close for the remainder of that day until power is restored. Staff will remain on the premises as long as they are directed to stay by library management.
3) In the event of a loss of heating or air conditioning, closing a library facility will depend on the circumstances of the temperature and the weather.
4) In the event of a fire, all library staff will immediately evacuate all occupants and call 911. Staff should gather in a designated place so supervisors and emergency management personnel can verify their safety before letting them leave the scene.
5) If a tornado siren or warning is heard (other than known monthly tests), all staff and patrons are to be directed to the safe areas designated at each library facility. The front doors of the building will remain unlocked in order that others needing a place to shelter can get in. No one should leave the safe area until an all-clear signal or other confirmation is received.
Library customers will be strongly encouraged to follow safety procedures in the event of an emergency or disaster, or will risk being banned from the library for noncompliance.
Since each circumstance is unique, there is no general rule for how staff will be paid when library facilities are closed for emergencies. Each instance will be evaluated and a decision made by the Library Director on what will be considered paid time during these events.
Approved by RHCL Board of Trustees on March 24, 2020.
2.6 ADA Compliance
The Americans with Disabilities Act (ADA) is a federal law intended to provide equal opportunities and accommodations for people with disabilities or covered health conditions. RHCL is committed to full compliance with ADA rules and regulations, including:
The Comptroller serves as the ADA Compliance Officer. All requests for reasonable accommodation for library services should be made in writing first to the branch manager and then to the administrative offices if additional assistance is needed.
Approved by RHCL Board of Trustees on March 24, 2020.
2.7 Library Financial Management & Fiscal Responsibility
Library finances will be managed as required by state law and guided by good fiscal practices for government agencies. A library financial management manual will be compiled and maintained by the Comptroller and be reviewed by the Library Director and the Board Treasurer. This manual will include information about budgeting, bank accounts, fiscal year deadlines, purchasing practices, payment of invoices, reimbursements, cash handling, payroll processing, and grant management.
The library Board retains the ultimate fiscal responsibility for library finances, but delegates the execution of financial transactions to the Library Director and his/her designated staff. The Board President, Treasurer, or alternate officer will sign checks and also sign grant applications, state library required forms, or any other legal documents necessary for the execution of library business, unless otherwise delegated to the Library Director.
Rolling Hills Consolidated Library operates on a fiscal year budget which runs from July 1 of one year to June 30 of the next year. Each fiscal year is designated by the number of the year in which it ends. The Library Director will prepare a draft budget document in consultation with library management staff. The Library Board will review the budget and then approve it for the fiscal year that begins in July. A final budget document including narrative, income and expense categories, and other figures will be compiled and distributed as required by law and in the interests of open records and full transparency.
Approved by RHCL Board of Trustees on March 24, 2020.
2.8 Investments
It is the policy of RHCL to invest public funds in a manner that will provide the highest investment return with the maximum security of principal while meeting the daily cash flow demands and conforming to all state statutes and regulations governing the investment of public funds.
The Library requires that all cash and investments in excess of the amount insured by the FDIC maintained in any financial institution named as a depository be collateralized. In order to anticipate market changes and provide a level of security for all funds, the collateralization level shall be 100% of the market value of principal, plus accrued interest. Collateral shall be limited to the types of instruments authorized as collateral for state funds in the Missouri Revised Statutes.
Approved by RHCL Board of Trustees on March 24, 2020.
2.9 Financial Reserve Fund
A. Purpose
The intent of the Financial Reserve Fund Policy is to clearly establish and properly classify the Rolling Hills Consolidated Library (RHCL) financial reserves, document the purpose for each reserve and specify how each reserve will be managed. This policy includes direction regarding reserve funding consistent with library’s mission and the financial management philosophy of the library Board of Trustees. This policy is established to provide financial stability, cash flow for operations, the highest possible bond rating, and the assurance that the library will be able to respond to emergencies with fiscal strength.
B. Scope
The establishment of reserves and reserve funds is a critical element of comprehensive fiscal planning and represents tools routinely used to address anticipated and unanticipated economic circumstances. Such economic circumstances include, but are not limited to:
The Board of Trustees recognizes the importance of setting policy to guide and direct the administration of financial reserves. The scope of this policy is to appropriately provide for the following:
Enhancement of the sound fiscal condition of RHCL so that it may continuously deliver on its mission and commitments to the communities served.
Improvement of RHCL financial flexibility and capability to adapt to change and to permit orderly adjustments to unanticipated events.
Establishment of expectations for RHCL financial reserve reporting, review, and evaluation.
C. Implementation
Reserve Guidelines
DEFINITIONS
Reserve funds may be assigned from time to time by the Board of Trustees as required to meet both short and long-term financial objectives and to ensure prudent financial management. Reserve funds shall be designated by the Board of Trustees as either “restricted” or “unrestricted.”
The five categories of fund balance, as established by Governmental Accounting Standards Board Statement No. 54, are as follows:
1) Nonspendable: Amounts that cannot be spent because they are not in spendable form (e.g., principle portion of permanent fund, inventory).
2) Restricted: Amounts not available for expenditure due to external restrictions, including grant restrictions, laws, or regulations.
Unrestricted: Refers to the total amount of committed, assigned, and unassigned fund balances.
3) Committed: Amounts that are designated for specific purposes by formal action of the Library Board. (The Library Board may reverse this action if it is later determined the funds are needed for another purpose.)
4) Assigned: Amounts management (i.e. Executive Director) intends to use for specific purposes.
5) Unassigned: Available expendable financial resources in the General Fund that is not the object of tentative management plan. Also represents deficit positions within funds other than the General Fund.
The District will spend the most restricted dollars before the less restricted, in the following order: restricted, committed, assigned, unassigned.
Restricted reserve funds are limited in use to a designated purpose as defined by the Board of Trustees or other agreement. Transfers and disbursements of restricted reserve funds must comply with all restrictions placed on the reserve fund at inception.
Unrestricted reserve funds will be managed within a general reserve fund account or accounts. Funds may be added, transferred, or withdrawn between financial accounts in a manner consistent with this policy. Adjustments to unrestricted fund account balances will typically occur with the adoption of the annual budget but may be adjusted during the fiscal year at the direction of the Board of Trustees. All investment earnings (interest) from unrestricted reserve funds shall be credited to the general operating fund, unless otherwise directed by the Board of Trustees.
Restricted Reserves
The establishment of restricted reserve funds shall be at the direction and authorization of the Board of Trustees. Transactional activities involving these restricted reserves funds will be governed by the terms and conditions stipulated at the time they are formed. There are currently no restricted reserves managed by the library, .
Unrestricted Reserves
The Board of Trustees has established the following unrestricted reserves.
The Operating Reserve is established to provide adequate cash flow until tax receipts are received. Between 6 and 8 months of operating reserves are needed to ensure a stable cash flow between July and February of each year.
The Emergency Reserve is established to provide adequate cash during unforeseen events that may substantially disrupt library operating cash flow, including insurance gaps or natural disasters. This reserve balance will be targeted at 10 months of budget operating expenditures excluding capital or debt service payments.
The Insurance Rate Stabilization Reserve is established to mitigate volatility in the cost of medical insurance and other employee benefits, set at 25% of the previous fiscal year medical insurance rates paid.
The Unemployment Compensation Reserve is established to mitigate the risk of self- insurance for unanticipated unemployment costs, set at 10% of the previous fiscal year salary expenditures.
The Levy Rate Stabilization Reserve is established to manage variability in annual property tax revenues and cost of providing library services, set at 5% of the annual tax revenues from the previous fiscal year.
The Paid Time Off Liability Reserve is established to mitigate a potential liability to pay employees for the value of their accumulated paid time off benefits. The balance of this reserve will be maintained at the equivalent of one year of leave accrual pay outs, according to current policy.
The Building and Equipment Reserve is established for building construction, maintenance, infrastructure, investments in technology, or vehicle acquisitions that are essential towards providing a safe, welcoming, and comfortable library facility for customers and employees or safeguards library assets from further damage or loss. This reserve may be utilized to fund projects, such as new facility development, building and grounds improvements, and furniture and fixtures. It is set at a minimum of 25% of the total fiscal year budget, including capital and debt service.
Annual Evaluation and Adjustment of Financial Reserve Amounts
The Library Director or designee shall provide the Board of Trustees with an annual summary of all reserve balances and recommendations for any proposed changes to reserve fund amounts. The Board of Trustees shall typically consider such changes, if any, in conjunction with the review and adoption of the annual RHCL budget; however, changes may be considered at any Board of Trustees meeting.
Fund balances may fall occasionally outside of the target ranges because of special projects, construction, emergencies, other extenuating circumstances, and/or levy restrictions.
Approved by RHCL Board of Trustees on January 29, 2019.
2.10 Accounting & Audit Procedures
RHCL operates on a modified cash basis for accounting and uses generally accepted accounting principles (GAAP) whenever possible, in addition to following the presentation and organization requirements of the Governmental Accounting Standards Board (GASB). An annual audit will be conducted by a qualified and experienced firm, culminating in a report that is completed and disseminated as required by law.
Segregation of Fiscal Duties and Internal Controls
No single person should control or perform all key aspects of a transaction or financial event. Segregation of duties is an important internal control activity that helps detect errors in a timely manner and deters improper activities. Internal controls instituted by the Library will assist the Board in maintaining adequate fiscal oversight of the expenditure of funds. RHCL shall institute a system of internal controls and a segregation of duties as much as possible given the staff size and job tasks assigned. The adequacy of these guidelines and our compliance efforts will be reviewed during each audit and as otherwise needed. Procedures shall be modified wherever possible to correct any deficiencies discovered during regular audits or at any other time.
Approved by RHCL Board of Trustees on March 24, 2020.
2.11 Library Procurement & Purchasing
RHCL strives to get the best possible use of public funds in the execution of our library mission. The library’s intention is to do competitive pricing and comparison purchasing whenever possible in order to maximize the purchasing power of the library. The library also regularly reviews discounts available from vendors and through institutional memberships to ensure that we are paying the lowest possible price for all materials and services.
All applicable Missouri laws will be followed in regards to expenditures by political subdivisions. Purchases or projects estimated in the amount of $25,000 or more will be publicly advertised and solicited as appropriate. Bidding is considered confidential during the process until a purchase decision is made and then all bids become public information. Large purchases will be based on competitive bids unless a sole source condition is in effect. Sole source purchases will be documented by library administrative staff. The Board may waive the requirement of competitive bids when it has been determined that there exists a threat to life, property, public safety, or when immediate expenditure is necessary for repairs to property or to protect against further loss or damage. The Director may authorize routine purchases up to $15,000 and will consult with the Comptroller and/or Board Treasurer regarding expenditures between $15,000 and $25,000. All significant purchases and building and property improvements will be approved by the Board. These purchase limits do not apply to aggregate expenditures, such as the total amount spent annually with library book sellers or supply vendors.
Approved by RHCL Board of Trustees on March 24, 2020.
2.12 Capitalization & Depreciation
Rolling Hills Consolidated Library (RHCL) adopts this policy to establish the minimum cost value (capitalization amount) that will be used to determine the capital assets recorded in RHCL’s annual financial statements. This policy also addresses considerations for recording and depreciating fixed assets in order to comply with the provisions of GASB Statement No. 34.
Capital Asset Definition
Capital assets are defined as tangible and intangible assets that have initial useful lives that extend beyond a single reporting period (1 year).
Capitalization Method
All capital assets are recorded at historical cost as of the date acquired or constructed. If historical cost information is not available, assets are recorded at estimated historical cost by calculating current replacement cost and deflating the cost using the appropriate price-level index.
Capitalization Thresholds
The RHCL Board of Trustees establishes a minimum capitalization threshold of Two Thousand Dollars ($2000) for fixed assets. Detailed records shall be maintained for all fixed assets. Detailed records are maintained at the discretion of the Library Director for all items below the capitalization threshold that should be safeguarded from loss. These items are part of the physical inventory. These items include computer equipment and maintenance equipment with value that falls below the established thresholds and any other assets specified by the Library Director. When large purchases of said items do meet the threshold as a group purchase of like items, they are recorded for depreciation. The library does capitalize the collection (i.e., books, audio visual, and other circulating tangibles but not periodicals or digital collections).
Depreciation and Useful Life
This policy will assign an estimated useful life to all assets for the purposes of recording depreciation. Asset lives will be adjusted as necessary depending on the present condition and use of the asset and based on how long the asset is expected to meet current service demands. Adjustments will be properly documented. Depreciation is recorded based on the straight line and/or declining balance method. Land is not depreciated, but buildings and improvements are (10-40 years), as well as vehicles, equipment, furniture, fixtures (3-7 years), and the library collection (7 years).
Safeguarding and Controlling Fixed Assets
As fixed assets are purchased or disposed of, the library administrative staff are responsible for preparing and entering data to ensure proper recording. A physical inventory will be taken periodically and compared to existing physical inventory records. The reports will be analyzed by the Business Office and where appropriate adjustments will be made to the fixed asset records.
Approved by RHCL Board of Trustees on March 24, 2020.
2.13 Cash Handling & Petty Cash
All RHCL staff will follow established cash handing and petty cash procedures. Cash handing rules will be written to follow standard procedures for taking payments, making change, and regular balancing of a cash drawer. Library staff are not allowed to process their own library transactions involving money nor are they allowed to make their own change from the cash drawer. Staff should always request that another staff member, preferably a manager or supervisor, complete staff personal transactions involving the cash drawer or any kind of cash on hand. Petty cash will not be kept at library branch locations but is available in the library administrative offices for the limited purchase of goods or materials where buying on account or receiving an invoice prior to the purchase is not available.
Approved by RHCL Board of Trustees on March 24, 2020.
2.14 Expense Reimbursement
All library employees and Board members who incur expenses on behalf of the library may apply for reimbursement. However, reimbursement should be the last possible choice for library purchasing, and only used if no other method of payment is available. The library maintains accounts at various vendors, both physical and online, and has these accounts set up for tax exemption and extended payment terms whenever possible.
Anyone applying for reimbursement must include a detailed receipt of the purchase. Receipts should be only for the items being reimbursed; personal purchases should not be mixed with library purchases, even if this means asking a store or restaurant to do two separate transactions. No receipts submitted for reimbursement should contain beverage alcohol or tobacco products. A reimbursement form must be filled out and signed and the receipt stapled to this form. Mileage reimbursement will be at the current-IRS approved rate, and should also be submitted on the reimbursement form.
Reimbursement checks may take up to four (4) weeks to process from the time of submission. Final approval of reimbursement requests rests with the Library Director.
Approved by RHCL Board of Trustees on March 24, 2020.
2.15 Gifts & Donations
The purpose of this policy is to provide guidance to individuals, agencies, companies, or others making monetary, asset, and in-kind donations to the Rolling Hills Consolidated Library.
Scope
Rolling Hills Consolidated Library welcomes contributions of funds, assets, and in-kind donations in support of the library’s mission. Offers of donations, whether for funds, assets, or "in-kind" services, may be made directly to the library, through the Friends of the Rolling Hills Library, or to the Rolling Hills Consolidated Library Support Foundation (RHCLSF, or Foundation). RHCL may receive donations in many different forms. The Foundation was created to receive bequests, endowments, memorials, planned giving, trusts, and general cash donations and to then manage those funds for the benefit of the library. The Friends of the Rolling Hills Library can receive gifts of cash and in-kind donations and provides financial and volunteer support for the library. Restricted donations are those for which the donor has conditioned upon specific terms, stipulations, or purposes. Unrestricted donations are those funds that the donors have placed no specific terms, conditions, stipulations, or purposes. RHCL will direct a donation to the area or project where it is most appropriate and where it will bring the greatest benefit to the library.
Provisions
IN-KIND DONATIONS
The library welcomes in-kind donations, when such items or services are appropriate for the library's purposes. The library may accept in-kind donations, such as books, videos, merchandise coupons, complimentary admissions, or services that are provided in support of the library's programs and services.
Individuals or organizations who wish to specifically place items, including books, videos, audios, games, furnishings, statues, artworks, collectibles, or other tangible items, in library buildings, including those intended to honor or memorialize someone, must make written application to the Library Director. The Library Director or his/her designee will determine whether the item is appropriate for the library to own.
1. Materials or items must be compatible with the mission of the library.
2. Federal Internal Revenue Service regulations discourage library evaluation of gifts in-kind for income tax purposes on behalf of a donor. The library will NOT provide evaluations or appraisals in terms of dollar amounts of gifts in-kind. Donors are encouraged to seek out rare book dealers or other book valuation sources to determine the value of a donation.
3. The library staff will determine which donated materials are appropriate for addition to the collection. All donated materials that are not added to the library’s collection may be given to the Friends of the Rolling Hills Library to be sold for fundraising or appropriately recycled or disposed.
4. If items such as artwork or collectibles are being given as a memorial, a clear connection between the honoree and the library must be present. If funds are donated as a memorial to purchase books, then they will be expended as indicated by the donor(s) and a bookplate inserted in each item if requested by the donor. The Library Director will negotiate with a donor if an exact item cannot be located or if the subject matter area selected is too narrow for the scope of the collection.
5. For artwork or other tangible gifts, an appropriate space for placement of the item must be available, it must be safe to display the item, and it must be compatible with existing library furnishings.
6. Items or artwork cannot require special care or place a financial burden on the library.
7. Items accepted become the property of the library and donors retain no right of ownership. The Library Director or his/her designee will make all decisions regarding placement or retention of any item.
GENERAL CONSIDERATIONS
All publications, conversations, practices, and agreements regarding donations to the library shall be truthful and fair, and information related to a donation will be kept confidential to the degree agreed upon between the library and the donor, and as allowed by applicable laws and regulations. However, donors understand and acknowledge that the library is a political subdivision of the state of Missouri, and all donations made to the library are subject to public disclosure pursuant to Missouri Statutes.
Approved by RHCL Board of Trustees on February 25, 2003; Revised on March 11, 2003; March 24, 2020.
2.16 Friends of the Library
The Friends of Rolling Hills Library is a philanthropic membership organization that, in addition to its general advocacy of library services for our community of users, may also raise funds for the library through assessment of organizational membership fees, book and merchandise sales, and other fundraising events. Although the Friends of the Library works closely with the library, it is an independent non-profit organization and, accordingly, it has its own policies and procedures. Friends of the Library membership is open to all.
The Rolling Hills Consolidated Library and the Friends of Rolling Hills Library will compose and maintain a Memorandum of Understanding (MOU) which will delineate the relationship between the organizations and what benefits and services each will provide to the other. This MOU will be reviewed and updated as needed.
The Rolling Hills Consolidated Library, its Director, and the Board of Trustees, shall not set any policy or agenda for the Friends of the Rolling Hills Library and shall not direct any use of funds.
Approved by RHCL Board of Trustees on March 24, 2020.
2.17 Foundation
Rolling Hills Consolidated Library Support Foundation (RHCLSF) is a philanthropic non-profit organization that, in addition to its general advocacy of library services for our community of users, also raises funds for the library through fundraising events, donor solicitation, and management of a library endowment. Although the RHCLSF works closely with the library, it is an independent organization and, accordingly, it has its own policies and procedures. The RHCL Board of Trustees appoints members to the RHCLSF Board, which then acts independently of the Board of Trustees according to its own bylaws, policies, and procedures.
Significant gifts of $5000 or more to the Library may be directed towards the Foundation for inclusion in the endowment fund. The Foundation manages the funds in the endowment and transfers earnings on those funds back to the library upon request for special projects or expenditures. The Foundation also manages named memorials where the donor has indicated the principal not be spent, only the earnings.
Approved by RHCL Board of Trustees on March 24, 2020.
2.18 Exhibits & Displays
There are two kinds of library exhibits: 1) Traveling exhibits that the library applies for and is selected to host, and 2) Local exhibits of memorabilia or materialsby the public or displays of the library collections. The following rules apply to local exhibits and displays only.
The library provides a limited amount of local exhibit and display space for persons or organizations to share interests and ideas consistent with the library’s mission. This includes glass display cases, wall spaces, and library meeting spaces. First priority for use of such exhibit space is reserved for the library. When not used by the library, exhibit space may be made available for use by outside nonprofit organizations, community groups, individuals, and governmental agencies at the discretion of the Library Director or the Director’s designee. It is intended that exhibit space be available on an equitable basis to other governmental entities, non-profit community organizations, and individuals engaged in educational, cultural, intellectual, and charitable endeavors.
All exhibits and displays in areas designated by the library as containing materials predominantly for minors will only include items that are age-appropriate for that section or location. Display of library materials does not include regular shelving where items are viewed only by their spines but does include any space where titles and covers are in full view.
Exhibits allowed may reflect a variety of viewpoints. In accepting material from the public for display the library neither endorses the content of the exhibit nor the organizational or individual exhibitor. The library further reserves the right to remove items from display, in whole or in part, that it deems to be a risk to public health, safety, or welfare. Exhibits should be non-partisan, non-sectarian, and self-explanatory. All exhibits and displays must be offered to the library on a voluntary, no cost basis. Exhibit material may only be displayed for an agreed upon time period at the sole discretion of the Library Director or designee.
The library assumes no legal or financial responsibility for loss or damage to items on display and exhibit unless other arrangements are made in advance with the library’s legal counsel or are part of an exhibit agreement. Any agreement regarding assumption of legal or financial responsibility by the library must be produced in writing and signed by the exhibitor and a library representative. All exhibits shall include a clearly visible sign identifying the individual or group responsible for the exhibit. It is the responsibility of the exhibitor to install and remove the exhibit at the time and the manner specified when the exhibit is scheduled and its display period expires. Library staff will remove exhibits and displays not removed by the exhibitor at the expiration of the specified display time. The library will not be responsible for the storage or condition of any display materials left beyond the scheduled exhibit period.
No exhibitor may place in the library any receptacle for the purpose of soliciting donations, other than charitable or philanthropic organizations with specific authorization from the Library Director or designee.
The Library Director or designee may refuse any display or exhibit that does not fit the criteria listed above. The Library Director or designee is responsible for the administration of this policy, for establishing administrative procedures for its implementation, and for making it available for the public. Disputes concerning this policy or the exercise of discretion in interpretation of this policy may be appealed to the Library Board.
Approved by RHCL Board of Trustees on March 24, 2020. Revised June 27, 2023.
2.19 Distribution of Non-Library Materials and Bulletin Boards
Individuals and organizations are welcome to submit material for library bulletin boards or pamphlet racks clearly designated for the dissemination of information. The following guidelines will be observed when displaying or distributing non-library materials in the library:
1. Materials must be submitted to a library Service Desk before posting. No one should be placing or posting their own materials. All bulletin board materials will be initialed and dated by library staff before posting.
2. Materials must be of an educational, cultural, charitable, or civic nature. This does not include items for sale or solicitations of employment.
3. Materials for posting must fit in the assigned space or they may be trimmed or reduced by library staff.
4. All materials posted become the property of the Rolling Hills Consolidated Library unless other prior arrangements have been made.
5. All materials submitted for posting are subject to the review of the Library Director or designee. The Library Director or designee reserves the right to remove materials from display at any time.
6. The use of library bulletin boards by an individual or group does not constitute an endorsement of that individual or group’s policies or beliefs by the Rolling Hills Consolidated Library, the Library Board of Trustees, or the governments of Andrew or Buchanan County.
Approved by RHCL Board of Trustees on October 24, 2006. Revised on March 24, 2020.
2.20 No Tobacco Policy
The Rolling Hills Consolidated Library considers all facilities of the library and the vehicles owned by the library to be tobacco-free environments. There may be a designated area outside the library where tobacco use will be allowed. Use of tobacco or nicotine products, including vaping, e-cigarettes, smokeless tobacco, chew, or snuff, is prohibited within any structure owned or operated by RHCL.
Approved by RHCL Board of Trustees on March 11, 2003. Revised on March 24, 2020.
2.21 No Weapons Policy
No person shall possess a weapon on Library premises unless authorized by state or federal law. Weapons are defined as any implement used, designed to be used, or intended for use (a) in causing death or injury to any person, or (b) for the purpose of threatening or intimidating any person with bodily harm or injury.
Copies of this policy or signs shall be posted at each entrance of a building entirely owned, leased or controlled by the library district stating that weapons are prohibited. Any person violating this section may be denied entrance to the building or ordered to leave the building. Any library district employee violating this section may be disciplined.
Approved by RHCL Board of Trustees on April 26, 2005. Revised on March 24, 2020.
2.22 Food & Drink Policy
The community is encouraged to use the library as a place for research, study, reflection, and leisure. To promote a welcoming environment, the library permits the consumption of food and drink on the premises if these items are consumed responsibly. To preserve library resources and protect library facilities, RHCL must regulate the consumption of food and beverages in public areas of the building.
Library users must immediately report spills to staff and dispose of trash in appropriate containers. Any library user who creates a mess with food and/or drink in the library may be asked to leave if they do not follow these rules.
Approved by RHCL Board of Trustees on March 24, 2020.
2.23 Library Behavior & Conduct
The ultimate rule for acceptable behavior in the library is one word--RESPECT. All users must respect each other and respect the library building, materials, and equipment that are here for everyone’s use. These rules are to ensure a positive and safe experience for all library patrons.
The primary uses of the library are:
If people within the building are not engaged in one of these behaviors and/or causing a disturbance, they may be asked to leave the library. All noise will be kept to a minimum level. All youth will be encouraged to use designated Youth Services areas for studying and computer use. All library users must correctly identify themselves with their first and last names and/or produce their library card upon request of any library staff person. Use of library facilities and services may be limited if persons are observed to be abusing these privileges. All entrances and exits will be kept clear of people standing or sitting for safety reasons. All library users are also required to follow specific policies regarding computer use, circulation of library materials, and all other applicable library policies.
The following behaviors and actions are prohibited on library property:
Library staff will enforce these rules and have the authority to deny anyone the use of the library if in their judgment the library user(s) in question cannot or will not stop the unacceptable behavior. A report will be kept on file to document violations of library behavior policies, and parents or guardians of youth under 18 may be contacted to inform them of the incident. Law enforcement may be called if a library user becomes threatening or violent. Legal actions and causes of action to recover any and all expenses to fix or replace damaged property may be taken by the Library. An appeal may be made regarding the denial of library resources and services, in writing, for consideration by the Library Board.
Approved by RHCL Board of Trustees on April 26, 2005. Revised on March 24, 2020.
2.24 Children’s Safety Policy & Unattended Children
In providing appropriate service to people of all ages within library facilities, it is the goal of the library to create an environment which protects the safety and welfare of all library users and staff. However, the responsibility for the safety and well-being of children using the library rests with the parents, guardians, or designated caregivers of children, and not with library staff. It is not safe to leave children unattended at the Library.
Children seven (7) years old and younger must be accompanied by a parent, guardian, or designated caregiver while in any of the facilities of the Rolling Hills Consolidated Library. A designated caregiver is an individual who has been charged by the parent or guardian with the care of the minor during a visit to a library facility. This could include a teacher, a daycare provider, babysitter or a sibling or relative who must be at least 12 years of age. Parents of children attending library programs must remain in the library if their child is younger than 8, and are encouraged to stay regardless of age.
If a child who appears seven years old or younger is causing a disturbance or identified as completely unaccompanied, the staff will attempt to contact the parent or guardian for the purpose of explaining the library’s rules for unattended children. Otherwise, a copy of these guidelines will be mailed to the parent or guardian if one can be identified. If a parent or guardian cannot be reached, library staff are authorized to call the police. Under no circumstances will library staff transport the child in a motor vehicle or otherwise remove the child from the library facility after library operating hours. Law enforcement may take a child into custody for safety if parents cannot be located.
It is also the policy of the library to request that library users of all ages engage in appropriate behaviors which do not interfere with the use of library facilities by others. Children and teens must use inside voices and maintain inside behavior. Running, yelling, shouting, throwing items, and rough-housing disturb other library customers and will not be allowed.
Library staff are empowered to follow a series of steps to address youth behavior problems, and may issue warnings or may choose to evict children or teens from the library immediately, based on the severity of the offense and the attitude of the offender.
Approved by RHCL Board of Trustees on January 21, 2003. Revised on August 19, 2008; March 24, 2020.
2.25 Lost & Found
Items found in library facilities other than books shall be placed in the lost and found bins in the staff area of each branch if an owner cannot be identified. All attempts will be made to return property to the rightful owner. The lost and found bins shall be cleaned out periodically by the library staff, but items will be kept at least one month to allow for owners to claim any lost items.
Books or other library-type materials not belonging to RHCL shall be handled in the following manner:
Approved by RHCL Board of Trustees on March 24, 2020.
2.26 Disposal of Library Property
The Library Director is responsible for the sale or disposal of all library materials, furniture, and equipment that is no longer of use to the library. Property that is obsolete or broken and has no useful value may be disposed of or recycled without notice. When an item perceived to have value is no longer functional or useful, it will be removed from inventory and disposed of as follows:
Approved by RHCL Board of Trustees on February 27, 2018.
2.27 Theft of Library Materials
Theft of library materials by any person who shall deprive the library of the library materials will be reported as theft to appropriate law enforcement authorities if, within ten days after notice in writing deposited as certified mail from the library sent to patron's last known or provided mailing address demanding the return of such library material, such person without good cause shown fails to return the library material. A person is presumed to have received the notice required by this subsection if the library mails such notice to the last address provided to the library by such person. Payment to the library, in an amount equal to the cost of replacement of an item of no historical significance shall be considered returning the item for purposes of this subsection.
Multiple attempts will be made to inform borrowers of materials that must be returned. RHCL reserves the right to pursue any and all legal remedies in pursuit of long overdue items or the payment in lieu of returning said items.
Approved by RHCL Board of Trustees on March 24, 2020.
2.28 Statistics
Library statistics are an important part of library management. The library is called upon multiple times per year by different agencies and entities to report library statistics, in fulfillment of requirements for grants and other aid and to document library usage. Statistics may be recorded based on actual usage or may be extrapolated based on a sample time period or targeted survey.
The Director will create a plan for gathering and reporting library statistics on a monthly basis to the Board and will provide library statistics upon request to the State Library or other agencies. Compilation of annual statistics will follow the library’s fiscal year, as required by the Missouri State Library, and also be reported by calendar year in the annual report.
Approved by RHCL Board of Trustees on March 24, 2020.
2.29 Recycling
RHCL supports environmental awareness and stewardship by encouraging recycling and waste management in its business practices and operating procedures. This includes a commitment to purchase, use, and dispose of products and materials in a manner that makes the best and most effective use of natural resources and minimizes negative impacts on the environment. Library employees are encouraged to seek out new and innovative methods to increase recycling efforts, preserve natural resources, and protect the environment. All employees are required to participate in office recycling efforts to minimize waste production.
Approved by RHCL Board of Trustees on March 24, 2020.
2.30 Limited Public Forum and Petitions
The Rolling Hills Consolidated Library recognizes that, in service to our communities, the library operates as limited public forum for individuals, corporations, or groups. Individuals or groups may solicit signatures for initiative petitions pursuant to Chapter 116 of the Missouri Revised Statutes and as otherwise allowed by law. These guidelines also apply to controlling public assembly and the petitioning and distribution of literature to employees or patrons on RHCL property by individuals or groups
RHCL does not want the expression of one set of views to interfere with or disrupt the traditional First Amendment forum of the library, that being quiet use, enjoyment, and contemplation. Therefore, the Rolling Hills Consolidated Library adopts the following policy for the solicitation of signatures, distribution or literature, or peaceful assembly of individuals on library property:
1) An initiative petition for the purposes of this policy is defined as a petition by members of the electorate to initiate legislative or constitutional change, said petition to be acted upon either by the legislature or the total electorate.
2) Solicitations of signatures for initiative petitions, distribution of literature, and/or peaceful assembly of people for a cause or protest are allowed outside of the Rolling Hills Consolidated Library branch buildings under the following terms and conditions:
a) Activities only take place during the library’s regular business hours.
b) Activities must take place at least 25 feet from the main entrance doors to the building to allow for adequate ingress and egress of patrons and staff.
c) Activities may not impede the normal business operations of the library, may not obstruct foot or vehicular traffic on library property, and may not block entry to the library building. Library patrons may choose to stop or not stop, and may not be harassed, threatened or detained by persons participating in these activities.
d) Persons wishing to solicit signatures for initiative petitions on library property shall (1) notify the library of their intent, (2) check in at the circulation desk, (3) fill out an information sheet and (4) sign a release from liability before they begin their solicitation of signatures. Each person involved in the solicitation must fill out the information sheet and sign the release from liability.
3) Persons who violate these regulations will be asked to leave library property. If such persons refuse to leave library property, the staff member in charge of the building is authorized to call the local police department to make a formal complaint, and to request the persons be charged with trespass.
4) Use of library property by petitioners does not indicate the library’s opposition or endorsement of the issue that is the subject of the petition, and the library will not assist the petitioners in the solicitation of signatures.
5) Solicitations, in the form of requests for donations (including receptacles for donations) and requests for monetary or other personal assistance are not allowed on library property unless they are from the Friends of the Rolling Hills Library or the Rolling Hills Consolidated Library Support Foundation.
6) Commercial solicitations are not allowed on library property.
Campaigning on any RHCL premises, whether for ballot issues or for elected office, is prohibited at all times. Campaign signs and political signs, for ballot issues and elected office, may not, at any time, on election days or otherwise, be placed or hung on library premises, at any location.
The provision of Library premises for the public expression of opinion does not constitute Library endorsement of the opinions or ideas of those individuals and organizations using the space.
Approved by RHCL Board of Trustees on March 8, 2010. Revised on May 22, 2012; March 24, 2020.
2.31 Public Relations & Media
Library staff recognize that the library’s output is a combination of materials and services; therefore, the staff shall strive to be continually aware of how to relate the library’s collections, programs, and services to the public in a beneficial way.
The library’s effectiveness is dependent on good public relations and good will.
A library marketing plan will be compiled and updated regularly to guide the product and process of library marketing and public relations. Library marketing may take place on any available and appropriate media. Positive relationships must be maintained with media outlets for the successful promotion of the library.
SOCIAL MEDIA POLICY
Social media is broadly defined as any web application, site, or account created and maintained by the library which allows users to share or obtain information online. Social media platforms provide a limited public forum to share information about library programs and services. The content of the library’s social media will be created by assigned library staff. Much of the content will relate to libraries, books, other library-related materials, library programs, events, photos, images, or special topics that the library is discussing or promoting. Positive interaction with community members will be promoted on our social media to foster an atmosphere of education and learning. Posts from other sources may be shared or “liked” in efforts to increase positive public relations and advertising.
Rolling Hills Library has established multiple social media presences to:
The library’s social media sites are not intended to be traditional public forums, but rather a limited forum focusing on library programs, events, and materials. As such, comments are moderated by library staff and RHCL has the sole discretion to not post or to remove comments that are offensive, unlawful, abusive, or off-topic. Staff may block people who post inconsistent comments or other inappropriate material from posting any further information to the library’s social media sites, and will issue a warning that they are violating library policies if the person can be identified.
Posts containing any of the following may be removed from RHCL’s social media accounts:
Additional guidelines for library staff in the use and application of specific social media will be produced and shared among those with social media interests and responsibilities.
Any link to an external website or other social media profile is not a sponsorship, authorization, affiliation, or endorsement of that website or profile. RHCL is not responsible for content posted on sites or profiles not controlled by library staff.
Employee Use of Social Media:
RHCL does not monitor personal social media accounts of staff, but will, when made aware, address posts that violate established policies. Staff are expected to use established channels for suggestions for improvements or complaints about conditions and not choose a public forum as the first place to air a grievance. A post that violates privacy, confidentiality, or legal guidelines will be met with appropriate disciplinary action.
When responding to questions or comments seen on RHCL posts, employees should identify themselves as staff. Comments made as employees of RHCL should be respectful, informative, accurate, and professional in nature.
RHCL use of social media is not intended to be used for communication of official business of the Board of Trustees, its meeting notices, minutes, or other normal public records.
Approved by RHCL Board of Trustees on March 24, 2020.
2.32 Photography and Videography
This policy is intended to protect library users who may be endangered or inconvenienced by having their photo or video image taken in the library, while encouraging media and others to use cameras in a way which would help communicate the library's mission and promote the use of Rolling Hills Consolidated Library.
In order to provide all the library's customers with the safest and most pleasant library experience, anyone other than library staff wishing to use cameras and/or recording equipment within RHCL facilities must have their request approved in advance by the Library director or designee. Those photographing or videotaping children must have both the verbal permission of the library and a release from each child's legal guardian. Those photographing or videotaping adults must have verbal permission of the library and verbal permission from the subject as well.
Those not following this policy may be asked to put away their equipment and/or leave the facility. Library access by outside photographers may be limited either by time constraints or to specific areas depending upon such impact or effect such sessions could have upon other library users.
Rolling Hills Consolidated Library staff has the right to photograph, film, and record library usage and library events and customers for promotional use in print, online, and video formats when they are attending open, public events or participating in library programs. Visitors participating in any library event being captured on video or by photograph are advised that their participation acts as consent to being photographed, filmed, or recorded, unless they indicate otherwise to library staff. No special permission or release form is needed to take photos of crowds using the Library or attending programs. It is the responsibility of a parent/guardian to monitor their children’s activities in the library and notify staff if a child should not be photographed.
If photographing one person or a small group (3 or less), library staff will try to get the subject’s or the parent’s verbal consent prior to taking the photo. No written consent is needed. Verbal consent is solicited as a goodwill gesture, but it is not legally required. Staff will let the subject or parent know that the photo may be used in future library publications, on the library website or other social media, or in the local media. In order to publish the child’s name in conjunction with the photo, verbal consent from the parent must be obtained and documented.
Approved by RHCL Board of Trustees on March 24, 2020.
2.33 Records Retention
Rolling Hills Consolidated Library shall, through the Director or its assigned employee, retain all records as required for public record storage as provided in Chapter 109, RSMo, and provided by the Missouri Secretary of State's Library Records Retention Schedule.
Approved by RHCL Board of Trustees on March 24, 2020.
2.34 Capital Financing & Debt Management Policy
INTRODUCTION/PURPOSE
It is the policy of the Rolling Hills Consolidated Library District (the “District”) to issue public debt appropriately and advantageously in response to the ongoing capital needs of the District. All debt will be issued in accordance with all applicable federal and state laws governing the issuance of public debt.
The Capital Financing and Debt Management Policy (hereinafter “Policy”) provides comprehensive guidance for future decisions regarding financing of capital projects including the appropriate use of debt.
This Policy applies to debt issued directly by the District and to debt issued on behalf of the District as borrower and shall include, but not be limited to, general obligation debt, revenue debt, lease obligations, certificates of participation, and all forms of debt having an annual appropriation of District revenues.
GUIDING PRINCIPLES
The District has historically paid for a large portion of its capital budget on a cash basis. It expects to continue this practice and use cash to pay for capital expenditures that it expects to recur on an annual basis or when reserves are available that are not expected to be needed for other purposes in the foreseeable future. Debt is a financing option which should be judiciously used when the District has legal, financial and market factors which result in a conclusion that the issuance of debt is a sound financial position for the District. The following principles are intended to guide the issuance of all District debt:
1. Except in extraordinary circumstances, debt will not be used to fund ongoing operating expenses of the District;
2. Debt financing should be considered for capital projects as approved in the annual budget, after all non-debt sources of funds (e.g. cash, grants, loans, etc.) have been considered;
3. The District should actively seek sources of financing (either grants or low interest state sponsored loans) as an alternative to entering the capital markets.
TYPES OF PERMITTED DEBT
The District has numerous choices regarding types of debt available to meet its financing objectives. The following is a listing of the types of permitted debt and general guidelines as to their use.
A. General Obligation (Maximum Term – 20 years [Maximum term allowed per state constitution.]).
B. Annual Appropriation (Maximum Term – 40 years [Maximum term allowed per state constitution.]).
Bonds backed by the District’s annual appropriation pledge. Listed below are four types of debt the District may secure with its annual appropriation pledge:
1. Lease-backed debt. The District may issue tax-exempt and taxable leasehold revenue bonds and special limited obligation bonds (including redevelopment bonds) through not-for-profit municipal corporations or by using a trust structure. Projects are primarily to be limited to public purpose capital improvements.
2. Lease Purchase. The District may enter short-term lease-purchase agreements to finance capital improvements, including equipment with an expected useful life (as defined by the Governmental Accounting Standards Board) of less than ten (10) years. Principal and interest to be paid from the operating budget or other dedicated resources of the department purchasing equipment or constructing capital improvement.
3. Certificates of Participation (COPs). A form of lease obligation in which the District enters into an agreement to pay a fixed amount annually to a third party, usually a nonprofit agency or a private leasing company or trust structure, subject to annual appropriation.
DEBT RESTRUCTURING AND MARKETING
A. Fixed or Variable Rate Debt. The District’s debt portfolio may at any given time be comprised of a combination of both fixed and variable rate debt. The District will always seek to manage its debt portfolio, including the absolute amount(s) of outstanding fixed and variable rate debt, in a manner which best supports the District’s long-term financial condition. The District will generally issue its debt on a fixed interest rate basis, wherein at the time of the bond sale all interest rates are known and do not change while those bonds are outstanding. Particular conditions may arise where the District would consider the use of variable interest rate bonds. Variable interest rate bonds have interest rates that reset on a periodic basis (e.g. daily, weekly, monthly, etc.). Conditions which would cause a consideration of variable rate debt are:
• Adverse fixed-rate municipal market;
• Uncertainty or variability of the amount of annual revenues for debt service;
• The potential for a rapid repayment of debt; or
• The need or desire to maximize the District’s asset/liability balance
Variable interest rate debt exposes the District to interest rate risk over the term of the financing. The aggregate amount of unhedged variable rate debt issued by the District should not exceed 15% of all comparable debt outstanding.
B. Taxable vs. Tax-exempt Debt. The District shall first seek to issue and/or guarantee only tax-exempt debt and avoid taxable debt in order to reduce interest expense. However, the District recognizes that not all financings will be able to be completed on a tax-exempt basis and therefore reserves the right to participate in taxable financings. For tax-exempt debt issuances, the Investment Officer, or designee, is hereby delegated the authority to declare the official intent of the District to reimburse itself for certain expenditures made within 60 days prior to or on and after the date of such declaration in accord with Treasury Regulation 1.150-2. Such intent will be documented in a Resolution approved by the District’s governing body.
C. Repayment Term. The District will structure its debt to comply with all federal and state and local requirements as to repayment terms. The District will seek to repay its debt in an expeditious manner within the District’s overall financial objectives.
D. Prepayment Provisions. Redemption provisions and call features shall be evaluated in the context of each bond sale to enhance marketability of the bonds; to ensure flexibility related to potential early redemption; to foster future refunding transactions; or in consideration of special conditions of the transaction. The potential of additional costs (i.e., call premium) and higher interest rates as a result of including a call provision shall also be evaluated. The following are the different redemption provisions to be evaluated:
1. Optional redemption. The ability of the District to redeem bonds early;
2. Mandatory redemption. Provisions associated in redeeming bonds under certain predetermined conditions; and
3. Extraordinary redemption. The ability to redeem bonds to address fortuitous events.
The accelerated retirement and restructuring of debt can be valuable debt management tools. Accelerated retirement occurs through the use of defeasance and the exercise of prepayment provisions. Debt is often restructured to the benefit of the District through the issuance of refunding bonds. Defeasance can occur when funds are accumulated in a dedicated debt service fund or other available reserve to place in an irrevocable escrow account an amount sufficient such that the initial deposit plus accumulated investment earnings pay all scheduled debt service obligations on the refunded bonds until an optional prepayment date, at which time all remaining refunded bonds are retired.
Prepayment provisions are structured into the original bond issue to provide the District with opportunities to manage the issue. These opportunities take the form of using cash to reduce all or a portion of outstanding principal and future debt service obligations. Prepayment provisions play a major part in the economics of refunding debt.
The District will monitor the prepayment provisions on its outstanding debt to realize both of these potential opportunities. By monitoring its debt service funds, the District can gauge its ability to prepay debt to 1) Reduce future interest costs; 2) Restructure future debt service in response to evolving conditions regarding anticipated revenue sources; and 3) Restructure the legal requirements, termed covenants of the original issue to reflect more closely the changing conditions of the District or the type of bond.
Although the District recognizes the latitude it requires given the range of its debt types, the District will generally look to a net present value savings in a range from 3% to 5% of the present value of the refunding bonds.
E. Credit Enhancement. When the District is considering the purchase of bond insurance, it will determine its cost-effectiveness in the marketing of particular bond issues. The cost-effectiveness will be based on the premium cost of the insurance as compared to the estimated difference in the true interest cost (TIC) of an insured versus uninsured bond issue. In most competitive sales, a purchaser’s option approach to the acquisition of bond insurance will be used.
POST-ISSUANCE DEBT MANAGEMENT
Post-Issuance debt management is a key component to the immediate and long-term success of the District’s financial objectives. A successful debt management program begins with comprehensive information on the current debt program status and definition of the future direction of the District’s capital financing objectives.
The professional oversight of individual debt issues and the ongoing context of the District’s debt program will permit recognition of future opportunities and advantageous positioning of the overall program.
A. Disclosure. Disclosure is both a regulatory requirement and a highly advisable means to enhance the marketing of the District’s bonds. The District will enter into ongoing continuing disclosure agreement regarding any debt issuance and agree to provide information to the market about the status of issue and issuer. Adequate disclosure on both a primary and continuing basis can enhance the marketability of the District’s bonds by providing potential investors with current and professional information regarding the District. Timely and accurate completion of these tasks both influences investors’ decisions on purchasing the District’s bonds and contributes to the competitive audience for the District’s bonds. The District will fully comply with disclosure regulations.
B. Credit Rating Strategy. High credit quality is essential to the cost-effective financing of the District’s capital needs. The District maintains a variety of credit ratings based on the diversity of its issuers and activities. In all cases, the District will strive to obtain the highest credit ratings possible within the parameters of each credit. The Library Director, staff and outside consultants will develop appropriate credit rating strategies for each of the District’s discrete credits and will update the District’s governing body regarding all credit rating events.
C. Investment of Bond Proceeds. The investment of bond proceeds requires significant diligence in meeting the objectives of regulatory compliance, the management of the flow of funds described in bond documents, and the needs of the projects being funded. The investment of bond proceeds should be considered at the outset of every debt issuance and integrated throughout the process. Investment of bond proceeds shall be undertaken in conjunction with the District’s adopted Investment Policy.
D. Federal Arbitrage and Rebate Compliance. The District will fully comply with federal arbitrage and rebate regulations. Concurrent with this policy, the District will take all permitted steps to minimize any rebate liability through proactive management in the structuring and oversight of its individual debt issues. All the District’s tax-exempt issues, including lease purchase agreements, are subject to arbitrage compliance regulations.
RETENTION OF CONSULTANTS AND OTHER RELATED PARTIES
The District recognizes the nature of the municipal bond industry is such that specialized consultants may need to be retained. Examples include bond counsel, special tax counsel, financial advisors, bond underwriters and other parties (e.g. trustee banks, printers, dissemination agents, bond insurers, etc.). The District will retain those parties which are first acceptable to the municipal market for that particular issue, and then having those characteristics of professional standing and cost-effectiveness.
The District will strive to retain those consultants who will best advise them on individual issues and the overall District debt program in a manner, which will most advantageously position the District on both a short and long-term basis.
CAPITAL PROJECTS FUND
The Capital Projects Fund is established as a reservation of capital improvement dollars, for an adopted capital program, which have been transferred periodically from the General Fund for the benefit of significant, one-time capital improvement projects. The Capital Projects Fund may be invested separately or co-mingled with other funds of the District.
Qualifying projects for utilization of these funds are those selected and authorized by the District Governing Body that generally meet the following criteria:
• The project involves a major, unfunded and long-term capital need that addresses a significant, on-going and mission-critical operational concern.
• The project involves an emergent, unforeseen and compelling opportunity for the community for which no capital project funding could have been contemplated (i.e. land purchase).
• The project involves a key strategic economic development interest that over time will yield continuing positive financial benefits to the District that will exceed project costs (i.e. infrastructure development for prime development).
The Capital Projects Fund is not to be used to simply expand routine, customary or otherwise normally planned capital improvements such as asset rehabilitation/reconstruction, building improvements, or routine maintenance projects.
CONCLUSION
Adherence to a comprehensive debt management policy signals to rating agencies and the capital markets that a government is well managed and should meet its obligations in a timely manner. Debt levels and their related annual costs are important long-term obligations that must be managed within available resources. An effective debt management policy will provide guidelines for the District to manage its debt program in line with available resources.
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