AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE
title
Out-of-Town Library Fee for Orange County Residents Who Live Outside the Chapel Hill Corporate Limits
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT
Atlas Logan, Director, Library and Community Arts & Culture
STAFF RECOMMENDATION
Staff recommends that Council adopt a resolution instituting an annual $65 Out-of-Town Fee for Orange County residents living outside the corporate limits of Chapel Hill.
body
ACTION/DECISION POINTS*
Council must approve or reject the resolution.
LEGISLATIVE CONTEXT
For decades, the topic of Orange County funding for the Chapel Hill Public Library (CHPL) has been discussed in an ad hoc fashion. Rather than being based on an equitable formula, the funding provided by the county has been set at an arbitrary amount.
In 2023, the two jurisdictions created a task force to study this issue and to recommend a thoughtful and sustainable approach. The task force included elected officials, library advisory board members, Friends of the Library leaders, and senior library leadership from both the county and the town.
After months of work, the task force unanimously and strongly recommended a formula that would base county funding for CHPL on the number of county residents who live in Chapel Hill and have primary library access via the Town of Chapel Hill. At the time of the study, the county was providing approximately $568,000 in funding to CHPL. Based on the new formula, it was determined that CHPL was being underfunded, and the task force recommended a phased approach that would bring the county’s funding level up to the appropriate amount of $1.4 million by 2028.
Rather than phasing in the funding increase, the county has since voted to phase out this funding completely.
• In Fiscal Year 2027, they will provide $414,316.
• In Fiscal Year 2028, we expect them to provide $207,108.
• In Fiscal Year 2029, we expect them to provide no funding.
The amount of Orange County funding expected in Fiscal Year 2028 is vastly insufficient. We propose rejecting the funding offered by Orange County beginning July 1, 2027 to institute an annual $65 out-of-town library fee for Orange County residents living outside the corporate limits of Chapel Hill.
BACKGROUND AND CONTEXT
Chapel Hill Public Library (CHPL) is a municipal public library operated by the Town of Chapel Hill and primarily funded by Chapel Hill taxpayers. The Town of Chapel Hill is the primary provider of library services to approximately 64,000 Orange County residents who live within the Chapel Hill corporate limits.
Orange County Public Libraries, located in Hillsborough and Carrboro, are operated by Orange County and primarily funded by Orange County taxpayers, including those who live in Chapel Hill.
County financial support for municipal library services is common practice for several reasons. The municipality provides primary library services to a significant portion of county residents - in this case, about 40% of the total county population. An additional benefit of this funding is that Orange County residents, regardless of where they live, can check out books and materials from CHPL at no cost. Currently, close to 15,000 Orange County residents who live outside Chapel Hill use this benefit.
Now that the county is phasing out funding, the Town is proposing an out-of-town fee for Orange County residents living outside of Chapel Hill. The Town currently charges a fee for residents of Durham, Chatham, Alamance and other counties who want to check out books and other materials from the library.
TRADEOFFS, ALTERNATIVES, IMPACTS
If Council does not adopt the resolution, we will allow people who do not pay Chapel Hill taxes to access our high demand collections at no cost. Without the revenue from out-of-town fees, the library will need to reduce services (including collections, programs, and staffing) while continuing to serve both Town of Chapel Hill residents and Orange County residents who live outside Chapel Hill. Some potential impacts are longer waiting times for popular titles, reduced programs for adults, kids, and families, and reduced hours of operation.
FINANCIAL IMPACT
The financial impact of the County’s funding reduction is $621,323 in the library’s operating budget. This reduction in funding represents 15% of the overall budget and would impact services across the board including collections, programs, and staffing.
Out-of-town fees will make up some of the gap in funding but are unlikely to cover the full amount resulting in some cuts to the aforementioned services.
The financial impact on Orange County residents who live outside Chapel Hill is a $65 out-of-town fee. This fee is the same charged to residents of Durham, Chatham, Alamance, and other counties who do not contribute tax funding to the Chapel Hill Public Library, but who wish to check out materials. Orange County residents will still have access to library collections at the County’s two library locations in Hillsborough and Carrboro.
COMMUNITY IMPACT
The Town of Chapel Hill will continue to be the primary library services provider for the 64,000 Orange County residents who live in Chapel Hill, albeit with an overall reduced budget.
The Chapel Hill Public library will continue to offer programs and the use of their facility to everyone free of charge.
ATTACHMENTS
Resolution_ ADOPTING AN OUT-OF-TOWN LIBRARY FEE FOR ORANGE COUNTY RESIDENTS WHO LIVE OUTSIDE THE CHAPEL HILL CORPORATE LIMITS
2023 Library Task Force Final Report
DRAFT Staff Presentation_ OUT‑OF‑TOWN LIBRARY FEE FOR ORANGE COUNTY RESIDENTS WHO LIVE OUTSIDE THE CHAPEL HILL CORPORATE LIMITS
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