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City says it did not withhold library funds; administrative services cost difference under negotiation

August 26, 2025 | Birmingham City, Oakland County, Michigan


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City says it did not withhold library funds; administrative services cost difference under negotiation
City management used the Aug. 25 meeting to correct a public assertion that the city had withheld money from the Baldwin Public Library. The manager said the city "has not taken nor withheld any money from the library that was not approved by the library." The discussion traced back to a 2009 agreement, which expired in 2013, under which the city provided administrative services to the library — payroll, human resources, accounts payable, banking, retirement administration and insurance administration — at rates in place at that earlier date.

The manager told the commission finance staff calculated the current cost of those services at approximately $219,067 annually. The library had been charged an older rate of about $104,889 under the expired agreement. City staff presented the updated cost figures to the library in December and again in February 2025; the library board included the increased amount in its approved budget on March 17 and that budget was reflected in the city’s budget hearings and final budget adopted May 19.

The city explained that journal entries were made to mirror the approved budget; however, those journal entries do not represent physical withholding of funds. City staff said they continue to provide the services while the library decides whether to continue the collaboration or contract externally. If the library opts to remain with city services, it would sign a contract and costs would be reconciled at fiscal year end. If it decides to move services outside the city, the city will prorate charges to the date services were terminated.

The commission received the clarification; no formal action was taken at the Aug. 25 meeting beyond entering the explanation into the public record.

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Scribe from Workplace AI
Scribe from Workplace AI