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City manager says library was billed at outdated rates; city did not withhold funds
Summary
During the manager’s report the city manager explained the library pays administrative service charges at rates set under a 2009–2013 agreement and staff presented updated cost calculations; the city said it did not withhold library funds and is negotiating the future relationship with the Baldwin Public Library.
During the city manager’s report on Aug. 25 the city manager addressed resident claims that the city had improperly withheld funds from the Baldwin Public Library. The city manager said the allegation was inaccurate and provided a timeline of administrative billing and budget entries.
City staff told the commission that the library has long received administrative services from the city — payroll, human resources, accounts payable, banking, retirement administration and insurance services — under an agreement that originated in 2009 and formally expired in 2013. According to the manager, the library continued paying the old rate in subsequent years even as the city’s actual cost to provide those services increased.
The city manager said the finance department calculated the current annual cost to provide those services at about $219,067 and that the library had been paying approximately $104,889 per year under the earlier rate. City staff presented that higher figure during the 2025 budget process and said the library board approved the budget containing the increased administrative cost; the city manager said journal entries were prepared to reflect the adopted budget, but no city funds were seized or withheld. "We did not take any money from the library for this," the manager said.
The manager explained the city is negotiating with the library over whether the library will continue receiving city administrative services or will contract externally. If the library chooses to retain city services, the city said the contract will be executed and amounts will be reconciled at year‑end. If the library elects to end the arrangement, the city said it will prorate charges from the date of notice and transition services.
Ending: The commission received the update; commissioners asked staff to continue negotiating with the library and to return with any proposed contract language or options for how the library might procure services independently.
