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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of SEPT EMB E R 3 , 19 91 <br />TO: Honorable Mayor and City Council <br />FROM: COLTON PUBLIC LIBRARY BOARD OF TRUSTEES <br />SUBJECT: ACCRUAL OF INTEREST IN LIBRARY <br />STATE GRANT ACCOUNTS <br />Date: AUGUST 21, 1991 <br />BACKGROUND <br />The Colton Public Library has been very successful at acquiring grant <br />monies, which have greatly augmented the Library's budget. A number <br />of innovative & successful grant programs have begun such as "Advance <br />to Literacy" and "Families for Literacy", which could only otherwise <br />have been initiated with the City's general funds. However, in the <br />case of State Grant Funds, interest earned on grant monies does not <br />currently accrue for the benefit of the Library. One of the <br />stipulations of the California Library Services Act is that <br />"...Recipients are encouraged to deposit grant funds into <br />interest-bearing accounts whenever possible, with the understanding <br />that interest earned on California Library Services Act monies will <br />be used for Library purposes". There is also a requirement that the <br />funding provided by the California Library Services Act be used to <br />supplement --not supplant --the Library budget and that it not merely <br />disappear into the general fund with no direct benefit to the <br />Library. <br />FISCAL IMPACT <br />Total estimated California Library Services Act revenue for <br />FY 91-92 = $151,000. Total estimated interest to accrue on <br />$151,000 (at 5.5%) = $8,305. <br />RECOMMENDATION <br />The Board of Trustees believe that a separate "Special Library <br />Project" account should be established and that interest earned on <br />State Grant monies beginning July 1, 1991 should accrue and be <br />deposited into this account in order to purchase badly needed capital <br />items for the Library. In this way, there would be no chance of <br />co -mingling monies and the California Library Services Act <br />stipulation that "...interest earned ... will be used for library <br />purposes" will be adhered to. <br />City Manager's Concurrence <br />—Ces ie on, �i�anager <br />Attachments: <br />1 <br />Page 1 of___ _ Item No. .3____ <br />GENli RAL RECORDS <br />FILE NO. ----------------- <br />.. <br />