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September 8, 2008

New library a financial factor for Cherry Hill

By ADAM SMELTZ • Courier-Post Staff • September 8, 2008

CHERRY HILL — Judged by the numbers, the airy new library here has begun to deliver returns on the township's $22 million investment.


Circulation has boomed -- from 191,000 items in 2004 to about 434,000 last year, according to the library. And more than 15,000 township residents have become registered cardholders since the new building opened in December 2004, bringing the total to more than 65,000.

"We've almost saturated the community with borrowers," library director Manuel Paredes said. "We really don't have much more to go. If we went another 4,000, we'd have every single member of the community."

But the 71,000-square-foot building, more than 2 1/2 times the size of the old library, has begun to leave another major mark.

Operating expenses have climbed to $3.3 million a year, up from $1.8 million a year before the new building opened.

Beyond that, the township still owes about $22 million in debt on the facility. Paying it off is expected to cost an average of $1.6 million a year through 2022, township spokesman Dan Keashen said.

All told, the library should consume nearly 10 percent of the Cherry Hill municipal budget (projected to be about $60 million) in the 2009 fiscal year, even as the township wrestles with a 22 percent tax increase and tries to limit spending.

"It's a very significant financial impact on the town," township Council President Steve Polansky said of the library. "No question about it."

He and Mayor Bernie Platt, long an advocate for a less grandiose library, lamented that the township has practically no options for cutting library costs. Under state law, municipalities that choose to fund local libraries must do so through a local property tax. The tax amounts to $33 for each $100,000 in taxable property -- a rate set by the state.

Libraries can return excess funding under a new state provision, but the township library appears to operate without a surplus.

The library's other big draw on the township budget -- the debt -- also is locked in, though the township has refinanced the bonds to ease interest expenses.

"My belief is that we could operate the library at less cost than we currently do," Polansky said. "We would love to see a change in state law that would allow us to do that."

He said the township has held some early discussions on the subject. He is uncertain that the idea could gain traction in Trenton, Polansky said.

Susan Bass Levin, a former Cherry Hill mayor who championed the new library and remains on its board, could not be reached last week.

But Tamara Kukainis, the library board president, said the operation already tries to limit expenses and raise new revenue.

She said the library works with the township to share services and has cut other costs by revamping employee health insurance. Workers also have installed energy-saving light bulbs, and library leaders every year review fee structures for services such as DVD and conference-room rentals.

"It continues to be my goal, the board's goal and the administration goal to do more with less, to operate as efficiently as we can and to find savings anywhere we can," Kukainis said.

She said the library has won the community's embrace and has "done a very good job of trying to maximize the dollars to get the biggest bang for the buck."

Kukainis pointed in particular to the growing usage, including by people who live outside Cherry Hill. Library data show attendance at library-provided programs reached 21,990 last year, up from 7,828 in 2004. Library users now spend more than 137,000 hours a year using the computers there, up from 900 hours in 2004.

"It's much more than books. Libraries have changed," said Larry Litwin, who served on the library board through 2007. "They're really resource centers now. When you walk into the Cherry Hill library, it's almost like you walk into the Philadelphia Public Library."

Litwin, who supported the new building, said the township is getting a solid return on its investment. He said the "first-class and respected" facility "can do nothing but bolster and solidify real-estate values."

Likewise, Councilman Frank Falcone said he doesn't regret backing the new building or its financing. "It is a significant expense to the township, but it brings back a tremendous reward because of its use," he said.

The expense factor wasn't lost on residents who attended a recent town hall meeting. Platt called the meeting to seek resident help in capping township expenses -- and taxes.

One resident worried over how many interior lights the library leaves turned on at night. Another repeated concern: the library's high ceilings and automatic doors, and their effect on heating and air-conditioning bills.

Keashen said later that utility bills for the new building run more than $280,000 a year. Bob Esposito, a Republican activist, suggested that the library increase fees paid by users who don't live in the township. (Most services are free for those who are Cherry Hill residents.)

Kukainis, who was not involved with planning the new building, said she sympathizes with the township budget struggle.

"The bottom line is that (the library) is here," she said. "It's being embraced by the community. It's more than just a library, and we are running it in as fiscally responsible and as professional a way to meet the needs of all the community members."

Reach Adam Smeltz at (856) 486-2919 or asmeltz@gannett.com

Posted by tumulty at September 8, 2008 9:55 AM

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