For articles, see Cannons, E 1-3, Library Organization and Administration; E 8-12, Personnel, etc.
CHAPTER III
FINANCE, LOANS AND ACCOUNTS
27. The Library Rate.
27. The Library Rate.—The general library Acts passed for Ireland, Scotland and England all limit the amount to be raised by rate for library purposes to one penny in the pound on the annual rateable rental of all properties within the areas, with certain exceptions or modifications as to gardens and agricultural lands. Great doubt exists as to what is meant by a penny rate and on what value it is to be levied. Some authorities maintain that the income from a penny rate can only represent the net sum realized by a penny on the rateable value, after all deductions have been made on account of empty houses and other irrecoverable items. Against this may be set the actual practice in several places, of paying over the full sum which a penny rate on the nominal rateable value would produce, without any deductions whatsoever. As the Public Libraries Acts have placed a limitation on the amount of the library rate, it may be assumed that the libraries were intended to benefit to the full extent of the rateable value. At any rate the Acts are silent on the point, and practice differs so much that it is fair to say that a public library, because of the present limitation, and because some places now give the full product, is entitled to the full amount which a penny rate would yield when calculated on the full rateable value of the town or district, without deduction of any kind, either for unproductive properties or cost of collection. It has been decided that no deduction can be made from the income produced by the library rate on account of the cost of collection, and as this rate is now collected as part of a general or other unlimited rate, it seems unfair to saddle it with any part of the cost of collection. If it were collected as a separate rate, or with rates similarly limited by Act of Parliament, the position would be different. The difference between the amount paid over to public libraries and the actual sums which would be produced were the rate charged on the full rateable value is sometimes considerable. The losses range from over 20 to 5 per cent., and thus a considerable limit is placed upon the book-purchasing power of a large number of libraries.
28. Unexpended Balances.
28. Unexpended Balances.—In some places the local authority has appropriated unexpended balances of the public library rate and applied them to other local purposes. This action is clearly illegal, and could only have been taken by those who are ignorant of the decisions of the Local Government Board on the point. It is true the Acts do not specify how unexpended balances of the library rate are to be dealt with, but it is equally true that as the money was raised under a special Act for a strictly defined purpose, it cannot be diverted to any other purpose, nor can it be carried forward as a portion of the library rate for a succeeding year. No doubt the wording of the Act is responsible for the interpretation which has been put upon the section entitled “Limitations on expenditure for purpose of Act.” It reads: “A rate or addition to a rate shall not be levied for the purposes of this Act for any one financial year in any library district to an amount exceeding one penny in the pound.” The Local Government Board have decided that any unexpended balances of the library income must be carried forward to next year’s library account, without prejudice to the next year’s library income. This decision has been upheld by all the district auditors of the Local Government Board, and it is difficult to understand the reason why a few places still cling to the belief that the library rate can be further limited by this illegal procedure of appropriating unexpended balances. Committees who are threatened with this action can always protect themselves against the injustice by taking care that there are no balances to appropriate; but it will prevent them from saving a little money for necessary book purchases, cleaning or other purposes. It should be pointed out, furthermore, that the section of the Act above quoted does not really refer to the total amount to be raised by rate in a given year, but only to the poundage or rate which may be charged for library purposes, namely, not more than a penny in the pound. The question of the product of this rate of a penny is not mentioned anywhere in the Acts, and it is this lack of clear definition—the failure to distinguish the amount of a rate from the total amount which it will produce annually—which is responsible for many of the difficulties hitherto met with in administering the Libraries Acts.
29. Annual Estimates.
29. Annual Estimates.—The Scotch principal Act is the only one which requires an annual estimate or budget to be prepared by the library authority for the information of the local authority. Section 30 of the Act of 1887 provides that “The Committee shall in the month of April in every year make up, or cause to be made up, an estimate of the sums required in order to defray the interest of any money borrowed, the payment of the sinking fund, and the expense of maintaining and managing all libraries and museums under its control for the year after Whitsunday then next to come, and for the purpose of purchasing the books, articles and things authorized by this Act,” etc. This estimate has to be submitted to the local authority, who “shall provide the amount required out of the library rate to be levied by it, and shall pay over to the committee the sum necessary for the annual expenditure by it in terms of its estimate.” By the standing orders of most local authorities yearly or half-yearly estimates have to be prepared and submitted by the various committees, and as practice varies everywhere, it will be well for the library authority to follow the local practice.