Fines Fund Policy

The Library Fines Fund, a special revenue fund, was established under SDCL 14-2-41 as interpreted in the South Dakota Attorney General’s Opinion 82-33 as a repository for funds generated through gifts to and fees collected by the Library. The funds are to be retained by the Library Board to be used to support the operations of the library in excess of the funds generated through tax levies.

The Fines Fund shall be capped at 35% of the Library General Fund total expenditure budget. During the budgeting process, the cap will be calculated by using the Library General Fund expenditure budget for that year. The transfer amount will be estimated based on the Fines Fund revenue and expenditure budget impact on the current fund balance. The Library Board will pass a motion authorizing the estimated transfer as part of the total budget recommendation. At the end of each fiscal year, the actual revenues and expenditures will be used to calculate the transfer amount, if any. The Library Board will be provided the actual transfer amount including the documentation showing the calculation no later than March of each year. In years when the Fines Fund balance does not exceed the cap no monies will be transferred.

Monies deposited in the Fines Fund shall be those received as fees for late returns, lost or damaged materials; printing; faxes; sales of used materials; research done by library staff; equipment rentals; vending income; out-of-county cards; income from contracts the Library has with other entities; monetary donations made to the Library that have restrictions about how they may be spent; monetary donations that are unrestricted; and interest received.

Monies in the Fines Fund may be used for, but are not limited to, the purchase and maintenance of computing and networking equipment and software; the purchase and maintenance of photocopiers; adult, teen and children’s programming; advertising; staff training; yard and snow removal equipment; subscriptions for electronic materials; and purchase of physical materials for circulation.

Adopted: July 2, 2014