District Information & Operating Millage
Chelsea District Library (CDL) was formed in 1998 by the Village of Chelsea and Dexter, Lima, Lyndon, and Sylvan Townships when they entered into a district library agreement. CDL serves all residents in the City of Chelsea, Lyndon and Sylvan Townships, and residents in the portions of Dexter and Lima Townships that are not in the Dexter Library district. On October 5, 1999 voters adopted a 20-year charter millage for the Chelsea District Library. A 10-year renewal of the millage was approved by voters in each municipality in August of 2019 (65.83% Yes; 34.17% No). This millage funds library operations for the 16,126 residents in our district.
Fiscal responsibility and transparency are core values of the library. Each year CDL holds public budget hearings to ensure transparency of how our funding is allocated and to allow for community feedback and questions. Additionally, an independent audit is performed every year. Annual reports and the approved budget resolution are published on the library’s Who We Are webpage.
Frequently Asked Questions
- Who decides the library’s millage rate? The library board, in consultation with the library director, determines the millage rate proposed on a ballot.
- Why does my millage rate change? Library millage rates are impacted by the Headlee Amendment. Passed in 1978, Michigan’s Headlee Amendment limits state and local taxation to compensate for increases in property value that exceed the rate of inflation and ensures that revenue collected is consistent with the amount the millage was originally intended to generate (adjusted for inflation).
- What is the difference between a millage and a bond? The millage funds library operations. The bond passed in 2000 was project-specific and used to fund the current building’s construction. That debt was paid off in 2024, thereby removing the .49 mill bond payment for our taxpayers.
- What is the recommended fund balance for a public library? In alignment with the public library best practices and the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Definitions, CDL’s fund balance Policy 565 was created to prepare for capital improvements and repairs, as well as unanticipated events that could adversely affect the financial position of the library and jeopardize continuation of necessary public services. Fund balance will:
- Provide sufficient cash flow for daily financial needs
- Establish a reserve fund for long-term facility maintenance and replacement
- Offset significant economic downturns or revenue shortfalls
- Provide funds for unforeseen expenditures related to emergencies
- Who do I contact with questions about the library’s funding? Either contact our library director or the board member representing your municipality. Contact forms for all of these individuals are available on our Board of Trustees webpage.
