SALINA, Kan. — The Salina Public Library’s latest financial overview highlights how library operations are funded and the safeguards in place for public deposits.
According to the board packet, property taxes remain the library’s largest and most stable revenue source, forming the backbone of annual operations. Secondary income streams include fines, fees, grants, donations, and interest.
How Library Funding Works in Kansas
Public libraries do not receive sales tax revenue unless specifically voted in. Instead, operational funding comes primarily from a dedicated mill levy collected through property taxes.
This revenue supports:
• Staff salaries
• Building operations
• Utilities
• Program materials
• Technology and maintenance
• Public services and outreach
Because operational needs are continuous and predictable, property tax revenue provides the stability required for year-round service.
Bank Security Requirements: 102% Collateral
The library holds its deposits at Sunflower Bank. State law requires that banks holding public funds must secure — or “pledge collateral for” — an amount equal to 102% of the balance in the library’s accounts.
This safeguard protects taxpayer dollars in the event of bank failure. The collateral typically takes the form of government-backed securities held in safekeeping by a third party.
Why this matters to the public
• Every public dollar is insured beyond federal limits.
• The bank must continuously adjust pledged collateral as the library’s balances change.
• It ensures transparency and financial stability for all library-controlled funds.
As budget planning continues into 2026, the Library Board will monitor revenue trends, property tax performance, and financial safeguards as part of its annual fiscal responsibilities.
