The City of Monterey Board of Library Trustees, by authority of Section 7.1 of the Monterey City Charter, is responsible for administration of the Library Trust Fund. The Trust Fund consists of "…the present library trust fund together with all gifts, devises or bequests received for the use of the library hereafter and all miscellaneous revenues of the library, except fines." Miscellaneous revenues include all income except general fund appropriations and revenues directly connected to general fund expenditures.

As custodian of the Trust Fund, the Board’s responsibilities are to insure that the Trust Fund is preserved as a Library resource, to prudently allocate the Trust Fund based on established Library policies and priorities, and to position the Library for the future through strategic planning, organizational development, and infrastructure solutions.

Restricted gifts and bequests are used in accordance with the donors' wishes. The Library Director in consultation with the Board will accept restricted revenues that are consistent with the Library's mission and goals. The Trust Fund budget will reflect restricted revenues and corresponding expenditures. Restricted revenues are not necessarily expended in the same fiscal year in which they are received. 

The Board will consider the following priorities in requesting Council appropriations from Library Trust Fund undesignated reserves:

• Purchase of real property for Library use, construction of Library facilities, remodeling and expansion of existing facilities, or development and beautification of areas immediately surrounding Library facilities, consistent with approved long-term facilities plans.

• Targeted expenditures to promote Library fund development based on established plans and priorities.

• Pilot projects and other special initiatives outside the reasonable requirements of the operating budget.

• Targeted expenditures to enhance Library collections and services to meet identified community needs.

• Ongoing and one-time cultural events for adults and youth.

The Trust Fund will not be used to offset deficient General Fund appropriations for basic library services except in cases of severe financial distress as determined by the Board. The Trust Fund will not be appropriated for regular staff positions, but may be used for temporary part-time or contract staff to meet specified objectives.

Every precaution shall be taken to protect the long-term integrity of the Trust Fund principal. The annual Trust Fund budget proposal will take into account past and projected Trust Fund revenue and the projected net impact on Trust Fund reserves.