Our Library staff are city employees, so their pay is determined to some extent by our city council. This is a town of 5,000. The Library board, however, can raise those base amounts. All salaries, etc., come out of the Library budget.
When the city negotiates with the police, which have a union, the same hourly raise has then been given to the other city employees. While I was on the board, we gave the Director, who has a MA in Lib.Sci and a law degree and is at the top of the state public library directors' accreditation, an annual raise to eventually get her salary up comparable to other city dept heads who had much smaller budgets to manage.
After 10 yrs, she's now at their levels...in the $52,000 range and she just now gets the city raises. Again, this comes out of the budget for the library. The city pays the bulk of that budget; the county, whose residents the library serves, pays now a little better then the state required minimum.