PROVIDENCE — For 135 years, the community’s public library system has been owned and operated by the Providence Public Library, a private nonprofit entity funded, in part, by the city and the state.

It comprises the downtown library –– the state’s largest public library, on Empire Street –– and nine branch libraries, which offer community programs and computer and Internet access to some of the city’s neediest neighborhoods.

But as of July 1, the city will shift its support to a new nonprofit group, the Providence Community Library, to run the nine branches, largely with city money. The PPL will continue to run the downtown branch, with support from the state.

“This is a momentous occasion,” said Dale Thompson, who has been the PPL’s executive director for the last 21 years. “We’re excited about the future. This provides some great opportunities for both organizations. In a year or so, I think we’ll look back and say it was interesting times, but this was a good start.”

The significant achievement in all of this is guaranteeing, for now, the continued operation of all the city’s libraries.

“Many people thought that this was an impossible task. In many other cities, libraries are facing cuts and closures. But the community here said, ‘Yes, we want our libraries,’ ” said PCL board Chairman Marcus Mitchell. “What we’ve created here is a model that’s already gaining interest across the nation.”

The PPL has long argued for more money from the city and threatened to close branches if it didn’t get it. In December, it submitted a plan calling for closing five of the nine branches, drawing criticism from Mayor David N. Cicilline and others.

A group of residents, many of whom volunteer at or raise money for the branch libraries, formed the PCL in November anticipating that negotiations between the PPL and the city, facing its own fiscal crisis, would come to a head this year.

Leaders of both library groups say the new arrangement will bring greater investment to the branches, and, by extension, to city neighborhoods.

The city, under terms formalized late Tuesday, will allocate its $3.5-million contribution to the PCL to run the branch system; with that comes $750,000 in state matching grants, according to the city’s director of operations, Alix Ogden.

The PCL has set a budget of $4.9 million for the fiscal year that starts Wednesday. While it is substantially less than the $7.5 million the PPL said was needed to run the branches, Linda Kushner, board secretary for the PCL, says there will be no reduction in services.

The branches will retain 57 employees after eliminating one regional librarian position at Knight Memorial Library, in Elmwood. A short-term contract with the union representing library workers is under negotiation.

The PCL hopes to raise nearly $600,000 through fundraising and grant writing. The organization, which in recent months won formal federal recognition as a tax-exempt — or 501(c)(3) — organization, has hired a development director, a business manager and a human resources administrator.

The four-member executive board, including Mitchell, Kushner, Patricia Raub and Ellen Schwartz, has been interviewing candidates for executive director.

Following a national search, the board is considering three candidates: Donna Riegal, director of the North Palm Beach (Fla.) Library; Ophelia Gregiev Roop, director of the San Bernardino (Calif.) Library; and Ann Robinson, former associate head librarian at the Worcester Public Library. Nancy Lee Milnor, director of the Somerville (Mass.) Public Library, withdrew her name from consideration last week.

The PPL, for now, will retain ownership of most of the branch buildings and lease them to the city for $1. (The city owns the Washington Park branch, and the Fox Point branch operates out of leased space.)

The major change in all of this will be at the landmark downtown library, the 109-year-old building at 150 Empire St. that holds more than 500,000 items.

Starting July 6, the central library will be closed Wednesdays. It will be open from 1 to 9 p.m. on Mondays and Thursdays; from 10 a.m. to 6 p.m. on Tuesdays; from 12:30 p.m. to 5:30 p.m. on Fridays and Saturdays, and from 1 p.m. to 5:30 p.m. on Sundays.

To cut operating costs there by about $5 million, the PPL has trimmed staff by 15 full-time employees (their last day was Tuesday). The library’s four top administrators, including Thompson (who earns about $140,000 a year) will take a 10 percent pay cut effective Wednesday.

With a $3.4-million operating budget and 42 employees, PPL leaders say the downtown library will still offer the same services as before, from askri.com (a statewide online reference help desk) to the specialized collection (the library’s rare books and materials). “We’re trying to make this as smooth as possible for patrons,” said Tonia Mason, the library spokeswoman.

PPL board members have said previously that in order to sustain itself, the organization may have to consider selling the downtown building, which has an assessed value of $28 million, according to city records.

Thompson said Friday that those discussions are premature and said the PPL is on sound financial footing.

In the long term, she said, the library will look to enhance its digital collection, develop its early-childhood and senior services, and reach out to other libraries and nonprofit organizations in the state.

“We’re at the point where we are looking ahead to a great future. We’re financially stable. We have an exciting plan and a lot of opportunities to expand,” she said.

The branch libraries, meanwhile, will be celebrating on Wednesday with an all-day, citywide bash. Patrons can return library materials without paying overdue charges. Ribbons will be cut to open each building.

Commemorative T-shirts will be on sale and there will be activities at all the branches, ranging from karaoke to origami lessons and cookouts.

pmarcelo@projo.com