At the annual libraries' Christmas morning tea, she was announced as the 2009 citation recipient.
Dunedin city councillor Paul Hudson described her as a "valued, long-term friend and benefactor to the library".
She was chosen for "her significant contribution to the Dunedin Public Libraries, professionally as [books] editor and feature writer for the Otago Daily Times, and personally as an enthusiastic member of the library".
She had made significant contributions through book donations and fundraising, especially for collection development.
For Ms Smith, the citation was "most unexpected".
As books editor at the Otago Daily Times for 13 years, she enjoyed supplying the library with excess review books.
Library services manager Bernie Hawke told morning tea guests that borrowing was up, services had improved with a new computer system connecting the city's libraries with others in the lower South Island, and the City Library had received a customer service makeover.