Dr. David J. Ward Founder and CEO

© Copyright 2009, NorthStar Economics, Inc. All rights reserved.

MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS

November 19, 2009

MEADPUBLIC

LIBRARY

Dr. David J. WardFounder and CEO

Mead Public LibraryFiscal Flows Analysis

November 19,2009



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NorthStar Economics Projects

Numerous projects in Wisconsin - 57 counties

Completed studies nationwide - clients in 11 states and D.C.



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Upper Peninsula/Wisconsin Border Region New North Economic Opportunity Study Wisconsin Public Libraries Heart of WI Business & Economic Alliance Wisconsin Alumni Research Foundation Town of Saratoga, Wyoming City of Whitewater Wisconsin Technology Council Deforest, Windsor, Burke Study Wisconsin Department of Commerce The PGA Walworth County Door County Campbell County, Kentucky

Selected Clients and Projects



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LIBRARY Background

Fiscal Flows

Summary and Conclusions

ESLS Services/Cost

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Overview



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Introduction

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Background

Fiscal Flows

ESLS Services/Cost


Goals of the Study:

2. Analyze the fiscal sources ofrevenue and the real dollareconomic value of tax dollarsupport from the City and County

1. Calculate the costs and benefits ofMead Public Library (MPL) membership in the Eastern Shores

Library System (ESLS)



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Mead Public Library

Department of the City of Sheboygan

Governed by a library board Member of a library system

(ESLS) 2008 budget of $3.37 million Mead operating/service

benchmarks

Background

Fiscal Flows

ESLS Services/Cost




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Service Population

Background

Fiscal Flows

ESLS Services/Cost


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Operating Hours

Background

Fiscal Flows

ESLS Services/Cost


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Full-Time Employees

Background

Fiscal Flows

ESLS Services/Cost


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Circulation

Background

Fiscal Flows

ESLS Services/Cost


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Circulation by Residence

Background

Fiscal Flows

ESLS Services/Cost


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Interlibrary Loan

Background

Fiscal Flows

ESLS Services/Cost


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Operating Expenditures

Annual rate of increase .77% Annual rate of inflation 2.4%

Background

Fiscal Flows

ESLS Services/Cost


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City Appropriations

Annual rate of increase .77% Annual rate of inflation 2.4%

Background

Fiscal Flows

ESLS Services/Cost


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County Appropriations

Background

Fiscal Flows

ESLS Services/Cost


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Revenue Sources - 2000

Background

Fiscal Flows

ESLS Services/Cost


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Revenue Sources - 2009

Decrease in percentage provided by city Increase in percentage provided by county Lower interest received on investments

Background

Fiscal Flows

ESLS Services/Cost


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LIBRARY One of 17 regional public

library systems in Wisconsin

Eastern Shores Library System

MPL is the resource library for ESLS

Provides wide range of services to member libraries

Maintenance of effort required for system membership

Background

Fiscal Flows

ESLS Services/Cost


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State library aid comes through regional library systems



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Wisconsin Public Library Systems

Background

Fiscal Flows

ESLS Services/Cost


Source: Outagamie Waupaca Library System



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EasiCat System ESLS’ shared automated

catalog and circulation system

The core operating system for MPL and other ESLS libraries

Includes bibliographic records for every item in the collections of local libraries, including MPL and also contains links to electronic books and databases & related websites.

Background

Fiscal Flows

ESLS Services/Cost


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LIBRARY State Law -

Wis. Stats. Sec. 43.15(4)(c)

Maintenance of Effort

Each municipality must fund its local libraries at a level that is not lower than the average funding for the previous three years to be eligible for membership in a library system.

Background

Fiscal Flows

ESLS Services/Cost


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LIBRARY Shared automated library system and technology planning

Internet services

Delivery services

Cataloging of materials

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Major Services of ESLS

Interlibrary loan

Resource library

Administrative services

Background

Fiscal Flows

ESLS Services/Cost




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2008Item Cost/Benefit Shared Automation System $16,698Cataloging $77,100Internet $ 2,444Delivery $ 7,065Interlibrary loan $ 2,099Resource Library $ 47,381Administrative services $ 7,624

Total $160,411

Reported Value ofESLS Services

Background

Fiscal Flows

ESLS Services/Cost




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Shared Automated Library System and Technology Planning

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Replacement Costs Capital Investment

$47,479 - $53,379

Licensing & Maintenance $50,000 - $70,000

Estimated Annual Replacement Cost:$97,479 - $123,739

Background

Fiscal Flows

ESLS Services/Cost




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Cataloging

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Total Personnel Cost to Hire 1 Full-Time Cataloger $ 73,000

Online Computer Library Center (OCLC) Service $ 52,179


ESLS Estimate for MINITEX Service $370,527

Background

Fiscal Flows

ESLS Services/Cost




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Internet Services

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Replacement services through TEACH program


Monthly price for 30 Mbps $ 1,000 Monthly price for 45 Mbps $ 1,250

Background

Fiscal Flows

ESLS Services/Cost




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Delivery Services

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Current cost through ESLS


Delivery 3 days per week $7,065 Delivery 2 additional days/week $2,146

Replacement cost through U.S. Postal Service $326,408

Background

Fiscal Flows

ESLS Services/Cost




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Interlibrary Loan

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Estimated Annual Replacement Cost:$27,380

Replacement cost through OCLC / WiLS

Annual Subscription Fee $500 Fee per Request $6.40 Requests per year 4,200

Background

Fiscal Flows

ESLS Services/Cost




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Resource Library

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Estimated Annual Cost:$50,000

MPL currently receives $50,000 toserve as the resource library for ESLS.

Withdrawal or removal from ESLS would mean that MPL would lose the payment for providing ESLS resource library services.

Background

Fiscal Flows

ESLS Services/Cost




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Administrative Services

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Estimated Annual Replacement Cost:$30,952

Replacement cost is based onESLS cost & MPL’s share of circulation in that system.

Without ESLS, MPL would need to replace administrative services for an ILS, cataloging, delivery, technology planning, interlibrary loan, adjacent county payments, & internet.

Background

Fiscal Flows

ESLS Services/Cost




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Other Costs and Benefits

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Other Costs

Benefits

Genealogy database <$1,000 Others? TBD

Administrative time/cost serving as ESLS resource library would be saved

Potential to generate revenue by contracting with other Sheboygan County libraries for mutual access

Potential benefit from increased foot traffic

Background

Fiscal Flows

ESLS Services/Cost




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Cost to Replace ESLS Services

Background

Fiscal Flows

ESLS Services/Cost


Low End $350,000

High End $944,000

Alternative: Purchase servicebundle from ESLS and lose

resource payment

Cost: $300,000



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Observations

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Withdrawal from ESLS will result in significant additional costs to MPL ($300,000 to $943,756 annually)

MPL withdrawal from ESLS will reduce ESLS operations to reflect lower state aid. Unless payment from MPL makes up for the loss, ESLS operations will be smaller and lose some economy of scale. This may raise the price of the bundle of replacement services provided to MPL

Withdrawal from ESLS would result in MPL duplicating many services that would raise overall regional library costs.

Background

Fiscal Flows

ESLS Services/Cost




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Observations

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Separation from ESLS would require MPL to spend $ negotiating interlibrary loan agreements with other libraries. If not successful, Sheboygan residents may have limited access to ILL

Separation from ESLS would prevent Sheboygan taxpayers benefiting from state tax dollars appropriated for state aid to ESLS, yet those residents will continue to pay the same tax rate

Separation from ESLS would prevent MPL from benefiting from the federal grant program administered by the state through the LSTA

Background

Fiscal Flows

ESLS Services/Cost




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The Bottom Line:If Mead is not part of ESLS

Transfer the economic costs of the bundle of services provided by a state funded library system to local tax support.

Increase financial risk as MPL will have to manage the stand alone services such as an automated library system.

Background

Fiscal Flows

ESLS Services/Cost




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David J. Ward, Founder and CEO

Phone: (608) 279-3393

E-mail: [email protected]

Web: www.northstareconomics.com

Documents

Dr. David J. Ward Founder and CEO