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Dr. David J. Ward Founder and CEO

Mead Public Library Fiscal Flows Analysis. Dr. David J. Ward Founder and CEO. November 19, 2009. NorthStar Economics Projects. Completed studies nationwide - clients in 11 states and D.C. Numerous projects in Wisconsin - 57 counties. 2. Selected Clients and Projects.

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Dr. David J. Ward Founder and CEO

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  1. Mead Public LibraryFiscal Flows Analysis Dr. David J. Ward Founder and CEO November 19,2009

  2. NorthStar Economics Projects • Completed studies nationwide - clients in 11 states and D.C. • Numerous projects in Wisconsin - 57 counties 2

  3. Selected Clients and Projects • 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 3

  4. Overview • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 4

  5. Introduction Goals of the Study: • Calculate the costs and benefits ofMead Public Library (MPL) membership in the Eastern Shores • Library System (ESLS) • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions Analyze the fiscal sources ofrevenue and the real dollareconomic value of tax dollarsupport from the City and County 5

  6. 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 Mead Public Library • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions

  7. Service Population • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 7

  8. Operating Hours • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 8

  9. Full-Time Employees • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 9

  10. Circulation • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 10

  11. Circulation by Residence • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 11

  12. Interlibrary Loan • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 12

  13. Operating Expenditures • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Annual rate of increase .77% • Annual rate of inflation 2.4% 13

  14. City Appropriations • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Annual rate of increase .77% • Annual rate of inflation 2.4% 14

  15. County Appropriations • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 15

  16. Revenue Sources - 2000 • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions 16

  17. Revenue Sources - 2009 • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Decrease in percentage provided by city • Increase in percentage provided by county • Lower interest received on investments 17

  18. Eastern Shores Library System • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • State library aid comes through regional library systems • MPL is the resource library for ESLS • Provides wide range of services to member libraries • Maintenance of effort required for system membership • One of 17 regional public library systems in Wisconsin 18

  19. Wisconsin Public Library Systems • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions Source: Outagamie Waupaca Library System

  20. EasiCat System • ESLS’ shared automated catalog and circulation system • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • 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. 20

  21. Maintenance of Effort • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • 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. • State Law - Wis. Stats. Sec. 43.15(4)(c) 21

  22. Major Services of ESLS • Shared automated librarysystem and technology planning • Cataloging of materials • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Internet services • Delivery services • Interlibrary loan • Resource library • Administrative services 22

  23. 2008Item Cost/Benefit Shared Automation System $16,698 Cataloging $77,100 Internet $ 2,444 Delivery $ 7,065 Interlibrary loan $ 2,099 Resource Library $47,381 Administrative services $ 7,624 Total $160,411 Reported Value ofESLS Services • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions

  24. Shared Automated LibrarySystem and Technology Planning • Replacement Costs • Capital Investment $47,479 - $53,379 • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Licensing & Maintenance $50,000 - $70,000 Estimated Annual Replacement Cost:$97,479 - $123,739 24

  25. Cataloging • Total Personnel Cost toHire 1 Full-Time Cataloger $ 73,000 • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Online Computer Library Center (OCLC) Service $ 52,179 • ESLS Estimate forMINITEX Service $370,527 Estimated Annual Replacement Cost:$125,179 - $370,527 25

  26. Internet Services • Replacement servicesthrough TEACH program • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Monthly price for 30 Mbps $ 1,000 • Monthly price for 45 Mbps $ 1,250 Estimated Annual Replacement Cost:$12,000 - $15,000 26

  27. Delivery Services • Current cost through ESLS • Delivery 3 days per week $7,065 • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Delivery 2 additional days/week $2,146 • Replacement cost through U.S. Postal Service $326,408 Estimated Annual Replacement Cost:$7,065 - $326,408 27

  28. Interlibrary Loan • Replacement cost through OCLC / WiLS • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Annual Subscription Fee $500 • Fee per Request $6.40 • Requests per year 4,200 Estimated Annual Replacement Cost:$27,380 28

  29. Resource Library 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 • Summary and Conclusions Estimated Annual Cost:$50,000 29

  30. Administrative Services 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 • Summary and Conclusions Replacement cost is based onESLS cost & MPL’s share of circulation in that system. Estimated Annual Replacement Cost:$30,952 30

  31. Other Costs and Benefits • Other Costs • Genealogy database <$1,000 • Others? TBD • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • Benefits • 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 31

  32. Summary and Conclusions Cost to Replace ESLS Services • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions Low End $350,000 High End $944,000 Alternative: Purchase servicebundle from ESLS and loseresource payment Cost: $300,000 32

  33. Observations • Withdrawal from ESLS will result in significant additional costs to MPL ($300,000 to $943,756 annually) • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • 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. 33

  34. Observations • 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 • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions • 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 34

  35. 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. The Bottom Line:If Mead is not part of ESLS • Background • Fiscal Flows • ESLS Services/Cost • Summary and Conclusions

  36. David J. Ward, Founder and CEO • Phone: (608) 279-3393 • E-mail: dward@northstareconomics.com • Web:www.northstareconomics.com

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