© 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
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
2
NorthStar Economics Projects
Numerous projects in Wisconsin - 57 counties
Completed studies nationwide - clients in 11 states and D.C.
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
3
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
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY Background
Fiscal Flows
Summary and Conclusions
ESLS Services/Cost
4
Overview
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Introduction
5
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
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)
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Service Population
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
7
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Operating Hours
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
8
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Full-Time Employees
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
9
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Circulation
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
10
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Circulation by Residence
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
11
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Interlibrary Loan
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
12
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Operating Expenditures
Annual rate of increase .77% Annual rate of inflation 2.4%
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
13
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
City Appropriations
Annual rate of increase .77% Annual rate of inflation 2.4%
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
14
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
County Appropriations
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
15
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Revenue Sources - 2000
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
16
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
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
Summary and Conclusions
17
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
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
Summary and Conclusions
18
State library aid comes through regional library systems
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Wisconsin Public Library Systems
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
Source: Outagamie Waupaca Library System
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
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
Summary and Conclusions
20
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
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
Summary and Conclusions
21
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY Shared automated library system and technology planning
Internet services
Delivery services
Cataloging of materials
22
Major Services of ESLS
Interlibrary loan
Resource library
Administrative services
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Shared Automated Library System and Technology Planning
24
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Cataloging
25
Total Personnel Cost to Hire 1 Full-Time Cataloger $ 73,000
Online Computer Library Center (OCLC) Service $ 52,179
Estimated Annual Replacement Cost:$125,179 - $370,527
ESLS Estimate for MINITEX Service $370,527
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Internet Services
26
Replacement services through TEACH program
Estimated Annual Replacement Cost:$12,000 - $15,000
Monthly price for 30 Mbps $ 1,000 Monthly price for 45 Mbps $ 1,250
Background
Fiscal Flows
ESLS Services/Cost
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Delivery Services
27
Current cost through ESLS
Estimated Annual Replacement Cost:$7,065 - $326,408
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Interlibrary Loan
28
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Resource Library
29
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Administrative Services
30
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Other Costs and Benefits
31
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Summary and Conclusions
32
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 lose
resource payment
Cost: $300,000
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Observations
33
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
Observations
34
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
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
Summary and Conclusions
© Copyright 2009, NorthStar Economics, Inc. All rights reserved.
MEAD PUBLIC LIBRARY FISCAL FLOWS ANALYSIS
November 19, 2009
MEADPUBLIC
LIBRARY
36
David J. Ward, Founder and CEO
Phone: (608) 279-3393
E-mail: [email protected]
Web: www.northstareconomics.com