2016 Final Budget December 15, 2015

WHATCOM COUNTY LIBRARY SYSTEM WHATCOM COUNTY, WASHINGTON

FINAL OPERATING AND CAPITAL EXPENDITURE BUDGET FISCAL YEAR 2016

BOARD OF TRUSTEES Marvin Waschke Chair Lori Jump Board Member

Gwen Vanderhage Board Member

June Hahn Board Member

Prepared By:

Kyle Teeter Director of Finance and Administration

With Assistance From: Christine Perkins, Executive Director Michael Cox, Deputy Director Thom Barthelmess, Youth Services Manager Geoff Fitzpatrick, Information Technology Manager Lisa Gresham, Collection Support Manager Christina Read, Human Resources Manager Katrina Carabba, Deming Branch Manager

WHATCOM COUNTY LIBRARY SYSTEM WHATCOM COUNTY, WASHINGTON FINAL OPERATING AND CAPITAL EXPENDITURE BUDGET FISCAL YEAR 2016 To obtain copies of this document, or for questions regarding its content, please contact: Kyle Teeter Director of Finance and Administration Whatcom County Library System 5205 Northwest Drive Bellingham, WA 98226 Phone: (360) 305-3600 This document is also available online at the Whatcom County Library System’s website at www.wcls.org .

2016 Budget Introduction – Executive Director’s Message This year will mark the first year of our 2016-2020 Strategic Plan, 2020 Vision. Staff are poised and eager to begin tackling projects in each of our four focus areas: Reading, Engagement, Access and Diligent Stewardship. Key aspects of our plan involve returning to basics and grounding ourselves in the promotion of reading. We want to reach out to new users, and re-engage people who have library cards but don’t use them often. This means we will be continuing our marketing efforts, working with a local firm to let people know all the features of a modern library. Improving our online presence is another priority, so we will be recruiting an Online Services Coordinator and revamping our website to facilitate virtual library use. You’ll note that fiscal stewardship is a cornerstone of our plan. We all acknowledge the importance of spending taxpayer dollars wisely and figuring out how to accomplish our strategic goals in an era of relatively flat income and rising expenses. With flexibility, creativity, and an eye towards partnerships, we believe we can be successful in all regards. This year marks another transition, as this will be the last budget developed by Kyle Teeter. We have been extremely fortunate to have worked with such a capable and thoughtful Finance Director. Not only did Kyle oversee a clear record of clean audits, he diligently crafted each budget and maintained it throughout the year. He will be missed! We expect to have a new Director of Finance and Administration on board some time in January.

-- Christine Perkins Executive Director

WCLS Services Summary Service Area The Whatcom County Library System provides library services in the unincorporated areas of Whatcom County in Washington State, and six annexed cities and towns. The Library served an estimated population of 126,390 in 2015. The Library offers more than 330,000 books, audiobooks, DVDs, electronic resources, and other items. In 2015, people checked out over 1.8 million items and made nearly 775,000 visits to libraries and the bookmobile. In Washington State, 6 library systems, including Whatcom County Library System, serve populations between 100,001 and 250,000. In 2014, Whatcom County Library System ranked 5th among these libraries in population served, 3rd in total items checked out, and 1st in circulation per capita.

Services The Library provides services through ten branch libraries, a bookmobile, homebound services, outreach, and its website. WCLS service hours provide access to a branch seven days a week. Hours are designed so that as much as possible, there is access to library services mornings, afternoons and evenings to meet the needs of the diverse population. In 2015, Homebound Services served 25 health care facilities and group homes, as well as individuals who are homebound. The bookmobile served 4 communities. Teen Services and Children’s Services both partner with schools from 6 Whatcom County school districts to provide annual book talks and programming and programming at elementary, middle, and high schools throughout the county. All Whatcom County Library System services are available to residents and property owners in the Library’s service area, as well as individuals who live in Bellingham and any of the communities with which WCLS holds reciprocal borrowing agreements including Fraser Valley Library System. In Whatcom County Library System’s branch libraries, people may access:  Books, movies, music, and more available for checkout  Free internet access on public library computers or personal laptops and other devices on the Library’s Wi-Fi network  Early learning programs and support for children age birth-to-five; along with programs for children, teens and adults.  Job and business development assistance  Materials and programs in world languages including Russian and Spanish  Public meeting rooms Online, people may access:  Downloadable audiobooks, e-books, and music  Online streaming of audiobooks, music, and movies  Live online reference services  Credible, reliable information from online resources including newspaper and magazine subscriptions. consumer information, vehicle repair manuals, encyclopedias, and other resources  Help for writing resumes, career planning, and finding jobs  Online language learning with courses in Spanish, French, Italian, German, and over 30 other world languages, as well as English courses for speakers of 15 world languages

Major Fund Balance Summary January 1, 2016

Unassigned Beginning Fund Balance Assigned Beginning Fund Balance - Capital Assigned Beginning Fund Balance - Capital Transfer Committed Beginning Fund Balance - Planned Capital Improvement Committed Beginning Fund Balance - Cash Flow Committed Beginning Fund Balance - Emergency Total Estimated Beginning Fund Balance

$

General Fund Capital Fund 5,409,034 $ 688,319 236,987 440,715 2,749,646 436,000 8,395,667 1,565,034

Total Revenues & Other Financing Sources Total Expenditures & Other Financing Uses Total Revenues Net of Total Expenditures

8,275,515 8,485,924 (210,409)

Unassigned Ending Fund Balance Assigned Ending Fund Balance - Capital Assigned Ending Fund Balance - Capital Transfer Committed Ending Fund Balance - Cash Flow Committed Ending Fund Balance - Planned Capital Improvement Committed Ending Fund Balance - Emergency Total Estimated Ending Fund Balance

5,270,512 165,100 2,749,646 8,185,258 $

$

Total Governmental Funds $ 5,409,034 688,319 236,987 440,715 2,749,646 436,000 9,960,701

246,987 464,349 (217,362) 911,672 436,000 1,347,672 $

8,522,502 8,950,273 (427,771) 5,270,512 911,672 165,100 2,749,646 436,000 9,532,930

2016 General Fund Budget Summary Budget Number 308.0000 310.0000 330.0000 340.0000 350.0000 360.0000

Description Estimated Beginning Fund Balance

2013 Actual 2014 Actual $ 6,419,182 $ 7,364,507

2015 Budgeted $ 8,021,786

2015 Projected $ 8,021,786

2016 Budgeted $ 8,395,667

2016 % Budgeted Change 4.66%

Total Taxes Total Intergovernmental Revenues Total Charges for Goods and Services Total Fines and Forfeitures Total Miscellaneous Revenues Total Operating Revenues

7,628,498 161,980 31,492 112,701 92,100 8,026,771

7,650,641 97,869 34,060 107,873 122,852 8,013,295

7,785,215 170,939 34,835 106,500 134,322 8,231,811

7,785,215 170,939 34,835 106,500 134,322 8,231,811

7,921,200 116,475 34,800 86,815 116,225 8,275,515

1.75% -31.86% -0.10% -18.48% -13.47% 0.53%

Total General Fund Revenues

8,026,771

8,013,295

8,243,561

8,243,561

8,275,515

0.39%

572.1000 572.2000 572.3000 572.4000 572.5000

Total Salaries and Wages Total Personnel Benefits Total Supplies Total Services Total Intergovernmental Services Total Operating Expenditures

3,617,970 1,250,948 1,095,618 592,107 148,842 6,705,485

3,733,101 1,347,639 1,317,145 557,329 152,952 7,108,166

4,037,425 1,533,747 1,341,900 812,585 156,050 7,881,707

3,906,324 1,471,147 1,341,900 811,520 156,050 7,686,941

4,200,900 1,656,589 1,346,395 886,810 158,243 8,248,937

4.05% 8.01% 0.33% 9.13% 1.41% 4.66%

596.0000

Total Other Financing Uses

375,961

247,850

182,739

182,739

236,987

29.69%

$ 7,081,446 $ 7,356,016 $ 8,064,446 $ 7,869,680 $ 8,485,924

5.23%

Total General Fund Expenditures

508.0000

Revenues in Excess / (Deficit) of Expenditures

945,325

657,279

179,115

373,881

(210,409)

Estimated Ending Fund Balance

$ 7,364,507

$ 8,021,786

$ 8,200,901

$ 8,395,667

$ 8,185,258

-0.19%

2016 General Fund Revenues

Description Real and Personal Property Taxes Forest Excise Tax Leasehold Excise Tax Refund Intererst Total Taxes

33X.XXXX 335.0232 335.0233 338.7200 330.0000

LSTA State Library Grants DNR Other Trust Revenue DNR Timber Trust Revenue Local Entitlements Total Intergovernmental Revenues

5,831 614 992 154,543 161,980

5,758 540 1,941 89,630 97,869

6,847 500 975 162,617 170,939

6,847 500 975 162,617 170,939

500 975 115,000 116,475

-100.00% 0.00% 0.00% -29.28% -31.86%

341.6000 347.2000 340.0000

Printing and Duplication Services Library Use Fees Total Charges for Goods and Services

23,134 8,358 31,492

24,773 9,287 34,060

26,535 8,300 34,835

26,535 8,300 34,835

26,500 8,300 34,800

-0.13% 0.00% -0.10%

359.7000 350.0000

Library Fines Total Fines and Forfeitures

112,701 112,701

107,873 107,873

106,500 106,500

106,500 106,500

86,815 86,815

-18.48% -18.48%

361.1100 361.9000 362.4000 362.5000 367.1000 369.1000 369.8100 369.9001 369.9002 369.9003 369.9005 369.9012 360.0000

Investment Interest Other Interest Earnings Space and Facility Rental (ST) Space and Facility Rental (LT)(FBL) Contributions and Donations Sale of Discards Overage/Underage Other Miscellaneous Lost/Damaged Materials NSF Fee Recoveries E-Rate Reimbursement COBRA Reimbursement Total Miscellaneous Revenues

24,423 97 3,988 7,371 63 20,156 21,676 (200) 14,526 92,100

33,938 (64) 2,348 29,650 110 (172) 20,733 22,590 (87) 13,806 122,852

48,890 135 1,445 18,135 1,150 29,175 22,500 12,892 134,322

48,890 135 1,445 18,135 1,150 29,175 22,500 12,892 134,322

50,000 125 1,500 3,750 100 16,500 22,750 21,500 116,225

2.27% -7.41% 0.00% 3.81% -79.32% -91.30% 0.00% -43.44% 1.11% 0.00% 0.00% -100.00% -13.47%

$8,026,771

$8,013,295

$8,231,811

$8,231,811

$8,275,515

0.53%

-

-

11,750 11,750

11,750 11,750

-

-100.00% -100.00%

$8,026,771

$8,013,295

$8,243,561

$8,243,561

$8,275,515

0.39%

Total Operating Revenues 395.1000 390.0000

Proceeds From Sale of Capital Assets Total Other Financing Sources Total General Fund Revenues

2013 Actual 2014 Actual $7,540,881 $7,581,646 66,203 47,646 21,414 21,349 7,628,498 7,650,641

2015 2015 2016 Budgeted Projected Budgeted $7,713,900 $7,713,900 $7,874,200 64,315 64,315 40,000 7,000 7,000 7,000 7,785,215 7,785,215 7,921,200

2016 % Budgeted Change 2.08% -37.81% 0.00% 0.00% 1.75%

Budget Number 311.1000 312.1000 317.2000 319.8300 310.0000

Taxes: Taxes on real and personal property represent the primary revenue source for the library system and support the District’s continued operations. Based on the most recent information provided to the District by the County Assessor, an increase of assessed valuation of the value of existing property of approximately 2.1% for 2016 assessed valuations. The impact of this, as well as the impact of the value of new construction has been factored in to 2016 budgeted property tax collections. Given this scenario, the District anticipates that its levy rate will remain at the statutory maximum of $.50 per $1,000 of assessed valuation. The impact of any changes in these assumptions due to updates in assessed valuations prior to the certification of the County Assessor will result in adjustments to 2016 budgeted revenues based on the impact upon collectability. The budgeted 2016 revenues from real and personal property taxes as presented also includes an allowance for uncollected taxes levied for 2016. Other sources of tax revenue are the private harvest timber tax and the leasehold excise tax. When timber is harvested from private lands, the person or business who owns the timber at the time of the harvest pays a harvest tax. The leasehold excise tax is a tax paid by persons or businesses that use or lease publicly owned property. These sources are budgeted at levels consistent with prior year budgeted amounts. Revenue from the sale of tax title property is not budgeted but recorded in mid-year budget adjustments. The same holds true for the debiting of property tax refund interest. Intergovernmental Revenue: Sources of intergovernmental revenue include grant revenues received from state and federal sources, revenues resulting from the sale of timber and other products from state forest lands that are managed by the Department of Natural Resources, and library services rendered for other governmental entities. In 2014, WCLS was awarded one Library Services and Technology Act (LSTA) grant that carried over into the 2015 fiscal year; the indirect federal grant was distributed by the State of Washington. Because the grant was completed, no receipts are budgeted for 2016. Historically, revenues from the sale of timber and other products from state forest lands have fluctuated from year to year as market forces, including variations in the housing market, impact the rate of harvest in Whatcom County. Based on the volume and the current net value under contract through December 2016, 2016 shared revenues have been budgeted consistent with prior years. Due the variability in the distribution of these revenues, WCLS will budget to reserve these and other similar shared revenues for transfer to the Capital Fund. Charges for Goods & Services: Sources of revenues from charges for goods and services include printing and photocopy fees and library use fees. All of WCLS’ branches provide printers and photocopiers for public use. The 2016 budgeted amount is consistent with the 2015 budgeted amount as these revenues are estimated to be collected at similar rates to prior years. Library use fee revenues are generated from the sale of library cards to non-residents, and through contracted services with other entities. Patrons who are not residents of the library district, and who are not covered by a reciprocal borrowing agreement with another library system, can check out materials from any of WCLS’ branches by obtaining a non-resident card. WCLS currently contracts with the Whatcom County Sherriff’s Office to provide library services to the Whatcom County Jail. Revenues related to non-resident and contract use are expected to be consistent with prior year.

Library Fines: These revenues are derived from fines on overdue materials. Due to the anticipated changes to circulation policies in an effort to reduce barriers to use, as well as declining circulation of physical materials as patrons increase the use of digital collections, revenues from library fines are budgeted to decrease 18.5% in 2016. Miscellaneous Revenues: This source of revenue includes investment interest, junk sales of assets, donations, room rentals, other miscellaneous revenue, COBRA reimbursements, library card replacement fees, and E-Rate reimbursements. On a monthly basis, WCLS invests any substantial amounts of excess cash available after calculating immediate expenditure needs. WCLS participates in the Whatcom County Investment Pool program administered by the Whatcom County Treasurer. The program is a stable investment pool with various taxing district participants. Given the recent rate of return of the investment pool, the amount budgeted for 2016 is $50,000. No major changes are anticipated for forest board land interest, room rentals, miscellaneous rents and leases, contributions and donations, sale of discards, and revenue from lost/damaged library materials. Other miscellaneous revenues come from continuing education grants administered by the Washington State Library, reimbursements from BPL for distributing patron notices, and other miscellaneous cash receipts. Recent updates to eligible products and services under the Schools and Libraries Federal E-Rate Program have made a portion of WCLS’s communications expenditures reimbursable under the program. WCLS anticipates a total of $21,500 in reimbursements in 2016. COBRA reimbursements are from separated employees or those who lose health insurance coverage because of reduced work hours; federal law allows these employees to purchase group health insurance coverage for themselves and their families for limited periods of time. Due to the nature of COBRA revenues, no amount will be budgeted for 2016, but the budget will be supplemented throughout the 2016 fiscal year to reflect actual collections. Other Financing Sources: This source of non-operating revenue includes proceeds from the sale of capital assets and transfers in from the Capital Fund. No General Fund revenues are budgeted from these sources in 2016.

2016 General Fund Expenditures

Description Salaries and Wages Personnel Benefits Total Salaries, Wages, & Benefits

2013 Actual $3,617,970 1,250,948 4,868,918

2016 Budgeted $4,200,900 1,656,589 5,857,489

2016 % Budgeted Change 4.05% 8.01% 5.14%

572.3031 572.3032 572.3034 572.3035 572.3000

Office and Operating Supplies Fuel Consumed Collection Materials Small Tools and Minor Equipment Total Supplies

$ 69,477 $ 90,598 $ 94,725 $ 94,725 $ 90,000 $ 21,770 $ 19,307 $ 22,500 $ 22,500 $ 16,500 $ 910,612 $1,011,469 $1,028,625 $1,028,625 $1,062,570 $ 93,759 $ 195,771 $ 196,050 $ 196,050 $ 177,325 1,095,618 1,317,145 1,341,900 1,341,900 1,346,395

-4.99% -26.67% 3.30% -9.55% 0.33%

572.4041 572.4042 572.4043 572.4044 572.4045 572.4046 572.4047 572.4048 572.4049 572.4000

Professional Services Communication Travel Taxes and Operating Assessments Operating Rentals and Leases Insurance Utility Services Repairs and Maintenance Miscellaneous Total Services

$ $ $ $ $ $ $ $ $

151,405 $ 157,599 $ 337,365 $ 337,365 $ 407,700 121,654 $ 114,176 $ 119,640 $ 119,640 $ 121,805 13,240 $ 22,546 $ 27,100 $ 27,100 $ 27,575 2,090 $ 2,121 $ 2,000 $ 2,000 $ 2,500 19,323 $ 18,311 $ 25,100 $ 25,100 $ 25,100 38,472 $ 35,513 $ 47,500 $ 47,500 $ 47,775 108,250 $ 106,674 $ 113,250 $ 112,185 $ 121,500 105,191 $ 64,536 $ 97,450 $ 97,450 $ 88,900 32,482 $ 35,853 $ 43,180 $ 43,180 $ 43,955 592,107 557,329 812,585 811,520 886,810

20.85% 1.81% 1.75% 25.00% 0.00% 0.58% 7.28% -8.77% 1.79% 9.13%

572.5051 572.5000

Intergovernmental Professional Total Intergovernmental Services

$ 148,842 $ 152,952 $ 156,050 $ 156,050 $ 158,243 148,842 152,952 156,050 156,050 158,243

1.41% 1.41%

Total Operating Expenditures

$6,705,485

$7,108,166

$7,881,707

$7,686,941

$8,248,937

4.66%

Transfers-Out To Capital Fund Total Other Financing Uses

375,961 375,961

247,850 247,850

182,739 182,739

182,739 182,739

236,987 236,987

29.69% 29.69%

$7,081,446

$7,356,016

$8,064,446

$7,869,680

$8,485,924

5.23%

945,325

657,279

179,115

373,881

(210,409)

Budget Number 572.1000 572.2000 572.10-20

597.0000 596.0000

Total Fund Expenditures Revenues in Excess / (Deficit) of Expenditures

2015 2014 Actual Budgeted $3,733,101 $4,037,425 1,347,639 1,533,747 5,080,740 5,571,172

2015 Projected $3,906,324 1,471,147 5,377,471

Salaries and Benefits: For the 2016 budget, WCLS continues to carefully evaluate staffing levels, and to allocate staff to best maintain current service levels while balancing current and future budgetary constraints. A Cost of Living Adjustment (COLA) of 1.6% has been included in staff salaries and wages based on the results of Interest-Based Bargaining union negotiations. Based on the salary structure established by the compensation study conducted by the Singer Group, proficiency increases for 2015 are budgeted at 3% or 1% depending where an employee’s salary falls on the 2016 salary scale. Benefit costs include employer contributions for employees who are in the State of Washington retirement system (PERS), contributions into the Social Security system, medical and dental premiums, workers’ compensation (L&I), and unemployment compensation. Retirement contributions are based on rates as determined by the State of Washington Department of Retirement Systems. The current employer contribution is 11.18% of gross wages. The employer contribution for Social Security is budgeted at 7.65% of gross wages and salaries. This rate is set by the Social Security Administration. The medical and dental premium costs are shared by the employer and employees who are eligible to participate in the medical and dental plans. Based on rate information from the District’s benefit providers, the District anticipates a 6.6% increase in medical premiums and a 2.06% in dental premiums. Based on preliminary 2016 rate information and anticipated changes in WCLS’ experience factor, a 2% increase is budgeted for total workers’ compensation rates. These rates are set by the State of Washington Department of Labor and Industries. WCLS is on a reimbursable plan with the State of Washington for unemployment compensation. 0.15% of gross wages is budgeted for possible reimbursements. Office and Operating Supplies: The supplies category includes office supplies, custodial and maintenance supplies, computer, copier, and printer supplies, materials processing supplies, mailing and shipping supplies, vehicle supplies, and replacement parts. For 2016, the budgeted amount is 4.99% lower than the 2015 budget primarily due to a one-time supplies purchase of $9,625 in support of the Books for Babies program funded by a grant from the Whatcom County Library Foundation not being carried into 2016. Fuel: This is diesel and gasoline for WCLS’ Bookmobile and other vehicles. The amount budgeted for 2016 has decreased by 26.67% from the 2015 budgeted amount due to anticipated decreasing fuel costs and decreased fuel usage as more efficient vehicles are added to WCLS’s fleet. Collection Materials: The collection materials budget provides for the books, magazines, audiobooks, music CDs, DVDs, and CD-ROMs that comprise the heart of the library’s traditional services. WCLS provides its patrons a continuous supply of new materials in print, sound, video and digital format, and current information to support school, work, and recreational activities. WCLS has set a target for collection materials of 13% of total 2016 operating expenditures. To ensure alignment with WCLS’ Strategic Plan, an effort is being made to maintain the amount allocated for the Collection Materials and Collection Databases to levels comparable with state and national averages as compared to total operating expenditures.

Minor Equipment: This category includes furniture, computers, computer hardware, software, printers, delivery totes, shelving, book returns, and book carts. Due primarily to a high volume of one-time furniture and software purchases in 2015, minor equipment expenditures are expected to decrease approximately 9.55% in 2016. Professional Services: The amount budgeted in this category includes costs for legal services, computer programming, the services of OCLC (for cataloging and interlibrary loan), delivery services, consultant services, and Employee Assistance Services (EAP). Professional services expenditures are expected to increase by nearly 21% as WCLS is transitioning its Integrated Library System from an owned software with a repair and maintenance contract to a cloud-based software-as-a-service subscription. The cost increase is reflective of onetime implementation costs as well as ongoing service costs. Communications: This category includes postage, UPS, FedEx, and other courier services, local and long distance voice service, fiber optic circuits which link Central Services to the integrated library system, the branches, the library network and the Internet, DSL circuits in the smaller branches to meet patron demand for additional Internet services, and cable data circuits for Bookmobile sites. Due primarily to increases in postage and shipping costs, 2016 budgeted communications expenditures have increased by 1.8% over the 2015 budget. Travel: This includes reimbursement to employees and Board of Trustees for use of personal automobiles on WCLS business and travel expenses associated with attendance at continuing education events, conferences, and seminars. WCLS’ mileage reimbursement rate is currently set at $.575 per mile. The 2016 budgeted amount increased 1.75% due to increased staff travel for substitution and training-related travel. Taxes and Operating Assessments: Included in this category are the sales taxes paid on printing and duplication services provided to patrons. Rentals: This category is for leasing a postage meter, copiers, and post office box rentals. The 2016 costs are anticipated to remain consistent with 2015 based on the terms and values of current contracts. Insurance: This includes all insurance for WCLS’ real and personal property, flood insurance, vehicle insurance, errors and omissions, employment practices, and an umbrella plan. 2016 budgeted premiums are anticipated to be 0.6% higher than prior year due to an anticipated rate increases and planned coverage adjustments. Utilities: This category pays for electricity, natural gas, water, sewer, and refuse collection for all of WCLS’ branches. The 2016 costs are anticipated to be 7.28% higher based on anticipated usage levels and increasing utility rates. Repair & Maintenance: In this category are costs for office equipment and telecommunications equipment maintenance, software maintenance, vehicle repairs, and on-going facility repairs and maintenance. An 8.77% decrease is budgeted due primarily to the elimination of WCLS’s software maintenance contract on its Integrated Library System, as that product is shifted to a software-as-a-service subscription model. Miscellaneous: This includes board and WCLS memberships in the Washington Library Association (WLA) and other professional organizations; sales tax on photocopier money that is collected at the branches; refunds to patrons who have paid for lost books and later found and returned them; training registration, and miscellaneous fees. The 2016 budget amount reflects a 1.8% increase from 2015 budgeted expenditures due to increased funding for training registrations and membership costs.

Intergovernmental Professional Services: This category includes payment to the Bellingham Public Library (BPL) as required by a Memorandum of Understanding, which supports the cost of walk-in service at BPL by county residents. An inflationary increase of 1.2% has been budgeted for the contract payment. Also included is payment to Fire District No. 7 for fire protection for the Central Services building. According to Washington State statute, this payment to the local fire district is in lieu of property taxes. WCLS does not pay property taxes on the property it owns because it is a governmental entity. Other Financing Uses: In an effort to restore adequate funding to the Capital Fund, a $236,987 transfer to the Capital Fund is planned for 2016.

2016 Capital Fund Budget Summary Budget Number 308.0000

Description Estimated Beginning Fund Balance

361.1100 367.1100 360.0000

Investment Interest Gifts, Pledges, and Private Grants Total Miscellaneous Revenues

397.0000 390.0000

Transfers-In From General Fund Total Other Financing Sources

2015 2016 2013 Actual 2014 Actual Budgeted Budgeted $ 1,584,969 $ 1,832,231 $ 1,590,360 $ 1,565,034 6,615 6,615

8,446 23,217 31,663

10,250 6,350 16,600

10,000 10,000

-2.44% -100.00% -39.76%

375,961 375,961

247,850 247,850

182,739 182,739

236,987 236,987

29.69% 29.69%

1,967,545

2,111,744

1,789,699

1,812,021

1.25%

50,618 4,228 80,468 135,314

2,593 518,791 521,384

224,665 224,665

87,000 19,349 358,000 464,349

0.00% 0.00% 59.35% 106.69%

464,349

106.69%

$ 1,832,231 $ 1,590,360 $ 1,565,034 $ 1,347,672

-13.89%

Total Capital Fund Resources 594.6062 594.6063 594.6064 594.0000

Buildings and Structures Other Improvements Machinery and Equipment Total Capital Expenditures Total Capital Fund Expenditures and Other Uses

508.0000

Estimated Ending Fund Balance

2016 % Change -1.59%

$

135,314

$

521,384

$

224,665

$

2016 Capital Projects New Branch Furnishings, Fixtures & Equipment - $95,000 WCLS anticipates the possibility of opening a new library in Point Roberts near the end of 2016. As part of its agreements with the communities that it serves, WCLS agrees to supply the furnishings and equipment necessary to provide library service in the community-provided buildings. This project, which will have additional funding available in 2016, will provide the resources to create open and enriching environments in this location. Existing Branch Interior Enhancements - $163,000 WCLS is working to adequately address the aging furnishings and improvements in its branch libraries. This project is intended to foster an open and enriching environment, as well as to increase staff efficiency through the creation of well-designed workspaces. The amount budgeted for 2016 reflects the current portion of a multi-year plan to address branch needs. This amount also includes improvements to staff areas to improve staff safety and efficiency, and the purchase of automated external defibrillators to be made available in each WCLS location. Vehicle Replacement - $65,000 In 2016, WCLS has budgeted to purchase a replacement for a delivery truck through either a cooperative purchasing contract or a local dealer.

2015 Capital Projects – Carry-Over Administrative Services Building IT Services Reconfiguration - $87,000 The Building Repair and Maintenance Program includes funding for a reconfiguration of the IT Services department office at WCLS Administrative Services to improve the efficiency of departmental processes and maximize the productivity of current staffing levels. This project is scheduled to be completed in 2016. North Fork Paving - $19,349 The Building Repair and Maintenance Program also includes funding for a WCLS’s contribution to the pavement and striping of the parking lot at the North Fork Library. Patron Service Technology Enhancements - $35,000 In an effort to enhance patron service and to respond to the increased use of personal devices in its branches, WCLS will expand the printing capabilities in its branches to allow for printing over its Wi-Fi network.

SCHEDULE OF FINES AND FEES Borrower’s Policy Attachment A

POLICY AUTHORITY: Borrower’s Policy DATE: DECEMBER 13, 2011; REVISED: NOVEMBER 27, 2012 1. Nonresident card fees: a. Family Fee b. Adult Fee (18-65) c. Child Fee (under 18) d. Senior (65 and older)/Disabled Fee

$52.00 (up to 8 cards) $40.00 $20.00 $20.00

2. Visitor’s Card Fee

$5.00 per month

3. If library materials are returned late: a. Items classified as adult items, checked out by minors or adults following a 2 day grace period. b. Items classified for children and teens, checked out by minors on children’s cards c. Items classified for children and teens and checked out on an adult card following a 2 day grace period

$0.25 per day to a maximum fine of $10.00.regardless of card used. No overdue fines; items that are more than 60 days overdue will be considered lost. Damaged and lost fees apply. $0.10 per day per item to a maximum fine of $5.00.

4. If the account is submitted to collection agency:

$10.00

5. If an adult borrower fails to pick up a requested adult item prior to the pickup deadline:

$.50

6. Lost items or missing parts: a. Lost items will be charged to the patron’s account at their replacement value according to library records b. Missing parts that are not returned by a specified date will incur a missing part fee:

$5.00