10/10/2002 - Packet AGENDA
TIGARD LIBRARY BOARD
THURSDAY, OCTOBER 10, 2002 - 7:00 P.M.
TIGARD PUBLIC LIBRARY—PUETT ROOM
13125 SW HALL BLVD.
TIGARD, OREGON
1. CALL TO ORDER Braun
2. ROLL CALL: BRAUN CHAPMAN DIAMOND KASSON
LAWTON SMITH THENELL TURLEY
3. Approve Minutes of September 19, 2002. Braun
4. Agenda Additions and Deletions. Braun
5. Call to the Public. Braun
6. Monthly Report for September 2002. Barnes
7. WCCLS Local Option Levy. Barnes
8. CLAB/LDB Report. Barnes
9. WCCLS Funding Formula. Barnes
10. New Library. Chapman
11. Library Foundation. Diamond
12. Board Communications. All
(Reports from Board members on community and citizen activities)
13. Other Business.
14. Adjournment.
TO ENSURE A QUORUM TO CONDUCT BUSINESS, PLEASE CALL CONNIE MARTIN OR
MARGARET BARNES AT THE LIBRARY (503-6S4-6537), IF YOU ARE UNABLE TO ATTEND.
Agenda items for future meetings:
10docs\coIII]ieAIib-a
TIGARD LIBRARY BOARD
MINUTES
September 19, 2002
Call to Order: 7:02 p.m., by Chair Braun.
Roll Call: Anne Braun, David Chapman, Sue Kasson, Jeff Lawton, Jane Smith and Jan
Thenell. Staff: Margaret Barnes and Connie Martin.
Minutes: Chapman moved to approve and accept the minutes of July 11, seconded by
Lawton. Motion passed unanimously.
Agenda Additions and Deletions: None.
Call to the Public: None.
Reports: July and August Monthly Reports: Barnes announced that both July and
August circulations were very busy. Sundays and Mondays appear to be
the busiest days of the month. In August, the library was closed for the
Library's annual All-Staff Development Day. The morning session
consisted of a panel of staff representing other libraries that had recently
gone through an addition or the building of a new library. They provided
staff with lots of informative information on what to look for, watch out for
and what was important to remember when going through this process.
The Summer Reading program registered 1 ,100 kids and the completion
rate was 60 percent; 20 percent higher than last year's program. 150
people attended the library's second annual storytime with TVF&R.
Firemen read stories and kids were able to get their pictures taken with
the fire trucks. Staff has installed the time out software, (SAM) on the
public Internet workstations. It appears to have freed up staff time and it
will keep statistics without staff having to manually generate figures.
WCCLS Local Option Levy:
The WCCLS Local Option Levy is on the November 2002 ballot. This levy will provide
operating funds for member libraries of the Cooperative. Barnes distributed an
informational brochure about the measure published by WCCLS. A Political Action
Committee has formed and has filed several arguments in favor of the measure in the
voter's pamphlet. The five-year levy is projected to be at the rate of 26¢ per $1,000
assessed valuation for Washington County property owners. If the measure does not
pass, each library in the cooperative, including Tigard, would receive a decrease in the
overall funding support from the Cooperative.
CLAB/LDB:
There was discussion of the funding formula. Two consultants have been hired to
assist with the discussion and analysis of how funds should be dispersed. Two options
would be to use the 2003 year as the base year with a three percent cost increase for
the three-year contract — or — the dispersment of funds would be measured out to each
libraries circulation figures. The Formula Committee is projected to have something
completed by the first of the year.
Library Bill of Rights:
Barnes presented the Library Bill of Rights statement to the Board. The Library Bill of
Rights offers guiding principles and policies for libraries. The Board discussed their
views on the Library Bill of Rights. Thenell moved to endorse and reaffirm the
philosophy of the Library Bill of Rights, seconded by Smith. Motion passed
unanimously.
Freedom to Read:
The Board reviewed and discussed the Freedom to Read. Barnes asked the Board if
they were in agreement and would support the library providing a wide variety of view
points, recognizing a wide spectrum of interests without censorship. Board discussed.
It was moved by Chapman and seconded by Lawton/Kasson to reaffirm and endorse
the Freedom to Read document. Motion passed unanimously.
Patriot Act:
The Patriot Act was enacted in response to the terrorist acts of September 11 , 2001.
Library staff Cheryl Silverblatt and Erik Carter provided a synopsis of the Act. The
Patriot Act could affect libraries everywhere in the way information, particularly web
based information, is handled. It appears that with this Act, FBI representatives will be
allowed to request any information without a court order and staff would not be allowed
to share that information is being requested. Library staff will do further research on
how this is being handled nationwide. Thenell suggested that the Board revisit this topic
at a later date and is curious as to what the City Attorney would conclude about the Act.
It was suggested that Tigard put up some sort of warning/disclaimer about the Act.
Barnes noted that the disclaimer be consistent County-wide.
New Library:
The newly named New Library Resource Team met September 9. SRG Partnership
has been awarded the contract to design the new library. SRG Partnership will
incorporate all of the information generated, but will also go through the process again
of gathering input on defining Tigard and the new library. The community will have an
opportunity to give input on the interior design at the Community Meeting Wednesday,
October 16. There will be a follow-up meeting with the community on December 11.
Barnes shared with the Board that they were invited to attend the meeting of the New
Library Resource Team on Monday, September 30 at 6:30 p.m. in the Puett Room.
Barnes announced that the project firm for the new library is Shiels Obletz Johnsen and
the project manager is Charlie Bahlman. Sale of the bonds should move ahead in
October and the City should have funds by mid-October.
Library Foundation:
Kasson reported the Foundation is planning for some fundraising events in the future.
The Foundation is in the process of recruiting new members and will hold its next
meeting Tuesday, October 8.
Board Communications: None.
Other Business: Friends book sale is Friday, September 20 and Saturday,
September 21.
Adjournment: It was moved by Kasson, and seconded by Chapman to adjourn the
meeting at 8:22 p.m. Motion passed unanimously.
Next meeting is scheduled for October 10, 2002.
WORK INDICATORS PTEMBER 2002 SEPTEMBER , 1 SEPTEMBER 2000
Circulation
Total (from WCCLS) 53,681 48,511 46,858
(Self-Check machine) 3,384 2,226
Days of Service 29 29 27
Average Daily Circulation 1,851 1,673 1,736
Hours of Service 280 276 264
Materials
Circulated per Hour 192 176 178
Increase in Circulation +11% +4% +9%
Materials Added 1,696 1,410 1,615
Materials Withdrawn 2,067 1,684 478
Borrowers Registered 333 257 341
Cultural Passes Program 160 (YTD) 138 (YTD) N/A
37 (Month) 47 (Month)
Adult Programs 19 127 88
(Number of sessions) (7) (10) (7)
Story Time 90 0 0
(Number of Sessions) (4) (0) (0)
Toddler Time 160 0 0
(Number of Sessions) (4) (0) (0)
Special Programs 175 40* 192
(Number of Sessions) (3) (1 ) (13)
Children's Computer 91 116 91
Word Processors 88 225 320
Internet Users 4,831 4,046 3,227
Typewriter Users 22 15 N/A
Visitors
(Gate count _ by 2) 22,410 21 ,129 19,111
Increase in Visitors +6% +11% +8%
Fines/Fees Collected $5,034.75 54,687.03 S4,013.13
Gifts Received $ 0.00 S 0.00 S 0.00
—r
WCCLS Issue Paper#2
Washington County Cooperative Library Service
Cooperative Library Advisory Board
Funding-Formula Project
Issue Paper #2
City of Tigard Comments
September 23, 2002
We read Pigott and Donovan's Issue paper#2, and we appreciate the information
presented. We were disappointed, however that the paper did not attempt to use a
measure of Basic Services based on Personal Services costs or total staff and
volunteer hours worked as CLAB had discussed. It was our understanding at the last
CLAB meeting that the majority of the board was interested in testing a Personal
Services-based measure to see if this method would provide an acceptable basis of
distributing WCCLS funding.
We agree with Issue Paper#2 that defining Basic Services would be a lengthy (and
difficult) process, and we recognize that this task is beyond the scope of the
consultant's current engagement. Much of the discussion at the September meeting
was focussed on how to deal with this situation. We are interested in exploring a
Personal Services-based measure as a proxy for Basic Services. We do not feel that a
formula based on the prior-year distribution provides any sort of measure of Basic
Service.
CLAB held several discussions of prior-year-based formulas prior to the engagement of
Pigott and Donovan. We looked at several different scenarios as a group. In addition,
the City of Tigard also ran several analyses based on this concept, and we would be
happy to share all of these analyses with CLAB and the consultants. Based on all of
this work to date, we see the following shortcomings in the prior-year-based formula for
Basic Services:
1. The prior-year-based formula bears no connection to Basic Services. Different
libraries offer different levels of service. A prior-year-based formula will lock
these different levels in for the life of the formula.
2. To the extent that any member libraries feel that there are inequities in the
current distribution formula, a prior-year-based distribution will lock those
inequities in for the life of the formula and will do nothing to address that
perception.
3. The prior-year-based formula does not adjust for new or expanded libraries
coming on line. In the example shown in Issue Paper#2, there appears to be no
allowance for new or expanded libraries beyond the allocation for Enhanced
Services (based on higher circulation). In the sample presented, Enhanced
Services never become part of the base.
4. We compared the sample funding presented in Issue Paper#2 with the original
needs projections that formed the basis of the special levy request. This
comparison shows some libraries receiving substantially more money from the
prior-year-based formula over the five-year period than they said that they need,
while most libraries do not meet their projected need. We recognize the
limitations of this comparison due to the lack of consistency and common
approach in those original projections, yet we feel that this is still an issue of
concern.
5. The example run by Pigott and Donovan used a 3% per year inflation factor. In
our previous discussions of prior-year-based formulas, we believe that CLAB
reached consensus on a blended growth rate consisting of the 4% guaranteed
growth in County General Fund allocations and actual growth in assessed value
for the special levy portion of the funding. If we decide to accept the prior-year-
based formula, we should use the blended growth rate.
Despite our misgivings about the Basic Service portion of the sample presented in Issue
Paper#2, we feel that we are getting close on the Enhanced Service Level portion. We
would like to suggest, however, that circulation as traditionally calculated is no longer an
adequate measure. We feel that the circulation measure needs to be modernized to
reflect one of the primary features of a cooperative library service and to reflect modern
forms of information exchange:
1. Check in/Check out — One of the primary advantages of a cooperative library
service is the ability of our clients to check materials out of one library and return
them to another. The complete circulation transaction is to check materials out
and to check them back in, yet traditionally libraries have counted only check-
outs as circulation. For most of our libraries, the number of check-outs is not the
same as the number of check-ins. We suggest that we calculate circulation
based on either the total number of check-outs plus check-ins, or the total
number of check-outs plus check-ins divided by two.
2. Libraries are in the business of circulating information. Traditionally, all
information circulated was in the form of print materials. Later this was expanded
to include audio and visual materials. Nowadays, we also circulate information
via computers and the Internet. We need to reflect public computer access as a
measure of Enhanced Service Levels. There are programs that track computer
workstation usage. Using the SAM program, or some other timing software, we
would like to see hours of public computer workstation usage as one of the
measures of Enhanced Services. This data could either be rolled into the
circulation data, or we could develop a formula consisting of both circulation and
hours of public computer work station usage. If hours of usage are not easily
captured, we would look to some other measure of this important aspect of
modern library services.
In summary, Tigard has been encouraged by the work of CLAB on the funding formula
over.our last two meetings and by the work of Pigott and Donovan. We were
disappointed in Issue Paper#2 because it appears to represent a reversion to ground
already covered. We would like to see an analysis of a Personal Services-based
measure of Basic Services to see whether that approach would hold any benefits for
WCCLS member libraries. Once that analysis is done, we will be better able to judge
which option holds the most promise, and what work remains to craft the best solution
for all member libraries.
WASHINGTON COUNTY COOPERATIVE LIBRARY SERVICES
COOPERATIVE LIBRARY ADVISORY BOARD
ISSUE PAPER NO. 2
Issue Title: Application of Fixed (basic) and Variable (enhanced) Service Levels
to the WCCLS Reimbursement Formula
Discussion:
Issue Paper No. 1 discussed a possible alternative to the current circulation-based
reimbursement formula. In that paper an analysis was presented that argued why the
current formula is not consistently meeting the needs of all member libraries in terms of
reimbursement stability and predictability. The Issue Paper restated the mission and
goals of the Cooperative while documenting how the existing reimbursement formula
works. It then identified why the formula has a disconnect between the mission of the
Cooperative and the actual reimbursements that are made to the membership. The
outcome of Issue Paper No. 1 was an alternative that consisted of"fixed" and "variable"
components of a new reimbursement formula which employs generally accepted
approaches toward cost and revenue allocation. After presenting this idea to the
Cooperative Library Advisory Board (CLAB) at their September 4, 2002 meeting, the
approach was refined such that the fixed element was changed to "basic service level,"
and the variable element was changed to "enhanced service level."
After considerable discussion of this new model, the CLAB directed staff and the
consultant team to test this approach on available data. The purpose of this testing is to
forecast the impact such a formula change would have on the member libraries.
Analysis:
The platform for this analysis is the financial analysis that was completed for Measure
34-54 (local option levy to maintain & enhance countywide library services) by WCCLS
staff. A second element is the forecast of circulation for the member libraries through
fiscal 2008. This forecast was also developed by WCCLS staff based on WILInet
historical data.
Itemized in the following tables are these two data sets:
WCCLS Issue Paper No.2' Page 1
09/27/2002
r-
�s
Washington County
Five-Year Local Option Levy Summary Statement of Revenues and Expenditures
FY03-04--FY07-08
FY04 FY05 FY06 FY07 FY08 Total'
Estimate Estimate Estimate Estimate Estimate
Resources
Beginning Balance $1,714,000 $4,619,747 $5,879,290 $5,960,590 $5,190,835 $1,714,000
General Fund Transfer $11,562,924 $12,025,441 $12,506,459 $13,006,717 $13,526,986 $62,628,526
Current Property Taxes $8,511,808 $8,979,957 $9,473,855 $9,994,917 $10,544,637 $47,505,173
Delinquent Taxes $0 $121,656 $164,307 $204,474 $218,582 $709,019
Interest Earnings $165,467 $248,679 $277,156 $267,898 $198,220 $1,157,420
Departmental Revenue $183,128 $97,297 $99,111 $100,963 $102,886 $583,385
Total Revenues $20,423,327 $21,473,030 $22,520,888 $23,574,968 $24,591,311 $112,583,524
Total Resources $22,137,327 $26,092,777 $28,400,177 $29,535,559 $29,782,146 $114,297,524
Expenditures
Public Library Support $13,499,988 $15,254,986 $17,238,134 $19,479,092 $22,011,373 $87,483,573
Central Support Services $3,817,593 $4,758,501 $4,501,455 $4,665,632 $4,902,891 $22,646,072
Arts&Cultural Initiatives $200,000 $200,000 $200,000 $200,000 $200,000 $1,000,000
Contingency $499,998 $499,998
Total Expenditures $17,517,580 $20,213,487 $22,439,587 $24,344,724 $27,114,265 $111,629,643
Ending Balance $4,619,747 $5,879,290 $5,960,590 $5,190,835 $2,667,881 $2,667,881
Total Resources only includes FY04 Beginning Balance.
Washington County Cooperative Library Services
Forecast of Circulation by Member Library
FY03-04-FY07-08
ACTUAL ACTUAL FORECAST
2001 2002 2003 2004 2005 2006 2007 2008
Banks Public Library 27,250 32,061 32,984 33,934 34.912 35,917 36,951 38,016
Beaverton City Library 1,475,618 1,623,085 1,667,071 1,712,248 1,758,650 1,806,310 1,855,261 1,905,538
Cedar Mill Comm.Library 793,823 951,811 1,123,137 1,325,302 1,449,615 1,585,589 1,734,317 1,896,996
Cornelius Public Library 38,266 41,511 41,083 40,660 40,241 39,827 46,996 55,455
Forest Grove City Library 199,519 223,735 264,007 311,529 313,834 316,156 318,496 320,853
Garden Home Comm.Library 94,360 123,391 148,069 177,683 213,220 255,664 307,036 368,444
Hillsboro Libraries:
Books By Rail 28,422 26,888 28,232 29,644 34,980 41,276 43,340 45,507
Shute Park 641,825 740,643 804,190 873,190 1,030,364 1,215,829 1,320,147 1,433,416
Tanasbourne Branch 748,908 843,138 948,615 1,067,286 1,259,398 1,486,089 1,671,999 1,881,166
Sherwood Public Library 153,056 151,534 225,574 280,298 348,299 432,796 537,792 668,261
Tigard Public Library 595,935 669,297 711,998 757,424 893,760 1,054,637 1,121,922 1,193,501
Tualatin Public Library 251,851 317,273 323,492 329,832 336,297 342,888 404,606 477,437
West Slope Comm.Library 170,658 190,577 205,709 222,042 239,672 258,702 279,243 301,415
Total - 5,219,491 5,964,944 6,524,162 7,161,072 7,953,241 8,871,880 9,678,110 10,586,005
%Increase for all Libraries 14.28% . 9.38% 9.76% 11 06% 11.55% 9 09% 9.38%
Note* Circulation forecasts predicated on ten(10)year historical average circulation increases for each library:with the following exceptions
(20%per year average for Garden Home,18%increase used for years of new construction plus the following year or the effected library(see
dates below))
New Library Buildings/Renovations/Branches.
Beaverton 2000 Circulation Average Increases
Cedar Mill 2001 &2003 15 year average 9 5%
Forest Grove 2002 10 year average 5.9%
Hillsboro/Tanasbourne/BBR 2004 2005? 5 year average 5.0%
Sherwood 2004 2005?
Tigard 2004 Projected increase between 2000-01 and 2007-08 for all libraries: 102.82%
Tualatin 2006 Average increase per year from 2001-02 to 2007-08: 10.64%
Garden Home 2006
Cornelius 2007
WCCLS Issue Paper No.2 Page 2
09/27/2002
The first step in this process is to define basic and enhanced services. Based on CLAB
discussion, a cost of service approach toward defining "basic" would be a lengthy process
and beyond the scope of this project.. Therefore, for this analysis, basic service is defined
as simply the amount of money that each member was actually reimbursed in fiscal 2003.
This amount is adjusted for a 3.0% per year inflation factor over the five year forecast
horizon ending in fiscal 2008. This horizon is consistent with the time frame established
for Measure 34-54.
Enhanced services are defined as a reimbursement amount that is based solely on
projected circulation after the basic service level has been funded from available
resources. The calculation takes total available dollars from the enhanced budget pool as
the numerator and the total anticipated circulation as the denominator. This results in a
cost/circ that is applied to each member's forecasted circulation. This prospective look is
by way of illustration. If this methodology were accepted, the cost/circ would be
calculated based on actual circulation data from the member libraries annually (current
procedure).
With these decision rules established, the following forecast was developed:
_ Forecast of Reimbursements Assuming the WCCLS Local Option Levy Passes-by Member Library
Assuming a Split Formula Based on'Basic"and"Enhanced"Service Reimbursement Elements
Basic"Grows with Inflation;"Enhanced"Grows With Projected Circulation
Actual Forecast
Line Item Description 2002 2003 2004 2005 2006 2007 2008
Inflation rate for basic services 300% 3,00% 3.00% 3 001. 300
Basic Services Reimbursement 11,156,31111,491,000 11 835,730 12,190,802 12,556 526
Enhanced Services 2,343,676 31763,986 5.402,404 7,288,289 9.454,847
Total Reimbursement for Library Support $ 13,499,988 $ 15,254,986 $ 17,238,134 $ 19.479,092 S 22.011,373
Reimbursement for Basic Services:
Banks 72.289 73.735 75,947 78,225 80,572 82.989 85,479
Beaverton 2.775.766 2,948,570 3,037,027 3,128,138 3,221,982 3.318,642 3.418.201
Cedar Mill 1,597,122 1,658.166 1,707,911 1,759,148 1,811,923 1.866,280 1,922,269
Cornelius 98,022 99,982 102,981 106,071 109,253 112,531 115,907
Forest Grove 441,083 449,905 463,402 477,304 491,623 506.372 521,563
Garden Home 171,870 206,311 212,500 218,875 225,442 232,205 239,171
Hill
rwsboro 2,759,927 2,887,366 2,973,987 3,063,207 3,155,103 3,249.756 3,347,249
Sheood 271,109 318,211 327,757 337,590 347,718 358,149 368,894
Tigard 1,199.259 1,237,470 1,274,594 1,312,832 1.352,217 1,392.783 1,434,567
Tualatin 441,126574,872 592,118 609,882 628,178 647,024 666.434
West Slope 346,437 376,782 388,085 399,728 411,720 424,071 436,794
Subtotal Basic Reimbursement $ 10,174,010 $ 10,831,370 $ 11,156,311 $ 11491,000 $ 11835,730 $ 12,190,802 $ 12,556,526
Reimbursement for Enhanced Senvices:
Banks 11,106 16,522 21,871 27,827 33,954
Beaverton 560,385 832,306 1,099,926 1,397,140 1,701,924
Cedar Mill 433,745 686,051 965,521 1,306,061 1,694,294
Cornelius 13,307 19,045 24,252 35.391 49,529
Forest Grove 101,957 148,526 192,519 239,850 286,568
Garden Home 58,152 100,909 155.804 231,220 329,074
Hillsboro 644,781 1,100,217 1,670,429 2,28.5.932 3,001050
Sherwood 91,736 164.837 263.545 404.995 596,855
Tigard 247,890 422,985 642,206 844,886 1,065,971
Tualatin 107,947 159,157 208,797 304.698 426,421
West Slope 72,670 113.428 157,533 210,290 269,208
Subtotal Basic Reimbursement $ 2,343 676 $ 3.763,986 S 5.402 404 5 7,288,289 S 9,454,847
Total Forecasted Reimbursement:
Banks 73,735 87,053 94,748 102,443 110,816 119,433
Beaverton 2,948,570 3,597,412 3,960444 4321,908 4,715,782 5,120,124
Cedar Mill 1,658,166 2.141,656 2,445.199 2,777444 3,172,342 3,616,563
Cornelius - 99,982 116,289 125,116 133,505 147,922 165,436
Forest Grove 449,905 565,359 625,831 684,142 746,222 808,131
Garden Home 206,311 270,652 319,785 381,246 463,425 568.245
Hillsboro 2,887,366 3.618,768 4,163,424 4,825,532 5.535688 6,348.299
Sherwood 318,211 419,493 502,427 611,263 763.144 965,748
Tigard 1,237,470 1,522 484 1.735,817 1,994 423 2,237,669 2500.538
Tualatin 574.872 700,066 769.039 836.975 951,721 1,092,855
West Slope 376,782 460,755 513,156 569.253 634,361 706,001
Total S 10,831,370 $ 13,499,988 $ 15,254,986 $ 17,238,134 $ 19479.092 S 22,011,373
Source.WCCLS historical records and circulation forecasts
WCCLS Issue Paper No.2 Page 3
09/27/2002
s
Conclusions:
Under the planning assumptions that have been discussed above, a revised reimbursement
formula consisting of basic and enhanced service level elements would result in the
following:
❑ All members will receive basic reimbursement amounts that maintain current
levels of total finding;
❑ All members would be reimbursed for "basic services" at a level beginning in
fiscal 2004 at 3% greater than their total reimbursement for fiscal 2003. Every
year thereafter through fiscal 2008, the basic services reimbursement would grow
at 3%per year.
❑ Reimbursement for "enhanced services" would be solely based on circulation for
each year over the planning horizon. High circulation libraries would receive
more of the enhanced services budget pool, while low or static circulation
libraries would receive proportionately less.
❑ In no case would a member library receive a decrease in total reimbursement in
any year over the planning period.
Itemized in the following table is a breakdown of the percentage increases in total
reimbursements (basic and enhanced service levels) to members from fiscal 2003 through
2008.
Washington County Cooperative Library Services
Percentage Increase in Total Reimbursement if the Levy Passes by Member Library
2004 2005 2006 2007 2008
Banks 18% 9% 8% 8% 8%
Beaverton 22% 10% 9% 9% 9%
Cedar Mill 291/6 14% 14% 14% 14
Cornelius 16% 8% 7% 11% 12%
Forest Grove 26% 11% 9% 9% B
Garden Home 31% 18% 19% 22% 23%
Hillsboro 25% 15% 16% 15% 15%
Sherwood 32%1 20%j_ 22-1.1 25% 27%
Tigard 23% 14% 15% 12% 12%
Tualatin 22% 10% 9% 14% 15
West Sloe 22%1 11%1 11%1 11% 11%
System Average 25%1 13%1 13%1 13% 13%
WCCLS Issue Paper No. 2 Page 4
09/27/2002
Consistency with Evaluation Criteria:
As a final step in this process, the revised reimbursement model has been reviewed
against the criteria established by CLAB. The consultant team's assessment of how well
this model compares to each criterion follows:
❑ Service/outputs based —The new methodology meets this criterion by establishing
a primary level of reimbursement that is designed to fund each library's basic
level of service. The enhanced level of reimbursement is solely based on
circulation which is generally accepted as an output based measure of
performance.
❑ Stability for long range planning — The analysis shows that this methodology
lends itself to long range planning. This is particularly true when the "basic
services" element is considered. Working on the assumption that Measure 34-54
passes, all members would be reimbursed for basic services at a level beginning in
fiscal 2004 at 3% greater than their total reimbursement for fiscal 2003. Every
year thereafter through fiscal 2008, the basic services reimbursement would grow
at 3% per year.
❑ Understandable to service providers and the public — This methodology makes
sense to the service providers because the components of the reimbursement
formula are based on data and concepts that have been used by WCCLS for the
past ten years. It is understandable to the public because it is very straightforward
and consistent with the way customers pay for utility services such as water and
sewer.
❑ Understandable—The new method is understandable and replicable.
❑ Independent validation — The data that is used to calculate reimbursements under
this method are a matter of public record and can be replicated at any time by
anyone.
❑ Justifiable — This method is justifiable, because it balances the need for a stable
level of reimbursement for basic service delivery, while continuing to have an
element that compensates members in relation to their circulation.
❑ Responsive to growth — Because this methodology has a component that is
completely based on circulation, it is responsive to growth.
WCCLS Issue Paper No.2 Page 5
09127/2002
I
ii
WASHINGTON COUNTY COOPERATIVE LIBRARY SERVICES
COOPERATIVE LIBRARY ADVISORY BOARD
ISSUE PAPER NO. 2A
Issue Title: Adjustment of"Basic" and "Enhanced" Reimbursement Formula for
Member Libraries Operating Below the Safety Net as Defined in
OLA Standards.
Discussion:
Issue Paper No. 2 identified a reimbursement formula that contained a two-tiered
approach. This approach consisted of a reimbursement for basic and enhanced services
assuming the passage of Measure 34-54. The basic service was defined as the amount of
money that each member received via reimbursement from WCCLS in fiscal 2003. This
amount was adjusted for a 3.0% per year inflation factor over the five year forecast
horizon ending in fiscal 2008. Enhanced services were defined as a reimbursement
amount that is based solely on projected circulation after the basic service level had been
funded from available resources.
A fundamental assumption in the logic that was used in the Issue Paper No. 2 analysis
was that all member libraries were currently providing services that were up to minimum
Oregon Library Association (OLA) standards. It has been argued that three members of
the Cooperative are not up to OLA Adequate standards of service delivery in the
categories of Staff and/or Open Hours. Those members are Banks, Cornelius, and
Garden Home. Through prior analysis, WCCLS staff determined that all other member
libraries met OLA Adequate standards in these categories. WCCLS staff calculated the
amount of funding that would be required to bring these three members up to the agreed
upon standards based on estimated costs from each library. Itemized below are the one-
time adjustments to the "basic service" levels that would be required:
❑ Banks.................................................................................................$32,000
❑ Cornelius...........................................................................................$77,000
❑ Garden Home....................................................................................$16,500
Total increase to be funded.........................................................$125,500
Analysis:
As was the case in Issue Paper No. 2, the platform for this analysis is the financial
calculations that were completed for Measure 34-54 by WCCLS staff. A second element
is the forecast of cirqulation for the member libraries through fiscal 2008. However, in
this case, $125,500 is allocated to the three members listed above for purposes of OLA
standards compliance. In order to accomplish this, a recalculation of the basic services
reimbursement formula has been undertaken. Instead of uniformly applying a 3%
increase to the total fiscal 2003 reimbursements to all members, the $125,500 is "taken
off the top" of the fiscal 2004 basic services projected budget. This calculation results in
a minimal reduction in the overall basis for reimbursement of basic services to all
WCCLS Issue Paper No. 2A Page 1
09/27/2002
members in the first year of the five-year life of the serial levy. Prior to applying the
$125,500 to Banks, Cornelius, and Garden Hoene, a distribution of the adjusted basic
services budget for 2004 was made to all members. This distribution was made based oil '
following logic:
(ASB) * C =Fiscal 2004 reimbursement for adjusted basic services.
Where: A= each member's total reimbursement in fiscal 2003
B =the total reimbursement made to all members in fiscal 2003
C = the total adjusted budget for basic services available for distribution in
fiscal 2004
After this calculation was completed, the funding required to bring Banks, Cornelius and
Garden Home up to OLA standards was added to the 2004 adjusted reimbursement for
each of these three libraries. This resulted in the following calculation:
Calculation of Basic Services Reimbursements to Members in Fiscal 2004
Sensitivity Case-One Time Supplemental Payments to Banks, Cornelius,and Garden Home
Line Item Description 2003 2004
Basic Services Reimbursement Budget Before Adjustments $ 11,156,311
(less): Funding Required to Bring Member Libraries Up to OLA Standards (125,500)
Subtotal Balance Remaining For Distribution to Members $ 11,030,811
Calculation of Reimbursement For Adjusted Basic Services:
Banks 75,093
Beaverton 3,002,863
Cedar Mill 1,688,698
Cornelius 101,823
Forest Grove 458,189
Garden Home 210,110
Hillsboro 2,940,532
Sherwood 324,070
Tigard 1,260,256
Tualatin 585,457
West Slope 383,720
Subtotal reimbursement for adjusted basic services $ 11,030,811
Additional Funding to Non OLA Compliant Libraries:
Banks 32,000
Cornelius 77,000
Garden Home 16,500
Subtotal additional funding to non OLA compliant libraries $ 125,500
Total reimbursement to Members for Basic Services:
Banks 73,735 107,093
Beaverton 2,948,570 3,002,863
Cedar Mill 1,658,166 1,688,698
Cornelius 99,982 178,823
Forest Grove 449,905 458,189
Garden Home 206,311 226,610
Hillsboro 2,887,366 2,940,532
Sherwood 318,211 324,070
Tigard 1,237,470 1,260,256
Tualatin 574,872 585,457
West Slope 376,782 - 383,720
Total reimbursement to members for basic services $ 10,831,370 $ 11,156,311
WCCLS Issue Paper No.2A Page 2
09127/2002
Basic service levels for each library were calculated for fiscal 2004 and each member's
reimbursement for basic services increased by 3% per year from 2005 through 2008.
The logic that was used to calculate reimbursements for enhanced services in Issue Paper
No. 2 is replicated in this analysis. Therefore, there is no difference in the forecasted
reimbursements for enhanced (i.e. circulation based) services. Itemized in the following
table are the components that make up the total reimbursements by year for this
alternative analysis:
Restatement of Total Reimbursements to Members Fiscal 2004-2008
Sensitivity Case-One Time Supplemental Payments to Banks,Cornelius,and Garden Home
Line Item Description 2003 2004 2005 2006 2007 2008
Projected Budget for Basic Services 11,156,311 11,491,000 11,835,730 12,190,802 12,556,526
Projected Budget for Enhanced Services 2,343,676 3,763,986 5,402,404 7,288,289 9,454,847
Total WCCLS Projected Reimbursement Budget $ 13,499,988 $ 15,254,986 $ 17,238,134 $ 19,479,092 $ 22,011,373
Reimbursement For Adjusted Basic Services:
Banks 107,093 110,305 113,615 117,023 120,534
Beaverton 3,002,863 3,092,949 3,185,737 3,281,309 3,379,749
Cedar Mill 1,688,698 1.739,359 1,791,540 1,845,286 1,900,645
Comelius 178,823 184,188 189,713 195,405 201,267
Forest Grove 458,189 471,935 486,093 500,676 515,696
Garden Home 226',610 233,408 240,410 247,623 255,051
Hillsboro 2,940,532 3,028,748 3.119,610 3,213,199 3,309,595
Sherwood 324,070 333,792 343,806 354,120 364,744
Tigard 1,260,256 1,298,064 1,337,005 1,377,116 1,418.429
Tualatin 585,457 603,021 621,112 639,745 658,937
West Slope 383,720 395,231 407.088 419,301 431,880
Subtotal reimbursement for adjusted basic services f $ 11,156,311 $ 11,491,000 $ 11,835,730 $ 12,190,802 $ 12,556,526
Reimbursement for Enhanced Serivices:
Banks 11,106 16,522 21,871 27,827 33.954
Beaverton 560,385 832,306 1,099,926 1,397,140 1,701,924
Cedar Mill 433,745 686,051 965,521 1,306,061 1,694,294
Cornelius 13,307 19,045 24,252 35,391 49,529
Forest Grove 101,957 148,526 192,519 239,850 286.568
Garden Home 58,152 100,909 155,804 231,220 329,074
Hillsboro 644,781 1,100,217 1,670,429 2.285,932 3,001,050
Sherwood 91,736 164,837 263,545 404,995 596.855
Tigard 247,890 422,985 642,206 844,886 1,065,971
Tualatin 107,947 159,157 208,797 304,698 426,421
West Slope 72,670 113,428 157,533 210,290 269.208
Subtotal reimbursement for enhanced services $ 2,343,676 $ 3.763,986 $ 5.402,404 $ 7.288,289 $ 9,454,847
Total Forecasted Reimbursement:
Banks 73,735 118,199 126,828 135,486 144,850 154,487
Beaverton 2,948,570 3,563,248 3,925,255 4,285,663 4,678,449 5,081,672
Cedar Mill 1,658,166 2,122,443 2,425,410 2,757,061 3,151,347 3.594,939
Cornelius 99,982 192,130 203,233 213,965 230,796 250,796
Forest Grove 449,905 560,146 620,461 678.612 740,525 802,264
Garden Home 206,311 284,762 334,317 396,215 478,842 584,125
Hillsboro 2,887,366 3,585,313 4,128,965 4,790.039 5,499,131 6,310,645
Sherwood 318,211 415,806 498,630 607,351 759,115 961,598
Tigard 1,237,470 1,508,146 1,721,048 1,979,211 2,222,001 2,484,400
Tualatin 574,872 693,405 762,178 829,908 944,443 1,085,359
West Slope 376.782 456.390 508,660 564,621 629,590 701,088
total forecasted reimbursement $ 10,831,370 $ 13,499,988 $ 15,254,986 $ 17,238,134 $ 19,479,092 $ 22,011.373
WCCLS Issue Paper No.2A Page 3
09/27/2002
Conclusions:
Working with the basic logic that was developed in Issue Paper No. 2, a reimbursement
formula that is composed of basic and enhanced service elements would also work under
this alternative analysis that brings Banks, Cornelius, and Garden Home up to OLA
standards. The key differences between this analysis and the conclusions arrived at in
Issue Paper No. 2 are as follows:
❑ In order to fund the $125,500 required to bring Banks, Cornelius, and Garden
Home up to OLA standards all remaining members would have to receive lower
reimbursements for basic services over the forecast horizon vis-a-vis the Issue
Paper No.2 base case analysis.
❑ By adjusting the fiscal 2004 basic services reimbursements for Banks, Cornelius,
and Garden Home to bring them up to OLA standards, and then increasing these
levels by 3% per year over the forecast horizon, it appears likely that all members
will be in compliance with OLA standards over the five year forecast horizon.
❑ Reimbursement for "enhanced services" would be solely based on circulation for
each year over the planning horizon. High circulation libraries would receive
more of the enhanced services budget pool, while low or static circulation
libraries would receive proportionately less. This is unchanged from the Issue
Paper No. 2 base case analysis.
❑ In no case would a member library receive a decrease in total reimbursement in
any year over the planning period.
Itemized in the following table is a breakdown of the percentage increases in total
reimbursements (basic and enhanced service levels) to members from fiscal 2003 through
2008 under this alternative analysis.
Washington County Cooperative Library Services
Percentage Increase in Total Reimbursement if the Levy Passes by Member Library
SENSITIVITY CASE-ONE TIME SUPPLEMENTAL PAYMENTS TO BANKS,CORNELIUS,AND GARDEN-HOME IN FISCAL 2004
2004 2005 2006 2007 2008
Banks 60% 7% 7% 7% 7%
Beaverton 21% 10% 9% 9% 9%
Cedar Mill 28% 14% 14% 14% 14%
Cornelius 92% 6% 5% 8% 9%
Forest Grove 25% 11% 9% 9% 8%
Garden Home 38% 17% 19% 21% 22%
Hillsboro 24% 15% 16% 15% 15%
Sherwood 31% 20% 22% 25% 27%
Tigard 22% 14% 15% 12% 12%
Tualatin 21% 10% 9% 14% 15%
West Slope 21% 11% 11% 12% 11%
System Average 25% 13% 13% 13% 13%
WCCLS Issue Paper No.2A Page 4
09/27/2002
Consistency with Evaluation Criteria:
As a final step in this process, the revised reimbursement model has been reviewed
against the criteria established by CLAB. The consultant team's assessment of how well
this model compares to each criterion follows:
❑ Service/outputs based—The new methodology meets this criterion by establishing
a primary level of reimbursement that is designed to fiend each library's basic
level of service, and brings all members up to agreed upon OLA standards. The
enhanced level of reimbursement is solely based on circulation which is generally
accepted as an output based measure of performance.
o Stability for long range planning — The analysis shows that this methodology
lends itself to long range planning. This is particularly true when the "basic
services" element is considered. Working on the assumption that Measure 34-54
passes, all members would be reimbursed for basic services at a level beginning in
fiscal 2005 at 3% greater than their total reimbursement for fiscal 2004. In fiscal
2004, Banks, Cornelius, and Garden Home would receive supplemental
reimbursements to bring them up to agreed upon OLA standards. Every year
thereafter through fiscal 2008, the basic services reimbursement would grow at
3% per year.
o Understandable to service providers and the public — This methodology makes
sense to the service providers because the components of the reimbursement
formula are based on data and concepts that have been used by WCCLS for the
past ten years. It is understandable to the public because it is very straightforward
and consistent with the way customers pay for utility services such as water and
sewer.
❑ Understandable—The new method is understandable and replicable.
❑ Independent validation — The data that is used to calculate reimbursements under
this method are a matter of public record and can be replicated at any time by
anyone.
❑ Justifiable — This method is justifiable, because it balances the need for a stable
level of reimbursement for basic service delivery, while continuing to have an
element that compensates members in relation to their circulation.
o Responsive to growth — Because this methodology has a component that is
completely based on circulation, it is responsive to growth.
WCCLS Issue Paper No.2A Page 5
09/27/2002