- FVRL II. 0+ ' 0~?-lf ')dols. lj=l3 Comments : R~~ C;~ 1J)(f!/};~ Regular Meeting. Refers to Item F.09. -;: June 24, 2013.

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1 II. - FVRL FRASER VALLEY REGIONAL LIBRARY Administrative Centre I DeLair Road I Abbotsford, BC I V2S 5Y1 Tel: I Toll Free: I Fax: May 27, 2013 Mayor Lois Jackson and Council Corporation of Delta '-:500 Clarence Taylor Crescent Delta, Be v 4K 3~2 Dear Mayor Ji)ckson and Council:... I... 1:.,.,.'1 :::3:: genda I :::D fl E #D..\QO-a.o1ViJDL- : ~ 0 Refers to Item F.09 Regular Meeting -;: June 24, 2013 TYPE: ' -.~I~ DEPT J:t 4-tLg~ Ell]) A./. #: lj=l3 Comments : R~~ C;~ 0+ ' 0~?-lf ')dols, 1 ~raser Valley Regional Library is seeking your support in adopting a new funding formula to apportion the cost of providing library service. Background ;::VRL's current funding formula was developed over 15 years ago. Over time, some usage allocation statistics became unreliable or are no longer available. Some statistics are no longer indicative of usage to the same degree that they once were. ~aving determined that a review of the funding formula was necessary, the finance directors of r:vrl's member communities met t o review it and quickly agreed that a revision was desirable. The group identified five principles of a desirable funding fcrmula and then developed a new funding formula that fulfills these principles fairly for all!=vrl me:-nber communities. ~nclosed is a report which describes the proposed funding formula. Recommendation. At the May 22, 2013 meeting of the r:raser Valley Regional Library Board, the Board approved a motion: "that the new proposed funding formula. Option 6B with Partial Per Capita Allocation of Shared Services. be recommended to I=VRL member local government councils/boards for approval." The Library Act stipulates that two-thirds of r:vrl member local governments must approve the funding formula in order for it to change. in order to begin implementation for 2014, we would appreciate being advised of your decision by July Thank you very much for considering this proposal. We look forward to receiving your decision. Yours truly, ( 1J)(f!/};~ Rob O 'Brennan Chief becutive Officer

2 II. - FVRL ~RAS!;R VALL!;Y REGIONAL LIBRARY REPORT ToniE FVRL BOARD FVRL FUNDING FORMULA REPORT By Mary O'Caliaghan, Director of Corporate Services Board Meeting of May 22, 2013 BACKGROUND ~VRL's unique funding formula (the True Usage formula) was developed over 15 years ago. Over time some of the usage allocation statistics have become unreliable or are no longer available. Some of these statistics are no longer indicative of usage to the same degree that they were 15 years ago. A review of the funding formula was overdue. The current funding formula is prone to some significant fluctuations due to the usage adjustment and / or usage statistic changes, such as a new library being built in a neighbouring community. These fluctuations make it difficult to prepare a realistic five year plan for each community. I Some categories no longer have usable statistics. ~or example, the Outreach, home delivery service, has been restructured to be more cost effective. However, this means that we no longer have individual customer statistics within an institution or individual circulation statistics. Another example, e-circulation statistics does not provide circulation by residency statistics. Also, marketing is moving to more electronic rather than print distribution, making that allocation statistic inappropriate. ~INANCE DIRECTORS MEETINGS The ~inance Directors of ~VRL's member communities have met to review the funding formula. ~or the reasons stated earlier, it was quickly accepted that a revision to the funding formula was desirable. The group identified five principles of a desirable funding formula: Local Control: Retain the direct charge portion and the aspect of local control; Simplicity: Make it simpler so that the formula is easier to explain and creates less administrative burden; Consistency: Maximize consistency and minimize fluctuations; Predictability: Make it predictable to enable preparation of five year plans; Adaptability: Design it to be adaptable to future changes, such as more electronic lending.!='vrl...connecting people to the world of information and ideas

3 Director of Corporate Services Report Meeting of May 22,2013 Page 2 PROPOS!;:D CHANG!;:S 1. Direct Charges!;:xisting categories of Direct Charges (library staff salarjes and benefits, capital, etc.) are retained and other areas (library programs, promotion and supplies) have been added. 2. Retain!;:xisting Usage Allocations Where the usage statistics are available, reliable and are still indicative of usage, this method of allocation has been retained. (e.g. Computer operations, vehicle operations and human resources and payroll.) 3. Allocate Based Upon Population For cost centres relating to products and services to customers where we do not have a reliable usage statistic, the costs will be allocated according to the BC Statistics for service area populations. (e.g. Library Materials, Outreach (home delivery), system-wide programs and InterLiNK fees) 4. Administration The remaining system-wide support services based at the Administrative Centre, including the Administrative Centre building costs, will be allocated according to the share of the budget up to that point. 5. Implementation It is recommended that the change be phased in over two years. According to the Library Acttwo-thirds of FVRL member. local governments must approve the funding formula in order for it to change. IMPACT With any change in a funding formula for budget allocation, there are "winners and losers." FVRL is committed to working with communities to find ways to minimize the impact where at all possible. Phasing in the change over two years also will reduce the impact. FVRL...Conneciing people to the world of information and ideas

4 Fraser Valley Regional Library 2013 Approved Budget Restated - Option 6B with Partial Per Capita Allocation of Shared Services.. IMIIIIl"ur.1ll,... ~. L"'IIIIl:.J I i I iiiiel II I IH I F.Jn 1:j~ lj.u.!j III}""'1:It t.i PlIU 1,,11 F.1".i:'~ ~;~]tilnjl:.jil:.ji[.r:le.. ':':fi'it7:.j 1l:.J I [e{ 4'~ Abbotsford 3,531,057 3,520,144 (10,913) -0.31% Chilliwack 2,635,903 2,653,625 17, % Delta 3,190,569 3,142,777 (47,792) -1.50% FVRD 249, ,531 (31,999) % Harrison Hot Springs 56,703 56, % Hope 323, ,571 (19,909) -6.15% Kent 304, ,171 (22,516) -7.39% Langley City 1,163,563 1,270, , % Langley Township 3,499,267 3,564,022 64, % Maple Ridge 2,590,978 2,472,844 (118,134) -4.56% Metro Vancouver 2,000 2, % Mission 1,252,875 1,243,440 (9,435) -0.75% Pitt Meadows 873, ,146 63, % Port Coquitlam 1,490,984 1,559,293 68, % White Rock 825, ,398 (60,590) -7.34% Total Assessment 21,991,110 21,991, %

5 1 ' ~i(i~hi1 ~ "'1:J -" R1tm'}lilli' '1It<11.-uJE:i'],rj,,~,~ ~)~ ~~ '-" ~< i~ :11 ~ ::-->l t:t ~I}."l ::111 [;I.I I~ 11m [el [j:(ll:l,',111"!\' [IoII1:m::l& litllw 1 1~[el.fI:ll:l '" I' l!.f:l.idlj] :... Current Funding Formula Proposed Funding Formula LIBRARY COSTS Salaries and benefits Direct Direct Photocopiers Direct Direct Building Direct Direct Capital assets Direct Direct Promotion Direct Direct Programs No. of attendance Direct Postage No. of Circulation Direct Office supplies % of Total Library Costs Direct :\ SHARED SERVICES COSTS Library materials + wages 50% No. of Circulation + 50% Library Space (sq ft) Per Capita Client Services wages + FVRL-wide programs % of Total Library Wages Per Capita 50% No. of Customers + Outreach Services wages 50% No. of Items Per Capita Circulated Interlink fees Per Capita Per Capita Computer Operations + wages No. of ComputerlSelfcheck No. of ComputerlSelfcheck Vehicle Operations + wages No. of Deliveries No. of Deliveries Human Resources + wages No. of FTEs No. of FTEs Communications + wages No. of Forms Printed % of Total Library Costs Collection Agency fees No. of Circulation % of Total Library Costs Content Insurance Value Insured per Library % of Total Library Costs USAGE ADJUSTMENT Yes No