WHATCOM COUNTY LIBRARY SYSTEM WHATCOM COUNTY, WASHINGTON OPERATING AND CAPITAL EXPENDITURE BUDGET FISCAL YEAR 2018 BOARD OF TRUSTEES

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1 2018 Budget December 19, 2017

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3 WHATCOM COUNTY LIBRARY SYSTEM WHATCOM COUNTY, WASHINGTON OPERATING AND CAPITAL EXPENDITURE BUDGET FISCAL YEAR 2018 BOARD OF TRUSTEES Marvin Waschke Chair Brad Cornwell June Hahn Lori Jump Erika Nuerenberg Board Member Board Member Board Member Board Member Prepared By: Jackie Saul 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 Services Manager Christina Read, Human Resources Manager Lizz Roberts, Community Relations Coordinator

4 WHATCOM COUNTY LIBRARY SYSTEM WHATCOM COUNTY, WASHINGTON OPERATING AND CAPITAL EXPENDITURE BUDGET FISCAL YEAR 2018 To obtain copies of this document, or for questions regarding its content, please contact: Jackie Saul Director of Finance and Administration Whatcom County Library System 5205 Northwest Drive Bellingham, WA Phone: (360) This document is also available online at the Whatcom County Library System s website at 4

5 2018 Budget Introduction Executive Director s Message Our 2018 Budget reflects significant progress over the past year on several fronts. First, we carefully scrutinized every line item in 2016 to make realistic and accurate budget projections for 2017 so the Budget to Actual amounts came out much closer than in previous years. We continued to fine-tune our projections heading into 2018, making sure that every dollar has a purpose. Second, we worked closely with the Board of Trustees to identify strategic long-term funding priorities and received unanimous approval to establish designated funds for these priorities. Thus, we now have an operating fund reserve for the Birch Bay Library, so we will be able to hire staff and be ready for business as soon as funds for a new building have been secured and the facility built. We have a sizeable fund at the ready to purchase property or facilities, or build new ones, as opportunities present themselves. We also established a fund for big-ticket facilities maintenance needs. This will help with infrastructure for WCLS s Administrative Services building as well as for the North Fork Library. We have agreed to assume ownership of this library and expect the Friends of the North Fork Library to transfer the title early in Finally, our 2018 budget reflects new wages and pay levels as a result of our 2017 Classification & Compensation Study. The study brought many positions up to market competitiveness and we are grateful that we were able to work with our union negotiators to come up with a Wage and Benefit agreement that adopted the study in its entirety. Our staff deliver excellent public service to the people of Whatcom County and it is in the best interests of WCLS to compensate them fairly. Our 2018 budget will help us accomplish many projects on our way to achieving our strategic plan goals. In terms of Reading, we will continue excellent efforts such as Whatcom READS and our Summer Reading program for all ages, as well as take some time planning to plan for an individualized reading suggestions service. Our Engagement efforts include hosting multiple community meetings and design charrettes in Birch Bay to design a library the community will love (and be willing to pay for). The new Point Roberts Library with the Library Express component will increase Access for residents in this far-away corner of the County, and our new bookmobile will ensure we re everywhere we can be even if there s no permanent library. All of these efforts add up to Diligent Stewardship for WCLS and we are confident that taxpayers are receiving maximum value for their property tax contributions. We look forward to serving everyone in 2018! -- Christine Perkins Executive Director

6 WCLS Services Summary Service Area Whatcom County Library System provides library services in the unincorporated areas of Whatcom County, Washington, and six annexed cities and towns. Whatcom County Library System served an estimated population of 129,580 in WCLS offers more than 368,000 books, audiobooks, DVDs, electronic resources, and other items. In 2017, the number of items checked out surpassed 2 million as community members made over 747,000 visits to libraries. In Washington State, 6 library systems, including Whatcom County Library System, serve populations between 100,001 and 250,000. In 2016, WCLS ranked 5 th among these libraries in population served, 4 th in total items checked out, 1 st in circulation per capita, 2 nd in collection size per capita, and 1 st in number of programs offered. Services Whatcom County Library System 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 addition to our branch locations, the WCLS Mobile Services team provides services to those unable to visit a library. In 2017, Mobile Services served 23 health care facilities and group homes, one treatment center, the Whatcom County Jail, Whatcom County Work Center, and individuals who are homebound. The bookmobile served 4 communities. Teen and Children s Services partnered with seven Whatcom County school districts along with independent schools to provide annual book talks 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 Washington resident with a public library card. WCLS holds reciprocal borrowing agreements with the Fraser Valley Library System, Upper Skagit Library District, and LaConner Regional Library District. In 2017 WCLS introduced Courtesy Renewals, one-time automatic renewal of eligible library items, with the intent of improving the borrowing experience for patrons. WCLS opened its first Library Express at the Administrative Services location; the new Northwest Drive Express provides holds pickup and a small browsing collection. 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, 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, Spanish, and Punjabi Public meeting rooms

7 Online, people may access: Downloadable audiobooks, e-books, and music Online streaming of audiobooks and music 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

8 Major Fund Balance Summary January 1, 2018 General Fund Capital Fund Total Funds Beginning Fund Balance $ 9,369,081 $ 896,680 $ 10,265,761 Committed Beginning Fund Balance - Capital - 460, ,680 Committed Beginning Fund Balance - Capital Transfer 168, ,298 Committed Beginning Fund Balance - Planned Capital Improvement - - Committed Beginning Fund Balance - Unemployment Comp Reserve 11,420 11,420 Committed Beginning Fund Balance - Birch Bay Operating Fund Reserve 600, ,000 Committed Beginning Fund Balance - Facility Ownership & Library Svcs Fund Reserve 3,250,000 3,250,000 Committed Beginning Fund Balance - Facility Maintenance Fund 500, ,000 Committed Beginning Fund Balance - Operating Cost Stabilization Fund 250, ,000 Assigned Beginning Fund Balance - Cash Flow 2,980,102 2,980,102 Assigned Beginning Fund Balance - Emergency 745, ,000 1,181,026 Total Committed and Assigned Beginning Fund Balance 8,504, ,680 9,401,526 Unassigned Beginning Fund Balance $ 864,235 $ - $ 864,235 Total Estimated Beginning Fund Balance 9,369, ,680 10,265,761 Total Revenues & Other Financing Sources 9,290, ,469 9,736,523 Total Expenditures & Other Financing Uses 9,108, ,400 10,015,005 Total Revenues Net of Total Expenditures 181,449 (459,931) (278,482) Transfer to Operating Budget (182,243) - (182,243) Additional One-time Capital Transfer (285,093) - (285,093) Total Additional Use of Fund Balance (467,336) - (467,336) Ending Fund Balance $ 9,083,194 $ 436,749 $ 9,519,943 Committed Ending Fund Balance - Capital Committed Ending Fund Balance - Capital Transfer 168, ,298 Committed Ending Fund Balance - Planned Capital Improvement Committed Ending Fund Balance - Unemployment Comp Reserve 11,420-11,420 Committed Ending Fund Balance - Birch Bay Operating Fund Reserve 600, ,000 Committed Ending Fund Balance - Facility Ownership & Library Svcs Fund Reserve 3,250,000-3,250,000 Committed Ending Fund Balance - Facility Maintenance Fund 500, ,000 Committed Ending Fund Balance - Operating Cost Stabilization Fund 250, ,000 Assigned Ending Fund Balance - Cash Flow 2,980,102-2,980,102 Assigned Ending Fund Balance - Emergency 745, ,000 1,181,026 Total Committed and Assigned Ending Fund Balance 8,504, ,000 8,940,846 Unassigned Ending Fund Balance 578, ,097 Total Estimated Ending Fund Balance $ 9,083,194 $ 436,749 $ 9,519,943

9 2018 General Fund Budget Summary Budget Number Description 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Budgeted 2018 % Change Estimated Beginning Fund Balance $ 7,364,507 $ 8,021,826 $ 8,700,069 $ 9,367,060 $ 9,369, % Taxes 7,581,646 7,727,368 8,171,262 8,188,772 8,440, % Intergovernmental Revenues 166, , , , , % Charges for Goods and Services 34,060 34,549 35,101 35,525 35, % Fines and Forfeitures 107, ,507 95,577 72,000 60, % Miscellaneous Revenues 122, , , , , % Total Operating Revenues $ 8,013,295 $ 8,295,427 $ 8,610,737 $ 8,624,652 $ 8,842, % Total Other Financing Sources $ - $ 14,550 $ - $ - $ 447, % Total General Fund Revenues $ 8,013,295 $ 8,309,977 $ 8,610,737 $ 8,624,652 $ 9,290, % Salaries and Wages 3,733,102 3,810,172 3,873,328 4,213,147 4,568, % Personnel Benefits 1,347,638 1,442,814 1,470,124 1,671,105 1,762, % Total Salaries, Wages, & Benefits $ 5,080,740 $ 5,252,986 $ 5,343,451 $ 5,884,252 $ 6,330, % Supplies 1,317,079 1,343,549 1,347,494 1,430,728 1,472, % Services 557, , , , , % Intergovernmental Services 152, , ,393 1, , % Total Operating Expenditures $ 7,108,126 $ 7,445,145 $ 7,659,192 $ 8,206,255 $ 8,940, % Total Other Financing Uses 247, , , , , % Total General Fund Expenditures $ 7,355,976 $ 7,631,734 $ 7,943,746 $ 8,622,631 $ 9,108, % Total Revenues in Excess (Deficit) of Expenditures $ 657,319 $ 678,243 $ 666,991 $ 2,021 $ 181,449 Transfer to Operating Budget , Addtitional One-time Capital Transfer , Total Additional Use of Fund Balance , Estimated Ending Fund Balance $ 8,021,827 $ 8,700,069 $ 9,367,060 $ 9,369,081 $ 9,083, %

10 2018 General Fund Revenues Budget Number Description 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Budgeted 2018 % Change Real and Personal Property Taxes $ 7,581,646 $ 7,727,366 $ 8,171,190 $ 8,188,772 $ 8,440, % Sale of Tax Title Property % Total Taxes 7,581,646 7,727,368 8,171,262 8,188,772 8,440, % LSTA State Library Grants 5,758 9,677-6,016 6, % DNR Other Trust Revenue % DNR Timber Trust Revenue 1, % Local Entitlements 158, , , , , % Total Intergovernmental Revenues 166, , , , , % Printing and Duplication Services 24,773 26,250 26,757 26,500 26, % Library Use Fees 9,287 8,298 8,344 9,025 9, % Total Charges for Goods and Services 34,060 34,549 35,101 35,525 35, % Library Fines 107, ,507 95,577 72,000 60, % Total Fines and Forfeitures 107, ,507 95,577 72,000 60, % Investment Interest 33,938 47,398 71,273 85,000 89, % Other Interest Earnings (64) % Space and Facility Rental 2,348 2,002 1,809 1,700 1, % Contributions and Donations 29,650 18,232 4,427 30,000 7, % Sale of Discards 110 1, % Overage/Underage (172) % E-Rate Reimbursement , % Other Miscellaneous 20,733 30,674 37,746 15,000 15, % Lost/Damaged Materials 22,590 23,219 20,958 20,000 20, % NSF Fee Recoveries (87) (64) (192) (160) (160) 0.00% COBRA Reimbursement 13,806 12,945 4,550 4, % Total Miscellaneous Revenues 122, , , , , % Total Operating Revenues $ 8,013,295 $ 8,295,427 $ 8,610,737 $ 8,624,652 $ 8,842, % Proceeds from Sale of Cap. Assets - 14, Transfers-In from Capital Transfers-in from Prior Year , Transfers-in from Reserves , Total Other Financing Sources - 14, ,243 Total General Fund Revenues $ 8,013,295 $ 8,309,977 $ 8,610,737 $ 8,624,652 $ 9,290, %

11 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 5.3% is projected for 2018 assessed valuations. The impact of this, as well as the impact of the value of new construction has been factored in to 2018 budgeted property tax collections. Given this scenario, the District anticipates that its levy rate will be at $.4770 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 2018 budgeted revenues based on the impact upon collectability. 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. Other sources of intergovernmental 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. Recent Budgeting, Accounting, and Reporting System (BARS) changes have reclassified timber and leasehold excise tax revenues as intergovernmental revenue rather than tax revenue. 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 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. In 2017, WCLS was awarded a Library Services and Technology Act (LSTA) grant that will carry over into the 2018 fiscal year; the indirect federal grant is distributed by the State of Washington. 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 2018 budgeted amount is consistent with the 2017 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, room rentals, 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 years.

12 Library Fines: These revenues are derived from fines on overdue materials. Revenues from library fines are reduced by 16.7% in the 2018 budget due to changes to circulation policies made in 2016 and 2017, in an effort to reduce barriers to use, as well as declining circulation of physical materials as patrons increase the use of digital collections. Miscellaneous Revenues: This source of revenue includes investment interest, junk sales of assets, donations, other miscellaneous revenue, and COBRA 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 2018 is $89,250, a 5% increase over 2017 interest revenue. No major changes are anticipated for forest board and other 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 Bellingham Public Library for distributing patron notices, and other miscellaneous cash receipts. 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 2018, but the budget will be amended throughout the 2018 fiscal year to reflect actual collections. Other Financing Sources: This source of non-operating revenue includes proceeds from the sale of capital assets, transfers-in from the Capital Fund, transfers-in from 2017 excess revenue, and transfers-in from the fund balance.

13 2018 General Fund Expenditures Budget Number Description 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Budgeted 2018 % Change Salaries and Wages $ 3,733,102 $ 3,810,172 $ 3,873,328 $ 4,213,147 $ 4,568, % Retirement 301, , , , , % Social Security 277, , , , , % Health Insurance 718, , , , , % Disability Insurance - 6,342 6,389 7,360 7, % Industrial Insurance 50,071 44,787 33,538 46,338 43, % Unemployment Compensation , , % Personnel Benefits 1,347,637 1,442,814 1,470,124 1,671,105 1,762, % Total Salaries, Wages, & Benefits 5,080,739 5,252,986 5,343,451 5,884,252 6,330, % Office and Operating Supplies 90,531 99,986 94, , , % Fuel Consumed 19,307 13,591 11,756 11,500 12, % Collection Materials 1,011,469 1,056,999 1,073,435 1,115,400 1,160, % Small Tools and Minor Equipment 195, , , , , % Total Supplies 1,317,080 1,343,549 1,347,494 1,430,728 1,472, % Professional Services 157, , , , , % Communication 114, , , , , % Travel 22,546 23,598 26,619 35,800 40, % Taxes and Operating Assessments 2,121 2,167 2,509 2,500 2, % Operating Rentals and Leases 18,311 25,673 27,209 22,191 26, % Insurance 35,513 44,562 49,827 49,286 56, % Utility Services 106, , , , , % Repairs and Maintenance 64,536 82,762 56,687 77, , % Miscellaneous 35,962 35,726 37,011 31,778 37, % Total Services 557, , , , , % Intergovernmental Services 152, , ,393 1, , % Total Intergovernmental Services 152, , ,393 1, , % Total Operating Expenditures 7,108,127 7,445,145 7,659,192 8,206,255 8,940, % Adjustments - 3,850 (54) % Transfers-Out to Capital 247, , , , , Transfers-Out to Next Year , Total Other Financing Uses 247, , , , , % Total Fund Expenditures $ 7,355,977 $ 7,631,734 $ 7,943,746 $ 8,622,631 $ 9,108, % Revenues in Excess / (Deficit) of Expenditures 657, , ,991 2, ,449

14 Salaries and Benefits: WCLS continues to carefully evaluate staffing levels and allocate staff to best maintain current service levels while balancing current and future budgetary constraints. In 2018, this includes adding additional budgeted hours to address possible increased substitution needs resulting from Measure 1433, which calls for paid sick leave for all employees regardless of status. WCLS conducted a Classification and Compensation study in Recommendations from this study are included in this budget, including adopting a revised salary structure and adjusting rates for certain positions that fell below market. A Cost of Living Adjustment (COLA) of 2% has been included in staff salaries and wages based on the results of Interest-Based Bargaining union negotiations. Staff whose pay level changed as a result of the Classification and Compensation study will be placed at the beginning of the new range or given a 1% pay rate increase, whichever is greater. These changes also ensure WCLS is in compliance with minimum wage rates set by Measure Benefit costs include employer contributions for employees who are in the State of Washington Public Employee Retirement System (PERS), contributions into the Social Security and Medicare systems, medical and dental insurance premiums, workers compensation (Labor and Industries), long-term disability insurance, and unemployment compensation. Retirement contributions are based on rates as determined by the State of Washington Department of Retirement Systems. The current employer contribution rate is 12.7% of gross wages. The employer contribution for Social Security and Medicare is 7.65% of gross wages and salaries. This rate is set by the Social Security Administration and will not increase from 2017 to Medical and dental insurance premium costs are covered at 100% for employees who are eligible. Costs for dependents are shared by the employer and employees. WCLS offers a choice of a QHDHP (Qualified High Deductible Health Plan) combined with a Health Savings Account, or a PPO (Preferred Provider Organization) plan combined with a Health Reimbursement Account. WCLS secured a new health insurance provider in 2018 with rates slightly reduced (less than 1%) from Based on preliminary 2017 rate information and anticipated changes in WCLS experience factor, a 1% 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. 0.25% of gross wages is budgeted for possible reimbursements.

15 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. The 2018 budget represents a 9.4% reduction over 2017 due to several one-time purchases that will not carry forward into Fuel: This is diesel and gasoline for WCLS Bookmobile and other fleet vehicles. The amount budgeted for 2018 has increased by 9.6% from 2017 due to anticipated usage and fuel costs. Collection Materials: The collection materials budget provides for the books, magazines, audiobooks, music CDs, DVDs, CD-ROMs, and other materials 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 2018 operating expenditures, which is a 4.0% increase over 2017 spending. 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. Small Tools and Minor Equipment: This category includes furniture, computers, computer hardware, software, printers, delivery totes, shelving, book returns, and book carts. Budgeted amounts represent a minor increase over the prior year. 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 held flat over 2017.

16 Communications: This category includes postage, UPS, FedEx, and other courier services, local and long distance voice service, fiber optic circuits which link Administrative 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. Expenses in this category are budgeted to increase by 3.1% due to inflation and anticipated cost increases. Travel: This includes reimbursement to employees and 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 mirrors the national IRS reimbursement rate, set at $.545 per mile for The 2018 budgeted amount is increased 14.4% over 2017 spending due to increased staff travel for substitution and to allow for additional travel related to training and staff development opportunities. Taxes and Operating Assessments: This category includes the sales taxes paid on printing and duplication services provided to patrons. Budgeted amounts are expected to increase by 4% due to inflation and anticipated cost increases. Rentals: This category is for leasing a postage meter, copiers, and post office box rentals. This category also includes rental costs associated with usage of the Sudden Valley Adult Center for the South Whatcom branch. Costs in this category are anticipated to increase by 18.3% in Insurance: This includes all insurance for WCLS real and personal property, flood insurance, vehicle insurance, errors and omissions, employment practices, cyber security, and an umbrella plan premiums are budgeted to increase be 15.1% due to anticipated rate increases as well as ownership of additional property in Birch Bay and potentially elsewhere. Utilities: This category pays for electricity, natural gas, water, sewer, and refuse collection for all of WCLS branches costs are expected to increase by 3% due to inflation. Repair & Maintenance: This category includes costs for office and telecommunications equipment maintenance, software maintenance, vehicle repairs, and on-going facility repairs and maintenance. The 2018 budgeted amount includes an increase of 16.8%, including additional budgeted funds for Bookmobile maintenance. Miscellaneous: This includes board and WCLS memberships in the Washington Library Association (WLA) and other professional organizations; refunds to patrons who have paid for lost items and later found and returned them; training registration, and miscellaneous fees. The 2018 budget amount reflects a 16.8% increase to account for anticipated spending and inflation. Intergovernmental Professional Services: This category includes payment to local fire districts for fire protection services at WCLS owned facilities in lieu of property taxes. WCLS does not pay property taxes on the property it owns because it is a governmental entity. This category also includes a contribution to the Point Roberts Library construction project approved by the WCLS Board of Trustees in Other Financing Uses: Consistent with previous years, WCLS will make a transfer to the Capital Fund that is equal to 2017 revenue received from certain intergovernmental sources such as those resulting from the sale of timber and other products from state forest lands.

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18 SCHEDULE OF FINES AND FEES Borrower s Policy Attachment A POLICY AUTHORITY: Borrower s Policy 4.01 REVISED: August 15, 2017, December 20, 2016, March 15, 2016, November 27, 2012, December 13, Nonresident card fees: a. Family Fee $52.00 (up to 8 cards) b. Adult Fee (18-65) $40.00 c. Child Fee (under 18) $20.00 d. Senior (65 and older)/disabled Fee $ If library materials are returned late: a. Items classified as adult items, following a 2 day grace period. $0.25 per day to a maximum fine of $10.00 regardless of card used. b. Items classified for children and teens No overdue fines; items that are more than 60 days overdue will be considered lost. Damaged and lost fees apply. 3. If the account is submitted to collection agency: $ Lost items or missing parts: a. Lost items will be charged to the patron s account at their replacement value according to library records

19 Whatcom County Library System Five-Year Capital Improvement Plan Introduction The Whatcom County Library System s Capital Budgeting Policy requires that the Library update its Five-Year Capital Improvement Plan annually. The main purpose of this plan is to forecast and facilitate adequate capital spending levels, and to help ensure the Whatcom County Library System s (WCLS) future financial health and the continued delivery of services as WCLS continues to grow and change. The Five-Year Capital Improvement Plan outlines revenues and expenditures for current and new capital projects necessary to support WCLS operations and meet the service demands of the residents of Whatcom County. As the library buildings that WCLS operates are owned by the cities and communities that WCLS serves, WCLS works with building owners to maintain, improve, and expand facilities to meet community needs. The WCLS Capital Fund is currently funded through interest earnings on its fund balance and transfers in from the WCLS General Fund. WCLS transfers shared revenues distributed by the Washington State Department of Natural Resources and other shared revenues to the WCLS Capital Fund on an annual basis to fund capital expenditures represents the third year of the WCLS Strategic Plan. The four basic tenets of the Strategic Plan are Reading, Engagement, Access, and Diligent Stewardship, and the goals of the Strategic Plan are to increase circulation and household cardholdership. Activities and objectives for meeting these goals are evaluated annually, and therefore the Capital Improvement Plan may be adjusted accordingly. This plan reflects estimates for maintenance and upgrades of existing facilities as well as activities and new planned expenditures as outlined below. Although not specifically mentioned above, capital purchases in 2018 may also include items or projects identified and approved for 2017 but carried forward into Project Descriptions New Branch Furnishings, Fixtures & Equipment - $110,000 Construction of the new Point Roberts library is well underway, with anticipated completion in spring-summer As part of its agreements with the communities that it serves, WCLS supplies the furnishings and equipment necessary to provide library service in the community-provided buildings. This project will provide the resources to create open and enriching environments in this location. Existing Branch Interior Enhancements - $101,400 WCLS is working to replace aging furnishings and make improvements in its branch libraries. This project is intended to create welcoming public areas as well as to increase staff efficiency and safety through the creation of well-designed, ergonomic workspaces. The amount budgeted for 2018 reflects the current portion of a multiyear plan to address branch needs.

20 Administrative Services Building Repairs - $35,000 The Building Repair and Maintenance Program includes funding for several needed repair and improvement projects at the Administrative Services Building, including repair and remodel of two bathrooms and purchase and installation of a generator to ensure continued services during power outages. These projects are carried over from ADA Improvements - $15,000 WCLS is committed to ensuring our facilities and services are accessible to all members of our community. Funds are budgeted for installation of accessible entry ways and improvements to circulation areas where possible. Branch AV Equipment - $18,000 In an effort to enhance program and meeting services for patrons, WCLS is expanding the audio visual equipment available at branches. This is the second year of a multi-year phased in project. Integrated Library System Replacement - $210,000 WCLS shares an integrated library system (ILS) with Bellingham Public Library (BPL). This system is growing increasingly inefficient due to its inability to keep up with the impacts of changing patron demands and advances in technology. In partnership with BPL, WCLS will begin the selection process for a new ILS that is adaptable, expandable, and provides the efficient, secure, flexible service that meets the need of patrons and staff alike. Final implementation is anticipated to be completed in 2018, provided BPL can secure its share of funding. Book Returns - $25,000 In 2017 WCLS began installation of book returns on local school campuses to make it easier for young people to return WCLS materials, and, by extension, make it easier for them to use WCLS services. The book returns will also serve as community reminders of WCLS services. This project will continue into 2018 as we develop additional partnerships with local schools. Vehicle Replacement - $342,000 WCLS budgets to replace its vehicles on a regular basis and in 2018 plans to replace a 2007 Prius used by staff for local and regional travel. Additionally WCLS is currently reviewing options to replace its aging Bookmobile. Funds are budgeted to replace the Bookmobile or develop a similar service option for those who are unable to visit a branch location. New Library Design Study - $50,000 In 2017, WCLS purchased property in Birch Bay, with the intention of opening a new library to serve this growing community. The next phase of this project is to engage the Friends of the Birch Bay Library, community members, and a design architect to develop a schematic design that can be used to explain the project to potential funders. Additional Capital Projects are currently under review by the WCLS Leadership Team and Board of Trustees, and may be updated in the final 2018 Budget.

21 Capital Improvement Plan Summary Project Est. Plan Total Building Furnishings Enhancement and Replacement Program Facilities Staff Ergonomic Furnishings $ 12,000 $ - $ - $ - $ - $ 12,000 Facilities Point Roberts New Branch Furnishings 110, $ 110,000 Facilities Admin Services Office Enhancements 2, $ 2,000 Facilities Branch Renovations/Upgrades 76,400 50,000 50,000 50,000 50,000 $ 276,400 Admin Branch Interior Signage 11, $ 11,000 Sub-Total Building Furnishings Enhancement and Replacement Program $ 211,400 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 411,400 Building Repair and Maintenance Program Facilities Admin Services $ 35,000 $ - $ - $ - $ - $ 35,000 Facilities ADA Improvements $ 15,000 $ - $ - $ - $ - $ 15,000 Sub-Total Building Repair and Maintenance Program $ 50,000 $ - $ - $ - $ - $ 50,000 Technology Upgrades Program IT Services Branch AV Equipment $ 18,000 $ - $ - $ - $ - $ 18,000 Coll Svcs ILS Upgrade $ 210,000 $ - $ - $ - $ - $ 210,000 Sub-Total Technology Upgrades Program $ 228,000 $ - $ - $ - $ - $ 228,000 Equipment Replacement Program Admin Vehicle Replacement $ 42,000 $ - $ - $ 45,000 $ - $ 87,000 Public Svcs Bookmobile Replacement or Similar $ 300,000 $ - $ - $ - $ - $ 300,000 Sub-Total Equipment Replacement Program $ 342,000 $ - $ - $ 45,000 $ - $ 387,000 Access Improvement Program Youth Svcs Book Returns $ 25,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 53,000 Subtotal Access Improvement Programs $ 25,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 53,000 Real Estate Purchase/New Library Construction $ 50,000 $ - $ - $ - $ - $ 50,000 Total Expenditures $ 906,400 $ 57,000 $ 57,000 $ 102,000 $ 57,000 $ 1,179,400 Funding Summary: Est. Plan Total Investment Interest $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Grants/Reimbursements $ - Transfers-In From General Fund 436, , , , ,298 $ 1,109,661 Prior Period Ending Fund Balance 896, $ 896,680 Total Funding $ 1,343,149 $ 178,298 $ 178,298 $ 178,298 $ 178,298 $ 2,056,341 Fund Balance: Assigned Beginning Fund Balance $ 460,680 $ 749 $ 122,047 $ 243,345 $ 319,643 Committed Beginning Fund Balance - Emergency 436, , , , ,000 Total Beginning Fund Balance $ 896,680 $ 436,749 $ 558,047 $ 679,345 $ 755,643 Revenues 10,000 10,000 10,000 10,000 10,000 Transfers-In 436, , , , ,298 Expenditures 906,400 57,000 57, ,000 57,000 Transfers-Out Ending Fund Balance $ 436,749 $ 558,047 $ 679,345 $ 755,643 $ 876,941 Note: Projected revenues and expenditures represent current estimates. The priority, timing, and available funding for budgeted projects are subject to change based on the changing needs of WCLS, its staff, and the patrons and communities that it serves.