Ohio Library Council BOARD OF DIRECTORS. ITEM NO.: 6.C MEETING DATE: Jan. 18, 2019 REPORT FOR ACTION

Transcription

1 BOARD OF DIRECTORS ITEM NO.: 6.C MEETING DATE: Jan. 18, 2019 SUBJECT: OLC Operating Budget 2019 REPORT FOR ACTION SUBMITTED BY: Doug Evans The OLC Finance Committee members met via telephone conference call on Jan. 9 to review in detail the proposed operating budget for The Committee amended the budget as presented by staff by adding $20,000 to the Consultants/Contractors line item (Expenses, line 34), and unanimously accepted the budget. REVENUE Dues: $1,018,750 Institutional: $821,500 based upon the current dues formula of 0.27% of 2018 PLF plus 0.055% of 2018 property tax receipts; assumes retention of all 243 Institutional-member libraries from 2018; calculation based upon county auditor reports received to date that show an average increase in PLF funding in 2018 of about 3.4%% as compared to 2017; local property tax revenue projected to be relatively the same as Other Institutions: $8,250 includes membership dues for Associate members and other institutions; assumes no dues rate increase for Personal: $186,000 assumes maintaining membership revenue due at the 2018 level because of the continuing trends in membership recruitment, retention, and slight increase in dues rates as a result of compensation increases. Friends: $3,000 projections based upon past retention and membership trends. Publications: $1,000 Sales: $1,000 projects a continuing decrease in sales of publications (e.g., Trustees Handbook, Library Accounting Handbook, etc.) as a result of policy to allow for free downloads for members; revenue projection based upon number of requests for printed documents. Continuing Education: $333,750 Legislative Day: $11,250 projections based on a registration fee of $5 per person for 250 attendees (capacity of Statehouse atrium) to cover costs of with legislators; all other expenses (space rental, AV equipment, etc.) are borne by the OLC. Convention and Expo: $190,000 projects attendance based upon past events and experience at the Duke Energy Conference Center in Cincinnati; proposes increases across the Board for registration, exhibit booth rental, ticketed events, etc. due to substantial increase in facilities costs as compared to the 2018 Convention and Expo at Kalahari. Leadership Conference: $7,000 projection based upon attendance trends; maintains registration fees that only covers the cost of food, but is increased $5 ($40) because increase in cost of food. Professional Development: $125,500 includes revenue from regularly-scheduled workshops and events such as Library Accounting, New Directors, and Information Technology, and Ballot Workshops, online education; assumes similar attendance based upon past performance; includes revenue from three stand-alone subject-specific conferences (Community Engagement, Library Facilities Management, Library Safety and Security) as well as the Joint 6.C: OLC Operating Budget

2 Library Association Conference; includes revenue from librarian and library staff certification programs; registration fee includes a modest adjustment, per Board s direction, to reflect market value and quality of the programming; maintains discounted registration for event planning committee members and library speakers at events.. Includes no revenue for Trustee Dinners; recommended for discontinuation in 2019 as a result of trends in increased expenses and drop in attendance; revenue and expense projections can be added to budget at the Board s discretion (see additional information in Supplemental Budget pg. 5). Contract Income: $4,000 Sourcing Office: $4,000 projects revenues totals based upon past performance and increasing use of services. Other Income: $82,775 Interest: $15,000 projects revenues totals based upon past performance. Workers Comp Group Rating: $35,000 projects revenues totals based upon past performance, assumes continued joint program with OSBA and OASBO. Unrealized Gain/Loss (TRAK): $20,000 very difficult to project based upon market volatility in 2018; conservative estimate on performance of long-term investments. Grants: $11,025 includes an LSTA grant at the discretion of the State Library of Ohio Board of Trustees to support the Joint Library Association Conference. Management/Consulting Services: $750 includes fees charged to libraries for employee background checks. Jobline: $1,000 revenue projection based upon anticipated number of job openings/postings by non-member libraries based upon 2018 actuals (no charge for member-library postings). TOTAL PROJECTED REVENUE: $1,440,275 EXPENSES Salary and Benefits: $833,525 Staff Salaries: $676,825 includes an average increase of approximately 2.5% in staff compensation as compared to 2018 (effective March 2019); no increase in Executive Director s compensation. Retirement Contribution: $30,675 maintains OLC s contribution to employees 401(k) plan at 5% of salary for all qualifying employees. Health Insurance: $69,275 includes health, dental, and vision insurance for qualifying employees and dependents; assumes retention of the OLC s high-deductible health insurance plan and health savings account for employees, proposes change in OLC contribution to premium at 90% for employees and 80% for dependents, and a $400 contribution to health savings account; projects a non-negotiated premium increase of 14% in March Payroll Taxes (FICA, FUTA, Workers Compensation, Unemployment): $51,300 reflects amount based on staff compensation totals. Casual Labor: $0 no part-time/non-staff personnel expected in LTD and Life Insurance: $5,450 anticipates a modest increase in premiums for 2019 for all qualifying full-time employees. 6.C: OLC Operating Budget

3 Consultants/Contractors: $168,885 Auditor: $7,250 includes cost for a full audit of 2018 financials. Speaker Honoraria: $26,900 includes anticipated costs for non-library speakers at Convention and Expo as well as professional development events, including three stand-alone conferences. Legal Services: $35,000 based upon actual expense in 2018 and projected utilization in Convention and Expo Contractors: $52,350 reflects projected cost of Convention and Expo hall decorator (may vary depending upon number of exhibitors); $20,000 increase in 2019 as compared to 2018 due to location of 2019 event (Duke Energy Conference Center, Cincinnati). Consultants/Contractors: $47,385 includes administrative costs for payroll and 401(k) plan; online voting; executive search consultant fees; and library funding/tax revenue analytics (Howard Fleeter). Supplies and Resource Materials: $27,075 Supplies: $18,830 includes supplies for Convention and Expo, professional development events, certified librarian and staff programs, unit projects, and publications, and general overhead. Subscriptions and Resource Materials: $6,975 includes subscriptions to publications; fees for news clipping services; etc.; includes a substantial increase for the Hannah Report subscription. Computer Software/Supplies: $1,720 includes fees for broadcast , webinar software (Adobe Connect), survey software (Survey Gizmo), anti-virus software, Expocad, and Basecamp. Communications: $28,690 Telephone Local/LD/Mobile: $2,650 costs for local/long distance service and staff mobile phone charges; cost for service remains under current contract. Telephone Conference Calls: $955 projected cost of conference calls for the Board, Division Action Councils and Committees. Postage: $10,400 includes costs for mailings to members, annual membership renewal, Trustee Newsletter, general business postage, etc. Mailing Service: $2,400 includes costs of membership renewal, four issues of Trustee Newsletter, Convention and Expo promotion, professional development program promotion, and any other bulk mailings. Courier Service: $910 includes fees to mail sold publications (which are charged back to purchaser and included in publication income); includes general business expenses for UPS, FedEx, etc.; based upon actual expense in 2018 and projected utilization in Internet: $11,375 includes annual website hosting fees, service, and broadband service; includes increase due to renewal of SSL license fees that expired in Printing and Design: $26,690 Printing: $14,100 includes cost of regular printed materials (e.g., stationery, envelopes, etc.); Convention and Expo promotional and on-site materials; etc. Design: $5,950 includes design costs for Convention and Expo promotional and on-site materials, and other print projects. Copying: $6,640 reflects costs for increase in materials produced in-house. 6.C: OLC Operating Budget

4 Maintenance and Equipment: $62,950 Equipment Rental: $44,850 includes office equipment, copier, and postage machine; equipment, including AV, for Convention and Expo, stand-alone conferences, professional development programs, Legislative Day, and Leadership Conference. Equipment Maintenance: $1,500 includes service on postage meter, copier, and telecom equipment. Software Support: $16,600 includes outside support for computer software and licensure expenses. Space Rental: $96,150 Office Space: $69,925 includes per-square-foot rental fees that were effective September 2018 through October 2019 (end of current lease) and modest common-area costs; projected cost per square foot for same amount of space in November and December Convention and Expo: $15,500 reflects rental fee for Duke Energy Convention Center (note error in figure for Kalahari should be $4,000. Workshops/Meetings: $7,725 includes space rental fees for three stand-alone conferences, Legislative Day, Leadership Conference, and off-site professional development events. Travel and Meals: $45,020 Board: $8,150 includes requested mileage reimbursement for attendees at OLC Board meetings, support for two participants in the ALA Emerging Leaders program, and expenses for ALA Councilor to attend ALA Midwinter Meeting (Seattle) and Annual Conference (Washington, D.C.). Staff: $17,500 includes staff reimbursement for mileage, accommodations and meals for business-related travel, including local and out-of-town meetings, attendance at professional development events, etc.; reflects increase in the IRS allowable reimbursement to $0.58 per mile for use of personal cars for local business travel (rental cars are required for travel in excess of 150 miles round-trip in a 24-hour period). Committees: $3,975 projection based upon Committees projected costs for hosting two inperson meetings (unless otherwise approved) and actual 2018 expenses; maintains current mileage reimbursement at $0.345 per mile. Divisions: $2,495 projection based upon Division action councils projected request costs for hosting two in-person meetings (unless otherwise requested) and actual 2018 expenses; maintains current mileage reimbursement at $0.345 per mile. Presenters: $12,900 includes travel and accommodations for professional development program speakers, Convention and Expo presenters, etc.; maintains current mileage reimbursement at $0.345 per mile for library presenters; based upon actual expenses in 2018 plus number of potential professional development events in Management Expenses: $155,180 Bank Services: $14,750 includes fees for commercial banking, credit card services, and longterm investment management; based upon actual costs in Depreciation Replacement: $25,000 reflects depreciation on value of current capital assets. Insurance: $7,500 premiums for ERISA bond, directors and officers insurance, and property and casualty insurance; reflects increase in premiums. Organizational Memberships: $1,600 includes OLC s organizational memberships in ALA, PLA, Freedom to Read Foundation, etc. 6.C: OLC Operating Budget

5 Staff Development and Memberships: $3,660 - includes fee for employees memberships in ALA, PLA, ASAE, and OSAE; registration fees for meetings of ALA and OSAE; increase due to anticipated amount of event attendance. Catering and Other Meals: $102,670 includes charges for food and beverages for OLC Board meetings, Division action council and Committee meetings for two in-person meetings (unless otherwise approved), professional development events, Legislative Day, Leadership Conference, and Convention and Expo; approximately 85% of expense is recouped through event registration fees or other revenue. Interest Line of Credit: $0 no anticipated use of short-term account TOTAL PROJECTED EXPENSES: $1,444,165 NET CHANGE IN ASSETS: ($3,890) SUPPLEMENTAL BUDGET Not included in the 2019 operating budget; to be discussed at the Board meeting. OLC OFFICE RELOCATION Activity Projected Cost Notes Physical move of all office contents $ 6,500 Voice/data cabling 5,250 Printing 5,700 Letterhead, envelopes, labels, business cards, etc. TOTAL $ 17,450 OLC TRUSTEE DINNERS Revenue 2018 Budget 2018 Actual Variance 2019 Budget $40/person $ 8,600 $ 7,640 $ 960 $ 9,000 Expenses 2018 Budget 2018 Actual Variance 2019 Budget Postage $ 125 $ - $ (125) $ 50 Copying (275) 50 Equipment Rental (62) 350 Space Rental (485) 750 Staff Travel (204) 350 Catering 6,585 4,511 (2,074) 6,750 TOTAL $ 8,520 $ 5,295 $ (3,225) $ 8,300 NET TOTAL $ 80 $ 2,345 $ 2,265 $ 700 Trustee Dinner Attendance 2018 Projected 2018 Actual Central 25 Cancelled (8) Cancelled 27 East North/Northeast Northwest South 20 Cancelled (7) N/A N/A Southwest TOTAL C: OLC Operating Budget

6 OPERATING BUDGET: 2019 REVENUE Budget YTD Actual [1] Variance Budget Dues 1 Institutional $ 798,500 $ 799,023 $ 523 $ 821,500 2 Other Institutions 8,750 8,050 (700) 8,250 3 Personal 184, ,938 1, ,000 4 Friends 3,000 2,950 (50) 3,000 5 Sub-Total $ 994,250 $ 995,961 $ 1,711 $ 1,018,750 Publications 6 Sales $ 1,250 $ 1,074 $ (176) $ 1,000 7 Sub-Total $ 1,250 $ 1,074 $ (176) $ 1,000 Continuing Education 8 Legislative Day $ - $ - $ - $ 11,250 9 Convention & Expo 183, ,164 (12,186) 190, Leadership Conference 4,725 4,165 (560) 7, Professional Development 127, ,785 9, , Sub-Total $ 315,430 $ 312,114 $ (3,316) $ 333,750 Contract Income 13 Sourcing Office 2,500 $ 4,054 $ 1,554 4, Sub-Total $ 2,500 $ 4,054 $ 1,554 $ 4,000 Other Income 15 Interest $ 10,000 $ 15,445 $ 5,445 $ 15, Workers' Comp Group Rating 35,000 17,843 (17,157) 35, Unrealized Gain/Loss TRAK 25,000 (27,208) (52,208) 20, Gain/(Loss) - Disposal of Equipment Grants 5,000 1,080 (3,920) 11, Management/Consulting Services JobLine 250 3,830 3,580 1, Sub-Total $ 75,250 $ 11,635 $ (63,615) $ 82, TOTAL $ 1,388,680 $ 1,324,838 $ (63,842) $ 1,440,275 Notation: [1] As of Nov. 30, 2018

7 OPERATING BUDGET: 2019 EXPENSES Budget YTD Actual [1] Variance Budget Salaries & Benefits 23 Staff Salaries $ 660,575 $ 605,600 $ (54,975) $ 676, Retirement Contribution 31,350 30,209 (1,141) 30, Health Insurance 64,100 58,618 (5,482) 69, Payroll Taxes (FICA, FUTA, WC, Unemp.) 48,000 45,831 (2,169) 51, Casual Labor LTD & Life Insurance 5,350 4,754 (596) 5, Sub-Total $ 809,375 $ 745,012 $ (64,363) $ 833,525 Consultants & Contractors 30 Auditor $ 7,250 $ 7,250 $ - $ 7, Speaker Honoraria 21,650 23,927 2,277 26, Legal Services 45,000 16,327 (28,673) 35, Convention & Expo Contractors 32,750 31,445 (1,305) 52, Consultants/Contractors 21,030 18,050 (2,980) 47, Sub-Total $ 127,680 $ 96,999 $ (30,681) $ 168,885 Supplies & Resources 36 Supplies $ 12,720 $ 19,355 $ 6,635 $ 18, Subscriptions & Resource Materials 2,040 5,524 3,484 6, Computer Software/Supplies 2,715 3,811 1,096 1, Sub-Total $ 17,475 $ 28,690 $ 11,215 $ 27,075 Communications 40 Telephone - Local/LD/Mobile $ 2,695 $ 2,385 $ (310) $ 2, Telephone - Conf. Calls (142) Postage 11,345 8,640 (2,705) 10, Mailing Service 2,470 1,967 (503) 2, Courier Service (132) Internet 9,500 10,631 1,131 11, Sub-Total $ 27,675 $ 25,014 $ (2,661) $ 28,690 Printing & Design 47 Printing $ 12,300 $ 11,296 $ (1,004) $ 14, Design 5,650 3,413 (2,237) 5, Copying 10,260 4,977 (5,283) 6, Sub-Total $ 28,210 $ 19,686 $ (8,524) $ 26,690 Maintenance & Equipment 51 Equipment Rental $ 35,080 $ 35,248 $ 168 $ 44, Equipment Maintenance 1,500 1, , Software Support 18,025 16,464 (1,561) 16, Sub-Total $ 54,605 $ 53,389 $ (1,216) $ 62,950 Space Rental 55 Office Space $ 69,500 $ 63,662 $ (5,838) $ 69, Convention & Expo 4,000 10,636 6,636 18, Workshops/Meetings 13,425 7,605 (5,820) 7, Sub-Total $ 86,925 $ 81,903 $ (5,022) $ 96,150

8 OPERATING BUDGET: 2019 EXPENSES Budget YTD Actual [1] Variance Budget Travel & Meals 59 Board $ 8,350 $ 9,087 $ 737 $ 8, Staff 18,370 18,301 (69) 17, Committees 4,890 2,002 (2,888) 3, Divisions 3, (2,988) 2, Presenters 12,260 4,129 (8,131) 12, Sub-Total $ 47,410 $ 34,071 $ (13,339) $ 45,020 Management Expenses 65 Bank Services $ 14,750 $ 12,764 $ (1,986) $ 14, Depreciation Replacement 22,500 26,582 4,082 25, Employee Hiring Insurance 7,350 6,738 (612) 7, Organization Memberships 1,625 1,543 (82) 1, Staff Development & Memberships 3,710 3,048 (662) 3, Catering & Other Meals 100,835 81,998 (18,837) 102, Interest - Line of Credit Sub-Total $ 150,770 $ 133,243 $ (17,527) $ 155, TOTAL $ 1,350,125 $ 1,218,007 $ (132,118) $ 1,444, Net Change in Assets $ 38,555 $ 106,831 $ (68,276) $ (3,890) Notation: [1] As of Nov. 30, 2018

9 OPERATING BUDGET: 2019 Expenses by Cost Center Convention Government Member Professional TOTAL Acct. No. Administration Communications & Expo Divisions Governance & Legal Srvs. Services Overhead Development BUDGET Salaries & Benefits 1 Staff Salaries $ 676,825 $ - $ - $ - $ - $ - $ - $ - $ - 676,825 2 Retirement Contribution , ,675 3 Health Insurance , ,275 4 Payroll Taxes (FICA, FUTA, WC, Unemp.) , ,300 5 Casual Labor LTD & Life Insurance , ,450 7 Sub-Total $ 833,525 $ - $ - $ - $ - $ - $ - $ - $ - $ 833,525 Consultants & Contractors 8 Auditor $ 7,250 $ 7,250 9 Speaker Honoraria ,000 6,900 26, Legal Services ,000 35, Convention & Expo Contractors ,350 52, Consultants/Contractors , ,000 8,500 2,950 47, Sub-Total $ 69,935 $ - $ 72,350 $ - $ 250 $ 8,000 $ - $ 8,500 $ 9,850 $ 168,885 Supplies & Resources 14 Supplies $ 250 $ 300 $ 4,110 $ 610 $ 2,940 $ 900 $ 270 $ 7,500 $ 1,500 $ 18, Subscriptions & Resource Materials ,800 4,900 6, Computer Software/Supplies ,720 1, Sub-Total $ 525 $ 2,100 $ 4,110 $ 610 $ 2,940 $ 5,800 $ 270 $ 9,220 $ 1,500 $ 27,075 Communications 18 Telephone - Local/LD/Mobile $ 550 $ 500 $ 1,600 $ 2, Telephone - Conf. Calls Postage ,000 1,190 3, , , Mailing Service , , Courier Service Internet ,375 11, Sub-Total $ 1,700 $ 2,150 $ 4,125 $ 180 $ 1,025 $ 1,275 $ 3,640 $ 12,975 $ 1,620 $ 28,690 Printing & Design 25 Printing $ 8,100 $ 400 $ 150 $ 350 $ 4,500 $ 600 $ 14, Design ,950 5, Copying ,270 1, ,170 6, Sub-Total $ 500 $ 1,270 $ 15,550 $ 865 $ 600 $ 900 $ 735 $ 4,500 $ 1,770 $ 26,690 Maintenance & Equipment 29 Equipment Rental $ 20,000 $ 225 $ 250 $ 20,450 $ 3,925 $ 44, Equipment Maintenance ,500 1, Software Support ,600 16, Sub-Total $ - $ - $ 20,000 $ - $ 225 $ 250 $ - $ 38,550 $ 3,925 $ 62,950 Space Rental 33 Office Space $ 69,925 $ 69, Convention & Expo Space ,500 18, Workshops/Meetings ,325 1,500 4,900 7, Sub-Total $ - $ - $ 18,500 $ - $ 1,325 $ 1,500 $ - $ 69,925 $ 4,900 $ 96,150 Travel & Meals 37 Board $ 8,150 $ 8, Staff , , , , Committees ,500 1,475 3, Divisions ,495 2, Presenters ,000 2,900 12, Grants/Sponsorships 1-5-XXX 43 Sub-Total $ 5,500 $ 100 $ 18,100 $ 2,495 $ 9,775 $ 5,500 $ - $ - $ 3,550 $ 45,020 Management Expenses 44 Bank Services $ 14,750 $ 14, Depreciation Replacement ,000 25, Employee Hiring Insurance ,500 7, Organization Memberships , , Staff Development & Memberships , , Catering & Other Meals ,600 2,235 9,885 14,375 46, , Interest - Line of Credit Sub-Total $ 51,150 $ 150 $ 29,600 $ 2,235 $ 9,885 $ 14,775 $ 510 $ - $ 46,875 $ 155, TOTAL $ 962,835 $ 5,770 $ 182,335 $ 6,385 $ 26,025 $ 38,000 $ 5,155 $ 143,670 $ 73,990 $ 1,444,165