s o m e r s e t c o u n t y l ib r a r y s y s t e m

SOMERSET COUNTY LIBRARY SYSTEM

of NEW JERSEY

BUDGET 2019 Presented to the

Somerset County Library Commission

March 6, 2019

BUDGET 2019 SOMERSET COUNTY LIBRARY SYSTEM of NEW JERSEY

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2018 IN REVIEW In 2018 we...

● Were recognized as a national “Star Library” once again by Library Journal, one of only six in New Jersey.

● Drafted our strategic plan, which will take us through the next three to five years. This included comprehensive Community Conversations with customers and community leaders to solicit input for our strategic priorities.

● Consolidated and centralized system-level activities such as money handling, bank deposits and reconciliations.

● Continued rolling out Chrome devices for staff desktop use and appropriately-scaled low-cost PCs elsewhere.

● Continued systematizing copier contracts. ● Concluded a comprehensive classification and pay study, revised the

classification table and began implementing salary adjustments to most staff.

● Began offering an extremely successful fee-based passport service. ● Laid the groundwork for a consolidated programs catalog featuring

promotion of resources, services and staff-created content. ● Completed the transition to encumbrance-based purchasing. ● Merged roles and responsibilities in Public Services to include

transitions from support services to programs and collaborations, changed direct oversight of branch locations, and re-imagined vacant managerial roles.

● Held down increases in the tax rate to the amount needed to accommodate pay increases, vendor price increases and increases to PERS.

● Overhauled, automated and simplified the employee review system. ● Completed the building modifications necessary to support the administrative staff in one

location. ● Continued developing partnerships with county non-profits (we have management

team staff on the boards and membership of: Literacy Volunteers of Somerset County, CASA SHaW, Frontline Arts, ARC of Somerset County, Somerset Treatment Services, Alternatives, The Center School, Empower Somerset and Rolling Thunder, Inc. NJ Chapter 3).

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https://drive.google.com/open?id=1UcgpsUUb95WsHTRp6tB3kgbGVYUSlHQoPRZAS54BY24

https://drive.google.com/open?id=1iYR0HuK0OqAZwavK14PRlp-Y-Y0tWZph


SCLSNJ by the numbers … 2017 2018 Delta

Total volumes purchased (books, ebooks, audio, etc.) 77,825 78,143 0.41%

Total volumes owned at the end of the year 871,862 969,223 11.17%

Adult circulation 1,517,415 1,592,345 4.94%

Children's circulation 1,187,867 1,200,788 1.09%

Electronic circulation 312,397 360,175 15.29%

Electronic circulation as percentage of whole 11.5% 12.9% 12.17%

Uses of public PCs 198,235 206,558 4.20%

Uses of WiFi 272,987 317,406 16.27%

Total Branch Checkouts 2017 2018 Delta

Bound Brook 54,504 68,337 25.38%

Bridgewater 480,391 502,653 4.63%

Hillsborough 318,232 343,845 8.05%

Manville* 74,621 68,431 -8.30%

Mary Jacobs 187,198 207,870 11.04%

North Plainfield 79,626 88,874 11.61%

Peapack & Gladstone 25,129 27,211 8.29%

Somerville 52,913 53,562 1.23%

Warren 153,862 177,965 15.67%

Watchung 47,075 48,018 2.00%

Total 1,473,551 1,586,766 7.68% Totals above do NOT include renewals or electronic materials, but rather only counts of items presented for checkout the first time. *Manville operated on a significantly reduced schedule and/or was closed for much of the summer of 2018 as a result of HVAC mechanical problems.

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2019: What Lies Ahead Our plan for 2019 assumes below-the-cap growth in the budget. We will continue to seek and implement efficiencies in providing services. We will focus resources to match the strategic priorities and core services outlined in our strategic plan.

We will: ● Maintain or improve our Library Journal “Star” rating. ● Continue to accommodate and grow traditional and electronic circulation. ● Streamline the hiring process for high-turnover positions. ● Continue with the design of the Montgomery branch, together with several new

services and new approaches to traditional service delivery. ● Work with Watchung borough officials on the design of the new Watchung

branch. ● Redesign and completely re-equip the heavily-used technology room at the Bound

Brook branch through a combination of community donations and stakeholder funds.

● Expand our recruiting efforts by engaging on social media platforms, attending local and national recruiting events, and developing compelling recruitment materials.

● Launch the SCLSNJ Employee Wellness & Engagement program. ● Facilitate applications to the New Jersey Library Construction Bond Act (NJLCBA) by borough

and township councils to identify appropriate construction-based projects. ● Recommit to and reinforce the best practices of the Library’s early childhood

literacy initiative, SOARING. ● Introduce collection of outcome measurements and user data into all adult

programming initiatives. ● Update the SCLSNJ mobile app to match the newly-designed website. ● Implement a multi-part communication plan (“onboarding”) to reach out to new card holders to

introduce them to staff, services and resources and evaluate effectiveness. ● Create and deliver an internal four-part managerial development program to a cohort of

supervisors. ● Substantially increase internet bandwidth throughout the system.

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REVENUES 2018 2019 DELTA State Aid $95,601 $93,347 -2.36% Fines $54,000 $54,000 0.00% Copying Fees $7,600 $9,500 25.00% Interest $21,540 $45,000 108.91% Passport Fees $30,000 $25,000 -16.67% Non-resident fees $3,150 $3,150 0.00% A&O Taxes $20,377 $1,133 -94.44% General Reserves $410,000 $330,000 -19.51% Taxes $17,337,345 $17,676,044 1.95% Total $17,979,613 $18,237,174 1.43%

Freeholder Gallagher at the first NEH Digitization Day at the Hillsborough branch

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EXPENSES – PERSONNEL 2018 Budget 2018 Actual 2019 Proposed Deltas to 2018 Budget Salaries $10,356,772 $9,823,919 $10,286,962 -$69,810 -0.67% FSA Claims and Administration $5,000 -$45 $5,000 $0 0.00% Waivers In Lieu of Benefits $82,000 $77,238 $80,000 -$2,000 -2.44% Health Benefits $1,889,500 $1,823,942 $2,150,000 $260,500 13.79% Dental Benefits $67,000 $58,053 $69,010 $2,010 3.00% Social Security $798,500 $728,016 $793,073 -$5,427 -0.68% Pension $1,056,706 $1,056,706 $1,161,606 $104,900 9.93% Staff Dev./Conferences/Training $115,000 $102,256 $127,000 $12,000 10.43%

Total $14,370,478 $13,670,084 $14,672,650 $302,172 2.10% Notes

1. Staff Development costs include training and conference costs. Industry standards call for a staff development budget of 1% – 3% of total personnel costs. Our staff development costs represent 0.87% of the personnel budget.

2. Health benefits reflect a 13.8% increase over 2018. 3. Pension costs are up nearly 10%.

Library staff at the first NEH Digitization Day

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EXPENSES – RESOURCES

2018 Budget 2018 Actual 2019

Proposed Deltas to 2018 Budget Preservation $500 $0 $500 $0 0.00% Programs $167,250 $143,482 $167,000 -$250 -0.15% Materials $1,968,490 $1,934,018 $1,998,490 $30,000 1.52% Digital Access $243,000 $236,441 $243,000 $0 0.00%

Total $2,379,240 $2,313,941 $2,408,990 $29,750 1.25% Notes

1. These represent those expenses that place content directly “into the hands” of customers and total 13.2% of the overall budget.

Watching the new outdoor pavilion construction at the Bridgewater branch

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EXPENSES – OPERATING


Proposed Deltas to 2018 Budget Outside Contracts $42,650 $22,055 $23,000 -$19,650 -46.07% Advertising $1,000 $786 $1,400 $400 40.00% Postage $13,000 $3,719 $11,000 -$2,000 -15.38% Printing $16,000 $10,994 $14,950 -$1,050 -6.56% Marketing $20,325 $16,752 $25,000 $4,675 23.00% Auto Repairs $4,000 -$810 $4,500 $500 12.50% Technology Expenses $275,000 $234,200 $289,184 $14,184 5.16% Equipment lease, purchase and repair $20,000 $14,513 $20,000 $0 0.00% Legal $53,000 $45,451 $53,000 $0 0.00% Audit $10,000 $5,100 $10,000 $0 0.00% Consultants - - - - - Insurance/Bonding $95,000 $89,952 $100,000 $5,000 5.26% Municipal payments $393,820 $197,451 $365,000 -$28,820 -7.32% Travel expenses $24,000.00 $30,036.89 $31,000.00 $7,000 29.17% Vehicles $0.00 $0.00 $40,000.00 $40,000 100.00% Durable office supplies $6,000 $5,155 $6,000 $0 0.00% Furniture/Fixtures $95,000 $55,504 $52,000 -$43,000 -45.26% Supplies $70,000 $53,916 $70,000 $0 0.00% Gasoline $4,100 $0 $4,500 $400 9.76% Bibliographic/Resource sharing $87,000 $82,136 $35,000 -$52,000 -59.77%

Total $1,229,895 $866,910 $1,155,534 -$74,361 -6.05% Notes

1. Technology Expenses are split across OPERATING and RESOURCES. Those expenses used to provide customer-facing digital access have been moved from general OPERATING to SERVICES to better reflect their purpose as a direct service rather than as overhead.

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TOTAL BUDGET


Proposed Deltas to 2018 Budget Personnel $14,370,478 $13,670,084 $14,672,650 $302,172 2.10% Services $2,379,240 $2,313,941 $2,408,990 $29,750 1.25% Operating $1,229,895 $866,910 $1,155,534 -$74,361 -6.05% TOTAL $17,979,613 $16,850,934 $18,237,174 $257,561 1.43%

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PROPOSED USE OF THE FUND BALANCE

2019 2020 2021 2022 2023 2024 Balance at start of year $ 669,870 $ 1,059,870 $ 1,014,870 $ 719,870 $ 423,870 $ 392,387 Additions to fund balance from previous year $ 720,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 TOTAL Fund Balance to Revenue (including projects below) $ (330,000) $ (395,000) $ (645,000) $ (646,000) $ (381,483) $ (353,148) Balance forward $ 1,059,870 $ 1,014,870 $ 719,870 $ 423,870 $ 392,387 $ 389,239 PROJECT Delivery truck $40,000 Hatchback vehicle $25,000 Montgomery Library AMH $250,000 Montgomery Library equipment $25,000 BWL AMH $300,000

We propose to continue using surplus funds (fund balance) from prior years in three ways: a) to ensure adequate cash flow, b) to act as revenue for succeeding years and c) to fund one-time extraordinary planned purchases, as illustrated by this table. Approval of the 2019 budget does not authorize the above proposed expenditures or the amounts proposed to revenue. The table will be revised each year to reflect actual amounts added to and taken from the fund balance and to better align estimates based on prior experience and forecasts.

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SETTING THE 2019 BUDGET FOR THE SOMERSET COUNTY LIBRARY SYSTEM RESOLUTION #19-021

WHEREAS, the Somerset County Library Commission has carefully considered the budget requirements

for providing library services to the fifteen member municipalities it serves; NOW, THEREFORE, BE IT RESOLVED that the Commission adopts an operating budget in the

amount of $18,237,174 and sets the Library Tax Rate at a level to provide $17,676,044; AND REQUESTS that the Board of Chosen Freeholders accept this budget and the tax rate it requires. DATED: March 6, 2019 __________________________

Anthony T. Suriano, Chairman I certify that the above is a true copy of a Resolution passed by the Somerset County Library Commission at the meeting held on March 6, 2019.

__________________________ Brian K. Auger Secretary to the Commission

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