South Central Library System

Delivery Services Overview

Delivery Income Sources2013 Budget

State Aid $2,057,367.00

Sauk Co Library Service $903,464.00

Green Co Library Service

$416,821.00 Tech/ ILS Member

Payments $1,857,465.00

LSTA Income $76,243.00

Other Income $219,431.00

LSTA Income $75,000.00

Member Delivery-County 22.3% $381,892.00

Link Express .5% $8,115.00

Multi-Type/Inter Sys-tem Delivery 77.2%

$1,325,734.00

Delivery 2013 Income Bud-get

Total SCLS 2013 Income Budget

Delivery ExpensesBudget 2013

ILL & Res Services $410,223

ILS Services $1,112,343

Green County Library Services

$416,821

Sauk County Library Services

$903,465 Administration

and Coordination

$509,390 Consulting

Services $727,163 Other

Expenses $164,780

LSTA $76,243 Tech Services

$989,082

Fleet Expenses 6% $200,000

Delivery Salaries 51% $1,072,197

Bonding/Cargo/Fleet Insurance 3%

$72,000

Supplies & Equipment 1%

$12,000

Fleet Replacement 5% $95,000

Contracted Service 2% $45,000

Delivery Facility 10% $209,000

Damaged Materials .5% $500

Admin/Insurances/WRS/FICA 22.5%

$478,989

Total SCLS 2013 Expense Budget Delivery 2013 Expense Budget

The Two Businesses of Delivery

•Service to Member Libraries

•Service to Non-Member Libraries

Why Service to Non-Members?

• There was no delivery network in place to connect regional delivery networks and other types of libraries in the state in support of ILL.• The Postal Service (and other package delivery outfits like

UPS, FedEx) was costly and not always the fastest.• SCLS piloted, with LSCA funds, delivery routes to various

participants in NE & SE WI. It was very successful in that is was cheaper for everyone and, most of the time, faster.• In short, this service was needed and no one was doing

anything about it, so we (Bob Blitzke and Peter Hamon) decided to do it.

Really?

$The revenue we receive from non-member libraries is more than the amount it costs to provide delivery service to non-member libraries.

Trifecta of System Funding

•State Aid

• Interest

•Delivery Profit• Think of it as supplemental state aid and member fees. It

can be thought to cover all areas.

Sources of Funding by DepartmentRevenueSource

ILS Technology Consulting Administration & ILL Delivery Totals

State Aid $0 $234,000 $727,163 $702,260 $393,944 $2,057,367

Interest $33,000 $33,000

Member Delivery by County

$381,892 $381,892

Other Delivery Library

$8,115 $8,115

Multi-Type/Inter-System Delivery

$1,325,734 $1,325,734

WLA Rent $21,651 $21,651

ILS/Tech Member Payments

$1,112,343 $745,122 $1,857,465

Other $9,960 $162,702 $75,000 $172,662

Totals $1,112,343 $989,082 $727,163 $919,613 $2,184,685 $5,857,886

At First Glance

• $800,000 from state aid and member fees• $1,400,000 from non-member fees

• If just SCLS, cost of current service would be in $1,200,000 range.• Much would need to be reconsidered…positions, facility, etc.• Difference due to fixed shared overhead costs and increased profitability of

UW Contract.

• Initial estimate is SCLS funding needs to increase around $90,000 or 12%• Still working on settling statewide service levels. Much to be determined.• Does not include the other work we need to do to determine real expected

costs and needed revenue.

Quite Secure

A large part of what we do for non-members is on very solid ground.

• A large portion of service we provide to non-members exists within our borders.

• A central distribution hub is necessary for this service.• What may change is we do less routes outside our borders. This may

be either less frequency or expansion of subcontracting to other couriers.

What We Can Do?

• Seek and implement efficiencies.

• Review expenditures to trim where possible and also determine areas with increases.

• Consider and pursue other business.

• Consider delivery service reductions where possible in regards to load capacities.

• Consider fee increases.