Board of Trustees Meeting Agenda

November 11, 2013 6:00p.m.

Location: Community Room, Phoenixville Public Library Library Board members, please bring your e-meeting packet with you! Please notify Library Board President Sue Meadows at 610.933.0189 or Executive Director Lara Lorenzi, 610-933-3013 x123 llorenzi@ccls.org, by Monday morning if you are unable to attend the meeting. The meeting will be chaired by Sue Meadows. Mission: to provide access to information and services that address the educational, cultural and recreational needs of the community the library serves I. Call to order, roll II. Public welcome – All general public comments limited to 5 minutes III. Consent Agenda 2 minutes

a. Minutes b. Director’s Report c. Youth Services Report d. Adult Services Report e. Development Report f. Statistics g. Financials

IV. New Business - Discussion Items a. Approval pricing changes to computer policy-Sue M. 2 minutes b. Other new business? 5 minutes

V. Old Business – Discussion Items a. Slate of Officers for 2013-2014- Sue M. 2 minutes b. 2014-2015 Draft Budget proposal- Brandon S. 5 minutes c. Operating Reserve Account Draft Policy- Sue M. 5 minutes d. Surplus- Reserve account updates- Sue M. 2 minutes e. Other Old Business? 2 minutes

VI. Public Comments on Meeting – Limit 3 minutes per person VII. Executive Session – Move to Executive Session – to meet with an attorney or other professional advisor to discuss agency business, which, if discussed in public, would lead to the disclosure of information protected by law. VIII. Next meeting – Monday, December 9, 2013/Adjournment

Director’s Report submitted by: Lara Lorenzi November 2013 Library Board of Trustees Meeting Clarifications for questions asked at October 2013 meeting

• Clarification on the Library Foundation Endowment: o Starting amount: $110,631.96 o $250,000 move into the endowment in October 2013 o Total amount in Endowment as of October 2013: $360,631.96 o Endowment goal is $1 million. o Money came from the Campaign Beyond Books

• Clarification on statement made by the auditor: According to the auditor we should always maintain a strong accumulation of net assets/retained earnings. If we work this amount down, it will significantly alter cash flow and will impede the library from dealing with future budget deficits, unexpected capital needs, etc.

o The auditor’s response regarding retained earnings balance: Typically Mood’s recommends a fund balance of 5-15% of revenues. 5% would

be a fund balance of $45,456, 10% would be $90,913 and 15% would be $136,369. At 07/01/12 you had a fund balance of $115,769 or 12.7%.

If the Board is trying to work the fund balance down, I would caution you on the impact of cash flow throughout the year, future capital needs and unexpected budgeted revenue decrease from the state, school district or County.

• Trash Service: o Currently pay: $74.00/quarter ($296/year) o We have 2 trash receptacles and 2 recycling receptacles o In order to increase our trash pick-up it additional cost will be incurred to cover the

additional service requested. o I am currently trying to get a hold of the borough sanitation department to seek more

clarification. I will keep the board updated on this issue.

Informational Updates: • PBS’s Sprout channel came on November 5th to film their Sunny Side Up Show with Chica; our

very own Rebecca Krause was filmed as the librarian for that episode. She did an amazing job and we are so thrilled to have had this opportunity. We have been told that the show will air sometime around Thanksgiving/Thanksgiving weekend. PBS has also given the library a donation for being able to film its show in our Library. We will be receiving a copy of the show and we plan on hosting a viewing party around it. This was so exciting and truly an amazing opportunity.

Personnel Updates: None at this time.

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Facilities Update: • An RFP for HVAC for the Barkley School and the Library has been sent out. The District’s

intention is to start the project(s) in late spring, 2014. Statistical updates:

• Door count ytd: o From July 2012-October 2012 total door count was 47,453 o From July 2013-Ocotber 13 total door count is 57,253

This is a 21% increase from 2012 • Door County current month:

o October 2012 door count: 11,346 o October 2013 door count: 12,980

This is a 14% increase from last October Chester County Library System Updates:

• Joint SAC/DLM meeting will take place on Tuesday November 12 at the Exton Library. Rebecca Krause will represent the Library at this meeting along with Sue Meadows. I am unable to attend.

Computer Updates: • We are looking into ways in which to promote use of the ipads within the library. Currently we

are looking into cases, locks and other ways in which to place the ipads in the library for general use. Most of the interest generated by this technology is coming from our Teen/Young Adult populations. We are also looking into ways in which these devices can be used in the teen area. Any changes to the way the ipads are being used will require changes to the ipad lending policy. Any changes will be brought to the board for approval at a future date.

• Mark Pinto and I have met with Tony Wagner from CCLS to re-evaluate our computer lease amounts, looking into ways that we can help reduce cost but still maintain an adequate level of computers for our patrons. After receiving some use data reports from Tony, it was brought to our attention that even though our computer usage is high, we need to look at the use the machines are actually getting and see if there are ways in which to consolidate that will have a minimal impact on our patrons and staff.

Meetings Attended: Date Meeting/Outreach/Training 10/18 Executive Leadership Institute 10/22 Meeting with Mike English Rotary 10/23 Site visit with PBS ALA E-Book Webinar 10/25 Mtg w/National Penn Institutional Advisors Mtg w/Pure Water 10/29 Strategic Plan Committee Meeting/Exton 10/30 PC Evaluation mtg with Tony Wagner & Mark Pinto 11/1 Interviews with Sue Meadows & Maureen Ash 11/3 PBS Filming 11/7 Wine, Wit & Wisdom

Youth Services Report for October 2013 November 2013 Board Meeting

Activities In Support of Library Strategic Initiatives: Community Outreach & Partnerships Phoenixville Community Began Outreach Programming to area preschools. Collection of costumes/books for “Reading to B” group. Fall Programming Children’s Library

• New plan for Children’s Programming began October 14. • Fall Saturday events:

• Halloween Show with Mad Science was October 26. • North Pole Fun! A holiday puppet show celebrating Christmas, Hanukkah, and Kwanzaa with the sharing and

caring of the season will occur on November 30. Young Adult Library:

• Teen Read Week: Guessing contest and Chalkboard Journal-making activity, October 13 – 19. • PASD Early Childhood Education Classes have returned for observation of our classes and research work.

Planning ongoing for Winter/Spring activities. Summer Thrilling Thursday events are booked. Accessibility

• Displays for Children’s Library: Anti-bullying Month, Halloween, latter half of Hispanic-American Heritage Month, National Squirrel Awareness Month, Diary of A Wimpy Kid new book standup.

• Displays for Young Adult Library: Teen Read Week October 14 – 19: poster, bookmarks offered plus contest. Ender’s game poster made and related books displayed for the new movies.

• Calendars created for Fall Programming, publicized events online, in print media. • Regular staffing of Circulation Desk: on as-needed basis and weekly Friday lunch, one Saturday per month. • Began shifting of Reference/J Non-fiction area.

Meetings • Chester County Library “Conversations”, October 14. • Phoenixville Library Circulation Meeting, October 23. • Chester County Teens’ Librarian Meeting, October 30.

Training Creating a Maker Space Webinar, October 8. Statistics Programs Attendance Preschool Programs 38 874 Children/Adults Learning Exploration 9 268 Children/Adults Children’s Programs 2 9 Children/Adults Little Sprouts Nature Class 1 34 Children/Adults Rhythm Babies Music Class 1 21 Children/Adults Mad Science Show 1 41 Children/Adults Outreach Programs 8 183 Children/Adults Young Adult Programs 2 35 Young Adults/Adults Total Youth Programs, October 2013 62 1,465 Children/Adults Children's Internet Stations-Individual Usage, October 2013: Young Adult, 128 users; Children’s, 483 users. AWE Literacy Station Usage, October 2013: 754 total sessions, 353 total hours, 28-minute average session. Respectfully submitted, Rebecca F. Krause, Director of Youth and Young Adult Services, November 2013

Reference/Adult Services/Technology Roundup

as it Relates to the Library’s Mission & Strategic Plan

for

November 2013 Board Meeting

Providing access to information and services…

Worked Adult Circulation Desk routinely on Tuesday mornings and one hour on

Thursdays.

Set up for and attended 10/17, 10/21, 10/24 & 10/28 Speaker Series events. Shot, edited

and posted videos to website of 10/17 & 10/28 events.

Completed brochure of CCLS services for jobseekers and the unemployed.

Staffed Ask Here PA chat reference service 10/21 for one hour.

Updated Phx Historical Society newsletter index.

Technology/Accessibility

Continue to maintain and update pages on Library website, including Board Reports

page.

Taught “Job Searching Online” class 11/1 & 11/6.

Shifted AV collections in Carnegie Room and Spanish/Oversize collections in nonfiction

room to improve security, visibility and ease of access to those collections.

Patron iPad usage continues to be very low. We are looking into purchasing furniture

and/or security mounts for the iPads so they may be placed on continuous display for

public use in either the Carnegie Room or Young Adult Room.

Met with Tony Wagner and Lara 10/30 to discuss possible reductions of leased

computers.

Created instructions for public faxing from our new photocopier.

Putting together “Computer Basics for Jobseekers” class, to be offered regularly probably

starting in January.

Community Outreach & Partnerships

Attended Alianzas meeting 10/17.

Conducted Library orientation for Barkley School ESL class 11/4.

Funding

Continue to manage passport application acceptance program and take regularly

scheduled appointment shifts.

Administration & Other

Attended Staff Development Day workshops at Hankin Library 10/14.

Attended Circulation Staff meeting 10/23

Computer Use/Program Attendance Statistics

2013 OCTOBER

PROGRAMS ATTENDANCE

# of Computer Classes/Tutoring Sessions 11 Computer Class/Tutoring Attendance 32

# of Adult Programs 19 Other Adult Programming Attendance 209

Laptop Checkouts (includes iPads) 338

Adult Internet Stations-Individual Usage 1851

Month Total: 30 2430

Respectfully submitted,

Mark Pinto

Adult Services Director

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A B C D E F G H I J K L

October 2013 CIRCULATION

Circulation

Categories Adu

lt Prin

t

Teen

Prin

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Juve

nile P

rint

Adu

lt AV

Teen

AV

Juve

nile A

V

Unk

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E-A

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E-B

ook

Total

AT 359 59 851 455 0 289 0 18 12 2,043

AG 4,038 850 5,942 1,405 2 281 17 117 504 13,156

BT 5,357 433 5,001 2,186 20 310 3 225 924 14,459

CS 715 56 1,247 317 2 137 0 56 67 2,597

CO 2,128 308 2,224 246 0 61 0 37 103 5,107

DO 3,096 154 4,767 302 14 132 4 113 305 8,887

EA 7,559 1,111 10,409 2,681 102 1,002 1 134 505 23,504

HB 2,389 401 2,440 324 22 140 3 103 221 6,043

MA 3,714 425 5,433 992 5 260 3 87 267 11,186

OX 3,412 263 4,884 929 14 428 0 202 550 10,682

PA 2,830 168 1,784 1,063 0 311 0 87 341 6,584

PK 1,756 116 2,674 1,334 0 873 4 27 163 6,947

PH 6,305 627 9,738 2,848 54 692 17 291 806 21,378

SC 628 15 34 144 0 1 1,246 25 114 2,207

TR 8,130 643 7,438 4,008 39 1,256 5 321 850 22,690

WC 4,680 470 6,082 658 0 299 19 208 635 13,051

CCL 42,536 3,465 38,967 16,890 90 1,123 331 1,954 5,981 111,337

HH 11,381 890 14,798 5,001 26 1,027 5 192 703 34,023

CCLS 111,013 10,454 124,713 41,783 390 8,622 1,658 4,197 13,051 315,881

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Phoenixville Public Library 9:43 AM

Balance Sheet Prev Year Comparison 11/08/2013

As of October 31, 2013 Cash Basis

Oct 31, 13 Oct 31, 12 $ Change % Change

ASSETS

Current Assets

Checking/Savings

100 · Phoenixville Federal Savings #1

100.1 · Operating Checking (040016792) -14,641.95 28,570.74 -43,212.69 -151.25%

100.2 · Operating Money Market 142,133.33 272,792.86 -130,659.53 -47.9%

100.3 · Operating Credit Card Receipts 9,433.21 4,196.06 5,237.15 124.81%

100.4 · El Puente 3,560.64 322.42 3,238.22 1,004.35%

Total 100 · Phoenixville Federal Savings #1 140,485.23 305,882.08 -165,396.85 -54.07%

105 · Petty Cash 500.00 500.00 0.00 0.0%

106 · Circulation Cash 500.00 500.00 0.00 0.0%

Total Checking/Savings 141,485.23 306,882.08 -165,396.85 -53.9%

Other Current Assets

140 · Accounts Receivable - Other -1,077.00 -1,077.00 0.00 0.0%

Total Other Current Assets -1,077.00 -1,077.00 0.00 0.0%

Total Current Assets 140,408.23 305,805.08 -165,396.85 -54.09%

Fixed Assets

150 · General Fixed Assets

150.1 · Leasehold Improvements

150.1.1 · 1999/2000 Addition 473,479.02 473,479.02 0.00 0.0%

150.1.2 · General 8,188.06 8,188.06 0.00 0.0%

Total 150.1 · Leasehold Improvements 481,667.08 481,667.08 0.00 0.0%

150.2 · 2012/2013 Renovation 493,597.00 493,597.00 0.00 0.0%

150.6 · Computer Equipment 59,387.88 59,387.88 0.00 0.0%

150.8 · Furniture & Fixtures 392,049.28 332,049.28 60,000.00 18.07%

Total 150 · General Fixed Assets 1,426,701.24 1,366,701.24 60,000.00 4.39%

Total Fixed Assets 1,426,701.24 1,366,701.24 60,000.00 4.39%

TOTAL ASSETS 1,567,109.47 1,672,506.32 -105,396.85 -6.3%

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

220 · Credit Card Payables 717.50 617.50 100.00 16.19%

Page 2 of 2

Oct 31, 13 Oct 31, 12 $ Change % Change

Total Accounts Payable 717.50 617.50 100.00 16.19%

Other Current Liabilities

221 · Accounts Payable - Other -7,390.99 -7,390.99 0.00 0.0%

230 · Employee Costs Payable

230.1 · Salaries Payable 5,059.95 5,059.95 0.00 0.0%

Total 230 · Employee Costs Payable 5,059.95 5,059.95 0.00 0.0%

Total Other Current Liabilities -2,331.04 -2,331.04 0.00 0.0%

Total Current Liabilities -1,613.54 -1,713.54 100.00 5.84%

Total Liabilities -1,613.54 -1,713.54 100.00 5.84%

Equity

310 · Contributed Capital 873,104.24 873,104.24 0.00 0.0%

319 · Net Assets 724,387.24 638,842.60 85,544.64 13.39%

Net Income -28,768.47 162,273.02 -191,041.49 -117.73%

Total Equity 1,568,723.01 1,674,219.86 -105,496.85 -6.3%

TOTAL LIABILITIES & EQUITY 1,567,109.47 1,672,506.32 -105,396.85 -6.3%

Page 1 of 4

Phoenixville Public Library 9:40 AM

Profit & Loss Budget vs. Actual 11/08/2013

July through October 2013 Cash Basis

Jul - Oct 13 Budget $ Over Budget % of Budget

Ordinary Income/Expense

Income

400 · Appropriations

400.1 · Appropriation - P.A.S.D. 127,081.50 508,326.00 -381,244.50 25.0%

400.2 · Appropriation - County 38,246.70 70,000.00 -31,753.30 54.64%

400.3 · Appropriation - State 0.00 85,000.00 -85,000.00 0.0%

400.4 · Appropriation - Charlestown Tws 0.00 5,500.00 -5,500.00 0.0%

400.5 · Appropriation - Schuylkill Twp 0.00 1,500.00 -1,500.00 0.0%

Total 400 · Appropriations 165,328.20 670,326.00 -504,997.80 24.66%

412 · Development Income

412.1 · Grants

412.1.1 · Foundations 20,000.00 58,000.00 -38,000.00 34.48%

412.1.2 · Governments 2,122.80

Total 412.1 · Grants 22,122.80 58,000.00 -35,877.20 38.14%

412.2 · Projects/Events 27,705.20 50,000.00 -22,294.80 55.41%

412.4 · Donations

412.4.1 · Unrestricted 7,117.31 7,000.00 117.31 101.68%

412.4.2 · Restricted - General 250.00 10,000.00 -9,750.00 2.5%

412.4.3 · Restricted - Children's 1,159.25 10,000.00 -8,840.75 11.59%

412.4.5 · El Puente 842.10

Total 412.4 · Donations 9,368.66 27,000.00 -17,631.34 34.7%

412.5 · Civic Organizations 85.00 1,500.00 -1,415.00 5.67%

Total 412 · Development Income 59,281.66 136,500.00 -77,218.34 43.43%

420 · Operations Income

420.1 · Fines 10,375.92 29,000.00 -18,624.08 35.78%

420.2 · Passport Applications 14,346.10 40,000.00 -25,653.90 35.87%

420.3 · Interest 134.14 1,500.00 -1,365.86 8.94%

420.4 · Items Sold 756.50 1,200.00 -443.50 63.04%

420.5 · Lost Books 884.57 2,400.00 -1,515.43 36.86%

420.6 · Other (Copier, etc.) 2,195.71 4,000.00 -1,804.29 54.89%

420.8 · Rentals/Collection

420.8.1 · Library Income 9,924.10 28,000.00 -18,075.90 35.44%

420.8.2 · PA Sales Tax 215.68

Total 420.8 · Rentals/Collection 10,139.78 28,000.00 -17,860.22 36.21%

Total 420 · Operations Income 38,832.72 106,100.00 -67,267.28 36.6%

Page 2 of 4

Jul - Oct 13 Budget $ Over Budget % of Budget

Total Income 263,442.58 912,926.00 -649,483.42 28.86%

Expense

500 · Adult Library

500.1 · Books

500.1.1 · Physical Books 12,185.05 33,040.00 -20,854.95 36.88%

500.1.2 · E-Books 404.08 1,800.00 -1,395.92 22.45%

500.1 · Books - Other 2,498.69

Total 500.1 · Books 15,087.82 34,840.00 -19,752.18 43.31%

500.2 · Magazines & Newspapers 1,875.85 7,000.00 -5,124.15 26.8%

500.3 · Audios 3,530.93 8,000.00 -4,469.07 44.14%

500.4 · Videos 3,408.47 10,000.00 -6,591.53 34.09%

500.5 · Software 561.85 1,530.00 -968.15 36.72%

500.6 · Reference 1,162.19 1,530.00 -367.81 75.96%

500.7 · Programs - Adult 1,470.00 3,000.00 -1,530.00 49.0%

500.8 · Program Supplies - Adult 432.02 750.00 -317.98 57.6%

Total 500 · Adult Library 27,529.13 66,650.00 -39,120.87 41.3%

510 · Youth Library

510.1 · Books

510.1.1 · Physical Books 9,637.51 29,800.00 -20,162.49 32.34%

510.1.2 · E-Books 96.58 300.00 -203.42 32.19%

510.1 · Books - Other 472.43

Total 510.1 · Books 10,206.52 30,100.00 -19,893.48 33.91%

510.2 · Magazines 0.00 900.00 -900.00 0.0%

510.3 · Audios 859.74 3,000.00 -2,140.26 28.66%

510.4 · Videos 2,394.92 6,800.00 -4,405.08 35.22%

510.5 · Software 411.58 1,000.00 -588.42 41.16%

510.7 · Programs - Children 1,493.25 8,000.00 -6,506.75 18.67%

510.8 · Program Supplies - Children 2,053.40 6,000.00 -3,946.60 34.22%

510.13 · Young Adult - All 2,004.44 4,000.00 -1,995.56 50.11%

510.14 · Programs - Young Adults 271.88 1,500.00 -1,228.12 18.13%

510.15 · Program Supplies - Young Adult 438.88 1,000.00 -561.12 43.89%

Total 510 · Youth Library 20,134.61 62,300.00 -42,165.39 32.32%

520 · Development Expense

520.3 · Special Events 750.80 17,708.00 -16,957.20 4.24%

520.5 · Marketing 4,163.29 6,000.00 -1,836.71 69.39%

520.6 · Other 0.00 250.00 -250.00 0.0%

520.7 · El Puente Program 1,602.00

Total 520 · Development Expense 6,516.09 23,958.00 -17,441.91 27.2%

Page 3 of 4

Jul - Oct 13 Budget $ Over Budget % of Budget

530 · Administration

530.1 · General

530.1.1 · Audit/Form 990 0.00 7,500.00 -7,500.00 0.0%

530.1.2 · Library Board Expenses 113.26 3,000.00 -2,886.74 3.78%

530.1.3 · Staff Development/Memberships 1,505.11 4,000.00 -2,494.89 37.63%

530.1.4 · Insurance 1,163.00 1,500.00 -337.00 77.53%

530.1.5 · Advertising 520.07 1,000.00 -479.93 52.01%

530.1.6 · Legal Expense 0.00 10,000.00 -10,000.00 0.0%

530.1.7 · Credit Card Fees 1,306.55 1,500.00 -193.45 87.1%

530.1.8 · Marketing and Website 252.38 4,000.00 -3,747.62 6.31%

530.1.9 · Miscellaneous 101.75 400.00 -298.25 25.44%

Total 530.1 · General 4,962.12 32,900.00 -27,937.88 15.08%

540 · Utilities

540.1 · Electricity 6,544.16 22,000.00 -15,455.84 29.75%

540.2 · Gas 114.93 5,000.00 -4,885.07 2.3%

540.3 · Telephone 1,829.41 6,000.00 -4,170.59 30.49%

540.4 · Trash Collection 148.00 620.00 -472.00 23.87%

540.5 · Water & Sewer 651.72 1,100.00 -448.28 59.25%

Total 540 · Utilities 9,288.22 34,720.00 -25,431.78 26.75%

550 · Computer Expense

550.2 · Hardware 3,648.49 6,000.00 -2,351.51 60.81%

550.3 · Hardware Maintenance 0.00 500.00 -500.00 0.0%

550.4 · Software 180.00 1,500.00 -1,320.00 12.0%

550.5 · Software Maintenance 1,077.78 500.00 577.78 215.56%

550.6 · Supplies 2,394.81 8,400.00 -6,005.19 28.51%

Total 550 · Computer Expense 7,301.08 16,900.00 -9,598.92 43.2%

560 · Other Supplies and Expense

560.1 · Collection Maintenance 2,505.52 4,500.00 -1,994.48 55.68%

560.2 · Library 862.14 5,000.00 -4,137.86 17.24%

560.3 · Office 1,326.76 5,000.00 -3,673.24 26.54%

560.4 · Postage 1,373.10 4,500.00 -3,126.90 30.51%

560.5 · Vending 69.83

Total 560 · Other Supplies and Expense 6,137.35 19,000.00 -12,862.65 32.3%

570 · Equipment Leasing/Rental 789.00 6,000.00 -5,211.00 13.15%

580 · Buildings & Grounds

580.1 · Maintenance

580.1.1 · Buildings 33.26 1,000.00 -966.74 3.33%

580.1.2 · Grounds 0.00 500.00 -500.00 0.0%

Total 580.1 · Maintenance 33.26 1,500.00 -1,466.74 2.22%

Page 4 of 4

Jul - Oct 13 Budget $ Over Budget % of Budget

580.5 · Janitorial Expense

580.5.1 · Service 3,540.00 16,000.00 -12,460.00 22.13%

580.5.2 · Supplies 869.17 4,000.00 -3,130.83 21.73%

Total 580.5 · Janitorial Expense 4,409.17 20,000.00 -15,590.83 22.05%

580.7 · Minor Improvements and Repairs 74.97 1,500.00 -1,425.03 5.0%

Total 580 · Buildings & Grounds 4,517.40 23,000.00 -18,482.60 19.64%

Total 530 · Administration 32,995.17 132,520.00 -99,524.83 24.9%

610 · Salaries & Benefits

610.1 · Salaries

610.1.1 · Full-Time 129,610.06 371,000.00 -241,389.94 34.94%

610.1.2 · Part-Time 27,311.87 95,230.00 -67,918.13 28.68%

610.1.3 · Passport Agents 1,677.50 10,920.00 -9,242.50 15.36%

610.1.4 · Consultants 3,450.00 9,750.00 -6,300.00 35.39%

Total 610.1 · Salaries 162,049.43 486,900.00 -324,850.57 33.28%

610.2 · Social Security Expense 11,285.99 33,000.00 -21,714.01 34.2%

610.3 · Employee Benefit Expense 23,065.09 102,500.00 -79,434.91 22.5%

610.4 · Retirement Expense 7,940.54 35,098.00 -27,157.46 22.62%

Total 610 · Salaries & Benefits 204,341.05 657,498.00 -453,156.95 31.08%

Total Expense 291,516.05 942,926.00 -651,409.95 30.92%

Net Ordinary Income -28,073.47 -30,000.00 1,926.53 93.58%

Other Income/Expense

Other Expense

750 · Non-Operating Expense

750.1 · Furniture, etc. 695.00

Total 750 · Non-Operating Expense 695.00

Total Other Expense 695.00

Net Other Income -695.00

Net Income -28,768.47 -30,000.00 1,231.53 95.9%

Changes to the Computer Policy that need Board approval. Fees • Printouts – black & white: 25 cents/page; color: 35 cents/page, payable at Print

Release/Computer Reservation station in Computer Center for Computer Center and Young Adult room computers; payable at the Children’s Circulation Desk for Children’s Library computers.

• Disks -- 50 cents/disk, available at the Circulation Desks. • Flash drives -- $9.50 ea. available at the Circulation Desks. • Fax Cover Sheets- $1.00- previously was a courtesy item, but now how the machine is set up

it has to be a charge. Need formal approval on all the charges listed above.

Phoenixville Public Library

Policy statement- Board Designated Funds Operating Reserve Fund

Board Designated Operating Reserve Account

I. Statement of Purpose The Phoenixville Public Library Board of Trustees designated an OPERATING REERVE FUND on November 11, 2013. The general purpose for establishing an operating reserve fund account is to ensure that when unanticipated expenditures, shortfalls in revenue and other unanticipated financial shortfalls occur, the Phoenixville Public Library Board of Trustees can access the reserve account in order to help defray the cost of the unanticipated expenditures. This will help ensure the financial stability of the Phoenixville Public Library. Whose mission is to provide access to information and services that address the educational, cultural and recreational needs of the community the library serves, continues to advance.

II. Board-Designated Operating Reserve Fund Balance The target amount to be attained and maintained for the Board-Designated Operating Reserve Fund is one (1) month’s payroll including taxes; currently that amount is $51,000. To establish the Operating Reserve Fund, the Phoenixville Public Library Board of Trustees has designated $24,700 of existing accumulated liquid net assets as the beginning balance of the fund. The Library Board of Trustees is committed to ensuring the growth of the account and as such, the Trustees agree to resolve the issue of the reserve account shortfall in the following way. The Phoenixville Library Board of Trustees, in the absence of any extraordinary circumstances, will adopt an operational budget that includes a projected surplus sufficient to rebuild operating reserves over the next 5 years to achieve the goal operating reserve level, starting with the 2015-2016 budget process. If the operating reserves exceed the targeted reserve level for three consecutive years, the excess should be made available for current use. The operating reserve can be funded with any available funds that are not temporarily or permanently restricted. Such as:

• Unrestricted contributions from individuals or corporations • The net surplus from fees for goods or services • Surplus from annual operations of the Library, planned(budgeted) or unplanned

(surplus beyond budgeted surplus) • Unrestricted investment income from the interest and dividends or the sales of

stocks and bonds • Unused and unrestricted reserves for uncollectible pledges

• Unused and unrestricted capital acquisition funding included in the annual cash operating budget

III. Use of the Board-Designated Operating Reserve Fund

Funds from the operating reserves account can be used for meeting commitments, obligations or other contingencies for day to day operations. The funds are not to be used for non-operating expenses such as establishing an endowment or funding a building project. Examples of how the funds can be used, but not limited to these examples:

• To offset the negative impact of a natural disaster • As an internal line of credit for use to financially operate the library • For a sudden and significant decrease in anticipated revenue • To maintain operations when government funding (county, state or school district

funding) is delayed • To make up the difference between anticipated and actual contributions when the

differences are higher than anticipated.

The Executive Director can only access the operating reserve funds if majority approval from the Library Board of Trustees is given for purposes as outlined above. The procedure for approving use of the Board-Designated Operating Reserve Fund will be as follows:

• Request is submitted to the Library Board of Trustees from the Treasurer and/or Executive Director of the Library

• Approval of the request from the Library Board of Trustees is given(must have a majority approval)

• The proposed repayment schedule shall be requested by the Executive Director from the Library Board of Trustees

• Once board approval is given, the request is carried out by the Executive Director • The Executive Director will notify the treasurer in writing and usage will be

acknowledged in writing by the Treasurer. (E-mail is an acceptable form of notification and acknowledgement.)

• Disbursement of funds will be reported at the next monthly Board of Trustees meeting

• All outstanding amounts borrowed from the operating reserve will be reported on monthly, showing the status of the borrowing and payments made.

IV. Management of the Board-Designated Operating Reserve Fund

Under the direction of the Treasurer, the Executive Director will establish a separate bank account for the Board-Designated Operating Reserve Fund. Policies and procedures for handling deposits, reconciling statement, safeguarding access, etc. will be the same as the Library’s other bank accounts. The operating reserve fund will be listed separately in the net asset section of the Library’s monthly financial reports.

The operating reserve balance will be reviewed as part of the Phoenixville Public Library’s annual budgeting process.

V. Authorization of Draw Down from the Board-Designated Operating Reserve Fund The draw-down from the operating reserve fund that will not or cannot be replaced with operating funds in the timeframe established by the operating reserve shortfall outlined in section VI, must be approved by a majority of the Library Board of Trustees. A record of such action will be maintained and be made part of the monthly meeting minutes. Any such action would remove the Board designation of “reserves” from these funds.

VI. Operating Reserve Shortfalls If the operating reserve account is and has been less than 75% of the targeted reserve amount for three (3) consecutive years, the Phoenixville Library Board of Trustees, in the absence of any extraordinary circumstances, should adopt an operational budget that includes a projected surplus sufficient to rebuild operating reserves over the next three (3) years to the goal operating reserve level.

VII. Responsibilities of the Board of Trustees The Library Board of Trustees will monitor the balance of the account on an ongoing basis as part of the Library’s monthly financial reporting process. Any significant variations of the target balance will be reported to the Library Board of Trustees in the Phoenixville Public Library’s monthly financial reporting to the board. The account can also be reviewed more often, as needed, to deal with events that have a major financial or operational implication for the Library. These can be events that are planned or unexpected. The Phoenixville Public Library Board of Trustees will review the Operating Reserve Policy every three (3) years. During the review process, trustees or a designated committee of the board will re-evaluate the policy giving consideration to the following:

• Significant changes in operation • Anticipated changes in the community or other needs • Significant changes in funding base • Changes in the regulatory environment impacting charitable giving • The stability of the local economy

Any changes to the operating reserve policy will be brought to the Library Board of Trustees as a whole and any changes to the policy requires board approval.

Surplus Action Plan Proposal Total Surplus for 2012-2013: $85,000

Operating Budget: (approved) $30,000 Create a Reserve Account: total: $24,700 Money moved to a reserve account is not to be touched. This is a reserve fund i.e. rainy day account

• Open an account with a local bank that we do not have an account with currently. • An investment plan for this account should be created stipulating when funds should be accessed, how much

should be added to the account on an annual basis if funds allow, what to do with annual interest amounts, etc. should be formulated and approved by the board.

• Policy regarding maintenance and access to account will need to be formulated and approved by the board. • I would also suggest using a bank we do not currently have an account with such as:

o Citizens o PNC o Citadel o National Penn (Director’s recommendation)

Remaining Surplus: Staff Bonus: total cost: $13,000

• Bonus amount will be based on performance • Bonuses will be dispersed July 2014 after the annual review process

has been completed. Exterior Sign (approved) Monument: total budget not to exceed- $10,000 SUBTOTAL: $23,000

• Need to following zoning and codes requirements • Residential area might limit the type of sign we can put up • I’m interested in board feedback on sign options

Book Drop/AV Drop (approved)

• Double Drop outdoor book & media return • Total cost, including shipping and cart : $5,500 Subtotal: $7,300

Display for new media-main floor (approved): $1,800 Total amount of approved spending: $47,300 Total surplus remaining: $37,700