The Portage District Library Board Meeting · The Portage District Library Board Meeting will be held on March 26, 2012 at 6:00 p.m. at the Portage District Library ... that Klien

NOTICE of REGULAR MEETING

The Portage District Library Board Meeting

will be held on

March 26, 2012 at 6:00 p.m.

at the

Portage District Library

in the Lower Level Long Lake & Gourdneck Lake

Meeting Rooms

for the purpose of discussing library business & conducting a

Strategic Planning Session

PORTAGE DISTRICT LIBRARY

March26,2012

Regular Meeting Lower Level Long Lake & Gourdneck Lake Meeting Rooms at 6:00 pm 300 Library Lane, Portage Michigan 49002

AGENDA

I. Start of Meeting II. Roll Call III. Comments or Requests from the Public, Board Members, or Library Staff. (3 minutes total) IV. Adoption of the Agenda for the Regular Meeting of March 26, 2012. (Vote) V. Consent Agenda (1 minute total)

A. Minutes of the Regular Meeting of February 27, 2012. Pgs. 1-8 (Vote) B. Budget Amendment Request – To Increase the FY 2012 Budget for Adult Book Materials Due to a Generous

Donation from the Nancy Haner Memorial Fund for Nature, Art & Literacy. Pg.9 (Vote)

VI. Governance (45 minutes) A. Final review & vote on revised Resolution to extend all trustees’ terms due (per attorney advice) Pgs. 10-13 (Vote) B. Final review & vote on revised Library Board Bylaws. Pgs. 14-18 (Vote)

C. Consideration of change in Executive Limitation on Financial Condition related to providing the Library Board with a list of monthly cash disbursements. Pg. 19-20 (Vote)

D. Proposed New Fund Balance Policy to Comply with GASB No. 54. Pgs. 21-30 (Vote) E. Request for Approval of “Top Ten Reasons” List for Collaborative Marketing Initiative. Pgs. 31-32 (Vote) F. Follow-up on Strategic Planning Work Sessions and the Final Steps to be Taken. Pg. 33 (Info)

VII. Ends Development (10 minutes) A. Consideration of Revised Ends Statements for Portage District Library. Pg. 34-35 (Info) B. Information about Unveiling of New Enterprise Catalog at PDL. Pgs.36-37 (Info)

VIII. Monitoring to Assure Compliance with Executive Limitations (10 minutes total) A. Report on Financial Condition for February 2012. Pgs. 38-39 (Info)

B. Monitoring Report on Executive Limitation: Asset Protection. Pgs. 40-43 (Info) C. Monitoring Report on Executive Limitation: Financial Planning & Budgeting. Pgs. 44-4 5(Info) D. Monitoring Report on Executive Limitation: Financial Condition & Activities. Pgs. 46-47 (Info)

IX. Library Director’s Reports (10 minutes total) A. Marketing Update for February 2012. Pgs.48(Info) C. Narrative Report for February 2012. Pgs. 49-51 (Info) D. Statistical Report for February 2012. Pgs.52-53 (Info) E. Legislative Update for February 2012. Pg. 54-56 (Info)

X. Process Evaluation (5 minutes total) A. Suggestions for Agenda Items to be included on the April 23, 2012 Board Meeting

1. Minutes of the Regular Meeting held on March 26, 2012. 2. Review of Art Exhibit Gift Policy. 3. Review of Fundraising Policy. 4. Review of Programming Policy. 5. Scheduling of Mid-Year Meeting with the Library Director. 6. Report from Martha Pacheco, Board Liaison to the Friends of the Library. 7. Cost Analysis Report for 2011 8. Progress Report on End Statement #1

9. Staff Presentation by Chris Walker on Fundraising Plan for 2012 10. 1st Quarter Financial Report for FY 2011 11. Legislative Update 12. Volunteer Recognition Lunch on May 9, 2011 - Invitation to Library Board Members

B. Assessment of this meeting C. Miscellaneous Items

XI. Adjournment


Minutes of the Regular Library Board Meeting held on

February 27, 2012

Regular Meeting Lower Level Long Lake & Gourdneck Lake Meeting Rooms at 6:00 pm 300 Library Lane, Portage Michigan 49002|

I. Start of Meeting: Board members and staff gathered on February 27, 2012 at 5:30 pm for dinner (Provided by Erbelli’s Pizza) and the board meeting commenced at 6:00 p.m.

II. Roll Call: Board Members Present: Stephanie Brown, Michele Behr, Annee Dunn, Betty Lee Ongley, Martha Pacheco, and Alisha Seibers.

Board Members Absent: Joe Yantis. Library Staff Present: Library Director Christine Berro, Jill Austin, Rolfe Behrje, Diane Delach, Rob Foti, Lawrence Kapture, Christy Klien and Chris Walker. Guests Present: Facilitators Gary Goscenski & Kasey Mc Gill of Perspectives Consulting Group

III. Comments or Requests from the Public, Board Members, or Library Staff Library Board Chair Betty Lee Ongley welcomed everyone and said that Gary Goscenski and Kasey Mc Gill, the library’s strategic planning facilitators, were present at the board meeting once again and would be conducting the Strategic Planning work session with trustees after the regular board meeting was completed. Ongley then asked if there were any comments from the public, trustees or staff. A. Comment about a Special Forum - Christy Klien, Head of Youth Services, distributed a promotional flyer to

trustees and said that she and Lawrence Kapture, Head of Adult Services, would be participating in the 3rd Annual “Building a Community of Belonging” Forum on March 15, 2012 at the Transformations Center at Nazareth on Gull Road. Klien stated that this forum was being co-sponsored by The Arcadia Institute, the Kalamazoo Nature Center, the Boys & Girls Club of Greater Kalamazoo, the YMCA of Greater Kalamazoo, the Southwest Michigan Council of Boy Scouts and Portage District Library. The featured speaker would be well-known community organizer, John Mc Knight, co-author of: “The Abundant Community: Awakening the Power of Families and Neighborhoods.” She said that the purpose of the forum was to increase awareness of the need to create opportunities for people with disabilities to participate in community activities, and to broaden the concept of inclusion as a means to make our community one where all people belong.

DISPOSITION: The Library Board received the information about the Building a Community of Belonging” Forum that Klien and Kapture would be attending and expressed approval for the direction the library is moving to try to learn more and develop ways to better serve individuals with disabilities. B. Comments about New Volunteer Tracking Software - Trustee Martha Pacheco said that the new software

program that allows volunteers to sign in so their efforts can be tracked is a very nice process. She made a couple of comments and suggestions that the computer with that software be placed on a higher surface so people didn’t have to bend low to sign in, and she also thought there should be a place on the sign-in sheet for badge numbers. Systems Administrator Rolfe Behrje said he was getting a higher stand to place the volunteer tracking computer on and was also working on adding badge numbers to the software program.

DISPOSITION: The Library Board received the information about the library’s new Volunteer tracking software program and thanked Trustee Pacheco for her good suggestions. C. Comment about Problem with Library Door - Trustee Martha Pacheco said that she (and others) had experienced

difficulty with security scanning mechanism on the door leading from the Adult Reference area to the back staff lounge area. She said that it often will not open in a timely way when badges are scanned. Systems Administra-tor Rolfe Behrje replied that there was a one-second pause in most of the scanning security door lock mechanisms, however that particular door was not hard-wired, so there was a slight delay. He suggested pausing

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PORTAGE DISTRICT LIBRARY Page Minutes of the Regular Library Board Meeting held on February 27, 2012

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for two seconds when scanning that particular door.

DISPOSITION: The Library Board received the information about the library door scanning delay issue and heard how it was going to be resolved. D. Comment about Reading Together Activities - Library Board Chair Betty Lee Ongley thanked library staff for

their efforts on the “Reading Together” program and said that she had already led a discussion group on this year’s selected book: “Into the Beautiful North,” by author Luis Alberto Urrea.

DISPOSITION: The Library Board received Library Board Chair Betty Lee Ongley’s positive comments about this year’s “Reading Together” program. E. Comment about the Bare Walls in the Library - Library Board Chair Betty Lee Ongley said that the empty white

walls at Portage District Library looked so bare and forlorn without any artwork, while we wait for another art display to be hung. Ongley commented that the artwork really adds a lot to the appeal of the library and that she felt the community really appreciates it. Trustee Pacheco added that she thought the school art was especially nice.

DISPOSITION: The Library Board received the comments about art in the library and trustees agreed that art displays add significantly to the ambiance of the library and that people in the community enjoy it. E. Comment about Assistance with January Board Meeting - Library Board Chair Ongley thanked Library Board

Vice Chair Alisha Siebers for chairing the January 23, 2012 board meeting in Ongley’s absence and said that she had done a fine job. Siebers acknowledged the compliment.

DISPOSITION: The Library Board noted the complimentary remarks made by Ongley of Siebers’ chairing the January 23, 2012 board meeting.

IV. Adoption of the Agenda for the Regular Meeting of February 27, 2012 Library Board Chair Ongley asked if there were any changes needed to the agenda for February 27, 2012. Trustee Pacheco requested that an item be added to the agenda pertaining to a report of the Friends of the Library’s recent board meeting. Library Director Christine Berro also requested that a demonstration of the new online catalog be added as another item as well. MOTION: It was moved by Behr, and seconded by Siebers that the agenda for the regular meeting of February 27, 2012 be adopted as amended - with the addition of Item A. (Report on Friends’ Board meeting) and Item B. (Demon-stration of New Online Catalog) under Section IX. - Library Director’s Reports. Vote: 6-Yes, 0-No, 1-Absent (Yantis). Motion Carried.

V. Consent Agenda Library Board Chair Ongley asked if there were any exceptions to the February 27, 2012 Consent Agenda and there were none.

A. Minutes of the Regular Meeting of January 23, 2012. MOTION: It was moved by Brown, and seconded by Pacheco that the Consent Agenda for the Regular Meeting of February 27, 2012 be approved as presented. Vote: 6-Yes, 0-No, 1-Absent (Yantis). Motion carried.

VI. Governance A. Consideration of DRAFT Resolution to extend ALL trustees’ terms due to new election schedule - Library

Director Berro referred to page 14 of the board meeting agenda packet and said that Trustee Alisha Siebers had drafted a Resolution pertaining to the change in election schedule for school boards (and library boards too).

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MOTION: It was moved by Pacheco, and seconded by Dunn that the terms for all trustees be extended for (6) months until December 31, 2012 as stated in the Resolution. Vote: 6-Yes, 0-No, 1-Absent (Yantis). Motion carried. B. Consideration of Recommendation for changes needed in Library Board Bylaws - Library Director Berro

referred to pages 15-18 of the board meeting agenda packet and went through the proposed wording changes in the bylaws that Trustee Alisha Siebers had prepared for trustees’ consideration. These revisions are necessary, Berro said, due to a change in the election law. Berro pointed out the changes to Article II and Article III and the two options for wording and stated that either one would be fine. She said that, in general, a change in Library Board bylaws would be discussed by all trustees, and then she would refer the revised language to the library’s Attorney Richard Butler for his legal review, and then bring the bylaws back after that review to trustees at a subsequent meeting for their final vote. She asked trustees if they wanted to proceed that way and they agreed with that action.

DISPOSITION: The Library Board accepted the recommended changes needed in the Library Board bylaws and instructed Library Director Christine Berro to forward the revised bylaws to the library’s attorney Richard Butler for legal review prior to returning with them to the March 26, 2012 board meeting for a final vote. C. Strategic Planning Session with Facilitators Gary Goscenski & Kasey Mc Gill (SWOT Analysis) - Library

Board Chair Ongley stated that the Strategic Planning session would be moved to the end of the agenda and would take place after the conclusion of regular library business for the February 27, 2012 board meeting.

DISPOSITION: The Library Board concurred that the Strategic Planning Session would be moved to the end of the agenda and would be conducted after the regular Library Board meeting for February 27, 2012 was done.

VII. Ends Development A. Donations Report for Funds Received in 2011 - Library Director Berro referred to page 20 of the board meeting

agenda packet and went over the Donations Report for funds received in 2011. She said that it included grants, memorials, revenue from the 2011 Annual Campaign, revenue from the 2011 Spring Campaign and donations from the Friends of the Library. The grand total, with “In-Kind” Donations included, was $53,985.54. Out of that amount, there was $35,200 that was donated for specific, restricted purposes, such as: the 2011 Summer Reading Program (funded by the Friends), grants for targeted programming, the 2011 Volunteer Luncheon, and the 2011 Wish List (also funded by the Friends), leaving a residual amount of $13,080.54 of donations from 2011 to be allocated in 2012. Pacheco commented that the Friends had set aside funds to use as a “grant” to the library for a designated purpose, and no one had applied for that grant last year. Trustee Pacheco then asked how the grand total compared to the previous year and Business Manager Rob Foti said it was a little higher. Library Director Berro noted that the amounts given by donors in response to the library’s 2011 Annual Campaign were lower, probably due to the strained economic times.

DISPOSITION: The Library Board received the Donations Report for Funds Received in 2011 and expressed appreciation to the donors who support the library in various ways, especially the Friends of the Library.

B. Approval of Allocation of 2011 Gifts & Donations for Expenditure in 2012 U - Library Director Berro explained that it has been the library’s usually practice at the beginning of each new fiscal year to ask the Library Board to consider endorsing the expenditure of a certain amount of gifts and donations revenue that had been received in the previous fiscal year. She said that these monies come to the library as unsolicited and unrestricted donations for discretionary use for library purposes. Berro noted that, in the past, the gifts and donations funds had been used to bolster purchases of library materials or to acquire needed equipment or furnishings, or to supplement Adult and Youth programming budgets. She then gave a brief history of previous years and how the gifts and donations funds were allocated. Berro stated that the amount for donations received by the library in 2011 is $13,080.54 and that this year, the library would like to use these funds to purchase additional materials to be added to the library’s e-book collection. Berro then made the following recommendation:

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RECOMMENDATION: That the FY 2011 Gifts & Donations revenue in the amount of $10, 565.54 be allocated for the purchase of e-books to be added to the library’s collections in both the Adult and Youth Services areas, and that the remaining $2,515.00 be allocated to the various areas as per donors’ requests for the purchase of e-books, with the exception of funds targeted for the Heritage Room (and those will be used to purchase physical books).

MOTION: It was moved by Behr, and seconded by Brown the FY 20-11 Gifts and Donations revenue in the amount of $10,565.54 be allocated for the purchases of e-books to be added to the library’s collection in both the Adult and Youth Services areas, and that the remaining $2,515.00 be allocated to the various areas per donors’ requests for the purchase of e-books, with the exception of funds targeted for the Heritage Room. Vote: 6-Yes, 0-No, 1-Absent (Yantis). Motion carried. D. Presentation by Marketing Manager Chris Walker of 2012 Marketing Plan - Marketing Manager Chris Walker

gave a Power Point presentation to trustees on the 2012 Marketing Plan for Portage District Library. She described how social media would be used to promote the library (Facebook, Twitter, Blogs, YouTube, etc.) and commented that PDL’s Facebook page had 1,000 fans now and our Twitter account had 200 followers. She pointed out that whatever is placed on PDL's Blog automatically goes to our Twitter account. She also remarked that PDL was utilizing YouTube more for patron testimonials and tutorials, like the one that was recently done by Lawrence Kapture about how to use the library’s new catalog. Walker said that she would be looking into other social media possibilities too - such as Google + and commented that a lot of work was needed to keep them updated. Walker told trustees that the PDL newsletter was going to have a new design and stated that she sends out 13,308 e-newsletters the first Sunday of each month and that at least 3,000 users open it. She noted that it was a very cost effective method of conveying information and only cost $130 a month of a penny apiece, so it was a great communication tool to share news about library activities, and allowed people to click to go to the library’s events calendar for program information. The library’s Digital Viewer Events Calendar was next discussed and Walker said it had been 6 months since this new feature had been added to the library’s website and that people were not looking at PDL’s website to get to the events calendar for information about library activities and programs. She told board members that the posters in display units around the library were also going well and would continue to be used to provide library users with up-to-date information. Walker said that the library’s communication page on its website would be redone to give “One Stop” access for patrons to find what was happening at the library. Another initiative in 2012, Walker said, would be a new Employee Newsletter that would be a “quick read” of 4 to 5 articles about staff and for staff and pointed out that it would only cost about 50 cents to send. Walker gave a rundown for trustees of the various techniques and methods that would be used to promote the library and its resources, services and activities in 2012. These included: The Library’s Banners; Blog; Cheat sheets; Digital signage; E-Newsletter; Facebook page; Portage articles; Posters in the library; Twitter account; Website and YouTube. In 2012, Walker stated that there would be several surveys conducted, such as one to solicit patrons’ input for storytelling; another to get feedback on the library’s e-newsletter; another targeting teachers about their teacher e-newsletter and perhaps others. She said that the library would be asking patrons HOW they wanted us to communicate with them and WHAT information they wanted to get from us. She remarked that the library usually got at least 400 responses from online surveys. Walker told trustees that it only cost the library about $300 per year for these online surveys and it provided a lot of very beneficial feedback from library patrons. Trustees then were told about the new Marketing Collaboration “WE GET IT!” being undertaken by Portage District Library, the City of Portage and the Portage Public Schools. Walker explained that this joint marketing initiative was intended to show how the three entities work together to convey the value of the Portage community to others. She noted that it was getting very good news coverage and Library Board Chair Betty Lee Ongley said there was even coverage on the radio too. Walker said that they were planning a Cable

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Access Interview with representatives from the three organizations’ boards - Betty Lee Ongley (PDL Board Chair); Pete Strazda (Mayor of the City of Portage) and Bo Snyder (Portage Public Schools Board President). Walker indicated that she and Business Library Nicolette Sosulski would be meeting with Ongley soon to prepare her for this videotaped interview where she will be speaking about the business and job support resources provided by the library for the Portage community. Walker talked about the next steps for the Marketing Collaborative, such as developing a Blog, meeting once a week at various businesses in the community and asking for feedback. She commented that they may be the first community in the State of Michigan to be doing such a joint marketing collaboration to demonstrate cooperation for mutual benefit. Library Board Chair Ongley commented that Governor Snyder would certainly like this approach. Trustees were asked if they had any questions and Trustee Michele Behr asked what the cost of the Campaign Monitor program was, to which Walker replied that it cost a penny apiece, and pointed out that it gave the library information about how many were reading and at what time they were reading it. Trustee Alisha Siebers noted that community survey feedback had indicated a “Need to market the library more” and she asked Walker to comment about this. Walker said they definitely needed to market more to let people know about what the library offered and that it wasn’t through any one mode, but via a number of different methods that more people would be reached. She said it would be through collaboration with others in the community that the library could get the word out. Walker said it would require reaching out to specific groups in the community to find out what they want and need. This concluded Walker’s presentation on the 2012 Marketing Plan for the Portage District Library.

DISPOSITION: The Library Board thanked Marketing Manager Chris Walker for the nice job on her presentation of the 2012 Marketing Plan for Portage District Library and said that it was exciting prospects for the library.

VIII. Monitoring to Assure Compliance with Executive Limitations A. Report on Financial Condition for January 2012 - Business Manager Rob Foti referred to pages 27-28 of the

board meeting agenda packet and gave highlights to board members. He pointed out that a new Item #10 was added to this report which is a statement that the Library Director will provide the Library Board Chair with a list of all cash disbursements for review from the time of the prior board meeting to the current board meeting. Foti said this was being done at the suggestion of the library’s auditors. Library Director Berro indicated that it would be necessary for the Library Board to revise its Executive Limitation on Financial Condition to add this language, and she said that she would put it on the agenda for the March 26, 2012 board meeting. Foti said that the library was collecting its tax revenue now since taxes were due in February. Library Board Chair Ongley commented that the cost was fairly low for snow removal this year due to the mild winter.

DISPOSITION: The Library Board received the Report on Financial Condition for January 2012 and thanked Business Manager Foti for staying up-to-date on requirements regarding the Library Board’s review of cash disbursements. B. Monitoring Report: Treatment of Consumers - Business Manager Foti went over the Monitoring Report for the

Executive Limitation related to Treatment of Consumers and told trustees that there were no major changes from the previous year and that the library continues to use appropriate methods of client interactions, communications and protection of privacy.

DISPOSITION: The Library Board received the Monitoring Report on Treatment of Consumers and found the library to be in compliance,

C. Monitoring Report: Emergency Library Director Succession - Library Director Berro referred to pages 33-35 of the board meeting agenda packet and said that there were no major changes in the Succession Plan and that it was working fine. Trustee Michele Behr noted that the wording said “either/or” for the Heads of Adult Services and Youth Services as designated substitutes for the Library Director and asked how that was decided. Berro replied that it could be decided on the basis of the individuals’ availability to be a designated substitute, or it

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might be according to Library Board preference.

DISPOSITION: The Library Board received the Monitoring Report on Emergency Library Director Succession and found the library to be in compliance.

IX. Library Director’s Reports A. Report on Friends of the Library Board Meeting - Library Board Liaison to the Friends, Martha Pacheco said the

Friends held a board meeting on January [INSERT DATE] and she reported on several topics that were discussed. She said that the revenue from their December book sale was dome some and that they are looking for more people to help with book sales - especially the Friday night “Early Bird” sale. Pacheco said that Goodwill representatives have been picking up books that were leftover after the Friends’ book sale, and that recently they had found a book that turned out to be worth $100. She commented that the recycling arrangement with Goodwill was working out well and that it helped a lot not having to haul discarded books to the dumpster. Library Board Chair Ongley remarked that it seemed like there were still a lot of books being donated to the Friends for their book sales and Pacheco agreed and said there were lots and lots of donations. Pacheco also noted that the Friends were trying to expand their membership to 125 and she urged everyone to sign up for a Friends membership if they didn’t already have one. Pacheco stated that the Friends’ Treasurer had earmarked another $3,000 for grant requests from the library, and since the previous year’s amount was not used, it made for a total of $6,000 available to fund grants for the library. Pacheco said that the Friends’ board meetings were being switched to Tuesdays and that President Toni Yannie was setting up a Facebook page for the Friends. Pacheco asked about the dates for the 2012 Summer Reading Kick-Off event because the Friends want to participate this year and have a table at the event to encourage people to sign up to be members of the Friends of Portage District Library. She also mentioned that PNC Foundation Access First would possibly make a donation to the library for a special project. Jill Austin, Staff Liaison to the Friends, commented about the Friends making less at their December book sale this season and noted that booksellers were not spending as much at the Friends’ Book Sales lately and that they were being more selective. Jill also pointed out that there are now (6) book sales a year, so we need to spread the word about that to the public.

DISPOSITION: The Library Board received the report from Martha Pacheco, Library Board Liaison to the Friends, and thanked her for her participation in Friends’ activities and board meetings, and for reporting back to the Library Board with updates on the Friends.

B. Marketing Update for January 2012 - Library Director Berro said that trustees had been given a lot of information when Chris Walker gave her presentation of the 2012 Marketing Plan earlier in the meeting, and unless they had any questions, she would suggest they move on in the interest of time. There were no questions.

DISPOSITION: The Library Board received the Marketing Update for January 2012.

New Online Catalog: Library Director Berro asked Laura Wright, Youth Services Teen Librarian and Website Manager, to give trustees a quick demonstration of the library’s new Enterprise catalog that would be going live for the public on March 12, 2012. Wright came forward and used a computer with projection to take trustees to a test site where she showed them how the new Enterprise catalog functioned. She explained that it used “fuzzy” logic that would take users through a directed search process that even accepted misspelled words and would provide a “Did you mean?” response with possible options. Wright said the upgraded catalog allowed for more in-depth searches and uses icons to help users locate tools. She went through a sample log-in process where she showed trustees that they could check their library account and see the number of holds they had, the number of checkouts and any fines they might have as well. She told them that they could place items on hold and see where they were in the queue. Wright showed them the “facet” tools that now provide users with more specifics for searching by allowing them to choose limiting factors. She remarked that it also enabled users to click on “Only Show Available” to limit the search to what the library had available at any given time.

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Wright pointed out that you can now check on titles that you would like to reach and create your own “favorites” list that will stay forever and from which you can put items on reserve. Wright stated that a new featured called “Novelist” will go up on April 1st and it will give series information as well as suggestions for “If you like this, then you may also like…” Wright concluded her demonstration by saying that there would be trained staff on hand to assist the public with the new catalog as well as instructions sheets and a YouTube tutorial that people could refer to if they need guidance in using the library’s new catalog. Library Board Chair Ongley thanked Laura Wright for her demonstration of the library’s new Enterprise catalog, and for her hard work in helping to make this available to library patrons.

C. Narrative Report for January 2012 - Library Director Berro said that in the interest of time, and to not delay the start of the Strategic Planning work session any longer, she would recommend that they forego discussion on Items C, D & E. She then made a brief remark and said that PDL would do okay with the State budget and she told trustees that the state aid amount was being maintained at the same level as 2011 and that funding for the Michigan Electronic Library (MeL) and databases was secure. She commented that there was nothing new to report about the potential elimination of the Personal Property Tax for businesses in Michigan and that it would likely be resolved with only a “partial” solution and not enough replacement revenue.

D. Statistical Report for January 2012 - No discussion was held on this item this time.

E. Legislative Update for January 2012 - No discussion was held on this item this time.

X. Process Evaluation A. Suggestions for Agenda Items to be included on the March 26, 2012 Board Meeting

Library Board Chair Ongley asked if there were any suggestions for agenda items for the next board meeting on March 26, 2012, other than the list shown below, and there were none. 1. Minutes of the Regular Meeting held on February 27, 2012. 2. Cost Analysis Report for 2011. 3. Monitoring Report on Executive Limitation: Asset Protection. 4. Monitoring Report on Executive Limitation: Financial Planning & Budgeting. 5. Monitoring Report on Executive Limitation: Financial Condition & Activities. 6. Legislative Update

B. Assessment of this meeting - Trustees agreed that it had been a very interesting and informative meeting. Library Board Chair Ongley said that she especially liked the interaction among participants.

C. Miscellaneous Items:

> Reminder: The final Strategic Planning work session will be conducted in conjunction with the March 26, 2012 Library Board meeting and will focus on pulling together the Strategic Plan for PDL.

> Christy Klien, Head of Youth Services, invited trustees to take a look at a very creative and interesting

“igloo” that had been constructed out of 500 large plastic milk cartons by a Lake Center student and her family who made it available for display and use at the library.

> Trustee Martha Pacheco remarked that a friend of hers who is in construction had stopped by the library and that she had asked him to look at some shelving in the 700’s that she thought was somewhat wobbly and seemed to be moving slightly due to heavy materials shelved on it. Virgil Kelpin had looked it over and told her that it was safe but suggested that it could perhaps be stabilized by hooking it up to the ceiling. Library Director Berro said that she would definitely check it out. Pacheco then suggested that if there was a library staff newsletter, something could be put in it to alert staff and volunteers about that shelving that contained heavy books that was a bit wobbly.

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XI. Adjournment Library Board Chair Ongley asked if there was anything more to be considered at this meeting and there was no further discussion. Ongley then adjourned the regular meeting of February 27, 2012 at approximately 7:00 pm and the Strategic Planning work session followed immediately after the board meeting and went until approximately 9:20 p.m. [Note: An audio recording of the regular board meeting of February 27, 2012 and the Strategic Planning Work Session is on file in the Library Office.]

Recorded & Transcribed by: _______________________ Diane Delach, Secretary Portage District Library Board

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PORTAGE DISTRICT LIBRARY COMMUNICATION

To: Portage District Library Board

From: Christine Berro, Library Director

Date: March 21, 2012

Subject: Budget Amendment Request – To Increase the FY 2012 Budget for Adult Materials Due to a Generous Donation from the Nancy Haner Memorial Fund for Nature, Art & Literacy

BACKGROUND: Back in 2008, Portage District Library received notification from the Kalamazoo Community Foundation that a memorial fund had been established as a tribute to Nancy Haner and that a distribution was being made to the library for literacy purposes. At that time, the $500 gift was used to support the library’s “Emergent Literacy” program that included activities for young children and enhancements to the Preschool Room with many “hands-on” interactive learning stations. On March 5, 2012, the library received another generous distribution from the Nancy Haner Memorial Fund in the amount of $559.82 to “assist us in achieving goals and purposes.” Since one of the new initiatives that will be undertaken at the library this year is serving the special needs of individuals with disabilities, a very appropriate use of this donation would be to help build a new “High Interest/Low Reading Level” collection for those particular patrons. We certainly appreciate this generous gift and make the following request for its use: REQUEST: I recommend increasing the FY 2012 Contribution/Donation line by $559.82 and increasing the FY 2012 Adult Book Materials expenditure line by $559.82 to allow for expenditures to create a new “High Interest/Low Reading Level” collection for library patrons with special needs. This would help to fulfill our current End Statement: “To optimize patron access to popular and informational resources.

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Subject: Final Review & Vote on Revised Resolution to Extend all Trustees’ Terms At the Library Board meeting on February 27, 2012, Trustee Alisha Siebers presented draft language for a Resolution to ensure that the Portage District Library Board election schedule and terms of office for trustees would be in compliance with new PA 233 of 2011 that changed the schedules for school board (and library board) elections to the Novembers of even-numbered years. The proposed Resolution indicates that election of new Portage District Library Board members would be held in November of even-numbered years and that newly elected board members would begin their terms of office on January 1st following the election. Library Board members looked over the proposed Resolution and there were no objections to the proposed changes. I had suggested that the proposed Resolution be sent to the library’s attorney Richard Butler for his review to make sure that it was in legal compliance with the PA 233. Since then, Attorney Butler has reviewed the proposed Resolution to affirm the extension of board terms due to the change in school elections to the even year November election, and has put it into an official format. He also forwarded the Draft Resolution to Kalamazoo County Clerk Tim Snow to confirm the election dates to make sure that all the wording is in line with actual legal requirements. Now that both the Library Attorney and Kalamazoo County Clerk have reviewed the proposed Resolution, it is ready for the Library Board’s final review and vote and it has been placed on the agenda for the March 26, 2012 board meeting for that purpose.

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DRAFT 3-5-2012

RESOLUTION

PORTAGE DISTRICT LIBRARY BOARD At a regular meeting of the Library Board of the Portage District Library held at the Portage District Library, at 300 Library Lane, Portage, Michigan, 49002, on Monday, March 26, 2012. PRESENT: ____________________________________________________________ ____________________________________________________________ ABSENT: ____________________________________________________________ The following resolution was offered by Member ____________ and seconded by Member _______________. WHEREAS, the Portage District Library (the “Library”) was formed as a district library under the District Library Establishment Act (MCL 397.171, et seq.) (the “DLEA”) by the City of Portage and the Portage Public Schools; and WHEREAS, the District Library Agreement ("Agreement") for the Library provides for an elected district library board pursuant to Section 4(1)(c) of the DLEA (MCL 397.174(1)(c)); and WHEREAS, since the Portage Public Schools (“PPS”) is a “participating municipality” of the Library, the Library Board members are elected at a school election at the same time as PPS school board members and the terms of the elected Library Board members are the same as the terms of PPS school board members, in accordance with Section 11(2) of the DLEA (MCL 397.181(2)); and WHEREAS, pursuant to the DLEA, three Library Board members were elected in May 2009 to four-year terms expiring June 30, 2013 and four Library Board members were elected in May 2011 to four-year terms expiring June 30, 2015; and WHEREAS, PA 233 of 2011 added Section 642c to the Michigan Election Law (MCL 168.1 et seq.) (“MEL”) to provide that, beginning January 1, 2012, all regular elections of school board members shall be held at the November election in even years; and WHEREAS, Section 644g of MEL provides that when a regular election date is changed (including a change in regular school elections to the even-year November election), the terms of office shall not be shortened and the term of an official who was

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elected before the effective date of the change continues in office until a successor is elected and qualified at the next regular election; and

WHEREAS, the effect of PA 233 of 2011 is to extend the terms of office of PPS school board members to the December 31 following the next even-year November election after the original term of office expires; and

WHEREAS, by operation of law, it has been determined that the terms for the offices of Library Board members are also extended to coincide with the even-year November elections of PPS; and

WHEREAS, the Library Board wishes to adopt this Resolution to affirm the extensions of the terms of office for Library Board members.

NOW, THEREFORE, BE IT RESOLVED, that in accordance with the DLEA and MEL, as amended by PA 233 of 2011, the Library Board hereby affirms the following:

1. Under PA 233 of 2011, Section 644g of MEL, and other applicable provisions of MEL and DLEA, the expiration of the terms of office of the three Library Board members elected in 2009 is extended from June 30, 2013 to December 31, 2014. Three Library Board members will be elected at the November 2014 election to serve four-year terms commencing on January 1, 2015.

2. Under PA 233 of 2011, Section 644g of MEL, and other applicable provisions of MEL and DLEA, the expiration of the terms of office for the four Library Board members elected in 2011 is extended from June 30, 2015 to December 31, 2016. Four Library Board members will be elected at the November 2016 election to four-year terms commencing on January 1, 2017.

BE IT FURTHER RESOLVED THAT the Secretary of the Library Board is hereby authorized and directed to file a certified copy of this Resolution with the Kalamazoo County Clerk as the PPS School District Election Coordinator and with the Bureau of Elections, Secretary of State. Adopted this 26th day of March, 2012. YEAS: ____________________________________________________________ NAYS: ____________________________________________________________ RESOLUTION DECLARED ADOPTED.

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CERTIFICATION I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Library Board of the Portage District Library at a regular meeting held on March 26, 2012, the original of which is on file in my office and available to the public. Public notice of said meeting was given pursuant to and in compliance with the Open Meetings Act, Act No. 267 of the Michigan Public Acts of 1976, including in the case of a special or rescheduled meeting, notice by posting at least 18 hours prior to the time set for said meeting. Dated: ______________, 2012 ____________________________________ ______________________, Secretary

13047 (001) 593932.1

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Subject: Final Review & Vote on Revised Library Board Bylaws At the Library Board meeting on February 27, 2012, Trustee Alisha Siebers presented draft language for changes in wording for Portage District Library Board bylaws to reflect the changes in election schedule and terms of office for trustees that must occur due to the provisions of PA 233 of 2011 that changed the schedules for school board (and library board) elections to the Novembers of even-numbered years. The proposed bylaws indicate that election of new Portage District Library Board members are held in November of even-numbered years and that newly elected board members begin their terms of office on January 1st following the election. Library Board members looked over the revisions to the Library Board bylaws and there were no objections to the proposed changes. Along with the proposed Resolution, the proposed bylaws were also sent to the library’s attorney Richard Butler for his review to make sure that they are in legal compliance with the PA 233. Attorney Butler has reviewed and made a few additional changes to the bylaws and they are now read for a final review and vote by the Library Board. This will be an action item on the agenda for the March 26, 2012 board meeting.

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Proposed Revisions: 3-05-12

PORTAGE DISTRICT LIBRARY Library Board By-Laws

Article I Incorporation and Name:

The Portage District Library was formed under the Michigan District Library Establishment Act, May 22, 1989 PA 24 (MCL 397.171, et seq.) (the “Act”), through an agreement entered into on January 27, 1998, by and between the School District of the City of Portage, the County of Kalamazoo Michigan, and the City of Portage to provide library services to their combined populations. The Library of Michigan formally approved the agreement to form the Portage District Library and officially recognized the Portage District Library as a legally established district library on March 22, 1998 and approved an amendment to the agreement on June 1, 1998. The address of the main office is as follows:

Portage District Library 300 Library Lane Portage, Michigan 49002

Article II Membership:

In accordance with the provisions of the Portage District Library agreement, the Portage District Library shall consist of seven members who shall be elected by the electors of the District Library at the regularly scheduled school election of June 1999 and then thereafter on a rotating schedule as established in the District Library Establishment Act, 1998 edition. Terms are for four years and commence on July 1st of the year of the election. Suggested change: who shall be elected by the electors of the District Library at the regularly scheduled school elections in the month of November {on the}[in] even-numbered years. Terms are for four years and commence on the January 1st following the November[ election. Members are elected on a rotating basis with four members elected to four year terms at one school election and three members elected to four year terms at the succeeding school] election. Before assuming the office of Library Board Member, each person elected shall take the oath of office prescribed for public officers by the Constitution and shall file the oath with the staff Board Secretary. The office of a Library Board member becomes vacant when the incumbent dies, resigns, is convicted of a felony, is removed from office by the governor pursuant to Section 10, Article V of the State Constitution of 1963, or ceases to be a resident of the district. In the event that a Library Board member cannot fulfill the length of his term, the Portage District Library Board shall appoint a replacement who will be a qualified elector of a participating municipality. The appointed Library Board member’s term will come up for election at the next Portage District Library Board election and shall be for the length of the remaining term.

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Article III Officers

Officers of the Portage District Library Board shall be a Chairperson, and a Vice-Chairperson, who shall be elected at the July January meeting, for a term of one year{.}[, provided, however, that the officers elected in July 2011 shall serve for a term expiring January 1, 2013.] The Library Board Chairperson may appoint a board member as official Secretary when needed, such as to take minutes for a closed session. The staff Board Secretary shall record minutes at meetings, maintain official Library Board files and records and produce Library Board correspondence as required. The staff Board Secretary shall, in collaboration with the Chairperson and Library Director, prepare the agenda. The agenda-planning meeting shall be two weeks prior to the Library Board meeting. It is the responsibility of the staff Board Secretary to provide the Library Board with the agenda and supporting materials 96 hours (4 days) prior to the Library Board meeting. In the event an office becomes vacant, the office shall be filled by a Library Board election at the next regular meeting. However, in the case of the Chairperson the current Vice-Chairperson shall fill the vacancy and a new Vice-Chairperson shall be elected.

Article IV Meetings The Library Board shall meet at times and dates approved by the Library Board at the July Library Board meeting. Special meetings may be called by the Chair-person, or upon written request of two members, for the transaction of business as stated in the call. Written notice stating the time and the place of any special meeting and the purpose for which it is called shall be given each member of the Library Board 18 hours in advance, and posted for the public in accordance with the Michigan Open Meetings Act. The meeting will commence as soon after the hour of the meeting as there shall be a quorum present. In the absence of the Chairperson, the Vice-Chairperson shall call the meeting to order. If neither the Chairperson nor the Vice-Chairperson is present, then board members may elect a temporary Chair for the limited purpose of moderating the meeting. A quorum for the transaction of business shall consist of a simple majority. Members of the Library Board who are unable to attend a meeting will notify the staff Board Secretary (24) hours prior to the meeting. In the absence of a quorum the Library Board shall meet as a committee of the whole, however no binding decisions may be made. Roberts Rules of Order, the latest revised edition, shall govern the parliamentary procedure of the Library Board.

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Sufficient time will be provided at the beginning of the meeting for any person, not a member of the Library Board, to address the Library Board on any matter within the scope of the provision of District Library Law.

Article V Committees The Chairperson of the Library Board may nominate members to special committees, with Library Board approval, as the need arises. The Personnel Committee will consist of the Chairperson of the Library Board and two members of the Library Board nominated by the Chairperson and elected by the full Library Board at the July meeting. The purpose of the Personnel Committee is to complete the annual evaluation of the Library Director.

Article VI Powers and Duties of the Library Board

The powers and duties of the Portage District Library Board are set forth in the District Library Law, PA 24 (MCL 397.171, et seq.) (the “Act”), and include the following: Section 1: The Library Board may exercise any and all of the powers granted to it in the Act. The Library Board may delegate such powers to the Officers of the Library Board and/or the Library Director, as it deems necessary. Section 2: The fiscal year of the Portage District Library shall be the annual period commencing January 1st and ending December 31st. Section 3: The Library Board shall adopt and publish an annual operating budget in accordance with the Uniform Budgeting and Accounting Act, being Act No. 2 of the Public Laws of Michigan of 1968, as amended (“UBAA”). Section 4: The Library Board shall have exclusive control of the budget of the Portage District Library except as provided by delegation to the Library Director in accordance with the Uniform Budgeting and Accounting Act. Section 5: The Library Board shall adopt Policies, Rules and Regulations for the operations of the library, not inconsistent with law or with these by-laws.

Article VII Conflict of Interest

Members of the Library Board shall disclose any conflict of interest in accordance with legal requirements. (Current conflict of interest statute, MCLA 15.323, states that 7 days is required.)

Article VIII Amendments

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These bylaws may be amended at any regular meeting of the Library Board with a quorum present by a majority vote of the members present providing the amend-ment was stated in the call for the meeting and that it is done in accordance with legal requirements.

NOTE: These by-laws were adopted by the Portage District Library Board at its regular meeting on December 14, 2000, and last reviewed March 26, 2012. All prior bylaws are hereby repealed.

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Subject: Consideration of Change in Executive Limitation on Financial Condition related to providing the Library Board with a List of Monthly Cash Disbursements.

BACKGROUND: The Portage District Library recently engaged the firm of Rehmann Robson to provide auditing services to the library. As they are becoming familiar with the library’s financial system, they are assessing our operations and advising us accordingly. At the suggestion of our new auditors, we have been advised to add a written statement to the Library Board’s Executive Limitation Policy: Financial Condition and Activities, pertaining to overview by the governing body of the library’s cash disbursements. Since the Executive Limitation Policies are the Library Board’s rules, it is appropriate that the decision to revise them be made by our trustees. For this reason, a request for revision to this particular Executive Limitation Policy has been placed on the agenda for the March 26, 2012 board meeting as follows: REQUEST: I recommend that the Library Board’s Executive Limitation Policy: Financial Condition and Activities be revised to ensure the oversight the library’s cash disbursements by adding a new Item #15 that reads: Accordingly, the Library Director shall not: 15. Fail to provide the Library Board chair with a list of cash disbursements form the time

of the prior board meeting to the current board meeting. A revised Executive Limitation Policy: Financial Condition and Activities has also been included in the agenda packet for the March 26, 2012 board meeting for trustees to review.

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Adopted by the Library Board: March 16, 2000 PROPOSED CHANGE: March 26, 2012

PORTAGE DISTRICT LIBRARY BOARD

H-5 EXECUTIVE LIMITATION POLICY: FINANCIAL CONDITION and ACTIVITIES

With respect to the actual, ongoing financial condition and activities, the Library Director shall not cause or allow the development of fiscal jeopardy or a material deviation of actual expenditures from board priorities established in Ends policies. Accordingly, the Library Director shall not:

1. Expend more funds than have been received in the fiscal year to date.

2. Indebt the organization in an amount greater than can be repaid by certain, otherwise unencumbered revenues within 60 days, and may expend as long as items are approved in the budget.

3. Use any long-term reserves.

4. Conduct inter-category shifting.

5. Fail to settle payroll and debts in a timely manner.

6. Allow tax payments or other government ordered payments or filings to be overdue or

inaccurately filed.

7. Make a single purchase or lease commitment of greater than $10,000 on items not already approved in the budget. Splitting orders to avoid this limit is not acceptable.

8. Acquire, encumber or dispose of real property.

9. Fail to appropriately pursue receivables after a reasonable grace period.

10. Fail to provide the Library Board with a one page monthly financial indicator monitoring report,

and a quarterly background financial monitoring report

11. Fail to arrange for an external financial audit of the library once a year.

12. Fail to have appropriate authorized signatures on bank documents: Library Director, Library Business Manager and Library Board Chair.

13. Fail to consider approved budget when entering into financial agreements or collaborations with

other entities.

14. Fail to keep the Library Board informed of any grant applications, and obtain board chair signature when required by granting agency.

15. Fail to provide the Library Board chair with a list of all cash disbursements from the time of the prior board meeting to the current board meeting.

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Subject: Proposed New Fund Balance Policy to Comply with GASB No. 54.

BACKGROUND: Portage District Library must comply with all governmental standards for accounting and uses the professional services of an outside auditing firm to keep us up-to-date on legal requirements. We recently engaged the firm of Rehmann Robson to assess our internal financial operations and their accountants have begun the process to conduct their first audit of the library this year. As part of the assessment process, the auditor from Rehmann Robson has identified the need for Portage District Library to have a specific Fund Balance Policy to bring us into compliance with the provisions of GASB (Governmental Accounting Standards Board) Statement #54. For this reason, Library Business Manager Rob Foti has obtained the necessary information, and we have formulated a proposed new Fund Balance Policy for the library, along with new terminology for how our various reserve funds are named. At the board meeting on March 26, 2012, I will make the following recommendation to trustees to adopt this new Fund Balance Policy: RECOMMENDATION: I recommend that the Portage District Library Board adopt a new Fund Balance Policy for the library to comply with the provisions of GASB Statement #54, as advised by the library’s auditing firm of Rehmann Robson during their assessment process of library financial operations. This proposed new Fund Balance Policy is included in entirety in the agenda packet for the upcoming March 26, 2012 board meeting.

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BY STEPHEN J . GAUTHIER

FUND BALANCE

N E W A N D I M P R O V E D

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April 2009 | Government Finance Review 11

There is probably no single item in a typical state orlocal government’s financial statements that attractsmore attention than fund balance. In February 2009,

the Governmental Accounting Standards Board (GASB)issued GASB Statement No. 54, Fund Balance Reporting andGovernmental Fund Type Definitions.This latest GASB standardwill not affect the calculation of fund balance,but will funda-mentally alter the various components used to report it.

BACKGROUND

Accountants use the term fund balance to describe thearithmetic difference between the assets and liabilitiesreported in a governmental fund (e.g., general fund). The categories that have been used until now to present fund bal-ance have focused on whether resources were available forappropriation (i.e., budgeting). Thus, the traditional presenta-tion of fund balance distinguished unreserved fund balance(i.e., available for appropriation) from reserved fund balance(i.e., not available for appropriation).

Fund balance might not be available forappropriation (i.e., reserved) for a varietyof reasons. Some resources of a govern-mental fund, by their very nature, cannotbe spent (e.g.,prepaid rent and inventoriesof supplies). Other resources may convertto spendable form only at a much laterdate (e.g., the long-term portion of notesreceivable). Still other resources may beavailable for spending, but their use is externally restricted toa purpose narrower than the purpose of the fund in whichthey are reported.

In addition, governing bodies themselves frequently placetheir own limitations on how they will use resources other-wise available for appropriation (e.g.,“earmarking”).Likewise,a government’s management may have tentative plans for allor a portion of those resources. In either case, a governmenttraditionally has had the option of indicating these tentativemanagerial plans and self-imposed limitations by presentinga portion of unreserved fund balance as designated.

This traditional approach to classifying fund balance issummarized in Exhibit 1.

Three considerations led the GASB to undertake its recentreexamination of the components used to report fund balance.First, the traditional terminology was not self-explanatory

and has frequently led to misunderstandings.Second,govern-ments often have applied the different categories inconsis-tently in practice. Finally, some have questioned whether thehistoric focus on availability for appropriation best serves theneeds of financial statement users.

NEW GUIDANCE

Focus. GASB Statement No. 54 will shift the focus of fundbalance reporting from the availability of fund resources forbudgeting to “the extent to which the government is bound tohonor constraints on the specific purposes for whichamounts in the fund can be spent.”1

Components of fund balance. GASB Statement No. 54establishes five components of fund balance. Because circumstances differ among governments, not every government or every governmental fund will report all ofthose components.

Constraints on how amounts can bespent are not really an issue for resourcesthat are inherently nonspendable.Examplesinclude inventories and prepaids; the long-term portion of loans receivable2; and non-financial assets held for resale.3 Still otherresources cannot be spent because legalor contractual provisions require that theybe maintained intact (e.g., the principal ofan endowment). GASB Statement No. 54

directs that the portion of fund balance reflecting both belabeled nonspendable fund balance.

Not all limitations on how resources may be used have thesame force. Some limitations are externally enforceable andlie beyond the power of the government to change unilat-erally (e.g., restrictions imposed by a grant contract or a bondcovenant). Other limitations are self-imposed, but wouldrequire formal action at the highest level of the government toremove (e.g., resources legally “earmarked”for a given projectby the governing body).Still other limitations are less bindingand function more as a declaration of intent.GASB StatementNo.54 has created a separate category to accommodate eachof these situations.

■ Restricted fund balance. The term restricted fund balancewill encompass net fund resources subject to externallyenforceable legal restrictions. It is no accident that theterm restricted fund balance so closely resembles the term

There is probably no single

item in a typical state or local

government’s financial state-

ments that attracts more

attention than fund balance.

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12 Government Finance Review | April 2009

restricted net assets used in the context of government-wide financial reporting. In both cases, the restrictions con-cerned would be either 1) externally imposed by credi-tors (such as through debt covenants), grantors, contribu-tors, or laws or regulations of other governments, or 2)imposed by law through constitutional provisions orenabling legislation.4 Note that there is no need for thelimitation to be narrower than the purpose of the fund.5

■ Committed fund balance. The term committed fund bal-ance will be used to describe the portion of fund balancethat represents resources whose use is constrained by lim-itations that the government imposes upon itself at itshighest level of decision making (normally the governingbody) and that remain binding unless removed in thesame manner.The underlying action that imposed the lim-itation would need to occur no later than the close of thereporting period. Note, once again, that there is no require-ment that the limitation be narrower than the purpose ofthe fund.6

■ Assigned fund balance. The assigned fund balance cate-

gory will cover the portion of fund balance that reflects a

government’s intended use of resources. Such intent would

have to be established at either the highest level of deci-

sion making, or by a body (e.g., finance committee) or an

official designated for that purpose.7 Logically speaking, a

government cannot assign resources that it does not have;

therefore, the amount reported as assigned fund balance

could never exceed total fund balance less its nonspend-

able, restricted, and committed components. Once again,

note that there is no requirement that the limitation be

narrower than the purpose of the fund.

Of course, the general fund, as the principal operating fund

of a government, may have net resources in excess of what is

properly categorized in one of the four categories just already

described. If so, the surplus will be presented as unassignedfund balance. A positive amount of unassigned fund bal-

ance, however, will never be reported in a governmental fund

other than the general fund, because GASB Statement No. 54

prohibits reporting resources in another fund unless they are

at least assigned to the purpose of that fund. All the same,

funds other than the general fund could report a negative

amount of unassigned fund balance should the total of

nonspendable fund balance, restricted fund balance, and

committed fund balance exceed the total net resources of

the fund.

The new components of fund balance are summarized in

Exhibit 2.

Stabilization arrangements. Governments often establish

“rainy day funds”or “contingency funds”to provide a financial

cushion against unanticipated adverse financial or economic

circumstances. The appropriate classification of such

resources within fund balance depends on the specific

nature of the arrangement.

On the one hand, if the use of the resources is limited in a

way that is legally enforceable by an outside party, classifica-

tion as restricted fund balance would be appropriate. On the

other hand, if the limitation was imposed by the highest level

of decision making and can only be removed by formal

action equivalent to the action taken to impose it, the use of

the committed fund balance classification would be appro-

priate. It would never be appropriate,however, to classify such

resources as assigned fund balance.

Exhibit 1:Traditional Components of Fund Balance(Focus on Availability for Appropriation)

■ Reserved fund balance (not available for appropriation)

• Portion of net resources that cannot ever be spentbecause of their form

• Portion of net resources that cannot yet be spent

• Portion of net resources that cannot be spent for any andall fund-related purposes because of external limitations

■ Unreserved fund balance (available for appropriation)

• Designated unreserved fund balance (available for appropriation, with a limitation on use imposed by the government itself)

■ Portion of net resources subject to limitationsimposed by the governing body

■ Portion of net resources set aside by management in connection with its tentative plans

• Undesignated unreserved fund balance (available forappropriation, with no external or internal limitation)

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GASB Statement No.54,paragraph 20,places serious limits onwhat qualifies as a stabilization arrangement for this purpose:

The formal action that imposes the parameters forspending should identify and describe the specific cir-cumstances under which a need for stabilization arises.Those circumstances should be such that they would notbe expected to occur routinely. For example, a stabiliza-tion amount that can be accessed “in an emergency”would not qualify to be classified within the committedcategory because the circumstances or conditions thatconstitute an emergency are not sufficiently detailed,andit is not unlikely that an “emergency” of some naturewould routinely occur. Similarly, a stabilization amountthat can be accessed to offset an “anticipated revenueshortfall”would not qualify unless the shortfall was quan-tified and was of a magnitude that would distinguish itfrom other revenue shortfalls that occur during the nor-mal course of governmental operations.

Appropriated fund balance. Not infrequently, govern-ments balance their budget by appropriating a portion ofexisting fund balance to bridge the gap between appropria-tions and estimated revenues. The portion of fund balancethus appropriated for the following year would properly beclassified as assigned fund balance.

Flow assumptions. Frequently resources for a single proj-ect will come from multiple sources. For example, a city mayelect to finance a new bridge partially from restricted grantproceeds (restricted fund balance), partially from earmarkedrevenues (committed fund balance), and partially from otheravailable resources expressly set aside for the purpose(assigned fund balance). In that case,flow assumptions wouldbe needed:

■ When both restricted resources and other resources areto be used, how are outlays allocated to each (e.g.,restricted resources presumed to be spent first? Spendingpresumed to occur on a pro rata basis?)?

■ When committed, assigned, and unassigned resources areto be used, how are outlays allocated among the variouscategories?

COMPARISON OF OLD AND NEW

Perhaps the best way to gain an understanding of the newfund balance categories is to contrast how certain specificitems are reported today with how those same items will bereported in the future under GASB Statement No. 54.

April 2009 | Government Finance Review 13

Exhibit 2: New Components of Fund Balance —GASB Statement No. 54 (Focus on Extent to which Government Is Bound to Honor

Constraints on the Specific Purposes for Which Amounts

Can Be Spent)

■ Nonspendable fund balance (inherently nonspendable)

• Portion of net resources that cannot be spent because

of their form

• Portion of net resources that cannot be spent because

they must be maintained intact

■ Restricted fund balance

(externally enforceable limitations on use)

• Limitations imposed by creditors, grantors, contributors,

or laws and regulations of other governments

• Limitations imposed by law through constitutional

provisions or enabling legislation

■ Committed fund balance (self-imposed limitations set

in place prior to the end of the period)

• Limitation imposed at highest level of decision making

that requires formal action at the same level to remove

■ Assigned fund balance (limitation resulting from intended use)

• Intended use established by highest level of decision making

• Intended use established by body designated for that purpose

• Intended use established by official designated for that

purpose

■ Unassigned fund balance (residual net resources)

• Total fund balance in the general fund in excess

of nonspendable, restricted, committed, and assigned

fund balance (i.e., surplus)

• Excess of nonspendable, restricted, and committed

fund balance over total fund balance (i.e., deficit)

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14 Government Finance Review | April 2009

Reserved fund balance. Currently, reserved fund balancecomprises three elements:

■ Resources that by their very nature cannot be spent (e.g.,prepaid rent)

■ Resources that are not yet available for spending (e.g.,long-term portion of loans receivable)

■ Resources externally restricted to a purpose narrowerthan the fund

The first of these elements will always be reported as non-spendable fund balance.The second element normally wouldbe reported as nonspendable fund balance (i.e., unless therewas a limitation on how the amounts eventually receivedcould be used, in which case the classification would berestricted, committed, or assigned fund balance, as appropri-ate).The third element will be reported as restricted fund bal-ance.

Designated unreserved fund balance. Currently this cat-egory comprises two elements:

■ Limitations that the government places upon itself

■ Tentative management plans

Net resources currently reflected in the first category will bereported in the future as either committed fund balance or asassigned fund balance,depending upon the source of the lim-itation.The latter will be reported as either assigned fund bal-ance (if management is designated to make such assign-ments) or unassigned fund balance.

Undesignated unreserved fund balance. Today thisresidual category includes resources whose use is limited,butnot for a purpose narrower than the purpose of the fund.Under GASB Statement No. 54, there is no requirement that alimitation be narrower than the purpose of the fund.Accordingly, items that are restricted, committed, or assignedsimply for the purpose of the fund will be reported as restrict-ed, committed, or assigned fund balance.

Also, reporting designated unreserved fund balance todayis optional.Under GASB Statement No.54,the use of the equiv-alent category (i.e., assigned fund balance) will be required.Therefore, many governments that today do not report desig-nated unreserved fund balance will report as assigned fundbalance a portion of what today is labeled simply unreservedfund balance.

EFFECTIVE DATE

Governments will need to implement GASB Statement No.54 starting with the fiscal period that ends June 30,2011.In thestatistical section of the comprehensive annual financialreport, retroactive implementation is encouraged, but notrequired. If a government declines to restate amounts fromprevious years in the statistical section, it will need to providean explanation. ❙

Notes

1.GASB Statement No. 54, paragraph 5.

2.Assuming that there are not constraints on the use of the amounts eventu-ally collected.

3.Assuming that there are not constraints on the use of the proceeds of theeventual sale.

4.The criteria for restricted net assets set forth in GASB Statement No. 34,Basic Financial Statements — and Management's Discussion and Analysis— for State and Local Governments, paragraph 34, are identical to the cri-teria for restricted fund balance in GASB Statement No. 54, paragraph 8.

5. If the use of the amounts to be collected on long-term loans receivableand the amounts resulting from the sale of nonfinancial assets is subjectto restrictions, then those items should be reflected in restricted fund bal-ance, rather than in nonspendable fund balance.

6. If the use of the amounts to be collected on long-term loans receivableand the amounts resulting from the sale of nonfinancial assets is commit-ted, then those items should be reflected in committed fund balance,rather than in nonspendable fund balance.

7. If the use of the amounts to be collected on long-term loans receivableand the amounts resulting from the sale of nonfinancial assets isassigned, then those items should be reflected in assigned fund balance,rather than in nonspendable fund balance.

STEPHEN J. GAUTHIER is director of the GFOA’s Technical ServicesCenter in Chicago, Illinois.

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Portate District Library Fund Balance Policy-Proposed March 21, 2012

Page 1 of 3

Portage District Library Fund Balance Policy in Accordance with GASB Statement No. 54

Purpose. The following policy has been adopted by the Board of Trustee in order to address the implications of Governmental Accounting Standards Board (“GASB”) Statement No. 54, Fund Balance Reporting and Governmental Fund Definitions. The policy is created in consideration of unanticipated events that could adversely affect the financial condition of the Portage District Library and jeopardize the continuation of necessary public services. This policy will ensure that the Portage District Library maintains adequate fund balances and reserves in order to:

a. Provide sufficient cash flow for daily financial needs, b. Secure and maintain investment grade bond ratings, c. Offset significant economic downturns or revenue shortfalls, and d. Provide funds for unforeseen expenditures related to emergencies.

This policy and the procedures promulgated under it supersede all previous regulations regarding the Portage District Library’s fund balance and reserve policies. Fund type definitions. The following definitions will be used in reporting activity in governmental funds across the Portage District Library. The Portage District Library may or may not report all fund types in any given reporting period, based on actual circumstances and activity.

The general fund is used to account for all financial resources not accounted for and reported in another fund. Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Debt service funds are used to account for all financial resources restricted, committed or assigned to expenditure for principal and interest. Capital projects funds are used to account for all financial resources restricted, committed or assigned to expenditure for the acquisition or construction of capital assets. Permanent funds are used to account for resources restricted to the extent that only earnings, and not principal, may be used for purposes that support the government’s purposes.

Fund balance reporting in governmental funds. Fund balance will be reporting in governmental funds under the following categories using the definitions provided by GASB Statement No. 54:

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Portage District Library Fund Balance Policy-Proposed Proposed Date: March 26, 2012

Page 2 of 3

Nonspendable fund balance Definition – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained in-tact.

Classification – Nonspendable amounts will be determined before all other classifications and consist of the following items (as applicable in any given fiscal year):

· The Portage District Library will maintain a fund balance equal to the balance of any long-term outstanding balances due from others (including other funds of the government)

· The Portage District Library will maintain a fund balance equal to the value of inventory balances and prepaid items

· The Portage District Library will maintain a fund balance equal to the corpus (principal)

of any permanent funds that are legally or contractually required to be maintained in-tact

· The Portage District Library will maintain a fund balance equal to the balance of any

land or other nonfinancial assets held for sale

Restricted fund balance

Definition – includes amounts that can be spent only for the specific purposes stipulated by the constitution, external resource providers, or through enabling legislation.

Committed fund balance

Definition – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority.

Authority to Commit – Commitments will only be used for specific purposes pursuant to a formal action of the Portage District Library Board. A majority vote is required to approve a commitment and a two-thirds majority vote is required to remove a commitment.

Assigned fund balance

Definition – includes amounts intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. Authority to Assign – The Board of Trustees delegates to the Director or his/her/their designee the authority to assign amounts to be used for specific purposes. Such assignments cannot

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Portage District Library Fund Balance Policy-Proposed Proposed Date: March 26, 2012

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exceed the available (spendable, unrestricted, uncommitted) fund balance in any particular fund.

Unassigned fund balance

Definition – includes the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification should be used only to report a deficit balance from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

Operational guidelines. The following guidelines address the classification and use of fund balance in governmental funds:

Classifying fund balance amounts – Fund balance classifications depict the nature of the net resources that are reported in a governmental fund. An individual governmental fund may include nonspendable resources and amounts that are restricted, committed, or assigned, or any combination of those classifications. The general fund may also include an unassigned amount. Encumbrance reporting – Encumbering amounts for specific purposes for which resources have already been restricted, committed or assigned should not result in separate display of encumbered amounts. Encumbered amounts for specific purposes for which amounts have not been previously restricted, committed or assigned, will be classified as committed or assigned, as appropriate, based on the definitions and criteria set forth in GASB Statement No. 54. Prioritization of fund balance use – When an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) amounts are available, it shall be the policy of the Portage District Library to consider restricted amounts to have been reduced first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it shall be the policy of the Portage District Library that committed amounts would be reduced first, followed by assigned amounts and then unassigned amounts.

Implementation and review. Upon adoption of this policy the Board of Trustee authorizes the Director to establish any standards and procedures which may be necessary for its implementation. The Director shall review this policy at least annually and make any recommendations for changes to the Board of Trustees.

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Portage District LibraryFund Balance Presentation As of December 31, 2010

Fund Balance: Fund Balance:

Reserved: Nonspendable:

Encumbrances 274,983 Endowment 360 Endowment 360

Unreserved: Committed:

Designated: Encumbrances 274,983 General Reserve 483,619 General Reserve 483,619 Building Reserve 50,000 Building Reserve 50,000 Benefit Reserve 18,991 Benefit Reserve 18,991 Donation Reserve 9,825 Donation Reserve 9,825 Debt Reserve 9,483 Debt Reserve 9,483 Technology Reserve 44,289 Technology Reserve 44,289

Undesignated 3,887,588 Unassigned 3,887,588

December 31, 2010 Fund Balance Pre GASB 54 December 31, 2010 Fund Balance Post GASB 54

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TO: Portage Public School Board, City of Portage City Council, and Portage District Library Board of Directors

FROM: Joint Marketing Committee*

RE: COLLABORATIVE MARKETING EFFORT – Update & “Top 10” List

DATE: March 22, 2012

RECOMMENDATION: That the Portage City Council, Portage Public School Board and the Portage District Library Board approve the next step with the publication of Top 10 Reasons listing. INTRODUCTION

The City of Portage, the Portage District Library, and Portage Public Schools have agreed to band together for collaborative marketing to promote their services to residents and businesses, in addition to presenting a unified message to attract new families and business. Leaders from the three units decided a collaborative effort would be economical and powerful. This joint campaign goes to a higher level with a combined marketing plan, consisting of coordination of existing communications by all three entities, primarily social media and electronic communications. Other joint communications will include cable access shows and news featuring officials from the three units appearing together talking about the community and its resources.

UPDATE To date, the Joint Marketing Committee’s proclamation has received approval from each of the governing bodies and announced the collaborative effort to the local media as well as National School Public Relations Association, Kalamazoo Regional Chamber of Commerce, Center for Michigan “Bridge” magazine, and the Portage Rotary. An official blog has been created to act as the central access point and referral site for this effort, explaining the collaborative campaign and offering a space for citizen comments and feedback on areas of improvement. In addition, the March edition of the city’s Portager newsletter was delivered to all area households and businesses with a special joint marketing effort announcement article. The Committee members will next be completing cable access interviews to reiterate the purpose of the collaborative effort, individually discussing the key service areas. These segments will be televised on the government and education channels throughout the year, as well as available on the blog.

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Collaborative Marketing Effort Update March 22, 2012 Page 2 of 2 NEXT STEP: “Top 10” List The joint marketing initiative was designed to help position Portage as a place that communicates with one voice and projects a cooperative spirit. In order to best achieve a unified voice, the Joint Committee has developed the Top 10 Reasons Why I Love Portage and propose opening the project to the people of the community, enabling the public to convey why they love Portage. The Top Ten list includes:

1. Low municipal tax rate 2. Over 2,000 acres of park and recreational space 3. Extensive bikeway system 4. Award-winning public schools 5. Outstanding library 6. Open and responsive municipal government 7. Largest retail center in southwest Michigan 8. Great healthcare 9. Excellent public safety services 10. Great neighborhoods and affordable housing

With the approval of the governing bodies, the Joint Marketing Committee will have the City of Portage website host the specific page. Please note, the Top 10 Reasons are a broad approach. An identification marker will be developed for each of the organizations’ websites to direct interested parties to a web page that may have samples with content and links to the pages and/or sites that will enhance the Top 10 Reasons. It is therefore recommended that the Portage City Council, Portage Public School Board and the Portage District Library Board approve the next step with the publication of the Top 10 Reasons listing.

* Mayor Peter J. Strazdas Councilmember Elizabeth Campbell Councilmember Jim Pearson Betty Lee Ongley, PDL Board Chair Stephanie Brown, PDL Boardmember Joe Yantis, PDL Boardmember Bo Snyder, PPS Board of Education President Randy VanAntwerp, PPS Board of Education member Ted Hartridge, PPS Board of Education member

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PORTAGE DISTRICT LIBRARY COMMUNICATION To: Portage District Library Board



Subject: Follow-up on Strategic Planning Work Sessions and the Final Steps to be Taken

This memo has been written and included in the agenda packet for the March 26, 2012 board meeting to summarize for the official record the activities that have recently taken place with regard to the Portage District Library’s 2011-12 Strategic Planning Process.

Date Strategic Planning Activities for Portage District Library

2-27-12 Facilitators Gary Goscenski and Kasey Mc Gill conducted a SWOT analysis session with Library Board Members and Library Administrative Team Members to identify the library’s strengths, weaknesses, opportunities and threats, both internal and external, and to assess relative importance of various

3-05-12 A summary of the SWOT analysis information was distributed to Portage District Library Strategic Planning participants for review and preparation for the next work sessions.

3-12 & 3-13 Facilitators Gary Goscenski and Kasey Mc Gill conducted two 4-hour special strategic planning work sessions with the Library Board and Library Administrative Team to deliberate on the library’s Ends Statements and to suggest potential measures for assessing accomplishment of Ends. They also took the group through exercises to rate the importance for funding library resources – from the most important to the least important and considered various usage categories that were also ranked in order of importance for funding purposes.

3-19-12 Library Board members and Library Administrative Team members were given a PDF file by the facilitators with a Strategic Planning Update which included the revised Ends Statements, potential measures for assessing accomplishment of Ends, and a list of priorities. Everyone was asked to review the community survey and the SWOT Analysis summary sheets (paying particular attention to the items with the most dots) and then to think about how the library should prioritize over the next 3 years by identifying:

What Portage District Library should…

Do MORE of… (Increase or start doing)

Do LESS of... (Decrease efforts)

CONTINUE… (Stay as is or maintain)

3-26-12 Facilitators Gary Goscenski and Kasey Mc Gill will conduct a final work session following the regular board meeting, to assist the Library Board and Library Administrative Team in putting together the framework for the final Portage District Library Strategic Plan.

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Subject: Revised Ends Statements for Portage District Library On March 12th and 13th, Library Board members and Library Administrative Team members met in special work sessions with Strategic Planning Facilitators Gary Goscenski and Kasey Mc Gill to go brainstorm about the library’s resources, services, patron types and categories of library usage. As part of this process, there was a review of the library’s Mission Statement and a very lengthy discussion and deliberation on the library’s current Ends Statements and how they should be revamped to better reflect present conditions. As a result of these work sessions, the Portage District Library Ends Statements were revised and are being considered for adoption in connection with the library’s final Strategic Plan for the next 3 to 5 years. The revised Ends Statements have been placed on the agenda for the March 26, 2012 board meeting for a final look by trustees prior to heading into the last work session with facilitators following that board meeting, at which time the framework for the Portage District Library’s final Strategic Plan will be developed. Please review these Ends Statements and consider if any modifications might be needed. A discussion will be held at the March 26, 2012 board meeting and any changes approved before a final vote to adopt the Ends Statements is conducted.

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D R A F T

Mission Statement (Originally adopted by the Library Board on February 24, 2003)

Helping you access the world of information in a friendly atmosphere.

Global Statement

We will be a valued community resource for life-long learning.

Ends Statements (Originally approved by the Library Board on 12-12-05 and Proposed Revisions on 3-12-12)

In 2012, Portage District Library will….

1. Optimize access to resources for information, education, and entertainment 2. Be a safe, welcoming, inclusive destination for families and individuals 3. Be a leader in strengthening our community 4. Be a community center to experience and explore local arts and culture

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Subject: Enterprise Catalog: Behind the Scenes

Building a Better Searching Experience: A Behind the Scenes Look

The Portage District Library unveiled its new Enterprise Catalog Search experience on March 12, 2012. This team project was a result of a coordinated sequence of projects performed by the staff of the Portage District Library. The project list below is a "laundry list" of the steps made by the Portage District Library for a successful transition to the Enterprise catalog: Symphony Upgrade to 3.3.1 PC2 This involved upgrading the core ILS system to support the new hosted Enterprise catalog solution. It was accomplished during off hours so that no service disruption was felt by the library public. Installation Symphony Web Services Server 3.2 This virtual server instance was built by the Portage District Library and allows Symphony and Enterprise to communicate. Additionally, this server will also serve as the foundation for extended web services to our library public. In addition to building this virtual instance firewall and DNS modifications were made and tested to ensure secure and reliable communications. At the same time, an elibrary server was also built in case the library chose the path of an elibrary/Enterprise catalog solution. Installation Enterprise Catalog instance Once PDLs catalog instance was installed and available, the technology team, working with SirsiDynix staff, began to customize the "Look and Feel" and brand its instance as its own. Hours of research, testing and quite frankly playing with displays, colors, logos and links got the Portage District Library to where it is today. Catalog Record Cleanup During our testing, the technology team found some inconsistencies in our catalog records including but not limited format icons, publication dates and item categories. Steps were immediately taken to clean the lion share of these inconsistencies through batch processes. Ongoing processes are in place and being discovered to ensure library users have access to quality and accurate information. Staff Training During the testing phase of Enterprise, all staff was trained in a lab environment taught by a technology team member. Three sessions were offered to the staff to accommodate their busy schedules and ensure that every staff member was trained. Their training was predefined and included all aspects of searching, my account, lists and facets. Each staff member

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PORTAGE DISTRICT LIBRARY March 20, 2012 Page

Enterprise Catalog PayPal and electronic payments The library has now made PayPal an available option for paying fines through our electronic catalog. The technology team working with our Business services established a new account, tested fine payment and made the service live shortly after launching the new catalog. Replacement of internal catalog station thin clients The existing thin-clients used for doing internal catalog searches were installed in 2004 and 2005 were no longer viable options for searching our new catalog. A prototype was built for testing and a profile in Enterprise was built to ensure the security and privacy of our library users. All thin clients were installed on March 11, 2012. Google Previews, Syndetics and Novelist content embedded The Portage District Library has enhanced its material records with: (1) Google Previews where a user can see a table of contents and read select pages, (2) Syndetics content where the library gets its book jacket pictures and reviews from scholarly publications and (3) currently working toward an April 1, 2012 debut of embedded Novelist content. The novelist content will enhance the library users' search experience by delivering recommendation with live catalog links to "writes-like" Authors, "items in the series" Book Series, and GoodReads reviews. In order to enable the Novelist content, the library is working on a process whereby its local holdings are updated on a regular basis. Searching Tutorials and aids The Portage District Library has developed a series of self-help videos on searching and using enterprise. The first video has been embedded in the catalog for library users to view. In addition to these self-help videos, cheat sheets were made distributed at each of the catalog stations, posters, banner and newsletters articles were distributed to ensure library users were aware and ready for this transition. Google Analytics The Enterprise is also now Google Analytics aware. Using Google Analytics, the library will be better able to see how the catalog is being used. These metrics will allow the library to adapt to the library users habits. Furthermore, the library will now have a more consistent measurement of usage as its current website also uses Google Analytics to measure usage. Mobile Solution The Portage District Library in a separate but connected project is evaluating mobile search solutions. This project is connected as one of the core functionalities that will be evaluated is search/retrieval services. This project and its recommended solution will be presented at the May 2012 board meeting.

Web and Social Media Update

Our website has been updated to reflect all needed changes necessitated by the catalog upgrade. In addition, our eBook and e-Audio book page has been improved to provide easier access to these popular resources. We have added more help pages and a blog as well to assist patrons who borrow eBooks and e-Audio books from the library. We have built a new form to provide patrons with a method to request materials for purchase. Our next steps will be to refresh our Events and News Page and to tailor the Youth Page to better meet the needs of young users. We are also examining the possibility of adding a mobile library site or mobile app, and we plan to present our findings to you in April. Our social media projects are going well. We utilized our YouTube channel for our catalog tutorials, and patron “likes” of our Facebook page continue to grow. We are currently exploring Pinterest as an additional option for reaching patrons via social media.

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PORTAGE DISTRICT LIBRARY Library Director’s Report on the Financial Condition

for February 2012

Executive Limitation Policy on Financial Condition and Activities: With respect to the actual, ongoing financial condition and activities, the Director shall not cause or allow the development of fiscal jeopardy or a material deviation of actual expenditure for board priorities established in Ends Policies. Accordingly, he or she may not:

POLICY: 1. Expend more funds than have been received in the fiscal year to date unless the debt guideline (below) is met.

Director’s Response:

Revenue $ 3,193,676 Expenditures $ 682,612 Risk reserve (13% of operating budget) $ 451,940 Building Reserve $ 50,000 Technology Reserve $ 44,289 Debt Reserve $ 90,000 Benefits Reserve $ 123,714 Boiler Replacement Reserve $ 75,000 Telephone System Replacement Reserve $ 75,000

POLICY: 2. Indebt the organization money in an amount greater than can be repaid by

certain, otherwise unencumbered revenues within 60 days. Director’s Response:

No new money has been borrowed that cannot be repaid within 60 days.

POLICY: 3. Use any long-term reserves. Director’s Response:

No reserves have been used.

POLICY: 4. Conduct inter-category shifting in amounts greater than can be restored to

a condition of discrete fund balances by certain, otherwise unencumbered revenues within 30 days.


No Inter-category shifting has taken place.

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PORTAGE DISTRICT LIBRARY Page

Library Director’s Report on Financial Condition for February 2012

2

POLICY: 5. Fail to settle payroll and debts in a timely manner. Director’s Response:

Payroll is processed by ADP, Inc. (Payroll service) bi-weekly. Payables are also Processed monthly or “as needed”.

POLICY: 6. Allow tax payments or other government-ordered payments for filings to be

overdue or inaccurately filed. Director’s Response:

All reports and tax payments are filed according to policy.

POLICY: 7. Make a single purchase or commitment of greater than $10,000 not already

found in the budget. Splitting orders to avoid this limit is not acceptable. Director’s Response:

No unbudgeted purchase that exceeds $10,000 has been made.

POLICY: 8. Acquire, encumber or dispose of real property. Director’s Response:

No real property has been acquired, encumbered, or disposed.

POLICY: 9. Fail to aggressively pursue receivables after a reasonable grace period. Director’s Response:

All receivables are being pursued according to policy.

POLICY: 10. Fail to provide the Board Chair a list of all cash disbursements from the

time of the prior Board meeting to the current Board meeting. Director’s Response:

A list of all cash disbursements has been provided to the Board Chair for review.

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Monitoring Report For

Executive Limitation Policy on Asset Protection March 21, 2012

The Library Director shall not allow library assets to be unprotected, inadequately maintained or unnecessarily risked. Accordingly, the Library Director may not: Policy: Fail to insure against theft and casualty losses to at least 100% replacement value

and against liability losses to board members, staff and the organization itself in an amount greater than the average for comparable organizations.


The Portage District Library is insured against theft and casualty losses and against liability losses to board members, staff and the organization itself through a policy with Michigan Municipal Risk Management Authority (MMRMA). According to the terms of our building insurance contract, under Section 1, Part B of the Property and Crime Coverage section, it states that:

“Under any circumstances or set of facts, the most MMRMA will pay for loss or damage to anyone or any combination of covered property in any one occurrence is the actual amount of loss, not to exceed the Limits of Coverage stated in the Coverage Overview. Unless otherwise stated herein, the loss must result from direct physical loss or damage by a covered cause of loss within the period of MMRMA membership as stated in the Coverage Overview.

Policy: Subject facilities, materials and equipment to improper wear and tear or

insufficient maintenance. Director’s Response:

The library facility and all building equipment within the library facility are safeguarded against improper wear and tear by enforcement of rules of operation; by daily, weekly, monthly and annual inspections; by installation of monitoring devices, switches and alarms; and by regularly scheduled preventive maintenance. The library also has several contracts with outside vendors to keep large equipment running correctly (i.e., HVAC, electrical & fire alarm systems); as well as numerous agreements with service providers to do regular cleaning, inspection and repairs in and around the building and on various pieces of equipment. All contracts are reviewed and approved by the legal firm of Law Weathers & Richardson, P.C. and are kept up-to-date. The library has trained its Facilities Coordinator in HVAC system and building equipment maintenance and its System Administrator in proper maintenance and protection of sensitive servers and computer equipment. Regular inspections are conducted to ensure proper operation of equipment. In terms of materials, the library has a book theft detection system in place to guard against materials being stolen, and there is a fee charged patrons for lost or damaged items. Bookshelves are regularly checked for materials that are worn, torn or dirty and these items are removed and either cleaned, repaired or replaced. The library has a disk cleaning machine that cleans and removes scratches from the library’s CDs and DVDs and this has extended the life of AV items. Finally, the Employee Handbook covers employee conduct and work rules on pg. 61 and indicates that: “Negligence or improper conduct [by an employee] leading to damage of employer-owned or customer-owned property, may result in disciplinary action, up to and including termination of employment.

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EXECUTIVE LIMITATION March 21, 2012 Page Monitoring Report on Asset Protection

2

Policy: Unnecessarily expose the organization, its board or staff to claims of liability. Director’s Response:

Claims of liability are avoided by having policies and procedures in place that make it clear what type of behavior and conduct is expected, as well as appropriate steps to be followed for handling patron complaints, accidents or incidents. There are specific forms used to report accidents, and an outlined process of steps to be followed in emergency situations. Library Board Governance Policies guide board members in proper conduct, and the Library Employee Handbook, which is revised annually, and Library Procedures Manual guide library staff in codes of conduct and procedures to be followed in dealing with the public in a variety of situations. Regular training is provided staff in areas of safety, security and in how to respond to potential criminal behavior or threats of bodily injury. Customer comment cards are made available to patrons so they can convey any concerns or requests to library staff. If there are larger, more significant issues or problems, patrons are then referred to the Library Director for resolution.

Policy: Make any purchase (a) wherein normally prudent protection has not been given

against conflict of interest; (b) of over $5,000 without having obtained comparative prices and quality; (c) of over $10,000 without a stringent method of assuring the balance of long-term quality and cost.


Procedures are always followed as stated in the Executive Limitations on Financial Condition and Asset Protection. The Library Director and Library Business Manager work closely to ensure that checks and balances are in place to safeguard against any conflict of interest. In August 2008, the Library Board endorsed a new “Asset Acquisition and Disposal Administrative Procedure” that thoroughly defines methods and standard operating procedures for purchasing. It covers many aspects of asset acquisition and disposal, including: (1) definition of goods, services and capital improvements; (2) designation of Purchasing Agent; procedure for execution of documents; prohibited purchases; (3) purchase arrangements; (4) purchases under $5,000; (5) purchases more than $5,000 and under $10,000; (6) purchases or contracts over $10,000; (7) exceptions to sealed bidding; (8) and sale of library property. In addition, a review of preferred vendors will be done regularly (every 3-5 years) in order to assess their contracts and determine if they were still financially advantageous to the library. It was stated that if the library did not choose a vendor with the lowest bid, the reason for doing so would be put into writing and kept on file with the contract. The Library Business Manager closely monitors purchase activities and approves all Purchase Orders so that he sees what is being ordered at all times. Whenever there is a purchase to be made over $5,000, comparative prices and quotations are obtained. In cases of purchases exceeding $10,000, the “Request For Proposal” (“RFP”) process is usually followed and proposals are solicited from various sources to obtain competitive sealed bids. In addition, for any contractual services provided to the library, such as building construction or enhancements, or purchase of large-scale equipment, there may be other assurances required from vendors such as: Labor and Material Bonds, Maintenance and Guarantee Bonds, Performance Bonds, and warranties.

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3

Policy: Fail to protect intellectual property, information and files from loss or significant

damage.


All library administrative files are kept in locked file cabinets to protect confidential information and personnel files. Keys to these file cabinets are held in strict security accessible to a very limited number of people. Archival information is stored in Hollinger boxes in the Heritage Room that protect and preserve important or valuable documents and items. Patron records are kept online and privacy protected by password, and electronically backed up to Secant Technologies on a nightly basis. Art pieces, such as wall murals, and the outdoor sculptures and water wall are considered intellectual properties and these are protected by specific contracts with each artist. Valuable art objects are protected by Plexiglas cases for public display. Library board files and records are maintained and protected against loss and/or damage by storing them in fireproof cabinets in a locked office. The public information, files and library collections are safeguarded against theft by new radio frequency identification tags (RFID) within the books that interact with the book theft detection system to signal an alarm if the tag is not deactivated properly through an appropriate checkout process.

Policy: Receive, process or disburse funds under controls, which are insufficient to meet the board-appointed auditor's standards.


Portage District Library operates under the “dual control” philosophy whereas all expenditures and actual cash disbursements are approved by opposite individuals. The individuals at the library are the Library Director and the Library Business Manager. All incoming funds are given to the Library Business Manager for verification before processing, and are deposited into the library’s account at the bank by two or three other authorized employees. The Library Business Manager reviews all expenditures before purchase orders are issued and invoices are processed. The Library Director then completes the process by reviewing all accounts payables and signing checks that go out as library payments for products and services. It should be stated that all library employees and board members are bonded against impropriety for up to $1,000,000 as a standard rider on our building liability insurance.

Policy: Invest or hold operating capital in insecure instruments, in violation of state

statutes for investments.


At the February 23, 2009 board meeting, the Library Board authorized the Library Director and Business Manager to proceed to enter into an agreement with UBS to initiate a new investment protocol for the Portage District Library. The main goal is to diversify the library’s investments and to ensure that the library’s funds are placed in various financial institutions and that no deposit exceeds the FDIC maximum insured amount. Typically, library funds are invested in approved governmental cash investment funds consisting of bonds, securities, and other United States Treasury obligations, certificates of deposit, savings accounts, deposit accounts, commercial paper, repurchase agreements (Repo's) consisting of bonds, securities, and other United States Treasury obligations. All above investment vehicles are utilized in accordance with appropriate state statutes.

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4

Policy: Endanger the organization's public image or credibility, particularly in ways that

would hinder its accomplishment of mission. Director’s Response:

Fulfilling the Portage District Library’s mission and purpose and promulgating the public’s goodwill toward the library is top priority for library administration and staff. The mission statement is posted in a large frame on both levels of the library and appears on all library correspondence, literature and business cards, so everyone is aware of our main purpose. Benchmarks for public service transactions and employee behavior appear in the Employee Handbook and other training documents and expectations are clearly conveyed to all employees. Standards exist at public service desks for accuracy of information and prompt responses to patrons. The Marketing/Fund Development Manager handles all publicity and promotional information so that everything conforms to the public image we are striving to convey. Any collaboration entered into by the library with other entities is done carefully and with agreement about the appropriate nature of any activities and their positive impact on the library. Any requests for collaborations with the library or for use of the library premises by outside organizations are considered in light of existing board approved policies and best practices for a public library.

Policy: Fail to provide the Library Board with an asset protection monitoring report twice

a year. Director’s Response:

Procedures are always followed as stated. An Asset Protection Monitoring Report is scheduled on the Library Board’s annual calendar for presentation in the month of March, and then it may also be provided at any other time during the year at the Library Board’s request. The Monitoring Report on Asset Protection will be presented at the March 26, 2012 board meeting.

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PORTAGE DISTRICT LIBRARY Monitoring Report

on Executive Limitation Policy on Financial Planning & Budgeting

March 21, 2012

Executive Limitation Policy on Financial Planning and Budgeting: Financial planning/budgeting for any fiscal year or the remaining part of any fiscal year shall not deviate materially from the Library Board’s Ends priorities, risk fiscal jeopardy, or fail to be derived from a multi-year plan. Accordingly, the Library Director shall not allow budgeting which:

POLICY: 1. Fails to include credible projection of revenues and expenses, separation of capital and operational items, and disclosure of planning assumptions.


During the months of April and May, the Library Director and Business Manager meet with department heads and other employees to plan for next year expenditures, both capital and operational items. These plans are then put in a comprehensive plan and allocated down to individual expenditure lines.

This proposed budget is presented to the Library Board in June for board members to review it and return with any suggestions and changes in July.

In August, a public hearing on the Library’s budget is held and the budget is formally presented to the Library Board for final approval and adoption and a resolution is passed to set the millage levy for that budget year. In 2012, the library is closely monitoring real estate values and the impact that it has on taxable values within the library jurisdiction. Current projection has been that there will be an approximate 1-2% drop in tax revenue generated for the 2013 Fiscal Year. That number could change if the Michigan Legislature approves the elimination of all or part of the Personal Property that is levied against businesses. If Personal Property Tax is completely eliminated it would result in a drop in revenue of approximately $500,000, in addition to any tax revenue lost due to declines in tax values. The Library began a plan in FY2011 to set funds aside for replacement of the library’s boiler and phone system. Additionally, the library has set aside funds to help pay the increase in the Library debt payment in its final two year as well as funds for vacation and sick benefits for several future retirees. These funds will allow the Library to make necessary upgrades or pay large one-time expenditures without effecting the funding.

POLICY: 2. Plans the expenditure in any fiscal year of more funds than are

conservatively projected to be received in that period. Director’s Response:

A balanced budget is prepared which equates expenditures and any additional reserves with projected income. There will never be a time when the library’s planned expenditures will exceed revenue in hand.

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Library Director’s Report on Financial Condition for March 21, 2012

2

POLICY: 3. Reduces the current assets at any time to less than twice current liabilities,

allows cash to drop below a safety reserve of less than $451,940 at any time; reduces the reserve fund to a level less than 13%; or fails to provide for adequate reserves for building needs and technology.


Current budgeting processes reflect this policy. ($451,940 in General Reserve, $50,000 in Building Reserve, $123,714 in Benefits Reserve, $44,289 in Technology Reserve, $90,000 in Debt Reserve, $75,000 in Boiler replacement Reserve, $75,000 in Telephone Replacement Reserve and $732,019 in Undesignated Fund Reserve).

POLICY: 4. Provides less for board prerogatives during the year than is set forth in the

Cost of Governance policy. Director’s Response:

As described above, the Library Board reviews and makes any changes to the proposed budget before it is presented in a public hearing, voted on by board members and officially adopted. Adequate funds are allocated for board prerogatives.

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PORTAGE DISTRICT LIBRARY Monitoring Report

on Executive Limitation Policy on Financial Condition and Activities

March 21, 2012

Executive Limitation Policy on Financial Condition & Activities: With respect to the actual, ongoing financial condition and activities, the Library Director shall not cause or allow the development of fiscal jeopardy or a material deviation of actual expenditures from board priorities established in Ends policies.

Accordingly, the Library Director shall not:

POLICY: 1. Expend more funds than have been received in the fiscal year to date. Director’s Response:

We have not spent more money than we brought in.

Revenue $3,193,676 Expenditures $ 682,612

POLICY: 2. Indebt the organization in an amount greater than can be repaid by certain,

otherwise unencumbered revenues within 60 days, and may expend as long as items are approved in the budget.


No new money has been borrowed that cannot be repaid within 60 days.

POLICY: 3. Use any long-term reserves. Director’s Response:

No reserves have been used.

POLICY: 4. Conduct inter-category shifting. Director’s Response:

No Inter-category shifting has taken place.

POLICY: 5. Fail to settle payroll and debts in a timely manner. Director’s Response:

Payroll is processed by ADP, Inc. (Payroll service) bi-weekly. Payables are also Processed monthly or “as needed”.

POLICY: 6. Allow tax payments or other government ordered payments or filings to be

overdue or inaccurately filed. Director’s Response:

All reports and tax payments are filed according to policy.

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Monitoring Report on Executive Limitation on Financial Condition & Activities – March 21, 2012

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POLICY: 7. Make a single purchase or lease commitment of greater than $10,000 on items not already approved in the budget. Splitting orders to avoid this limit is not acceptable.


No unbudgeted purchase that exceeds $10,000 has been made.

POLICY: 8. Acquire, encumber or dispose of real property. Director’s Response:

No real property has been acquired, encumbered, or disposed.

POLICY: 9. Utilize fundraising to supplement regular, day-to-day library operations. Director’s Response:

Day-to-day operations are funded with tax, or other approved revenue.

POLICY: 10. Fail to recognize donors, in some permanent manner, who contribute gifts

to the library of $500 or more. Director’s Response:

We have established procedures to assure all cash gifts are recognized.

POLICY: 11. Allow fundraising plan to be executed without board approval. Director’s Response:

The fundraising plan has and will continue to be approved by the Library Board.

POLICY: 12. Fail to provide the Board Chair a list of all cash disbursements from the

time of the prior Board meeting to the current Board meeting. Director’s Response:

A list of all cash disbursements has been provided to the Board Chair for review.

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PORTAGE DISTRICT LIBRARY Marketing Update

March 2012

The following marketing activities were conducted at the library during the month of February and the first part of March 2012.

The new library catalog was launched on March 12, 2012. An extensive marketing effort was conducted for the public that included: (1) a dedicated page in the Digital Events Calendar; (2) digital signage; (3) Facebook postings; (4) an ad created for the library’s website; (5) posters designed and placed throughout the library; (6) Two banners created and placed in the Adult Services area and Checkout area; and (7) A Library Directors letter written and included in the monthly library e-newsletter notifying the public about the beneficial features of the library’s newly updated catalog.

A library catalog quick cheat sheet was created for patrons with instructions on the catalog’s new look and features that includes starting your search, narrowing your search results, placing a hold on an item and viewing your account information. Copies of this handout were placed at all 16 catalog stations in the library.

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PORTAGE DISTRICT LIBRARY Library Director’s Narrative Report for March 26, 2012

(Activities in February 2012 and part of March 2012)

Administrative Activities: During the months of February 2012, and the first part of March 2012, the Library Director: v Held weekly Administrative Team meetings on Thursday mornings. v Held regular library-wide staff meetings on Tuesday mornings for all library employees. v Held monthly meetings with Heads of Adult and Youth Services and Circulation Supervisor. v Participated in weekly Technology Team meetings. v Participated in weekly Web Team meetings to make decisions for the Web Redesign Project. v Participated in weekly Acquisition meetings. v Participated in weekly Portage Rotary Club luncheon meetings. v Held a special staff meeting on 2-28-12 to convey information to staff about the upgrades being made to the

library’s online catalog and to alert employees to training that they all needed to take to learn how to use it. v Met with Marsha Meyer, Library Volunteer Coordinator, and Committee Members, to discuss plans for the 2012

Volunteer Recognition Luncheon. v Chaired a meeting on 2-29-12 of the Portage Rotary Club 2012 Community Service Award Committee to review

nominations for this year’s possible recipient. v Met on 2-29-12 with key staff involved with implementation plans for the library’s new catalog to go over final

details prior to launch. v Participated in a special meeting on 3-01-12 with the library’s SirsiDynix representative to go over the features

and functions of the upgrade to the library’s online catalog using Enterprise discovery platform search technology.

v Took part in the Michigan Library Association’s Board Retreat in Lansing on 3-01-12 and 3-02-12. v As a Southwest Michigan Black Heritage Society Board member, worked together on 3-08-12 to identify

potential new board members for the organization, and hosted a “get acquainted” session on 3-13-12 to welcome new SMBHS board members.

v Participated in a Michigan Library Association Executive Committee meeting on 3-09-12 to deliberate and decide on nominations for new MLA Board members.

v Worked with the library’s Technology Team to successfully launch the library’s newly upgraded catalog on 3-12-12 for public use.

v Met with Business Librarian Nicolette Sosulski and Marketing Manager Chris Walker to discuss details about what information would be conveyed in a videotaped session that Library Board Chair Betty Lee Ongley would be doing on 3-22-12 as part of the “We Get It!” Collaborative Marketing initiative of the Portage District Library, the City of Portage and Portage Public Schools.

v Engaged in (2) four-hour Strategic Planning Sessions on 3-12-12 and 3-13-12 with Library Board Members and Library Administrative Team Members, facilitated by Gary Goscenski and Kasey Mc Gill from Perspectives Consulting Group, to undertake a SWOT Analysis and to identify areas of emphasis for resources and services.

v Chaired a meeting of the Portage Rotary Club 2012 Scholarship Committee on 3-14-12 to select scholarship applicants to be interviewed on March 26th & 27th to consider potential recipients of scholarship awards this year.

v Attended the 2012 Public Library Association’s Annual Conference in Philadelphia, PA on 3-14 through 3-16. Efficiency Ø The library added three new volunteers to help shelve new materials, put away newspapers and magazines. Ø All library employees attended training sessions to learn how to use the library’s new catalog and to be able to

assist patrons in searching for items at the library. Ø Adult Services Librarian Nicolette Sosulski facilitated the changeover to the Kalamazoo Gazette E-replica

format. Portage District Library was the first library to come onboard with IP authentication. Ø Lawrence Kapture, Head of Adult Services, Christy Klien, Head of Youth Services and Chris Walker, Marketing

Manager, attended a Project Management training session on February 21, 2012.

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PORTAGE DISTRICT LIBRARY Page Library Director's Narrative Report for February 2012 and the first part of March 2012

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Facilities Management Activities: During the 2nd part of the month in February and first part of March, facilities work included: (1) meeting with electrical vendor regarding the feasibility of new lighting in Atrium over the large print shelving and receiving quote to have it installed; (2) Doing a 5 year, mandated, obstruction/internal valve test performed on building sprinkler system; (3) Quarterly HVAC preventative maintenance; and (4) Facilities Coordinator’s testing (part 1) for pesticide application license. Merchandising: · Adult Services staff continued merchandising efforts at the library in February and replenished the Valentine’s

Day display through February 14th. · A Presidents’ Day display was created and continued through February 20th that featured books about past United

States Presidents and an Abraham Lincoln hat. · A Kangaroo themed “Leap Year” display was developed that asked the question: “Your extra day how will you

use it?”May We Suggest Read?” This display continued through February 29th. (Adult Services staff borrowed the stuffed animal “Matilda the Kangaroo” from the Youth Services Department!)

· Other displays were maintained at the library throughout February such as: the “Signs of Winter” and the “Oops” displays that featured self-help titles in the areas of mental and physical health, nutrition and exercise.

Networking & Outreach: Ø We have expanded our events & program merchandising efforts to include press releases and interviews on

WMUK, and also we’re including library information in the Kazoo Book newsletter along with in-store displays. Ø Library staff met with representatives from The Arcadia Institute and HomeLife Adult Care Facility. Staff also

met with the Executive Director of Southwest Michigan Black Heritage Society to plan a discussion of the Michigan Great Read: Arc of Justice by Kevin Boyle with area book groups, and the Portage Public Schools media staff.

Ø In collaboration with The Arcadia Institute staff, the library hosted an Art Exhibit and was the venue for a reception for one of their clients who is an individual with disabilities.

Ø Adult Services staff attended the opening reception of the new M-Live site with Library Marketing Chris Walker and spent time with Gazette staffers Al Jones, John Liberty and Linda Mah.

Ø Adult Services Programming Librarian Marsha Meyer met with a teacher at the Portage Public Schools who teaches English as a second language and received advice on materials that the library could offer that would be beneficial for both special needs and foreign speaking patrons.

Ø Adult Services Business Librarian Nicolette Sosulski was named to the Editorial Board of RUSQ (Reference & User Services Association), and made mentor to two librarians through the American Libraries Association New Member Round Table.

Programming:

Ø The library offered a variety of programs for adults in February including: two amateur astronomy classes; three writing workshops - combat veterans, fiction writing and memoir writing; a book discussion of the Great Michigan Read, Arc of Justice by Kevin Boyle; our monthly book discussions Open for Discussion and Great Books; and an art reception of K-12th grade student art which drew about 135 people. The library also continued its popular Meet the Chef program series with two presentations at Victorian Bakery and Confections Bakery. The library cosponsored its first reading with Kazoo books: Kristina Riggle and Maryann Lesert on February 24th. A second reading is planned for May 4th.

Ø The library hosted an art exhibit for one of our disabled patrons in the Solo Gallery which was accompanied by an article in the Kalamazoo Gazette. We also have a second exhibit of 3D art by another patron on display in front of the Adult Information Desk.

Ø Muffins and the Market continues to draw 30 or more participants at each meeting, and its participants are expressing interest in making the program self-sustaining. They are also making financial donations to support the library’s Business Information Center collections.

Ø Every other Wednesday evening, elementary age children come to read to Sulley, a certified therapy dog. Students practice their reading skills as they read aloud to Sulley, a “non-judgmental” listener.

Ø We provide several special storytimes for area organizations on a monthly basis. During the month of February we did storytimes for Portage Head Start classes, Woods Edge Learning Center, and Portage YMCA.

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PORTAGE DISTRICT LIBRARY Page Library Director's Narrative Report for February 2012 and the first part of March 2012

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Ø Jeopardy with the Portage Public Schools’ middle schools started in the beginning of March and we will have a championship game here at the library in April.

Staff Development Lawrence Kapture, Head of Adult Services, and Christy Klien, Head of Youth Services, attended “Building a Community of Belonging Forum of the Arcadia Institute and Its Partners” at Transformations on March 15, 2012. The forum was designed to discuss inclusion of individuals with disabilities into the community. The Portage District Library is a partner in this effort.

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TO: Portage District Library BoardFROM: Christine Berro, Library DirectorDATE:SUBJECT: Library Statistical Report - February 2012

Feb-12 Feb-11 CHANGE 2012 2011 CHANGECirculation/Collections Total Library Circulation 65,278 59,939 8.91% 134,236 123,816 8.42% Adult - Books 20,830 20,440 1.91% 43,392 43,012 0.88% Adult - A/V 6,787 6,315 7.47% 13,775 13,242 4.03% Youth - Books 21,168 18,601 13.80% 41,807 37,692 10.92% Youth - A/V 6,045 6,428 -5.96% 12,970 13,137 -1.27% Hot Picks 6,697 6,680 100.00% 13,686 13,905 100.00% E-Material (new 2012) 1,690 0 n/a 4,395 0 n/a ILL - PDL Requests 974 777 25.35% 1,928 1,436 34.26% ILL - Other Lib. Requests 1,087 698 55.73% 2,283 1,392 64.01% Total Library Collection 189,238 186,357 1.55% Adult - Books 94,201 94,597 -0.42% Adult - A/V 15,565 14,606 6.57% Youth - Books 62,741 60,092 4.41% Youth - A/V 12,187 13,323 -8.53% Hot Picks 4,544 3,739 100.00% Net Acquisitions 2,137 413 417.43% 2,555 (2,980) 185.74% Purchased - Books 1,422 1,265 12.41% 3,486 2,813 23.92% Purchased - A/V 708 371 90.84% 1,088 750 45.07% Donated - Books 3 4 -25.00% 5 21 -76.19% Donated - A/V 4 5 100.00% 7 16 -56.25% Material Discarded 0 (1,232) 0.00% (2,031) (6,580) 0.00% Total In-House Usage* n/a n/a n/a n/a n/a n/a In-House Periodical Usage n/a n/a n/a n/a n/a n/a In-House Book Usage n/a n/a n/a n/a n/a n/aPatrons Total Patrons 47,797 48,261 -0.96% Adult 29,183 28,943 0.83% Youth 8,507 9,064 -6.15% Non-Resident 374 352 6.25% Reciprocal 6,391 6,463 -1.11% Internet User 3,290 3,367 -2.29% Professional 52 72 -27.78% Total Patrons Added 345 340 1.47% 695 735 -5.44% Adult 186 190 -2.11% 403 418 -3.59% Youth 25 20 25.00% 46 47 -2.13% Non-Resident 1 3 -66.67% 7 6 16.67% Reciprocal 60 65 -7.69% 112 124 -9.68% Internet User 73 62 17.74% 127 140 -9.29% Professional 0 0 0.00% 0 0 100.00%

March 21, 2012

Month Statistics YTD Statistics

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Library Building Usage Total Meeting Room Usage 200 184 8.70% 385 379 1.58% Internal/Collaboration 99 97 2.06% 210 216 -2.78% External/Outside Usage 101 87 16.09% 175 163 7.36% Total Program Audience 1,900 1,485 27.95% 3,522 3,901 -9.72% Adult 437 273 60.07% 844 774 9.04% Youth 1,265 1,212 4.37% 2,239 2,932 -23.64% Heritage Room 198 100.00% 439 195 100.00% Total Number of Programs 65 55 18.18% 117 121 -3.31% Adult 16 18 -11.11% 35 45 -22.22% Youth 44 37 18.92% 70 72 -2.78% Heritage Room 5 100.00% 12 4 100.00% Total Volunteer Hours 441 241 82.99% 864 613 40.95% Adult 87 77 12.99% 206 189 8.99% Youth 76 100.00% 141 60 135.00% Technical 54 74 -27.03% 130 123 5.69% Circulation 70 40 75.00% 135 103 31.07% Administration 31 32 100.00% 67 58 15.52% Community Service 123 18 583.33% 185 80 131.25% Total Front Door Traffic 58,992 59,004 -0.02% 123,524 124,647 -0.90% Total Youth Services Traffic 38,776 39,121 -0.88% 76,441 77,786 -1.73% Total Business Center Traffic 3,411 3,342 2.06% 7,645 7,863 -2.77%Information Access/Reference/Research Total Reference Transactions 7,644 7,875 -2.93% 15,847 16,666 -4.91% Adult Phone 337 605 -44.30% 835 1,283 -34.92% Adult Ready Reference 2,644 2,209 19.69% 5,092 5,430 -6.22% Adult Reference 125 485 -74.23% 388 911 -57.41% Youth Phone 200 337 -40.65% 925 858 7.81% Youth Ready Reference 2,058 2,284 -9.89% 4,140 4,497 -7.94% Youth Reference 208 338 -38.46% 372 606 -38.61% HR Phone 30 39 -23.08% 64 77 -16.88% HR Ready Reference 546 460 18.70% 1,079 873 23.60% HR Reference 60 33 81.82% 84 64 31.25% Circ Phone 445 420 5.95% 762 790 -3.54% Circ Ready Reference 671 301 122.92% 1,004 579 73.40% Circ Reference 320 364 -12.09% 1,102 698 57.88% Total Edutainment LAN Use 241 219 10.05% 573 557 2.87% Total Internet Computer Use 5,874 5,793 1.40% 11,501 11,469 0.28% Youth Computers 1,498 1,413 6.02% 3,040 2,990 1.67% Adult Computers 4,228 4,223 0.12% 8,100 8,134 -0.42% Laptop Computer Circulated 148 157 -5.73% 361 345 4.64% Total Electronic Transactions 50,830 47,001 8.15% 107,651 98,790 8.97% WebSite Hits 40,928 36,900 10.92% 88,615 79,282 11.77% WebCatalog Sessions 5,103 5,003 2.00% 9,235 9,315 -0.86% Licensed Database Hits 4,799 5,098 -5.87% 9,801 10,193 -3.85%* In-house Use Statistics will be done for one week each quarter.

Christine Berro, Library Director

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Crain’s Detroit Business

Article from Crain’s Detroit Business publication about Personal Property Tax Elimination

Biz tax reform bills near action (End of month is target on personal property levy) By Mike Turner March 18, 2012 @ 8:00 pm LANSING -- Legislation that would change Michigan's personal property tax system by eventually eliminating the industrial portion -- and also exempting most commercial businesses -- is expected to be introduced by the end of the month, said senators involved with drafting the plan. The plan also would provide immediate relief to small businesses. Senate Finance Committee Chair-man Jack Brandenburg, R-Harrison Township, said he hopes to hold initial hearings on the seven-bill package before the Legislature goes on break during the first two weeks of April. "I'd like to get these bills into committee and move them forward," he said. Brandenburg thinks the package will proceed quickly through the Legislature because reform of the personal property tax will prove to be popular during an election year. The expected introduction of the legislation comes after months of discussion. When Gov. Rick Snyder took office in January 2011, he said revamping the system was a top priority. Lt. Gov. Brian Calley is leading the administration's effort. Proponents of reforming the tax law argue that the personal property tax makes it more expensive to locate or expand in Michigan than in other states. James Nicholson, president and CEO of Detroit-based PVS Chemicals Inc., called the tax on equipment a disincentive for companies to locate in the state. He called it one of the next areas of focus for the state's business community. "It's a burdensome tax, and yet it's a source of much revenue for the municipalities," Nicholson said. So a plan to get rid of it has to be thoughtful, he said. Brandenburg and Sen. Mike Nofs, R-Battle Creek, said last week that legislative staffers are crafting legislation that would remove or phase out the tax on all industrial equipment by 2021.

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Also, businesses with less than $40,000 in commercial and industrial property no longer would have to pay the tax beginning Jan. 1, 2013, Brandenburg said. The utilities portion of the tax would remain intact, Nofs said. The $40,000 threshold would eliminate the tax for about 80 percent of businesses that pay it and represent a total tax cut of $67 million, Brandenburg said. According to estimates from the Michigan Department of Treasury, the tax on industrial personal property generated about $412 million in 2010, although the 35 percent credit that was part of the Michigan BusinessTax reduced that to about $268 million. Taxes on commercial personal property were estimated at $399 million and utility personal property taxes at about$397 million. Large retailers would continue to pay personal property tax under the plan, but those businesses were "very well taken care of" by last year's switch from the Michigan Business Tax to the corporate income tax, Brandenburg said. The corporate income tax, effective Jan. 1 of this year, is a 6 percent tax on the income of C corporations. The switch from the unpopular MBT amounted to a $1.6 billion tax cut for businesses. Under the plan to eliminate personal property tax, the tax on industrial personal property purchased between Jan. 1 of this year through 2015 will be repealed on Jan. 1, 2016, and any equipment purchased thereafter will be free of tax. The intent, Nofs said, is to encourage industrial companies to continue making purchases and not wait until the tax is phased out. "We're trying to let them go ahead and buy it and not postpone what they need to do," he said. Also beginning in 2016, all industrial equipment older than 10 years would start coming off the tax rolls until all of it was tax-free by 2021. Mike Johnston, vice president of government affairs for the Michigan Manufacturers Association, said the group understands that budgeting complexities require a gradual rollback of the tax rather than an immediate elimination. "Our preference is it's eliminated today," he said, noting that reforming the tax is the association's top legislative priority. "But we've been at this for 20 years. Getting something on the books is what's important." As has been previously discussed by the Snyder administration, revenue from personal property tax generated for local units of government would initially be replaced by expiring tax credits that were awarded by the state for advanced battery manufacturing projects. The state is honoring those tax credits in Michigan's new business tax system, but they have a limited life.

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As the credits phase out, the money that the state no longer would be paying on the credits would go to local governments. The legislation in development would replace at least 81 percent of the property tax that will be eliminated, Brandenburg said. Local governments that have seen state revenue-sharing slashed in recent years, however, are pushing for complete replacement, and they want the funding constitutionally guaranteed. Andy Schor, assistant director of state affairs for the Michigan Municipal League, said funding that is appropriated by the Legislature is too often subject to the whims of lawmakers. "In any year, they can change that," he said. The league is part of Replace Don't Erase, a coalition whose goal is to guarantee full replacement of revenue lost through personal property tax reform. Other members are the Michigan Association of Chiefs of Police, the Michigan Association of Counties, the Michigan Association of School Administrators, the Michigan Association of School Boards, the Michigan Library Association and the Michigan Professional Fire Fighters Union. The Snyder administration has invited local governmental units to help devise a permanent replacement formula, but Schor said they first want a constitutional guarantee. Brandenburg said the Legislature is unlikely to agree to a constitutional guarantee, saying, "There is no guarantee in life." The phase-out of the tax gives local units time to adjust to the tax changes, he said. "We're giving all the locals a four-year head start before they really begin to feel this," Brandenburg said. Statewide, personal property taxes provide 2.7 percent of nonschool local government revenue and 1 percent of school revenue, although some communities rely heavily on the tax. Alex Rosaen, a consultant at Anderson Economic Group in East Lansing, said it's still hard to quantify exactly how much business investment would come along with the change in tax rules. "Generally, when you start taxing something, people start buying less of it," he said. "We certainly can expect to see more personal property in the sate if we quit taxing it."

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Documents

The Portage District Library Board Meeting · The Portage District Library Board Meeting will be held on March 26, 2012 at 6:00 p.m. at the Portage District Library ... that Klien