Notes to the 2014 - 2018 Financial Plan

GREATER VICTORIA PUBLIC LIBRARY

NOTES TO THE 2014 – 2018 FINANCIAL PLAN (Final)

1. This Financial Plan is not in accordance with Public Sector Accounting Board standards. A PSAB-compliant version is available on request.

2. Municipal Contribution Increase

3. Revenue and Expenditure:

Revenue

• Provincial grants – are projected to remain static at this time, although this represents a real decrease, when inflation and population growth is considered. The Board is actively participating in opportunities for engagement with the Ministry of Education.
• Federal grants – reflect current granting level for the Summer Reading Club through the Young Canada Works program.
• Other grants – reflect stable revenue from the library endowment fund.
• Fines and fees – have been decreasing with the implementation of automated patron notification for overdue items and with new formats that don't generate fines, e.g. eBooks. Additional revenue sources continue to be investigated.
• Contracts for Service – is for the contract with CRD for library services provided for portions of the Juan de Fuca Electoral Area.
• Investment income – is conservatively estimated to be earned on the operating bank account and MFA bond pooled fund.
• Restricted donations – include stable revenue from Friends of the Library and conservatively estimated donations designated for specific purposes. While the library has initiated a Development Plan, the program is in its infancy and revenue cannot be reliably projected at this time.

Expenditure

• Salaries and benefits – The current collective agreement ends in December 2013. This plan includes an expectation for wage increases and is subject to change based on the outcome of contract negotiations through the GVLRA. Benefits are expected to increase annually by 2% for health and insurance premiums, WorkSafeBC, employer’s portion of pension and Receiver General costs.
• Library materials – This line includes costs that are expensed and capitalized as assets. Increases reflect the need to continually expand formats and services in response to changes in technology and delivery methods, to make adjustments to existing collections based on demand, and to maintain the traditional collections users expect.
• Supplies and services – include an annual increase of 1%.
• Building occupancy – costs include an annual increase of 4%, due to aging facilities and expected increases in utilities.
• Other expenses – include costs such as annual audit, bank charges, insurance, lease interest, board expenses, staff training and development, travel, memberships, recruitment and marketing and development costs. This plan assumes 1% annual increase.
• Capital expenditures – include annual furniture, equipment, shelving, hardware and software costs, and includes capital leases.
• Reserve contribution - replacement – is a fund used to make tenant improvements, replace furniture, fixtures and equipment required to update facilities to meet needs and address work flow health and safety issues. They are funded through reserve because projects often run over multiple fiscal years.
• Reserve contribution - contingency – is a fund established by the board of trustees which targets a contingency reserve of 1% of total operating budget, to be used for emergencies, as determined by the board.
• Reserve contribution - JF MAM – is a fund established for major asset maintenance projects for the building, e.g. architectural, mechanical, electrical and roofing for the Technical Services portion (20%) of the Juan de Fuca Branch to which all municipalities contribute.