Fiscal Year 2023 Budget Narrative

July 1, 2022 - June 30, 2023

FY2023 Budget Narrative

Stepping forth into our 12th year as an organization, Illinois Heartland Library System (IHLS) continues to seek opportunities to refine our current services and develop innovative techniques to further meet the needs of our members. Areas of focus for FY2023 include additional opportunities for member networking and continuing education; advocacy for member libraries; and our unwavering commitment to the core services of resource sharing, delivery, and library automation.


The proposed FY2023 budgets were developed to align with the planned activities in our operational plan. These activities support the Illinois statutory priorities of library administration, resource sharing, bibliographic access, consulting and continuing education, and delivery. The major planned activities include:

  • Increasing outreach to school libraries and public library trustees, including the development of a trustee training program using funds from the Library Trustee Training grant through the Illinois State Library.
  • Enhancing services offered to member libraries through e-resources, McNaughton Books Subscription, and the Solus app.
  • The return of in-person travel ensures staff will receive necessary support for site visits, networking opportunities, and continuing education. Staff are better equipped to build expertise in different areas of librarianship, enhancing their training skills, building and sustaining professional relationships, and keeping current with library marketplace trends.
  • Grants Consultant to explore funding options for additional member services.
  • End of Enterprise partnership purchasing and managing fleet internally.
  • Investigating the benefits and cost of an Automatic Material Handler (AMH) system
  • Repairs and maintenance on buildings, including phase three of Edwardsville remodel

Personnel


The largest component of our budget is Personnel. This accounts for 58% of our total budget. Our staff are the backbone in the development and implementation of our organizational goals.

  • All positions, including Library Professionals, Other Professionals, and Support Services, are projected with an increase of 4% of wages. The Support Services includes adjustments in the General Fund budget due to compliance with the Illinois minimum wage law and the IHLS board approved starting wage of couriers to $15 per hour. The staff members at the maximum of their salary range will receive a bonus in lieu of the hourly/salary increase.
  • Social Security Taxes are projected at 7.65%.
  • Unemployment Insurance is projected at .6345% of the first $12,960 wages earned per worker.
  • Worker’s Compensation Insurance is projected with an increase of 4%.
  • Retirement Benefits projected for staff members who are estimated to work more than 1,000 hours in FY2023. The projected rate is .87% for CY2022 and .96% for CY2023.
  • Health insurance is projected at a 10% increase for CY2023. Dental, Vision, Accidental Death, and Life Insurances will remain flat to CY2022, due to a two-year rate lock at renewal.
  • Other Fringe Benefits includes an employee referral program. Retention & Wellness includes labor law posters, memorials, retirement bricks, and holiday gatherings.
  • Training & Professional Development include the annual IHLS staff day and professional development trainings.
  • Temporary Help includes coverage for staff while out on unplanned leave. Recruiting includes job postings, fit for duty exams, background, and drug screens.

General Fund Budget Narrative


The General fund is mainly supported by the System Area and Per Capita Grant through the Illinois State Library and the Secretary of State. The grant supports the Library System statutory priorities of library administration, resource sharing, bibliographic access, consulting and continuing education, and delivery to our member libraries. The budget has a projected deficit of $405,046 and this will be covered by the operating fund balance. This operating fund balance is derived from the accumulation of previous years' revenue over expenditures balances. The largest factors for the deficit this fiscal year include the minimum wage impact and adjustment of courier starting hourly wage, two additional staff members (Membership Coordinator and Project Coordinator), cost per gallon increase in fuel charges, a grants contractor, and planned building improvements.


Revenues

The General fund projected revenues of $4,271,637 are mainly comprised of the System Area and Per Capita Grant (SAPG) $3,920,000 and the state-wide Illinois Library Delivery Services (ILDS) $255,168. The SAPG revenue includes a proposed increase of $519,300 over FY2022. Other items included are: Office leasing, IHLS Member Day vendor support, investment income, member training revenue, CMC grant, Library Trustee training grant, OCLC grant Administration Fees, and E-Rate Funding.


Expenses

Personnel

General fund includes increases from the Illinois minimum wage and the IHLS board approved starting wage of couriers to $15 per hour. Also proposed are two additional staff members, a Membership Coordinator with Continuing Education focus (budgeted to start January 2023) and a Project Coordinator (25% General fund and 75% Library Trustee Training grant allocation), and benefits for vacant courier positions to move from part-time to full-time. Training and Development includes an all staff day, staff training, and organizational development opportunities. IHLS receives $659,722.21 in federal Library Services & Technology Act (LSTA) funding. This portion of funding will be utilized to help support the delivery personnel budget.



Building & Grounds

General fund projected expenses represent the rent expense at the Carbondale location; utilities at three locations (Carbondale, Champaign, and Edwardsville); building and ground maintenance at two locations (Champaign and Edwardsville); custodial services at two locations (Champaign and Edwardsville); and property insurance at three locations (Carbondale, Champaign, and Edwardsville).



Vehicle Expenses

General fund projected expense for fuel is increased over FY2022 based on a combination of FY2022 actuals and industry forecasting. Vehicle insurance is projected based on coverage for 30 vehicles. The vehicle leasing amounts reflect the current leased vehicles with Enterprise Fleet Management.



Travel, Meetings, and Continuing Education for Staff & Board Members

General fund expense components are travel and registration for staff and board members to attend conferences, advocacy events, board member training, and staff meetings.



The travel and registration include staff attendance at the following conferences: The Association for Rural and Small Libraries (ARSL) Conference, Midwest Digital Marketing Conference, Association for Library Service to Children (ALSC), Illinois Library Association (ILA) Conference, Library Marketing & Communications Conference, Association of Illinois School Library Educators (AISLE) Conference, LibLearnX, Innovative Users Group (IUG) Conference, Youth Service Institute, ILA Marketing Forum Mini Conference, Reaching Forward South Conference, Elevate, ILA Trustee Workshop, International Coalition of Library Consortia, Society for Human Resource Management (SHRM) National Conference, Directors University, American Library Association (ALA) Conference, ILA Legislative Breakfast, and Inter-Company travel.


Conferences & Continuing Education Meetings

General fund projection includes public library trustee training, HR Source trainings, and webinar trainings offered to our member libraries. This also includes an IHLS virtual member day in the fall.


Public Relations

General fund projection includes promotional and printed materials and conference sponsorships. The majority of the increase in this category includes IHLS logo vehicle wraps and removal of wraps on surplus vehicles. These activities are planned to continue the networking and advocacy efforts of IHLS.



Liability Insurance

General Fund expenses include projections for General Liability, Commercial Umbrella, Directors and Officers, Crime Coverage Bond, Cyber Liability, Employment Practices, and Treasurer’s Bond. These policies renew on July 1, 2022.



Supplies, Postage, & Printing

This budget category includes expenses for computers and software (less than $5,000), accessories and supplies for equipment, office supplies, postage, delivery supplies, and other supplies. The computer supplies line includes upgrading the current video rooms systems to be compatible with Zoom and Teams meetings. The largest component in the office supplies line includes replacement of furniture in the Edwardsville location and a replacement of a refrigerator at the Champaign location. The projection for delivery supplies includes replacement of tubs, hand trucks, and the replacement of delivery staff IHLS branded apparel.



Telephone and Telecommunications

Included in this budget category are projections associated with monthly cost for telephone, fax, internet, delivery GPS, text alert system, and cell phone services.



Equipment Repair & Maintenance Agreements

Projection includes cost for copiers and maintenance at three locations (Edwardsville, Champaign, and Carbondale). 


Professional Services

Expenses include projections for legal, accounting, consulting, and contractual staff. This includes contracted staff for grant opportunities for IHLS and member libraries.


Contractual Services

General fund expenses include projections for information service costs and other contractual services. This includes an additional update to the new IHLS website, and the design plans, movers for the Edwardsville remodel, and movers for Champaign office furniture in preparation for leased office space.


Professional Membership Dues

Include staff and institutional professional membership dues.


Miscellaneous

General fund bank fees and accounts payable checks.


Net Pass Through

General fund expenditures on behalf of member libraries that will be reimbursed.


Inter-Company Transfers

General fund annual contribution to SHARE Fund projection of $300,000.

Special Revenue Fund Cataloging Maintenance Center Budget Narrative


Supported by the Illinois State Library (ISL), the Cataloging Maintenance Center (CMC) is operated by the Illinois Heartland Library System (IHLS). Started in 2001 to upgrade bibliographic records and set OCLC holdings for Local Library System Automation Programs (LLSAPs) throughout the state, the CMC has evolved and provides more services that help improve access to these resources for all libraries in Illinois. The CMC is also a source for other cataloging assistance including: database cleanup, original or copy cataloging of eligible collections, cataloging training, assistance with general cataloging questions, including questions on Resource Description and Access (RDA), and metadata consultation.


Revenues

CMC Fund revenues reflect the Cataloging Maintenance Center grant from the Illinois State Library.


Expenses

Personnel

Includes additional Catalogers - one part-time and three full-time. The three full-time are staff members that are assigned to the CARLI project are funded through the SHARE fund in FY2022.


Travel, Meetings, and Continuing Education

The travel and registration include staff attendance at the following conferences: Illinois Library Association (ILA) Conference, Consortia Across Illinois, Resource Sharing Alliance (RSA) Day, Reaching Forward South Conference, Reaching Forward Conference, American Library Association (ALA) Conference, ILA Legislative Breakfast, and Inter-Company travel.


Supplies, Postage, & Printing

Includes expenses for computers and software (less than $5,000), accessories and supplies for equipment, and office supplies. 


Public Relations

Includes booth fees and educational handouts.


Telephone and Telecommunications

Includes monthly cost for telephone and internet.


Equipment Repair & Maintenance Agreements

Includes cost for copiers and maintenance at two locations (Edwardsville and Champaign). 


Professional Services

Expenses include projections for legal due to changes in temporary employment.


Contractual Services

Includes computer and software online services such as Zoom, Express Scribe, Class-Web, Web-Dewey, RDA Toolkit, and Cataloger's Desktop, and grant administrative fees.


Professional Membership Dues

Includes staff professional membership dues.

Special Revenue Fund Online Computer Library Center Budget Narrative


Supported by the Illinois State Library (ISL), the Online Computer Library Center (OCLC) billing grant is operated by the Illinois Heartland Library System (IHLS). IHLS is the fiscal agent for the statewide billing of OCLC services for ISL, which includes libraries throughout all of Illinois. This grant manages approximately 5 million in revenues and expenditures each year. Currently, more than 1,000 ILLINET libraries choose to be Group Services members and pay a discounted subscription price for OCLC products covered under the Group Services contract that ISL negotiates on the group's behalf.


Revenues

OCLC Fund revenues reflect the Online Computer Library Center grant from the Illinois State Library.



Expenses

Personnel

Includes 1.75 full-time equivalent staff allocated to the OCLC grant.


Supplies, Postage, & Printing

Includes expenses for computers and software (less than $5,000), accessories and supplies for equipment, and office supplies.


Telephone and Telecommunications

Includes monthly cost for telephone, fax, and internet.


Equipment Repair & Maintenance Agreements

Includes cost for copiers and maintenance at the Edwardsville location. 


Professional Services

Includes the FY2022 audit costs.


Contractual Services

Includes Traverse software annual maintenance agreement, Traverse support, and grant administrative fees.

Special Revenue Fund Library Trustee Training Budget Narrative


The Library Trustee Training fund revenues reflect the proposed Library Trustee Training grant from the Illinois State Library. This is a program that will utilize a learning management system (LMS) to provide training to public library trustees. IHLS staff will partner with consultants and attorneys to develop and create the modules.


Revenues

The Library Trustee Training revenues reflect the Library Trustee Training grant from the Illinois State Library.


Expenses

Personnel

Includes 1.25 full-time equivalent staff of a Project Coordinator and a Membership Coordinator to develop and manage the training program.


Travel, Meetings, and Continuing Education

The travel and registration include staff attendance at the Illinois Library Association (ILA) Conference and inter-company travel.


Public Relations

Includes business cards and printouts for mailing flyers for promoting the training program.


Supplies, Postage, & Printing

Includes expenses for computers and software (less than $5,000), accessories and supplies for equipment, and office supplies. 


Telephone and Telecommunications

Includes monthly cost for telephone.


Professional Services

Expenses include projections for legal, consulting, and contractual staff.


Professional Membership Dues

Includes professional membership dues.


Contractual Services

Expenses include the tools necessary to develop the platform, survey software, and Zoom.

Capital Projects Fund Budget Narrative


The Capital Projects fund was established to support the purchase of fixed assets that are greater than $5,000. The Capital Projects fund budget has a projected deficit of $873,226 and this will be covered by the fund balance. The Capital Projects fund balance is derived from the accumulation of General fund previous years' revenue over expenditures balances and revenue from interest income.


Revenues

Capital Projects Funds only projected income source is investment income.


Expenses

Capital Projects fund projections include the following:


  • Replacement of a server at the Carbondale location.
  • Third phase of the remodel project at the Edwardsville location.
  • Tuckpointing repairs at the Edwardsville location.
  • Roof replacement at the Edwardsville location.
  • Resurfacing and restriping of the asphalt parking lot at the Champaign location.
  • Relocating door and electrical to prepare for leased office space at the Champaign location.
  • Replacement of (8) Delivery Vans and (1) Box Truck.

SHARE Operating Fund Budget Narrative


SHARE is a collection of libraries in central and southern Illinois that have joined together to form the largest automation consortium in the country, with 342 members at 474 locations. There are many benefits to SHARE membership, including the ability to share the cost of purchasing an integrated library system, staff, technical support, and training. The SHARE budget has a projected deficit of $69,353 and this will be covered by the operating fund balance. This balance is derived from the accumulation of previous years' revenue over expenditures balances. The largest factor for the deficit this fiscal year is the budgeted replacement of a part-time position with a full-time position and a new position for an Administrative Assistant.


Revenues

SHARE Fund projected revenues of $1,863,492 is mainly comprised of fees for services and materials and IHLS Contribution. Other items included are investment income, CMC grant administration fee, and Smart Access Manager (SAM) billing.


Expenses

Personnel

SHARE fund expense includes the replacement of a part-time position with a full-time position and a newly created position for an Administrative Assistant. Training and Development includes staff training and development opportunities


Library Materials

SHARE fund eResources projection is a direct expense of cloud subscription fees and group purchases. This expense is offset by the fees for services and materials revenues. The printed materials projection is a group purchase for McNaughton books and are offset by the fees for services and materials revenues.


Vehicle Expense, Travel, Meetings, and Continuing Education

SHARE fund expense components are travel and registration for staff members to attend conferences, advocacy events, and staff meetings.



The travel and registration include staff attendance at the following conferences: The Association for Rural and Small Libraries (ARSL) Conference, Midwest Digital Marketing Conference, Illinois Library Association (ILA) Conference, Consortia Across Illinois, Association of Illinois School Library Educators (AISLE) Conference, LibLearnX, Innovative Users Group (IUG) Conference, Reaching Forward South Conference, International Coalition of Library Consortia, American Library Association (ALA) Conference, ILA Legislative Breakfast, and Inter-Company travel.


Public Relations

Includes promotional, printed materials, and sponsorships at conferences. This is to continue the networking and advocacy efforts of SHARE.



Supplies, Postage, & Printing

This budget category includes expenses for computers and software (less than $5,000), accessories and supplies for equipment, office supplies, and postage.



Telephone and Telecommunications

Included in this budget category are projections associated with monthly cost for telephone, fax, internet, and cell phone services.



Equipment Repair & Maintenance Agreements

SHARE fund expense includes cost for copiers and maintenance at three locations (Edwardsville, Champaign, and Carbondale). 


Professional Services

Expenses include projections for legal, accounting, and consulting.


Contractual Services

Include projections for information service costs and other contractual services. This includes the annual Polaris fees. This also includes the new Solus App customization fees for member libraries that will be offset by the additional module fee revenues.


Professional Membership Dues

Includes staff professional membership dues.


Miscellaneous

Includes monthly PayPal fees.


Inter-Company Transfers

Includes the SHARE fund transfer to SHARE Reserves of $142,500.

SHARE Reserve Fund Budget Narrative


The SHARE Reserve fund was established for the replacement of hardware and software for the SHARE consortium. The SHARE Reserve fund budget has a projected surplus of $107,378. Each fiscal year, an approved amount by the SHARE committees is transferred from the SHARE Operating fund to the SHARE Reserve fund to accumulate this fund balance for ILS software replacement (if ever needed) and for continued infrastructure maintenance or upgrades.


Revenues

SHARE Reserve Fund projected revenues of $143,100 includes the transfer of funds from the operating budget and interest income.


Expenses

SHARE Reserve Fund projected expenses of $35,722 includes the annual fees for the Solus App.

Please provide your feedback for the FY2023 IHLS Operational Plan and Budget(s)