SHAKER LIBRARY PRESENTATION TO MAYOR'S FINANCIAL TASK FORCE Chad Anderson, Library Board President Luren Dickinson, Library Director Maggie Keenan, Business Manager/Fiscal Officer Saturday April 11, 2015
1 What are we discussing today? Current state of library facility planning Actions against 2012 Financial Task Force Recommendations
2 The Library’s facilities plan considered three alternatives from the 2012 Strategic Plan Library Facility Options Base scenario Alternative 1 Alternative 2/3 Study Feasibility (Summer 2014) Feasibility (Summer 2014) Facilities (Winter 2014) Maintain existing buildings Maintain existing buildings Modernize service Description Maintain service Reduce operating costs Reduce operating costs • • 1 st floor Main operations Existing building layouts • New single facility at either Main Elements • • Sublease 2 nd floor Main for office No feature improvements (Alt 2) or Woods site (Alt 3) • Consolidate Woods service points to facilities • Existing buildings removed/ sold $5M Capital requirements $12M Up to $20M ($4M Main, $1M Woods) Revenue test #1 • 0.9 mill increase 2016* Viable Not viable Viable • 0.8 mill increase 2022* • 1.3 mill replace and reduce 2036* Revenue test #2 • 0.9 mill increase 2016* Not viable Not viable Viable • 0.8 mill increase 2022* • 0.2 mill replace and reduce 2036* Alternative 2 (single new facility at Main site) and * HB59 penalizes renewals of continuing levies to capture increases in real estate values Revenue test 2 will be the focus of today’s discussion
3 The Library has established three objectives for the facilities effort Library Facility Objectives To meet the unique needs of the Shaker community, 1 leverage historically low interest rates to restructure and transform Shaker Library into a sustainably low-cost, 2 premium service operation 3
4 The Library has established measures of success for meeting the community’s unique needs Measures of success for meeting Shaker’s unique needs 1 Shaker Library shall: Maintain a collection appealing and appropriate to the residents of our district a) Support community-building inside and outside the walls of the Library b) Reinforce other Shaker stakeholder objectives, principally those of the Schools and the City c)
5 CLEVNET affiliation allows Shaker Library to meet objective (a) 1 by matching a deep collection with Shaker’s deep education Educational Achievement Unique Book Titles (M) 2.37 64% Master’s or higher 37% 28% 12% 0.53 Bachelor’s 27% 0.22 16% 0.11 Shaker Heights Cuyahoga County CLEVNET CCPL Lakewood Westlake Source: U.S. Census for educational levels; library groups for unique book titles, except CCPL from American Library Directory
6 Shaker Library programs are designed to build 1 community and meet objective (b) Community Baby Shower , Oct. 2014 2014 Program Highlights • African-American Geneaology • 80 parents-to-be attended • Shaker High School Art Exhibit • 7 regional child-related agencies • Memorial Day Book Cart Brigade • 3 city depts. & 2 Shaker agencies • Constitution Day/Veterans Day • 11 businesses ( 8 from Shaker ) Authors Coming in 2015
7 Shaker Library is aligning programs with the School’s 1 strategy in support of objective (c) Objective 1.3 Build a system of school-based and community- based experiences to support the academic achievement of all students • Play and Learn Station and Early Literacy Programs for preschoolers • Homework Help, Reading Skills Center, and SAT prep Objective 1.9 Enrich learning and cultivate personal growth for all students through experiences beyond the classroom • MyCOM activities for students after school, during breaks, and over the summer • Joint 2015 summer library program in county promotes math, cultural activities
8 Shaker Library supports programs that align with the 1 City’s initiatives in support of objective (c) To promote and celebrate our differentiated housing stock • Shaker Housing Index; Shaker Historical Mobile App • Nationally recognized, award winning library system To support Work - Live • Community Entrepreneurial Office/Career Transition Center: mini- business incubator, help for displaced mid-level workers • SCORE counseling for those building new businesses • Free computer access, technology training, and wireless for shoe- string businesses and those upgrading skills
9 The Library has established measures of success for sustainable low-cost operations Measures of success for sustainable, low-cost operations 2 Financial burden on Shaker taxpayers shall be: Through transformation, always lower than the average for all libraries in Cuyahoga County a) Through transformation, always lower than peak burden on a real (inflation-adjusted) basis b) Through transformation, equal or lower than peak burden on a nominal (not inflation-adjusted) c) basis for an extended period When transformation complete, within 20% of the likely lowest level of any library in Cuyahoga d) County
10 Shaker Library taxes paid by residents have fallen for 2 four of the past five years How have YOU been spending your Shaker Library Tax Cut? Year Property Tax District Population Per Capita Property Collected Tax Cut 2009 $3.27 million 31,645 N/A 2010 $3.01 million 31,645 $ 8.21 2011 $2.91 million 32,311 $13.27 2012 $2.89 million 32,311 $13.89 2013 $2.70 million 32,311 $19.77 2014 $2.75 million* 32,311 $18.22 Plan will require asking for this tax cut back • Due to HB 920, collections will never rise on a per-property basis absent action • Due to HB 59, renewing this continuing levy to capture real estate inflation would permanently forfeit $0.4M in annual state rollback funds * Excluding $31k from one-time Office Max tax settlement, tax collections were $2.71M in 2014 Note: State revenue has also declined by ~ $8.45/ capita over the same period; approximately 1/3 rd of Shaker Library revenue comes from the state Source: Population sources: State Library of Ohio Public Library Statistics; SHPL annual budgets 2009-2014
11 2 The facility plan meets measure (a) for sustainable low-cost operations Library Millage Levels within Cuyahoga County 2015 2016e Shaker Library Shaker Heights Voted Millage 4.00 4.90 is lower Countywide Voted Millage – Avg 5.37 5.44 Shaker Library Shaker Heights Effective Millage 4.00 4.72 is lower Countywide Effective Millage - Avg 4.88 4.96 Note: Assumes passage of 0.9 mills or bond-issue equivalent for Shaker Heights in 2016 Source: SHPL analysis
12 The facility plan meets measures (b) and (c) for 2 sustainable low-cost operations Shaker Library Property Taxes Paid Inflation-adjusted Shaker Library Property Taxes Paid (2009-2025 + 2037) (2009-2025 + 2037) $M $M 3.85 -14% -50% 3.27 3.27 3.25 2.96 2.94 3.01 2.80 2.78 2.91 2.89 2.70 2.82 2.75 2.70 2.51 2.48 1.63 14 year span before nominal payments exceed 2009 levels 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 37 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 37 Actual Estimate Note: Inflation factor base year 2009, 2015+ projections of 2% p.a.; Revenue Test #2 Source: SHPL Projections; BLS 2009-2014 CPI-U actuals; FRB 2015+ projections
13 The facility plan meets measure (d) for sustainable low- 2 cost operations Low-Cost Cuyahoga County Library Systems: Effective Millage Projections 2016e 2037e Countywide average 4.96 Shaker Heights 4.72 • Post-bond retirement, Shaker Library likely to require only 2.99 mills to fund ongoing operations 2.99 Westlake 2.80 and maintenance • This millage is within 20% of Lakewood’s current Cuyahoga County 2.50 effective millage Lakewood 2.50 • On a per-capita basis, this is a $8.88 annual premium to Lakewood today in 2015 dollars Note: Per-capita calculations based on 2014 estimate populations; real estate valuations assumed to lag inflation by – (0.5)% p.a., 2.69 mills required in 2037 if no lag Source: SHPL analysis
14 The Library has established measures of success for premium service Measures of success for premium service 3 Shaker Library users shall enjoy: Per capita circulation at the 99 th percentile of comparable public libraries nationally a) Per capita circulation in the top 10% of comparable public libraries in Ohio b) Other value-creation measures (e.g., usage of facilities, computers, programs, etc.) c) maintained or enhanced through and after transformation
15 Shaker Library meets objectives (a) and (b) and 3 produces a value surplus of ~$10M for Shaker taxpayers Shaker Library Shaker Library Circulation Net Tangible Value Creation - 2014 34 items checked out Unique circulation 0.932M x $6.21 = $5.79M per capita annually Computer use (hrs) 0.197M x $14.78 = + $2.91M All other (excludes programs) + $3.93M $12.64M Gross Tangible Value Creation 4 th in State (out of 100) Less property taxes paid (local) - $2.74M Less fines and fees (local) - $0.19M Net Tangible Value Creation $9.71M 6 th in Nation (out of 2,500) Return on local investment 331% Return on total investment 169% Sources: Ohio Public Library Statistics; National Center for Educational Statistics; Ohio Library Council 2013 ROI calculator
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