Cost Formula Work Group 2024 for 2025 Minutes

April 16, 2024, 1 pm

Via phone/video conference

Action Items:
The Cost Formula Work Group recommends the SCLS Proposals for the 2025 Budget and Cost Formula to the Administrative Council.

Present: Nicole Menzel (ROM), Cathy Borck (WID), Larry Oathout (STP), Jan Holmes (SUN), Elizabeth Clauss (CSP), Tracy Herold (DCL), Jill Porter (MFD), Pat Garvey (MPL), Margie Navarre Saaf (MPL), Molly Warren (MPL)
Absent: None
Excused: Emily Whitmore (SGR)
Recorder: Michelle Karls (SCLS)
SCLS Staff Present: Vicki Teal Lovely (SCLS), Kerrie Goeden (SCLS), Shannon Schultz (SCLS)

1. Call to Order at 1:02 pm

a. Introduction of guests/visitors

i. None.

b. Changes/Additions to the Agenda

i. None.

c. Requests to address the Committee

i. None.

2. Approval of previous meeting minutes: February and March 2024 minutes

a. Motion: J. Holmes moved approval of the February and March meeting minutes.  E. Clauss seconded.

b. Discussion: none.

c. Vote: motion carried.

3. Action Items

a. Vote on SCLS Proposals (see under Discussion below)

i. Motion: J. Holmes moved that the Cost Formula Work Group recommends to the Administrative Council the SCLS Proposals for the 2025 Budget and Cost Formula as follows;

1. Allocate funds from SCLS State Aid Contribution to Rural and/or small libraries as follows;

a. Reduction for Population

i. <2500 = $1000

ii. 2500-4999 = $750

b. Reduction for Locale (Locale codes)

i. Rural Fringe (41)=$250

ii. Rural Distant (42)=$500

iii. Rural Remote (43)=$75

2. Increase PC support fees by 4% ($10 per PC).

3. Apply the SCLS additional state aid contribution of $25,000 to the Infrastructure budget to reduce fees for all libraries.

ii.  T. Herold seconded.

iii. Discussion: see below.  This will go to the AC next and then finally to the Board of Trustees. 

iv. Vote: motion carried.  (0 opposed, 0 abstentions)

4. Discussion

a. Proposals (see “2024 Cost Formula ILS all options reduction by locale and population discount version” document on meeting page)

i. Allocate $27,250 from SCLS State Aid Contribution to Rural and/or small libraries as follows:

1. Reduction for Population

a. <2500 = $1000

b. 2500-4999 = $750

2. Reduction for Locale (Locale codes)

a. Rural Fringe (41)=$250

b. Rural Distant (42)=$500

c. Rural Remote (43)=$75

i. Discussion: At the last meeting, we introduced rebate/fee reduction idea for small/rural libraries by using the Locale code (on state annual report).The proposed breakdowns are listed above.  V. Teal Lovely reviewed the spreadsheet.  SCLS received an increase contribution from state aid in 2025 by $25,000.  There was a column added for population.

ii. Increase PC support fees from between 2% to 4% per PC ($2.50 to $10.00) (based on remaining gap after budgets complete and device counts)

1. Discussion:  SCLS is exploring options to close the gap, but it cannot be closed completely.  Increasing the fees a little seems reasonable.   This group could request a minimum increase 4% per PC ($10).  V. Teal Lovely suggested that the PC support fees be increased to match the increase in the budget.  Typically this is around 2-3% and then we add a small percentage on top of that.  The downside of this not increasing the feels near to where the actual costs are, it continues to pull from contingency.  The gap is increasing every year as costs increase and the number of PCs supported decreases. T. Herold stated that our goal should be to eliminate the gap and should increase the fees.  Other measures might need to be taken in the future.  J. Holmes agrees with this goal but wonders when the increase goes out if libraries may pull more of their PCs off the network.  Will the recent trend of PC’s coming off the network stabilize?  Instead of filling the gap with contingency or an increase in fees, should we look at state aid to fill gap instead?  PC support hasn’t gone up in many years. Other fees increase based on increases in costs.  J. Holmes worried about the palatability of what libraries are used to paying.  K. Goeden asked how many libraries don’t participate in PC support and would moving this money to infrastructure instead reducing fees for all libraries by their share of the formula work?  In 2024, this $25,000 in grant money came too late to apply it to anything.  We put it in the Technology contingency and that’s what is covering the gap for 2024.  STP asked how much it would be for their county IT to take on the pieces.  It would be considerably more than SCLS’s fee and they wouldn’t be able to offer all the SCLS services.  J. Holmes feels like some libraries might not realize what a good deal they are getting. 

iii. Apply the SCLS additional state aid contribution of $25,000 to the Infrastructure budget to reduce fees for all libraries.

1. Discussion:  This would come from Technology and would apply to all libraries that participate in any SCLS Technology service as Infrastructure is the base requirement for service, including ILS.

iv. SCLS is looking at using State Aid to fund the licenses for email Multi-Factor authentication and Infosec training for all SCLS email users.

1. Discussion: In order to continue to provide email, we need to purchase additional licenses for multi-factor authentication. Most likely, State Aid will be used Infosec cybersecurity training for all library staff.  This doesn’t need to be included in the motion.

2. Plan for Next meeting:  Another meeting is not necessary.  This will be presented at All Directors in May, then the SCLS Board by July 1. 

3. Adjournment at 2:05 pm

For more information about the Cost Formula Work Group, contact Vicki Teal Lovely.

Cost Formula Work Group/Minutes/4-16-2024