1. Statement of purpose
The purpose of this policy statement is to set forth various policies with regard to revenues of the Schaumburg Township District Library ("the Library"). Understanding the revenue stream is essential to prudent planning and financial management. The policies set forth within this statement are intended to seek stability to avoid potential service reductions caused by revenue shortfalls.
2. Revenue diversification
The Library staff should strive to maintain a diverse and stable revenue mix in order to improve the ability to handle fluctuations in individual sources. With the Library being subject to property tax rate limits and property tax extension limitations ("tax caps"), it is important for staff to consider and recommend user charges and fees for programs and services whenever it is appropriate.
3. Property tax levy
When the annual property tax levy is being developed, Library staff should attempt to hold the increase in the levy to the lesser of the change in the consumer price index for the previous calendar year or 5%. The tax levy ordinance should factor in a 2% provision for refunds and uncollectible taxes.
4. Fees and user charges
The Library Executive Director and the management team are to review fees and user charges annually to ensure that a reasonable portion of the cost of providing the service or product is captured. In determining what portion of a service or product is to be recaptured through fees or user charges, the Executive Director is to consider: (a) whether the service or product is part of the core mission of the Library, (b) the portion that should be covered through the annual property tax levy, (c) whether the service or product is utilized by the majority of patrons or a select few, (d) the ability of the patron to pay, and (e) the fees and user charges assessed by surrounding systems. As an example, the fees for special programs should cover the majority, if not all, of the cost of the program. Lending of books, publications, and electronic material to Schaumburg Township residents should not be assessed a user fee.
5. Investment income
Any investment income received by the Building & Equipment Special Reserve Fund and the Working Cash Fund will be recorded in the financial statements of the General Fund. Any unrealized gains or losses resulting from changes to the market value of the investments of the Building & Equipment Special Reserve Fund and the Working Cash Fund will be reported in those funds.
6. Transfers of the General Fund from other funds
The Library will only transfer funds from the Building & Equipment Special Reserve Fund to the General Fund to cover large repairs or capital projects that cannot be funded through operating revenues.
The Library cannot transfer any portion of the non-spendable fund balance of the Working Cash Fund. The Library will only transfer out the assigned portion of Working Cash fund balance: (a) in a fiscal emergency, (b) to replenish the Building & Equipment Special Reserve fund, or (c) to cover significant budget deficits; only after adoption of a resolution by the Board of Library Trustees authorizing such transfer.
7. Use of one-time revenues
Any one-time revenues received should be used for capital expenditures or one-time expenditures, rather than to fund on-going operating expenditures such as new personnel.
8. Recording and reporting of revenues
All revenues received by the Library will be recorded as revenue and in the appropriate revenue account. Revenues are not to be netted or offset against any expenditure account. Any cash receipts received by the Library that does not represent revenue, but rather a reimbursement for a non-Library cash outlay, can be netted against the cash outlay.
9. Proceeds from EZ Pay forfeits
Any funds purchased by patrons on the EZ Pay cards that expire will be recorded as revenue, but will be earmarked for art purchases and Board special projects.
10. Proceeds from the sale of books
Several times per year the Library holds a book sale to sell books and publications that have been pulled from circulation or that have been donated by outside persons or entities. Proceeds from the sale of books and publications will be reported as revenue. The proceeds from the first book sale of the calendar year shall be used to help fund the annual employee picnic or holiday party. Proceeds from the other book sales each year will be recorded as revenue and earmarked for art purchases or Board special projects.
11. Grant revenue
Library staff should utilize their best efforts to secure federal, state, and private grants to maintain or improve the services offered to Library patrons. The staff member primarily responsible for securing the grant is also responsible for ensuring that the conditions of the grant are complied with, and that only qualified expenditures are paid for with grant proceeds.