AGENDA #8a

BUDGET WORKING PAPER

TO:                  W. Calvin Horton, Town Manager

                        Kay Johnson, Acting Finance Director

FROM:            Kathleen Thompson, Library Director

SUBJECT:       Orange County library support

                        Out-of-county use

                        Public computer use

                        Fees

DATE:             April 27, 2005

This paper provides information requested by the Council on April 6 at its Budget Work session.

Orange County Library Support

In 2004-2005, Orange County budgeted $1,157,436 for library support. This figure included $249,333 for Chapel Hill and $908,103 for Orange County Library locations in Hillsborough, Carrboro (McDougal School; Cybrary), Cedar Grove, and Efland. 

Ways to identify equitable formulas support for library service could include the following: 

• County support for CHPL is equal to its percent of use by Orange County non-Chapel Hill residents (41%).  Based on this formula, Orange County’s annual contribution to Chapel Hill would be $825,967.  It is currently 12.4%, or $249,333 (-$576,634). 

or

• Orange County contributes the same per capita support as Chapel Hill ($34.93) for all South Orange non-Chapel Hill residents.  Based on this formula, Orange County’s annual contribution to Chapel Hill would $1,173,900.  Using this population group, Orange County’s per capita support is currently $7.41, or $249,333 (-$924,567).  

or

• Orange County contributes the same per capita support as Chapel Hill ($34.93) for all South Orange non-Chapel Hill residents who are registered for library cards.  Based on this formula, Orange County’s annual contribution to Chapel Hill would be $420,730.  Using this population group, Orange County’s per capita support is currently $20.70, or $249,333 (-$171,397).

In past years, the Library Board has attended County budget forums to request additional funding.  They plan to do so again in June.

Out-of-County Card Fees

Fees:  Chapel Hill has the highest charge for an out-of-county card of all libraries in the area. Like other area libraries it does not charge for or limit out-of-county users’ Internet access: 

Library	Annual Charge for Out-of-County Library Card	Charge for Internet Access for Out-of-County Users?	Additional Internet Restrictions for Out-of-County Users?
Chapel Hill Public	$50	No	No
Durham County	$35	No	No
Hyconeechee Regional (Orange, Person, Caswell Co.)	$25	No	No
Wake County	$25	No	No

Staff recommends a $10 increase to its current $50 charge.  We anticipate additional revenue of $5,140 annually if implemented.   We believe that setting the fee higher than $60 could result in fewer people purchasing the card and reducing revenue for the Town.

If, however, the Council should wish to reduce the current demand on the library by limiting out of county usage we recommend significantly raising the fee to deter interest in joining the library. We would expect that doubling the fee to $100 would deter 70 to 80 percent of the current users. This would reduce total out of county card holders from approximately 500 to 100 or less. Revenue from out of county users would drop from the current annual $25,000 to an estimated $10,000.   

Fees for use of materials and Internet service by unregistered walk-in patrons

In general, libraries oppose the charging of user fees for the provision of information by any library or information service that receives its major support from public funds. 

The American Library Association’s Economic Barriers to Information Access states that “all information resources that are provided directly or indirectly by the library, regardless of technology, format, or methods of delivery, should be readily, equally and equitably accessible to all library users…Librarians and governing bodies should look for alternative models and methods of library administration that minimize distinctions among users based on their economic status or financial condition. They should resist the temptation to impose user fees to alleviate financial pressures, at long-term cost to institutional integrity and public confidence in libraries.”  Based on this philosophy of equal access, libraries do not charge for materials in the library or for Internet use. 

Priority Use for Computer Access

Based on the American Library Association’s equal access philosophy identified above, libraries do not give local users priority for computer use.  Patrons are served on a “first-come-first-serve” basis. In April 2004, the Chapel Hill Public Library began using a computer reservation management system to ensure equitable access to the library’s 24 public computers. User authentication is provided by the library’s database of current card holders.

It was this authentication process that required all computer users to have a record in the library’s database in order to log on to the system. This was the impetus for the creation of the computer use only card for patrons not residing in Orange County or Chapel Hill. We do not believe that local users are impeded in any significant way with the existing system. At present it is meeting demand. Queues occasionally form but are quickly dispersed as current users reach the end of their sessions and are logged off the computer.

We do not recommend charging for use of on-site library materials and technology