Frequently Asked Questions About the Library

A Short History of the Millage

When the Dickinson County Library was created in 1960, voters passed a one-mill levy for a five-year term to operate the new library, a consolidation of the Carnegie Public Library in Iron Mountain and the Norway City Library. In 2000, the approved millage level was reduced to .900. Voters have endorsed the library millage in each succeeding Library millage election since 1960.

Where does the money come from?

Using 2004 figures, three out of every four dollars received by the Library comes from local taxes. The other dollar comes from a combination of state aid, penal fines, interest, fees, and other income. The Library operates mainly on money from two principal sources received at two different times of the year:

(1) In May of each year, the County tax appropriations are received from the Dickinson County Treasurer.

(2) In July of each year, monies are received from penal fines. (Penal fines have fluctuated over the past ten years from $70,104 to $151,573, making this line item very difficult to anticipate in budgeting). The library uses a general estimate based on the past five years to plan for this revenue.

As of December 31, 2003 the Dickinson County Library fund balance was $573,303.54.

Library Board Designations

Operating Expenses
$350,000 must be deducted to cover expenses from January through May ($70,000 per month) until the library receives its County tax appropriation.

Short Term Projects
$50,000 for renovation of the Solomonson Branch in Norway (2004 project).
$25,000 of an estimated $100,000 cost for Air Conditioning Replacement (Main Building).
$30,000 of an estimated $50,000 cost for Elevator Installation (Main Building).

Long-Term Liabilities
$306,477 for Post Retirement Benefits and Vested Sick Leave and Vacation.

This is not fully funded but the Library Board has begun setting aside funds to defray these long-term liabilities (approximately 11% funded as of 1/1/2004).

These board designated funds total $761,477. In addition, the library should have funds for contingencies in the amount of $85,000 (financial experts suggest 10% of the annual budget). If long-term liabilities were fully funded, the total amount would exceed the current fund balance by approximately $273,000.

Can’t you just get money from grants?

The library pursues grants in various areas. However, grant monies are intended to supplement the operating budget and most often must be used for pilot or test projects.

The library received three grants in 2003:

• a grant to add additional formats of materials (DVD’s and Books on CD).
• a grant to digitize local history photographs.
• a grant to upgrade the Internet connection at the Main Library to better serve the unemployed.

Grant money is becoming increasingly limited and in most cases cannot be used to cover operating expenditures.

How much does it cost to run the library?

The Dickinson County Library costs approximately $70,000 per month to operate. The library provides three outlets to serve the public: Iron Mountain, the Solomonson Branch in Norway, and a new North Dickinson Branch opened in January 2004. The total operating budget for 2004 is $853,660 – this reflects cuts in state revenue and required the library to cut equipment, book, and video budgets, and other miscellaneous budget areas.

How big should the fund balance be?

The fund balance should cover:
· Operating expenditures until tax monies are received in May $350,000
· Planned upgrades and future projects (such as building renovations) $105,000
· Contingency funds to cover unexpected building or other expenses
(financial experts suggest 10% of the annual budget) $ 85,000
· Savings toward long-term liabilities (11% of $306,477) $ 33,712

Therefore, the library’s fund balance in January should be $573,712.

How much does it cost me?

The chart below shows the approximate cost of .9000 mill to a Dickinson County homeowner.