Task Four: Cost Assessments

At this early stage, it is not possible to give an accurate operational cost estimate of library services for your area. However, you should be able to give a range of costs. State law requires that a new district be able to raise a minimum of $25,000 in tax revenue for library services. This figure should be treated as the absolute minimum for costs. The maximum levy for a library district’s operational budget is 0.06% of market value for assessment purposes. The operations budget, then, will fall somewhere between these two figures.

You may calculate a somewhat more accurate figure by examining the statistics for libraries serving similar sized populations. Statistics for Idaho public libraries are published annually by the ICfL. Average operational expenditures per capita are calculated for libraries in various size categories. By multiplying this per capita figure by the population to be served by the proposed district, the exploratory group can get a ballpark figure of what the typical district of that size spends for services.

Another approach is to ask your ICfL public library consultant for the names of library districts in your area that are providing a good level of service. Using the budget figures from such districts to figure a per capita support level will give you the amount you will need to provide the best possible services for your community.

Note of Caution

At this point in the process, it is difficult to give accurate figures on the operational costs for a new district. Without determining the specific services to be provided or the specific boundaries and governance structure for the district, figures will be inexact at best. When discussing operational costs, it is wise to give a range of costs rather than a specific cost. If supporters do mention a specific figure, it is likely that people will assume this is the figure that will have to be raised. Later in the planning phase of the districting process, it will be possible to provide much more accurate figures to the public.

If the new district will have to purchase, build, or extensively remodel a building to provide district services, the exploratory group will need to include these costs in their total cost estimate as capital costs. Capital costs are the costs of buying or building a library facility or other large costs that may be raised through special assessments, such as bond issues or a plant facility reserve fund. For more on that topic, see I.C. § 33-2729. If it appears there will be major capital costs in beginning the library district, these costs should be stated forthrightly and openly in any estimate of the district’s total cost.

The issue of costs is usually one of the most difficult aspects of promoting a new library district. No one is opposed to public libraries, per se. But many people do not like the idea of taxes. It is best when discussing the costs of a library district to be open and aboveboard about the costs and about how money will be raised through property taxes. At the same time, it is also useful to point out how economical library service is. Most Idaho public libraries give their users access to thousands of books at a cost of less than one hardback book in typical annual per capita tax charges.

Example

Below is an example of how much a proposed library district could cost a homeowner.

A property with an initially assessed value of $225,000 is taxed at 0.06% per year (the maximum levy rate for a library district) and the assessed value is automatically increased by 2% per year.