All Director’s Meeting Verona 3/15/18 Delivery Services All Director’s Meeting Verona 3/15/18

2019 Budget Considerations Route Changes Frequency of Delivery Changes Actual Cost of Operating Wages Fuel Supplies Rent Etc.

Route Changes No changes for any SCLS routes Intersystem Routes may be evaluated in coordination with PLSR implementation by 2019

Frequency of Delivery We are working with a schedule where frequency remains the same as it is today. 2019 may bring some adjustments to member delivery routes. In coordination with PLSR, we will be looking to increase all member delivery to 5-day service if desired in 2019.

Expected Cost Increases: Rent at 1601 Gilson (modest 1%) We are approaching the end of our lease (Nov 2019) Contracted Services At least 3% is expected Insurance Supplies Individual Wages Wages have increased 1-1.2% each year for the last 4 years Individual Health/Dental

Preparing for 2019 Delivery will prep a budget that evaluates 3 tiers of member library fees: 0 increase 1% increase 2% increase All of our special request services, LINK Express fees, and other service fees will be evaluated and realigned. LSTA

Volume 2017 System Volume: 12,159,700 Up 2.4% Highest volume count since 2014 7th highest volume count since 2001 Middle of the road in rank, but closer to our peak volumes than “middle”

University of Wisconsin UW System Volume 2016: 257,400 2017: 270,200 (+5%) 2nd lowest volume total since 2005 Peaked at 340,900 in 2009 and has declined since UW-Madison Volume Almost the same as 2016 Only about 60% of the volume seen in 2006 Campus libraries are consolidating

Intersystem Statewide System Volume: 2016: 626,600 2016: 626,600 2017: 585,500 (-6.6%) Volume down over 25% since peak of 786,000 in 2006

Other Delivery Customers Private Colleges: Up slightly in 2017, but down over 40% in the last 10 years. Technical Colleges: Lowest volume in 2017 since 2004. Down over 60% since peak in 2009.

Can I answer any questions?

Thank You