FINANCING THE FVRL: A PROPOSAL continued Page 2

To correct this it is proposed to divide the operating
budget into Basic Service Costs and Branch Salary Costs.
As shown in the attached sample budget for 15977, the
Basic Costs applicable to all municipalities would
consist of all items of expenditure needed to operate
the system except the salaries of branch employees. A
mill rate would be struck on the basic costs and shares
apportioned in ratio of general assessments. Added to
this basic cost levy for each municipality would be the
direct estimated cost of salaries and benefits for staff
members employed in branches within the municipality.
This Branch Salary Cost for the ensuing year would: be
placed in the estimates at budget preparation time and
would be subject to approval or rejection by each
municipality at the time the budget is ratified by its
Council. This feature would give municipal councils
opportunity to be responsible for the adequate staffing
of branch libraries within their respective boundaries.

It follows that municipalities planning to construct or
enlarge library facilities would be responsible for

payment of salary costs for additional personnel where
needed. In the matter of extra bookstock needed for a
larger branch library it would be of advantage to the system
to arrange for municipalities to budget capital expenditure
to pay for the extra books.

Under the proposed plan the regional library would retain
full administrative control over all its employees, thus
preserving continuity and preventing fragmentation of
staff. ; oe

It is suggested that this division of financial responsi-
bility would more accurately relate costs to services
provided. It would also appear to render unnecessary any
need to provide more than one level of service not only
because the most expensive portion of service (Salaries

& Benefits) would be paid by those using it but because

the other main portion of service (Books) could be increased
by any municipality wanting more than its usual share.

The levels in fact would be determined by local need and
ability to pay.

It is suggested that adoption of the proposal would be of
benefit to the western municipalities in that it would
give them.more control over salary costs and be a prelude
to withdrawal if that course is taken.

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