Board Policy

Summary of Key Policy Statements

Budget

• Where possible, all decisions respecting service level and/or other changes that will have a material, ongoing financial impact on member assessment must be deferred to the annual budget process.
• The annual budget will be structurally balanced such that reoccurring revenues will equal or exceed reoccurring expenses.
• The annual budget development process shall include:
  • a forecast of the assessment increase in April/May and a request for Board direction
  • DRAFT budget in Sept/October, and
  • consultation with member staff throughout the process. 
• Service level increase(s) or decrease(s), considered in total for each FVRL service areas that are:
  • intended to be ongoing,
  • material (>$10,000 annually), and
  • that will require/result in an increase or decrease in member assessment,
    must be identified in the annual budget process or otherwise, for consideration and approval by the Board and individual member (for individual library branch services only).
• All changes to a member’s library(ies) public opening hours must be communicated to the respective member as soon as practical, and all changes intended to be on-going (regardless of the dollar value impact), must be approved by the respective member.
• An individual member may make requests for service level increases or service level reductions in its library services direct salaries and benefits and related direct expenses. Requests must be approved by member councils, and the FVRL Board.
• All reasonable actions shall be taken by staff to ensure that the Board approved total net operating budget, and total capital expenditure budget, are not exceeded.
• Board approval by resolution is required in advance of expenditure commitment:
  • If the total net operating budget is expected to be over budget.
  • If total capital expenditures are expected to be over by greater than $50,000 and funding cannot be made from within the net operating budget.
  • For capital expenditures over $50,000 that are not in the Board approved budget, or that are generally included in the Board approved budget but are materially different in scope. 
• Once approved by the Board, the budget is not required to be amended unless the total of the: net operating budget, total capital expenditure budget, and contingency budget, are forecast to be exceeded. Amendment must be made in advance of any related expenditure commitment(s).
• A long term financial plan shall be developed incrementally over a number of years.
• Long-term capital plans for all major asset categories must be developed and funded annually in a planned and sustainable manner, over the expected useful life of the respective assets.

Revenue

• Staff may apply for grants that address FVRL goals and priorities and for which the benefits outweigh the costs.
• One-time revenues shall not be used to fund ongoing operating expenses.
• Donation and sponsorship revenues shall not be used to fund ongoing operating expenses unless expected to be sufficient and ongoing in the normal course of operations.
• Fees and charges are not set to generate a net profit but, rather, to cover related direct costs, adjusted as necessary in response to market, social, and other factors, and may be reduced or waived.
• FVRL does not charge fines for the late return of library materials or for other purposes. Customers who damage or do not return library materials will be charged the materials replacement cost.
• Discarded library materials may only be sold through library public book sales and/or in accordance with FVRL’s Book Discard Procedures as approved by the CEO.
• To the extent library operations are reasonably maintained and undisturbed, FVRL will support the use of library buildings by film companies, if such use if supported by the respective Member.
• Members are entitled to retain any fees charged for the use of the meeting rooms or the library building (for filming or other purposes), but may elect to donate the fees in full or part, to FVRL for use at that Member’s library.

Reserves and Surplus

FVRL shall maintain the following set of surplus and reserve accounts:

• Unappropriated General Surplus
• Information Technology Investment Reserve
• Buildings, Equipment and Vehicles Reserve
• Administrative Building Expansion
• Member – Salary and Benefit Reserve
• Library Collections Reserve
• i(dea)Centre and Innovation Reserve

Debt

• Short term debt, to a maximum of $6M (equal to about 3 months normal net operating expenses), may be borrowed to finance operating expenses.
• Long-term debt, including capital leases, may only be accessed through the Regional District in cooperation with Members.

Expenses

• Each Member is responsible, at its sole cost, for the provision and maintenance of suitable library facilities, furnishings, equipment (excluding replacement costs for computers, self check-out units and copiers) and grounds, and related building on-going operating costs (including: janitorial, security, telephones, utilities etc.).
• At the request of a Member and with FVRL CEO agreement, FVRL may provide certain (as listed in Appendix B) library building services that would otherwise be the direct responsibility of the Member. In such cases all related direct costs and a reasonable portion of indirect costs shall be included in the Members annual assessment.  

New or Renewed Member Librar(ies)

• Members should advise FVRL’s CEO as early in the process as possible, when they are considering options for a new library, or renovations/renewal/move of an existing library.
• If it is estimated by FVRL, that the new/renewed library will likely result in a net cost INcrease to other FVRL Members, via increases in FVRL shared costs:
  • FVRL Board approval should be sought as early as possible. 
• If it is estimated by FVRL, that the new/renewed library will likely result in a net DEcrease to other FVRL Members, because of a net increase in that Member’s contribution for shared costs:
  • That portion of the Member’s shared cost allocation may be transferred to FVRL’s Library Collections Reserve or used to fund other shared service increases, by decision of the FVRL Board.
  • The Board decision will be considered during, and included as part of, the respective annual budget approval process. 
• FVRL shall not make cash or in-kind donations to individuals or organizations.
• Non-current liabilities shall be fully funded.
• Emergency expenditures up to $500,000 that cannot be funded within the net operating and capital budget may be authorized by the Chief Executive Officer or Directors, ideally in consultation with the Board Chair. Such expenditures will be reported to the Board at a regular meeting as soon as practical.

Investments

Cash investments will be made first to protect and maintain principal and then to maximize returns.  To the extent possible, liquidity of investments will align with capital and operating needs.

Investments are strictly limited to the types of investments that may be invested by BC municipalities under the Community Charter, with at least of 1/3 of available investments with the Municipal Finance Authority (MFA) and the remaining in specified Canadian Chartered Banks, Canadian Credit Unions and/or Federal and Provincial Governments or Agencies, meeting minimum criteria.

Investments for a term of more than five years, or in the case of the MFA Pooled Investment Funds with MFA recommended/stated investment horizons/durations of more than five years, must be approved by the FVRL Board.

Procurement

Procurement practices must be accountable, open and support achievement of best value for FVRL.  A competitive process is required for purchases over $5,000 and tenders or requests for proposals for purchases over $50,000 and when required by senior government Trade Agreements.  Exceptions as approved by the CEO and the Director of Finance.

See also principle section.

Purpose

The purposes of this policy is to:

• Direct and encourage effective and wise decision making on financial management issues in support of:
  • member-determined, quality service provision that meets the needs of member communities,
  • achievement of corporate strategic plan priorities, and
  • long term financial sustainability.
• Enhance and support the financial framework and system of internal controls to support the safeguarding and efficient stewardship of assets.

As a result of purpose achievement:

• FVRL will be in a position to meet financial obligations and take advantage of opportunities that arise.
• Financial assets will be used efficiently for library purposes.
• Member-determined service levels will be met and will be sustainably funded.
• Member’s assessment will be stable, equitable, predictable and affordable.
   

Responsibilities

FVRL Director of Finance

• Responsible for the overall implementation, maintenance, monitoring and reporting requirements of this policy.
• Responsible to develop, monitor and maintain an effective, supporting, system of internal controls.
• Responsible for ongoing communication of the requirements of this policy and the system of internal controls to the Board and all staff (in particular, management).

FVRL Management

• Responsible to review, be familiar with, and comply with, the intent and requirements of this policy.
• Responsible for ongoing communication of the intent and requirements of this policy to their staff team members, as appropriate, based on their level of responsibility and job duties.

FVRL Board

• Responsible to review, consider, and revise this policy (with the support of management) as necessary to meet the needs of FVRL and served communities.
• Responsible to be familiar with, and consider, the intent, requirements, and purpose/objectives of this policy when making decisions that impact FVRL. Regardless, decisions should be made in the best interest of FVRL which, by definition, includes the interests of its members and the communities served.
• Responsible to consider the financial implications of all decisions made and their likely impact on FVRL’s budget and member assessment, and long term financial sustainability.

Member Finance Officers

• Responsible to provide financial support and advice to respective Board Member as required.
• Responsible to provide financial input/advice and Member-impact perspective on FVRL’s annual budget and long-term financial plan, and other financial matters as requested by FVRL from time to time.

Member Parks & Recreation Senior Employee and/or Library Liason

• Responsible to act as the primary contact with the Member for the respective Library Manager.
• Responsible to work with FVRL and the Library Manager in order to facilitate the delivery of library services in the community.

For clarity:

• FVRL’s Board as a whole, is responsible to provide direction on corporate policy, service levels, the annual budget, strategic focus, and other matters as deemed appropriate.
• FVRL’s CEO is responsible to implement Board direction and to provide overall operational direction to staff as required.

Accordingly, member requests to implement changes in library service levels, should come via the respective member council, and ultimately the CEO. However, as part of the on-going planning process, member staff may request the preparation of service level change decision package(s) necessary to achieve an identified financial objective (see “Service Level Increases and Decreases” section and Attachment A).

Reporting and Policy Review

This policy shall be reviewed and either reconfirmed or amended by the Board at the start of the annual financial plan development process.

In support of the Board’s review, the Director of Finance will prepare a report to the Board:

• Highlighting the main contents and requirements of this policy.
• Identifying and recommending any policy revisions.
• Stating that the requirements of this policy have been met, as may be reasonably asserted based on the Director’s knowledge and overview of operations, and/or detailing any requirements that have not been met.
• Where policy targets are stated, the extent to which the targets have been met (a plan to achieve the target(s) will be developed for consideration by the Board as part of that annual financial plan process).

Principles

Transparency

Financial policies, practices, and results shall be regularly and openly communicated in an unbiased manner.

Accessibility

Services shall be accessible by all and, accordingly, in addition to those legally required to be free under the Library Act (i.e., admission and use of library materials), library programs and other services shall be provided free of charge or for a nominal fee that is equal to, or less than, the direct (i.e., excluding overhead) service costs.

Value For Money Focus

Service efficiency, economy, and effectiveness improvements shall be deliberately sought and implemented.

Long Term View

All decisions should consider the impacts on FVRL and its served communities’ long term sustainability considering financial, environmental and social impacts. If not feasible to select the most sustainable option, decisions must be at least a “step in the right direction” in the sense that they move FVRL and/or its served communities towards long term sustainability and do not limit future choices by making significant financial commitments or investments. It is recognized that, in most cases, the decision made will not be the “most sustainable” one from the financial, environmental and social perspectives, but will involve a trade-off between these values.

Continuous, Incremental Improvement

The financial systems and processes shall be continuously and incrementally improved.

Adopted of Proven Technology

FVRL will use proven technology to both enhance service levels and customer experience and contain/minimize costs. Investments in new technology, which comes with potential risks and costs of failure, will be employed strategically where the identified benefits outweigh the likely/potential costs.

Communiity Partner

FVRL shall be a valued and vital community partner, actively working with members to address FVRL customer needs. FVRL’s primary role is to provide information and/or to connect customers with available community services, maintaining a focus as a facilitator and resource centre, and not as the direct service provider for other than core library services.

Regional Service, Modified to Meet Local Community Needs

FVRL shall provide a quality, consistent, and distinct brand of library services (core services) to all member communities. Within these parameters, service delivery methods, service levels, and focus will be modified and adjusted to meet local community needs as determined by its members and respective community needs.

Annual Budget

Certain Financial Decision Deferred to the Annual Budget Process

Where possible, all decisions respecting service level and/or other changes that will have a material, ongoing financial impact on member assessment must be deferred to the annual budget process.

Structurally Balanced Budget

The annual budget will be structurally balanced such that reoccurring operating revenues will equal or exceed:

• Recurring operating expenses, excluding amortization expense, plus
• Debt principle repayment(s), plus
• Materials capital expenditures, plus
• An annualized allocation to fund capital expenditures (other than materials) necessary to maintain service levels as identified in the respective long term capital plan (referred to as the Capital Funding Envelope).

Operating revenue and expenses are those sources and uses of funds that meet the definition of revenues and expenses under Public Sector Accounting Board (PSAB) standards.

If a structural imbalance occurs, a plan will be developed and considered during the annual budget process to bring the operating budget back into balance.

Development Process

The annual budget process shall generally be developed as follows:

January – April

• Review and update of FVRL strategic plan.

May – June

• Review of FVRL financial condition.
• High-level financial forecast of budget revenues and expenses, and likely impacts on total member assessment.
• Review and revision/confirmation of existing financial management policy.
• Request for Board and member[1] direction to identify priorities, maximum member assessment impacts, and other key directives (including changes in service levels) sufficient to guide the development of a draft budget that should meet Board approval.
• Board to provide specific direction for the development of Service Level Reduction Packages, if desired. If no direction is provided, the draft budget will be comprised of a Base Budget plus any number of optional Service Level Enhancement or Reduction Packages developed at the discretion of management.
• Process to include a Board presentation and consultation with member finance officers and Library Manager operating contact (typically Parks & Recreation staff person).

July – August

• Budget preparation and finalization by staff.
• Process to include proactive actions by FVRL library managers and senior staff to communicate corporate strategic plan priorities, supporting work-plan(s) and any related implications, to member staff liaison(s), with the objective to both better inform and meet member/community needs, and to identify options to further enhance achievement through partnership.

September

• Draft budget and current Strategic Plan budget year priorities, review with member finance officers and recreation department contact.
• Draft budget review and deliberations with Board.

October

• Board deliberations and selection of a preferred Board-proposed budget.

November

• Board weighted vote on proposed budget.

Content

The draft financial plan should:

• When meaningful, be presented as a base budget plus optional service enhancement or reduction additions.
• Detail financial impacts and reasons for material changes on the major revenue and expense categories, and summarize the primary drivers of change in member assessment.
• Detail all material service levels and/or service delivery methods, changes.
• Identify, as appropriate:
  • cost containment or reduction, and/or
  • revenue supporting or enhancement, initiatives undertaken in the last fiscal period, and being considered or planned for the coming fiscal period.

Contingency Budget

In order to provide for potential budget shortfalls and emergency expenses, the annual budget may contain a $500,000, fully offsetting:

• Expenditure budget and,
• Transfer from Unappropriated General Surplus,

providing that the balance of Unappropriated General Surplus, prior to Board approval of the budget, is at least $500,000.

Service Level Increases or Decreases

Service level increases or decreases may be made on a temporary or trial basis at the discretion of the responsible manager.

Service level increase(s) or decrease(s), considered in total for each FVRL service area (1) that are:

• intended to be ongoing,
• material (>$10,000 annually), and
• that will require/result in an increase or decrease in member assessment,

must be identified in the annual budget process or otherwise, for consideration and approval by the Board and individual member (for individual library branch services only).

(1) FVRL Service Areas for the purposes of this policy are:

• Direct Library Services for each member,
• Library Collections Materials Purchases (capital and operating),
• Administrative Centre Support Services, and
• Annual Capital Reserve Allocations (“Capital Funding Envelopes”).

Service areas do not include capital expenditures (except for materials) and debt repayment expenses/expenditures.

All changes to a member’s library(ies) public opening hours must be communicated to the respective member as soon as practical, and all changes intended to be on-going (regardless of the dollar value impact), must be approved by the respective member.

An individual member may make requests for service level increases or service level reductions in its Library Services direct salaries and benefits and related direct expenses. Such service level changes must protect the greater good of FVRL as a whole, and have an acceptable impact on all members. To that end, the Board must approve all service level increase or service level reduction requests. See Appendix A for details of the process.

Service level increases must:

• first seek options to fund within the existing funding levels, either through gains in efficiency and/or discontinuance of lower priority service(s).
• not be implemented without an identified funding source which may include one or a combination of new revenue sources, reduction in other service costs, and/or an approved increase in member assessment.

In any case, managers must communicate, in advance, all service level changes that:

• are material (greater than $10,000 annually),
• will directly impact customers, and/or
• are potentially sensitive service level changes,

both temporary and ongoing, to their respective director who, at their discretion, will inform the Chief Executive Officer, the Board and/or impacted members. Communication of service level changes are very important and the goal should be to “error on the side of over-communicating.”

Budget Variances, Responsibilities and Reporting

General

All reasonable actions shall be taken by staff to ensure that the Board approved total net operating budget, and total capital expenditure budget, are not exceeded.

Board

Board approval by resolution is required in advance of expenditure commitment:

• If the total net operating budget[2] is expected to be over budget.
• If total capital expenditures[3] are expected to be over by greater than $50,000 and funding cannot be made from within the net operating budget.
• For capital expenditures3 over $50,000 that are not in the Board approved budget, or that are generally included in the Board approved budget but are materially different in scope.

FVRL Director of Finance

• Is responsible for designing, implementing, and monitoring a system of budget internal controls and reporting designed to support budget compliance and minimize potential shortfalls.
• Must report to the Board and the Chief Executive Officer as soon as s/he is aware that, despite best efforts:
  • The total net operating budget2 is expected to exceed budget, and/or
  • The total capital expenditure3 budget is expected to exceed budget and funding cannot be made from within the related operating budget.
     
• The report should include an estimate of the potential budget shortfall and a recommended funding plan.
• Must prepare a forecast of actual revenues and expenses for the fiscal period, identifying and explaining anticipated budget variances, in a report to the Board each September.
• Must prepare annual financial statements and a supporting report that identifies and explains FVRL ending financial position and results of operations (including material budget variances), in conjunction with the annual financial statement audit.

FVRL Managers and Directors

• Have primary responsibility for monitoring and managing their division’s/department’s financial performance within their approved net operating2 and capital budgets3, and in accordance with all applicable policies and procedures.
• Must notify the Director of Finance as soon as s/he is aware that, despite best efforts, the division/department’s net operating budget2 or total capital expenditures3, are expected to materially exceed (>$10,000) budget.

Amendment

Once approved by the Board, the budget is not required to be amended unless the total of the: net operating budget2, total capital expenditure budget3, and contingency budget, are forecast to be exceeded. Amendment must be made in advance of any related expenditure commitment(s).

Long Term Financial Plan

Purpose

The primary purpose of the long term financial plan is to support long term financial sustainability.

More specific objectives/benefits include:

• To improve financial decision making; by providing a longer term perspective.
• To improve the annual budget quality by providing context and better informing annual forecasts.
• To identify potential future financial risks and opportunities and related impacts, in a timeframe that allows the development and implementation of related strategies to minimize the risks and maximize the opportunities.
• To provide members with long term financial projections to be used for their own planning purposes.

Scope

To include all of the following components:

• High level, long term (ten year minimum) financial projections, gap/issue identification and analysis, and supporting strategy development.
• Five year operating and capital plan detailing:
  • Primary sources and uses of funds
  • Key financial indicators
  • Overall impacts on Member Assessment
  • Supporting financial strategies
• Separate, supporting financial policies.
• Separate, supporting lifecycle capital plans for all major asset categories (Information Technology and Administrative Centre and Equipment) and Library Collections (new libraries, special additions, contingency needs, etc.).
• Separate, limited scope, Library Branch lifecycle capital plans to facilitate communication of Library Branch capital needs that are the direct responsibility of, and owned by, members:
  • Plans to include only the branches’ furniture and equipment and limited building renovations that may be identified to better meet customer needs on the assumption of maintaining the same/similar level of service.
  • Plans are not to contemplate or suggest when significant space additions or new libraries are required, or to address the capital replacement or major upgrade needs of the building.

Development Process

The long term financial plan shall be developed incrementally over a number of years.

Source of Funds

Grant Revenue

Staff may apply for grants that address FVRL goals and priorities and for which the benefits outweigh the costs. Grants that also address broader goals and priorities of local members are preferred.

All grant applications must be approved by the Chief Executive Officer, subject to review of a grant synopsis report that outlines the FVRL and member goals and priorities addressed, as well as immediate and ongoing costs and benefits.

One-Time Revenues

One-time revenues—such as proceeds from asset sales, debt refinancing, significant fee revenue spikes and similar revenues—shall not be used to fund ongoing operating expenses.

One-time revenues may be used to fund one-time operating expenses, capital expenditures, early debt repayment and/or to replenish reserves or surplus to target levels.

Donation Revenues

Donation revenues are not typically used to fund ongoing operating expenses. Donation revenues may be used to:

• fund one-time operating or capital expenses;
• fund distinct new, or existing ongoing programs or services, where the donation revenue source is expected to be sufficient and ongoing in the normal course of operations, either through funding provided by a dedicated endowment fund, or individual or corporate donor.

Ongoing funding arrangements for donations over $10,000 annually must be approved in advance by the Chief Executive Officer.

Sponsorship Revenues

Sponsorship revenues are subject to the same usage restrictions as donations. Sponsorship revenues are similar to donations but, do not qualify for a charitable tax receipt. The sponsor receives the benefit of public recognition of the sponsorship. Benefits are negotiated and may include a variety of recognition services, including naming privileges for the funded program, service or capital expenditure. All sponsorship revenues must be approved by the Chief Executive Officer.

Fees and Charges

Universal access for all is a central value of FVRL. Fees and charges can create barriers to access, especially in lower-income groups, were access is most needed/beneficial.  This potential, combined with the legislative requirement to provide certain library services free under the Library Act, has culminated in a reality were fees and charges across the library industry are of low/nominal value, both individually and in aggregate.

Accordingly, when fees and charges are established, they are not set to generate a profit but, rather, to cover related direct costs, adjusted as necessary in response to market, social, and other factors. Direct costs are the costs of materials, labour, and supplies incurred as a direct result of the service provision. Such costs do not include organizational overhead (i.e., building or management costs).

All new fees must be approved by the Board. Once approved by the Board, fees will be reviewed and updated normally every five years via a Fee Review Report to the Board. In the interim years, fees may be adjusted annually to reflect the change in inflation, at the discretion of the Chief Executive Officer.

Fees and charges are of low/nominal value and may be reduced or waived in accordance with administrative principles set by the Chief Executive Officer, in consideration of the individual circumstances of the customer and other relevant factors.

Fines and Replacement Fees

Fines - FVRL does not charge fines for the late return of library materials or for other purposes.

Replacement Fees - Replacement fees are set to encourage the prompt return of materials in undamaged condition for the greater benefit of all customers.  Fees are established, changed, and may be reduced or waived, in the same manner as other Fees and Charges.

Book Sale Revenue

Discarded library materials may only be sold through:

• Library public book sales, and/or
• In accordance with FVRL’s Book Discard Procedures, as approved by the CEO. 

Book Discard Procedures will consider the, often competing, objectives of minimizing the costs of disposal and a desire for the reuse and recycling of materials over garbage disposal

Libraries may conduct on-going and/or occasional book sales at the discretion of the Library Manager.  The Library Manager or designate is responsible for planning and organizing the event.  At the discretion of the Library Manager, book sales may be run by volunteers or compensated third parties.

Library staff, volunteers supporting the book sale, and/or Friends of the Library (“FOL”) members, may purchase discarded items from the collection at any time prior to the book sale for the same price charged to the public.

Revenue from book sales are accounted for as general revenue* of the library hosting the book sale.

_{*The book sale revenue is available to fund the operating expenses of the respective member libraries, but will roll into unappropriated general surplus if not fully spent in the year.}

Library Meeting Room Rental Fees

Subject to FVRL having priority of use for any meeting room for library purposes, FVRL operates (i.e. schedules use and collects any fees for) any meeting rooms available for public use located in any library.

Members are entitled to retain any fees charged to the public for the use of the meeting rooms, but may elect to donate the fees in full or part, to FVRL for use at that Member’s library, at the discretion of the respective Library Manager.

Filming Revenue

To the extent library operations are reasonably maintained and undisturbed, FVRL will support the use of library buildings by film companies, if such use if supported by the respective Member.

Member support must be provided to establish and enter into the contract and/or permit with the film company to establish the legal responsibilities of all parties. The contract/permit must detail all specific requirements for the filming event as detailed by FVRL and require that FVRL be named as an additional insured in the film company’s insurance policy.

FVRL shall work directly with the film company to identify and address both parties requirements. A FVRL employee (staff liaison) will attend the entire filming event including site preparation and post-event site clean-up, as the primary FVRL contact during the event.

Filming Company Fees:

• Staff Liaison Fee – For entire film event hours including site preparation, filming and post-event clean-up. Hourly rate for a Librarian 3 plus 30% for benefits and 25% for administration. Overtime and/or double-time may apply as per the union contract.
• Building Use Fee – To be determined by the respective Member. Suggested rate of $200 per hour if less than 4 hours, or $2,000 per day, plus applicable taxes.

Members are entitled to retain the building use fee charged to the film company for the use of the building, but may elect to donate the fees in full or part, to FVRL for use at that Member’s library, at the discretion of the respective Library Manager.

Reserves and Surplus

The maintenance of various surplus and reserves are best practices that support both long and short term financial sustainability. Proactive management and use of reserves and surplus support economic, efficient, and effective operations, and are fundamental to achieving lowest cost and predictable cost-levels to members over time.

FVRL shall maintain the following set of surplus and reserve accounts:

• Unappropriated General Surplus
• Information Technology Investment
• Buildings, Equipment and Vehicles
• Administrative Building Expansion
• Member – Salary and Benefit
• Library Collections
• i(dea)Centre and Innovation

To the degree that any of the above stated surplus and reserves target ending or annual funding levels (as stated below) are not met, recommendations to meet shall be developed, and considered by the Board in conjunction with the annual budget process.

Debt

Short Term Debt (Less Than One Year)

Under the Library Act, money may be borrowed to meet the current year’s expenditures, if the amount borrowed:

• Is not more than 50% of FVRL’s revenues from all sources in the current year, and
• Is repaid when the anticipated revenue is received.

In consideration that:

• 50% of revenues from all sources in fiscal 2017 was $13,487,000, and
• Member assessment funds over 90% of net operating expenses and is paid quarterly,

Short term debt, to a maximum of $6M, may be incurred to finance the current year’s expenditures, provided that it is fully repaid upon the earlier of, receipt of anticipated revenues or one (1) year.

Long Term Debt (Including Capital Leases)

Legislatively, Fraser Valley Regional Library, may not incur debt beyond a one year period directly. Long-term debt may only be accessed through the Regional District in cooperation with Members.

Accordingly, long-term capital plans for all major asset categories must be developed and funded annually in a planned and sustainable manner, over the expected useful life of the respective assets.

Disposal of Assets

Any revenue from the disposal of assets shall be transferred to the credit of the respective Reserve Fund.

Assets that are surplus to the needs of FVRL shall be disposed by trade-in, public auction or by advertised public offer. Assets with little or no market value, shall be transferred to a non-profit organization or scrapped.

FVRL employees will not be given any assets, nor be permitted to purchase such items, unless the items are sold at public auction or by advertised public offer.

Use of Funds

Member Library Costs

Each Member is responsible, at its sole cost, for the provision and maintenance of suitable library facilities, furnishings, equipment and grounds (i.e. grounds, parking etc.), as detailed in Appendix B.

Each Member, may at their sole discretion, elect to increase their annual library assessment, to contribute funds to FVRL to be used, with the Member’s direction and approval, for library capital or other expenditures at their library(ies), that are the sole responsibility of the Member (referred to as a “voluntary assessment”).  Any such assessment will be separately identified in FVRL’s annual budget report(s) schedule of member assessments and managed by FVRL, as detailed in Appendix C.

New or Renewed Member Librar(ies)

Members should advise FVRL’s CEO as early in the process as possible, when they are considering options for a new library, or renovations/renewal/move of an existing library.

If it is estimated by FVRL, that the new/renewed library will likely result in a net cost INcrease to other FVRL Members, via increases in FVRL shared costs:

• FVRL Board approval should be sought as early as possible.

If it is estimated by FVRL, that the new/renewed library will likely result in a net DEcrease to other FVRL Members, because of a net increase in that Member’s contribution for shared costs:

• That portion of the Member’s shared cost allocation may be transferred to FVRL’s Library Collections Reserve or used to fund other shared service increases, by decision of the FVRL Board.
• The Board decision will be considered during, and included as part of, the respective annual budget approval process.

FVRL staff’s role is strictly to:

• Provide information and advice, based on in-house expertise, regarding the most appropriate size, physical layout, library equipment and materials, and service model.
• Estimate related library start-up costs (eg. initial/renewal materials, and library furniture and equipment capital, purchases), on-going direct staffing and operating costs, and impacts on shared service costs (eg. central support staffing and/or other costs, and materials replacement).
• Facilitate communications with the FVRL Board, as early as possible.  This is particularly important, to support a request to the FVRL Board for FVRL as a whole, to fund a portion of the estimated initial/renewal materials purchase, and/or an estimated overall net cost increase (via increases in shared service costs).
• Facilitate any requests for financial support for the new library from FVRL as whole.
• Provide input and direction to Member’s to support their direct purchase of appropriate library equipment and required building works (eg. wiring), and to directly purchase capital equipment on the Member’s behalf for the capital items at the library that are maintained by FVRL (i.e. computers, self check-outs, and copiers).

FVRL staff:

• Must not advocate for, or against, a new or renovated library, and
• Must advise Member senior staff (CAO and/or Member Finance and/or Parks & Recreation Contacts) should they be approached by an elected official, the press, or a member of the public, requesting FVRL comments/input/opinion thereon.  Communication to Member staff shall be made by either FVRL’s CEO or a Director; FVRL staff are responsible to advise their Manager.
• Must maintain all information about the new or renovated library strictly confidential, unless disclosure is approved, in advance by the respective Member.

Members are responsible to:

• Advise FVRL’s CEO asap that a new, and/or renovation or move of an existing library, is being seriously considered, and to continue to involve FVRL as appropriate.
• Unless otherwise approved by the FVRL Board, to pay:
  • The full costs of the initial new/renewed materials purchase,
  • All other net costs in accordance with the FVRL Funding Formula Policy, and
  • Any net INcrease in FVRL shared costs, if required by the FVRL Board.

Employee Salaries and Benefits

All employee positions that become vacant (i.e., incumbent employee retires, leaves FVRL, or otherwise gives up ownership of/right to position) must be reviewed to identify options to improve position or organizational effectiveness and/or reduce financial impacts.

Review and recommendations regarding positions and use of funds are to be completed by the respective manager in consultation with the supervising director. Approval of recommendations by the Chief Executive Officer must be received prior to a recommendation’s implementation.

The requirements of this section do not apply to page, temporary or casual/on-call positions, which shall be reviewed and position replacements filled in accordance with the requirements of the supervising director.

Donation Expense

In recognition that FVRL is substantially funded by fifteen local governments that may have different priorities and policy positions regarding donations, FVRL shall not make cash or in-kind donations to individuals or organizations.

In-kind support to organizations sharing a common purpose/goal to FVRL, or disposal of surplus assets with little or no market value, to third-parties, exempted (see Disposal of Assets Section in this Policy).

Non-Current Liabilities

Member assessment fees shall be set to fully fund the amount of all non-current liabilities (e.g., post-retirement benefits, longer term sick leave) as applicable attributed to, and estimated to be, costs of providing services in the respective year in accordance with Public Sector Accounting Board Standards.

To the extent that non-current liabilities have not been funded in past years, recommendations to fund the accrued but unfunded balance shall be developed and considered by the Board in conjunction with the annual budget process.

Unfunded Asset Retirement Obligation Liability

To be funded first through any resulting “available” annual surplus, and if not fully funded after five (5) years (i.e. by the end of 2030), through member assessment over the following five (5) years.  “Available” annual surplus would be any portion of the annual surplus that would increase the balance of Unappropriated General Surplus beyond $2M. (Approved by FVRL Board at the May 2024 Board Meeting)

Emergency Expenditures

Emergency expenditures are defined as expenditures requiring the quick or immediate acquisition of goods or services necessary to restore or maintain minimum acceptable levels of service, or prevent serious delays or injury.

Emergency expenditures up to $500,000 that cannot be funded within the net operating and capital budget may be authorized by the Chief Executive Officer or Directors, ideally in consultation with the Board Chair. Such expenditures will be reported to the Board at a regular meeting as soon as practical.

For clarity, emergency (or other) expenditures for a library building or other asset that is the direct responsibility of a member local government are prohibited. FVRL’s responsibility is strictly to advise the respective member local government asap.

Investments

Cash investments will be made first to protect and maintain principal and then to maximize returns.  To the extent possible:

• Liquidity of investments will align with capital and operating needs, and
• Investments shall be diversified by investing in securities with varying maturities, and limiting investments to avoid over concentration in a specific issuer/guarantor or business sector.

Investments are strictly limited to the types of investments that may be invested in by BC municipalities under the Community Charter, and must meet the following additional limitations:

• About 1/3 or more of available investment funds shall be made with the Municipal Finance Authority of BC (“MFA”).  
• Investments in entities outside of Canada, may only be done by investing in the MFA pooled investments.
• Investments in Federal and Provincial Governments and Agencies that maintain a minimum investment grade rating of A-Low from Dominion Bond Rating Service (“DBRS”).
• Investments in Credit Unions are limited to about 15% of available investment funds, in credit unions that:
  • Are incorporated and regulated by the Province of British Columbia and/or the Federal Government;
  • Are Group 1 or Group 2 credit unions that meet all legislated capital and operating requirements of the Provincial and Federal oversight agencies; and
  • Are one of the following Credit Unions (or owned subsidiaries of):
    • Vancity
    • Coast Capital
    • First West
• Investments in Canadian Chartered Banks are limited to banks that:
  • Are Schedule 1 or Schedule II financial institutions in good standing with the Office of the Superintendent of Financial Institutions (“OSFI);
  • Maintain a minimum investment short term credit rating of R1-Low from DBRS, or if not rated by DBRS, the equivalent rating from Moody’s, S&P or Fitch rating agencies, and
  • Maintains a minimum long-term senior debt rating of A-Low from DBRS, or if not rated by DBRS, the equivalent rating from Moody’s, S&P or Fitch rating agencies.
  • Are one of the following Chartered Banks (or owned subsidiaries of):
    • Bank of Montreal (BMO)
    • Bank of Nova Scotia (Scotiabank)
    • Canadian Imperial Bank of Commerce (CIBC)
    • National Bank of Canada
    • Royal Bank of Canada (RBC)
    • Toronto Dominion Bank (TD)

The following investments are NOT authorized and may not be invested in:

• Derivative investments (i.e. a structured product such as a deposit with a return linked to the performance of another security or index); and
• Securities of unrated issuers.

Investments for a term of more than five years, or in the case of the MFA Pooled Investment Funds with MFA recommended/stated investment horizons/durations of more than five years, must be approved by the FVRL Board.

Investment purchases:

• Investments are not subject to the requirements of the Procurement/Purchasing section of this Policy. 
• Competitive bids should be sought for securities/investments having similar risk and terms that may be offered by different organizations (e.g. Term Deposits, GIC’s etc.).  
• All investments must be authorized by the Director of Finance, with the exception of the investments in the MFA Money Market Fund which may be authorized by the Manager of Finance.

Procurement/Purchasing

Objectives

Procurement practices must be accountable, open and support achievement of best value for FVRL.

General

No purchase shall be made unless the expenditure is generally included in the Board approved Budget for the current year, and any additional Board or Member approvals are obtained as required under this Policy, the Weighted Vote Policy, or other Board policies.

For the purposes of this section purchase value is equal to the total purchase cost, including all applicable taxes, for the term full term of the purchase contract, including all optional contract extensions/renewals as applicable.

Requirement for Competitive Process

• Purchases expected to be:
  • Equal to or less than $5,000, or
  • Greater than $5,000, when determined to be in the best interest of FVRL as approved by the Chief Executive Officer and the Director of Finance, 
    may be single sourced. All other purchases shall be based on a competitive process.
• Selection of the appropriate competitive process should consider process cost and time requirements against their relative impacts on procurement objectives:
  • For lower dollar value or less complex purchases, requests for quotations (ideally three) may be sufficient.
  • For purchases over $50,000 and when required by any applicable senior government Trade Agreement, an open public Tender or Request for Proposal process must be used. Exceptions, may be approved by the Chief Executive Officer and the Director of Finance. 
• Sufficient documentation must be maintained and filed with the invoice payment to demonstrate that the requirements of this section have been met.

Purchase Preference

Preference shall be given to the vendor that offers the Best Value to FVRL. What constitutes Best Value shall be determined by the Employee(s) authorized to approve the purchase.

Sustainable Purchasing

When practical and efficient, the purchase process and the purchased good or service should support achievement of environmental, social and economic long-term sustainability. 

Factors to consider may include (not an exhaustive list):

• Recyclability and/or reusability of the items,
• Amount of post-consumer recycled content in the items and packaging,
• Transportation distances and impacts for delivery of the items,
• Ability for an item to be repaired or repurposed rather than re-purchasing,
• Useful life of an item, waste and end of life disposal impacts, and
• Sustainability practices of the vendor.

Nothing in this section shall prohibit consideration and/or selection of a service or product that is determined to offer the Best Value to FVRL on the basis of other prioritized purchase criteria.

Payment for Goods and Services

All goods and services should be paid for only after receipt of the purchased good or service in good form.  Payment in advance of receipt should be rare and for good reason, and all such payments over $5,000 must be approved in advance by the Director of Finance and the Chief Executive Officer.

Appendix A: Member Library Service Level Change Request

Process

1. Submission of Request: Requests to develop options for any service level increase or service level reduction must state the target dollar value of the request. The request to implement any service level increases or service level reductions must be submitted in writing by the member council to the FVRL Chief Executive Officer.
    
2. Board Notification: The Board shall be advised of all service level increase or service level reduction requests as soon as possible after the request is received.
    
3. Service Level Change Proposal Development: As soon as practical, staff shall develop at least one, and ideally a number of alternative, service level change proposals, in consideration of member objectives and financial target(s), for consideration by the member.
    
4. Service Level Change Approval: Service level change requests must be approved by the respective member council, and FVRL Board.
    

Member Financial Impact

Requests Submitted Before September 1: All service level increase or service level reduction requests submitted before September 1st of the year preceding the year the service level reduction is requested to be implemented, will be included in that year’s annual member assessment calculation, pro-rated from the estimated implementation date to the end of the year.  

Requests Submitted After September 1: All service level increase or service level reduction requests submitted on or after September 1st of the year preceding the year the service level reduction is requested to be implemented, to March 1st of the requested implementation year, will not be included in that year’s annual member assessment calculation.

• Payment for Service Level Increase: The service level increase impact on direct revenues and expenses as well as on shared revenues and expenses, shall be pro- rated from the actual implementation date to the end of the year, and shall be paid by the member local government to FVRL upon implementation. The impact on shared revenues and expenses will be determined using the same rate as determined in the implementation year’s annual member assessment calculation.
   
• Payment for Service Level Reduction: The service level reduction impact on direct revenues and expenses only shall be pro-rated from the actual implementation date to the end of the year, and shall be paid by FVRL to the member upon implementation (that is, the member will not realize the financial impacts of the service level reduction due to impacts on shared services until the following budget year). 

Member Shared Cost Allocation

If it is estimated by FVRL, that a service level increase will likely result in a net DEcrease to other FVRL Members of greater than $5,000, because of a net increase in that Member’s contribution for shared costs:

• That portion of the Member’s shared cost allocation shall be considered by the Board for transfer to FVRL’s Library Collections Reserve and/or to fund other shared services, during the annual budget process.

Appendix B: Member Library Cost Responsibilities

Member Responsibilities

A. Member Cost Responsibilities at Library(ies) 
Members are responsible for all operating and capital costs (and insurance) for, but not limited to:

• Land, including grounds and adequate parking
• All buildings, including all structural needs, roofing, electrical/computer and all other required wiring, plumbing, climate control, ventilation, paint, etc.
• All furnishings and equipment, including:
  • Shelving, racks, displays, carts, display units, book bins etc.
  • Computer desks
  • Tables and chairs, counters, staff room furnishings, office furnishings, children’s furnishings/items etc.
  • Kitchen appliances / amenities (like fridge, microwave, etc.)
  • Signage (exterior and interior)
  • Telephone system (see option in “FVRL Responsibilities, Section B”, below)
  • Alarm and other security systems
  • Self check-IN Units / Sorters (including maintenance services/contract paid for by FVRL and included in respective Member’s Assessment)
  • Art work and decor
  • Flooring, carpeting, lighting and other fixtures and amenities, etc.
     
• All costs for on-going and periodic maintenance/replacements/upgrades to the library buildings, lands and/or furnishing and equipment, and all operating costs, including:
  • Janitorial services
  • Pest Control and/or damages
  • Clearing and maintenance of snow, ice and debris
  • Security (systems and personnel as required)
  • Utilities (water, gas, electrical, solid waste removal etc.)
    Taxes
  • Self Check-IN Units third party maintenance agreements and other third party costs
  • Insurance
  • Project managers, design companies, architects, planners and/or purchasers, as needed, to plan and complete capital renovations, or new building projects
• All costs associated with the move/relocation of an existing library to a new location.
• All initial capital purchase costs of equipment at the library branches for which FVRL is responsible to fund replacement costs (see FVRL Responsibilities section below), including:
  • Computers (including minor wiring costs only at FVRL discretion)
  • Self check-OUT units
  • Printers, fax machines and copiers
  • Library Materials (i.e. books, DVD’s etc. maintained for public lending or reference)*
    * Possible Exception: For new or renewed libraries, subject to budget limitations, and with Board approval, a portion of any additional materials collections expenditure may be funded by FVRL (see New or Renewed Member Librar(ies) Section).
• All per diem, travel and/or other costs for member elected officials and/or staff, as required to support participation on the FVRL Board and/or and otherwise.

B. Member Insurance & Indemnification Responsibilities
Members are responsible to obtain and maintain on a continuous basis, all insurance coverage reasonably required in respect of their library(ies) premises, furnishings/fixtures and equipment. Such policy(ies) shall name FVRL as an additional insured.

Members are responsible to indemnify FVRL and FVRL employees or agents from any claim, damages, losses or costs (including legal costs) arising/caused/attributed to the premises and/or the furnishings/fixtures and equipment, except where and to the extent attributable to the negligence of FVRL or FVRL employees or agents.

FVRL Responsibilities

A. FVRL Cost Responsibilities at Library(ies)
FVRL is only responsible for all operating and capital costs (including insurance) for:

• Office and computer supplies, program costs
• Computers (including minor wiring costs only at FVRL discretion)*
• Self check-OUT units*
• Printers, fax machines and copiers*
• Staffing
• Library Materials (i.e. books, DVD’s etc. maintained for public lending or reference)*
• Allister Artwork

*Member is responsible for the initial purchase; FVRL for replacements of. Possible Exception: For new or expanded libraries, subject to budget limitations, and with Board approval, a portion of any additional materials collections expenditure may be funded by FVRL.

B. Optional and Agreed to: FVRL Cost Responsibilities at Library(ies)
If both the Member Chief Administrative Officer (“CAO”) and the FVRL Chief Executive Officer (“CEO”) agree in writing, FVRL may assume responsibility for the provision of the following service(s) at one or more library (referred to as a “Service Addition”), that would otherwise be the responsibility of the Member (See “Member Cost Responsibilities at Librari(ies)”):

• Library Telephone System(s)

The terms and conditions for the provision of a Service Addition Agreement are:

1. General terms and conditions applicable to all Service Addition Agreements
   1. Same or similar Service Additions must be provided to all members on the same terms and conditions, whenever practical/possible.
   2. Annual Member Assessment to include:
      • A reasonable estimate of all direct costs, including capital asset(s) replacement/upgrade as applicable.
      • A minimum additional indirect cost addition of 15% of all direct operating and capital costs.
   3. Purchase, maintenance and ownership of asset(s) required to provide the service:
      • The Service Agreement must state who owns any related asset(s) and who is responsible for its purchase and maintenance.
      • Generally:
        • The Member is responsible for the full costs of the initial asset(s) purchase and installation;
        • Thereafter, FVRL is responsible for maintenance and replacement/upgrade of the asset(s), at its discretion; and
        • The asset is owned by FVRL.
   4. Insurance coverage:
      • The Service Agreement must state who is responsible to determine and purchase insurance coverage. 
      • In general, the party responsible to provide the service and who is the owner of related asset(s) is responsible to purchase insurance coverage, at its discretion.

For clarity, the Member CAO and FVRL CEO may negotiate and agree to additional terms and conditions.

C. FVRL Insurance & Indemnification Responsibilities
FVRL is responsible to obtain and maintain on a continuous basis, all insurance coverage reasonably required in respect of FVRL Cost Responsibilities as detailed in Section A above. Such policy(ies) shall name Member’s as an additional insureds.

FVRL is responsible to indemnify Members and Member employees or agents from any claim, damages, losses or costs (including legal costs) arising/caused/attributed to the operation and delivery of library services, except where and to the extent attributable to the negligence of a Member or Member employees or agents.

Appendix C: Member Voluntary Assessment

The intent of the voluntary assessment is to provide a means for Members to set aside funds for library purposes that are not funded by FVRL and are the sole responsibility of the Member.  

Establishment of Voluntary Assessment

• During FVRL’s budget process, a Member (via the Finance Officer or Council) may request that a specified amount be added to their annual FVRL library assessment for the coming fiscal year.
• FVRL will detail all voluntary assessments as separate line items in the “Schedule of Member Library Assessments”, that is included within the annual budget report(s), which are reviewed and approved by the FVRL Board, as part of the annual budget process.

Use of Voluntary Assessment Funds
Funds may be used for:

• Library capital purposes, and/or
• Other library purposes, intended to be one-time in nature,

That are the sole responsibility of the Member.

For expenditures less than, or equal to $10,000, expenditure of funds must be approved by the respective member finance officer and library manager.

For expenditures greater than $10,000, expenditure of funds must be approved by the respective member council.

Management by FVRL of Voluntary Assessment Funds

• The voluntary assessment will be detailed as a separate item on the “Schedule of Member Assessments” included within the annual budget reports and will be collected from the Member as part of their annual assessment paid to FVRL.
• Funds paid to FVRL are held as refundable deposits in the name of the respective Member.
• Funds are invested in the Municipal Finance Authority (“MFA”) Money Market Fund and earn, and accumulate interest, as paid by the MFA Fund.
• All funds and any earned and accumulated interest, is refundable in full at any time, to the respective Member, upon request by the Member’s Council.

Appendix D: Definitions

Base Budget

A base budget is a budget that will fund the same level of services as provided in the prior year, plus changes thereto specifically approved by the Board, but not yet fully implemented (e.g. approved fee increase, approved new service) or resulting from capital expenditures in the prior year (e.g. building of a new library). The base budget is equal to the prior year’s budget adjusted to reflect:

• Current year costs and revenue changes due only to growth, inflation, contract/price changes, etc., to support the same level of service as provided in the prior year.
• Service changes already approved by the Board.
• Removal of one-time items.
• Annualized changes in services or fees that took place part way through the prior year.

Best Value

For procurement purposes, is the best overall value assessment based on factors determined to be relevant and important. Factors may include, but are not limited to: purchase price (including freight, warranties etc.); anticipated life cycle costs; vendor proven capability, methodology and historical performance; provision of environmentally friendly and fair trade/ethically sourced goods or services; specifics of services provided and/or product features and quality etc.

Capital Funding Envelope (CFE)

A fixed, annualized amount that, if funded, would be sufficient to fully fund the related capital expenditures. Typically developed by major asset category as part of the development of the respective long term capital plan.

Competitive Process

At a minimum, means attempting to obtain more than one offer from potential suppliers, up to and including, a formal public Tender or Request for Proposal process.

Direct Revenues and Expenses

For a particular member local government, includes revenues; and salary, benefits and other expenses, that are directly attributable to that member local government’s library(ies), as detailed in the annual member assessment calculation.

Estimated Implementation Date

The estimated implementation date of any service level increase or reduction request is the date in the respective year that the request is expected to be fully implemented by, as determined by the Chief Executive Officer or his/her designate(s).

Full Financial Impact

The full financial impact of any service level increase or reduction request is the annual financial impact thereof, on both direct and shared revenues and expenses.

Lifecycle Costs

Lifecycle costs are the total cost of an asset throughout its life including planning (engineering and design), construction/acquisition, operation, maintenance, rehabilitation, and disposal costs.

Member

A member is a municipality or regional district which has entered into an agreement under the Library Act to be a participant in the Fraser Valley Regional Library District.

Net Operating Budget / Net Operating Expenses

Net operating budget / net operating expense, is equal to:

• Total operating expenses excluding amortization expense and the contingency expense budget,
• Plus materials capital expenditures,
• Less all operating revenues other than member assessment,

Operating revenue and expenses are those sources and uses of funds meeting the definition of a revenues and expenses under Public Sector Accounting Board Standards.

Public Sector Accounting Board

The Canadian Accounting Board sets financial reporting standards for the Canadian government and not-for-profit organizations. Provincial legislation requires all provincial organizations, local governments and not-for-profits, to prepare annual audited financial statements in accordance with Public Sector Accounting Board standards.

Reserves

Reserves:

• Are funds that would otherwise be part of surplus, that have been designated by decision of the Board and/or management to be used for a specific purpose.
• Are usually backed by actual cash resources but at any point in time may be backed by accounts receivable.
• May be redirected at any point in time by the Board to another purpose.
• Balances either were specifically budgeted for or were created via a transfer from available surplus funds.

Request For Proposal

A formal request for sealed bids. It is not as specific as a Tender. It describes an opportunity or problem and asks for solutions and costs for those specific opportunities or problems.

Service Level Reduction, Increase or Fee Change, Decision Package

A decision package is an independent service change request. A decision package can be for either service increases or reductions, or fee change proposals.

• Service Increases detail proposed increases in service levels over the prior year’s budgeted service levels
• Service Reductions detail proposed decreases in service levels over the prior year’s budgeted service levels
• Fee Change details proposed new fees or increases in existing fees not already approved by the Board but not due to growth

Decision Packages may be for one-time items (e.g., Library 25th Anniversary Celebrations) or for ongoing items (e.g., new Librarian position). Decision packages should be independent of other budget items and be material (>$10,000) to the decision making process.

Shared Revenue and Expenses

All revenues; salary, benefits and other expenses, for all shared services, as detailed in the annual member assessment calculation.

Single Source

Refers to a procurement of goods and services from one supplier despite there being competitors in the market.

Sole Source

Refers to a procurement of goods and services from one supplier due to the lack of competitors in the market, or where only one supplier can provide that particular good or service.

Surplus

Surplus is accumulated financial assets resulting from past (i.e., since the inception of FVRL) total revenues being in excess of total expenses, less any funds that have been “appropriated” into a Reserve Fund. Financial assets include all assets that are cash or will be cash in the normal course of operations. They do not include capital assets, prepaids, or inventory.

A surplus:

• Is usually backed by actual cash resources but at any point in time may be backed by accounts receivable.
• Is funds that may be used for any legal purpose of FVRL.
• Can be created intentionally (e.g., by specifically budgeting and funding an addition to) or unintentionally due to actual net operating expenses coming in less than budget.

Sustainability

Sustainability is the ability to endure and thrive.

Sustainable Community

• A sustainable community is broadly defined as “…meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.” The three main pillars, or areas of consideration/need, of a sustainable community are the economy, environment and social:
  • Economy: the need to be financial and economically viable.
  • Environment: the need for the natural resources to be protected and to function at a high level.
  • Social: the need for individual and overall social wellbeing, incl. public health and safety.
  • A sustainable community is a community with a robust, resilient economy serving a strong, equitable society within a highly functioning natural environment.

Financial Sustainable Organization (For Non-Profits)

• Financial sustainability is the ability to maintain an organization’s services in accordance with its mission over the long term. Sustainable organizations have the ability to seize opportunities and react to unexpected threats while maintaining the general operations of the organization (referred to as financial resilience). An organization will not be sustainable if it does not provide social value at least equivalent to its costs.
   

Tender

A formal request for sealed bids for the supply of specific goods or services in response to an advertised invitation.

Value For Money

Value for Money (VFM) is defined as the achievement of the 3E's - Economy, Efficiency and Effectiveness.

• Economy: minimizing the cost of resources ('doing things at a low price').
• Efficiency: performing tasks in the best possible manner with the least waste, including using requisite knowledge, skill, and industry (“doing things the right way”).
• Effectiveness: the extent to which goals are met ('doing the right things').

Value for Money is about delivering low cost services in the best possible manner that meet the needs and priorities of the community in a way that respects and properly values the environment in which the service is delivered.

_{[1] Individual Member direction respecting direct library branch services only, in accordance with this policy (see “Service Level Increase and Decreases” section and Attachment A.
[2] The net operating budget does not include the contingency budget (see definitions section).
[3] Excluding materials capital expenditures as they are included in the net operating budget (see definitions section).}

• Summary of Key Policy Statements
• Purpose
• Responsibilites
• Reporting and Policy Review
• Principles
• Annual Budget
• Long Term Financial Plan
• Source of Funds
• Use of Funds
• Appendixes