President Moulton called to order the March meeting of the Executive Committee of the North Central Kansas Library System at 10:00 a.m.

Members present: Wendy Moulton, Judith Cremer, Candace Boardman, Judy Goodrich, Claire Lahodny, Katherine Pope, Mandy Cook, Alicia Paddock, Nikki Plankinton, Susan Moyer, Janet Ayers,

NCKLS staff present: Sandy Wilkerson, Library Director; Deanna Defoor, Business Manager; Duane Mayer, Technology Consultant; Kim Scaler, Assistant Technology Consultant; Krystal Cooper, Office Coordinator

Guest present: Eric Kientz from Kientz and Penick LLC.

Consent Agenda

Cremer made a motion to approve the consent agenda. Pope seconded and the motion passed.

Audit Report

Audit Report with Eric Kientz. – Kientz presented the results of the 2025 annual audit. He explained the process in which audits are done to the state which is posted online for the public. Kientz discussed the communications letter which is a summary of the results of the audit. Kientz notes in the Significant Audit Matters section that the Library System uses the regulatory basis of accounting which are prescribed by the State of Kansas in KMAAG which is different from Generally Accepted Accounting Principles (GAAP). Kientz states that most municipals in Kansas use KMAAG rules which are a different accounting model that is more simplified and in alignment with how NCKLS budgets and the financial information is fairly stated.

Kientz states that there were no significant difficulties encountered in performing the audit and lauded Business Manager Defoor’s books and records. Kientz said no areas of adjustment were identified, the audit was good and the books and record were also good.

Cremer made a motion to approve the audit report. Goodrich seconded and the motion passed.

Financial Statement and Approval of Bills

Summary of Expenses for the Period Ending, January 31, 2026

Summary of Expenses for the Period Ending, February 28, 2026

Business Manager Defoor explained the January financial statements Under general operations fund, Defoor states NCKLS received a majority of their tax receipts of just over 800,000. Defoor discussed expenses, that salaries reflect the 3% increase that the board approved last year. The credit in marketing and communication is reimbursement from the Central Kansas Library System Northeast Kansas Library System Southeast Kansas Library System and Northwest Kansas Library System for the trustee manuals. $2,200 from technology equipment and maintenance was for QuickBooks software renewal. From the digital resource access under direct services, the $30,600.00 was for Overdrive for 2026 Sunflower e-library participation fee. From Collections grants, $28,152.16 was for libraries purchasing books for their collections. Peabody was awarded a programming grant for $300.00.

Under the employee benefit funds $140,807.15 was received, about 60% of the budget, payroll benefits came in at just under $25,000. We received just over $2,200 in other income from interest. There was no activity in the capital improvement fund. As of January 31 we have 456,924.51 in the capital improvement fund. There was a little activity in custodial funds and is just over $16,000. The total receipts for January are $946,333.19. The total expenses are just over $150,000.

Defoor also explained the February financial statement. There were no tax receipts in February. The cost of $9,264.95 under Audit and Legal was the audit fee. The credit balance under the ILS Consortium is repayment from libraries for the NORCAT payments. NCKLS also paid $44,610.00 for courier and postage grant. NCKLS did receive its state aid at $62,338.00. The interest is still at 1¾ percent so NCKLS received just over 2,400 in interest. No Activity in the capital improvement fund nor the custodial fund.

Cremer made a motion to approve the financial statements. Boardman seconded, and the motion passed.

Staff Reports

Director Wilkerson discussed legislative updates. HB 2539 is headed to the governor’s desk. The intent of this bill is to allow the Eudora Library District to have an elected board. There was an amendment added during conference committee that Wilkerson needs to get more information on to see if there’s an impact on NCKLS libraries. HB 2769 is also waiting on the governor. This requires members of the governing body to reside in the taxing area. Wilkerson will need more information on how this impacts libraries that have charter ordinances which allow people from outside the taxing area to be on board because the library can’t find enough volunteers.

The conference committee accepted the senate position in the seventh round of the appropriations bill. That added $1,000 per legally established public library but did not add any additional funds to the regional system formula so regional system state aid will be flat, but the library state aid will increase by $1,000 for next year. They added $96,000 in courier funds which will keep the courier fee flat for 2027. $500,000 was added to the state general fund for CPR and AED grants for schools and an initial $125,000 for religious organizations, charitable associations, libraries, and tribal entities, but in order to access these funds a cardiac arrest emergency response plan is required. Director Wilkerson will need more information on what is necessary to access this funding.

August 27^th is the date Wilkerson has reserved for the annual meeting. Wilkerson mentioned the possibly of a survey going out requesting feedback on continuing education events occurring on the same day as the legal and budget requirements. Board members said they liked the continuing education occurring during the annual meeting.

Wilkerson got more information on the new law regarding private spaces. Wilkerson has sent that information to libraries. Wilkerson said that there will be signage changes to clarify who can use private spaces.

ADA website accessibility deadlines are coming up. NCKLS’s technology trainer has been working with libraries. For communities with a population under 50,000, the deadline is April 26^th 2027. For communities with a population over 50,000 the deadline is in 2026.

Wilkerson launched budget training onto the trustee page of the website. It is appropriate for city and township libraries and is broken down into four portions.

Hope and Dorothy Bramlage in Junction City both got a waiver for the state aid due to issues with municipal budgets. Hillsboro is migrating to the NorCat system. Leonardville is working on getting a new director, Peggy passed February 24^th.  Vermillion had service fees problems with Overdrive because they were not loaded into the NCKLS account. Wilkerson is working with Overdrive to correct the error. Marion’s director is retiring. That job is posted.

Technology consultant Meyer reported that NCKLS is down to about 5 or 6 libraries that need 365 migration.

Budget

Director Wilkerson gave a presentation of the draft budget to the board. The Executive Committee will decide on the budget at the May meeting. The state board makes a decision on the system plan in June and the assessed property valuation estimates from the counties comes in June on the 15^th. Varney’s helps set the levy and helps with the RNR process in early July. The report is sent to Riley County on the 20^th. Newspaper publications take place early August. Each newspaper usually sends proofs, but having the papers with the post is preferred. At the annual meeting on Augst 27^th NCKLS holds all the necessary hearings and the budget is approved through the system board. The certified budget is submitted to Riley County in October.

Director Wilkerson met with the personnel committee and a three percent increase was decided, but the committee with give more direction closer to May. Everything else in the Operations line was considered an administrative cost. Audit and legal includes work with Kientz for the audit, work with Varney’s to set the levy, and the cost of newspaper publications. The building supplies line was decreased from 2026 because there is more clarity on what is needed for NCKLS. The rent for the building also increased $50/month. Tech equipment includes accounting software, Microsoft for staff which is about $220/month, and 2 new staff computers.

Under the Direct services line, there’s an increase in digital resources to add Vermillion on Overdrive. For the costs of the ILS Consortium, participating libraries pay 63% of the Bywater expense, NCKLS adds the remaining money and pays the Novelist Select content and the Twilio texting. Wilkerson said the summer reading line was removed because the state has been picking up those costs. There was an increase in technology support in case NCKLS needs any enhancements of NorCat to make it compliant with the ILL RFP. There was an increase in the collections grant of $500 for every library. The tech grant was increased $500 for libraries with a population over 2,000 people. Wilkerson would like to add the academic libraries in the taxing counties to the courier for 3 days; there is only two (K-State and Tabor).

NCKLS will need a new rotating book van.

Business Manager Defoor gave a presentation on the employee benefits fund in the budget. KPERS employer contribution rate will decrease in 2027 to 9.44%; death and disability under KPERs will stay at 1%. Workers’ compensation rate is the same, but Defoor hopes it will decrease. Unemployment costs are 1/10 of a percent of wages. NCKLS budgeted for a 6% increase in health insurance.

Director Wilkerson expects the state aid to stay flat. Wilkerson mentioned state aid is usually used for Rotating Book Collection and is considering to also use it for digital collections. This will be decided by May.

From the capital improvement fund, Director Wilkerson would like to purchase a new rotating book van. The current one was purchased in 2019 and has 93,000 miles, about 14,000 miles is put on the van per year. The Rotating Book Delivery Driver is looking into costs.

The system plan changes for 2027 includes courier costs, collection grant increases, technology grant increases and a new delivery van. For the courier costs, the system plans to cover all but $400 for the Gateway and Linking libraries, 80% for the Service Center 1 and 2 libraries, 80% of the academic libraries in taxing counties, and 80% of the Major Service Center 2 libraries. For the collection grant, the system plans to add $500 for all libraries in taxing counties. For the Technology Grant, the system plans to add $500 for libraries serving over 2,000 people. Additionally, NCKLS will need a new delivery van.

Wilkerson mentioned to the board that she opted to not fund the competitive grant and opted to add those funds to the collection grants and the technology grant given it could only fund two grants. Wilkerson clarified that the budgeted courier costs considered the funding the state is covering.

Board President Moulton did mention that some librarians expressed a possible need for grants for continuing education. It was discussed to add the $500 to the extended service grant rather than the collection grant for more flexibility to librarians.

Director Wilkerson mentioned that the budget is very close. Business Manager Defoor stated that the Employee Benefit Fund may come up short this year, so the Operating Fund may need to cover the costs of any short fall.  Therefore, the mill rate might need to go up from what it is this year. Using the current assessed valuations, which are subject to change, Defoor estimated that the Employee Benefit Fund mill rate would need to change to .325. Director Wilkerson reminded the board that the budget will be revisited in May.

Executive Board Member Comments

President Moulton found in the Survey for the Taxing Libraries multiple libraries mentioned wanting a 3D printer noting that the $500 increase from NCKLS could help to purchase. Moulton also stated that the community foundation in Dickenson County does a Youth in Action grant for up to $1,000. She also noted that the responding libraries had positive feedback.

Adjournment

There being no further business President Moulton called for a motion to adjourn. Cremer moved to adjourn, Goodrich seconded, and the motion passed.  The meeting was adjourned at 10:53a.m.

The next meeting will be May 14^th, 2025, at the NCKLS office and via Zoom at 10:00 a.m.

Respectfully submitted,

____________________________                                           _________________________________

Wendy Moulton, President                                                         Krystal Cooper, Recording Secretary