2490-R-1.00 Basis and Purpose.

Through powers and duties conferred on the State Librarian by statute, the State Library has the authority to “receive and administer state or federal funds which may be appropriated to further library development within the state” and to “develop regulations under which state grants are distributed for assisting in the establishment, improvement, or enlargement of libraries...”, 24-90-105(2)(b) and (2)(c), C.R.S. County equalization grant funds appropriated annually by the general Assembly are administered by rules and regulations amended by the State Board of Education. The funds are utilized to provide supplemental support to counties which cannot provide a minimum level of library service due to low per capita income and low assessed valuation.

The rules establish the eligibility criteria, the formula for determining grant amounts, and the provisions for creating planning committees and county plans. The proposed rules changes are intended to: (a) Bring the Rules into compliance with the Colorado Library Law; (b) Reflect the types of grants currently administered by the Colorado State Library; (c) Clarify and validate the regional library service systems' involvement in administering county equalization grants as proposed by the legislative Joint Budget Committee during the FY 84 budget request process;

(d) Clarify the schedule for submission of plans and reports; (e) Establish a minimum grant amount so that counties are not burdened by a grant so small that it is uneconomical to administer;

(f) Clarify maintenance of effort requirements;

(g) Establish an appeals process for plans of service; and (h) Establish a minimum mill levy or mill rate equivalency requirement for total local contributions for library support in the counties.

2490-R-1.01 Basis and Purpose for Amendment.

The statutory authority for the Amendment of Sections 2490-R-2.08 through 2.26, 4.01, 4.01(1), 4.01(3), 4.01(4) (a), 4.01(4) (b), 4.01(5), 4.02, 4.02(1), 4.02(2), 4.03, 4.05, 4.10(1), 4.10(1) (a), 4.10(3), 4.20(2), 4.23, 4.26, 4.31(3) (d), 4.31(3)(e), 4.40, 4.42, and 4.51 of these Rules, adopted by the State Board of education on May 12, 1988, is found in Sections 24-90-105 and 22-2-107, C.R.S. These amendments provide for the deletion of definitions for terms no longer used in the text of the Rules and the addition of definitions for terms like local tax generated revenue and minimum library service budget which are used in the Rules and may not be understood in the same way by everyone. Amendments provide for a clearer explanation of the determination of eligibility (4.01) by revising the heading of that section and eliminating repetitious information. Amendments to Sections 4.02 and 4.03 expand and clarify maintenance of effort requirements. They specify that total local tax generated revenue for libraries for the year preceding their current budget year may not be lower than .5 mills and may not be lower than the second preceding year. The amendments allow for certain extenuating circumstances such as a drop in assessed valuation, across the board reductions, and required reductions in the mill rate if other specified conditions are met. The amendments to 4.10(1) explain how grant amounts are determined when state support for the program is less than the amount required in the formula process. Through the addition of 4.10(3) the amendments prevent a disproportionately large percentage of available funds from being awarded to any one county. This change allows more of the eligible counties to benefit to a greater extent from the limited funds available. The amendments ensure that the Regional Library Service System Director or his/her designee will be in attendance at the county planning meetings.

The amendments provide for an addition to 4.31(3) which expands the list of possible goals and purposes of the plan to include one that focuses on the improvement of the services of individual libraries if they provide free county-wide access. Other goals focus on county-wide services only. 2490-R-2.00 Definitions.

2.01 Additional revenues - monies available to a library from sources other than taxes. 2.02 Assessed valuation - amount determined according to an established rate as the value of property within a given governmental unit.

2.03 Budget - estimate of proposed expenditures for a given period or purpose, together with a plan for financing them.

2.04 Certification of reports - act of furnishing a signed, legal statement to effect the validity of a report. 2.05 County library - a public library maintained by a county. 2.06 County planning committee for libraries - group designated for the purpose of developing a county- wide plan in order to qualify for library equalization grants and associated actions. 2.07 County-wide service - free library service open to all residents of a county. 2.08 Equalization grants - monies given to a unit of government or library with low per capita income and/or small population.

2.09 Legislative body - the body authorized to determine the amount of taxes to be levied in a governmental unit.

2.10 Library district - a public library established and maintained by two or more governmental units or parts thereof, which may include but is not limited to a multi-county library and which is supported by and serves all unincorporated areas and all municipal corporations not operating their own public libraries within the territorial limits of the governmental units comprising the district. 2.11 Local tax generated revenue-funds received by a public entity that were derived from property taxes, sales taxes, or other assessment levied in a governmental unit that are authorized by a legislative body. (Excluding grants, gifts, bequests, and interest income.) 2.12 Median per capita income - mid-point of income per capita in Colorado above or below which a given governmental unit falls.

2.13 Metropolitan library district - library district which is formed by a city and county and one or more counties and which is supported by and serves all governmental units comprising the district, regardless of whether the constituent governmental units operate their own library (within a standard metropolitan statistical area if the combined population of the governmental units is at least 500,000 people).

2.14 Mill levy - tax rate or monies from taxes itemized on the tax bill for a library program. The legal maximum is determined by statute; See 24-90-112, C.R.S. 2.15 Mill rate equivalency - the rate of taxation against local property which would be necessary to generate the amount of revenue that the library currently receives from general funds. 2.16 Minimum library service budget - a budget established annually by the Colorado State Library in conjunction with the county equalization grant eligibility determination process that would provide for basic minimum library facilities, staff, and materials expenditures, taking into consideration the size of the service population in each county.

2.17 Per capita income - individual dollars of income totaled and averaged for a specified unit of government or geographic area.

2.18 Plan of service - organized proposal for the provision of library service, containing the steps to be taken to achieve certain goals and objectives.

2.19 Population - whole number of inhabitants in a given geographic area or governmental unit, or in a unit operating/not operating a library.

2.20 Public library - a library supported in whole or in part with money derived from taxation and which is for the free use of the public, including county and municipal libraries and libraries operated by an Indian tribe having a reservation in this state.

2.21 Regional Library Service System - an organization of publicly supported libraries established to provide cooperative interlibrary services within a designated geographical area as provided in 24- 90-115 C.R.S.

2490-R-3.00 Authorization.

The Colorado State Library is authorized to establish rules for the administration of grants under 24-90- 105(2)(c), C.R.S.

3.01 Source of Funds. Funds for county equalization grants are available from these sources: 3.01 (1) Funds appropriated by the Colorado General Assembly. 3.01 (2) Any other funds which may be made available for this purpose from any other source, public or private.

2490-R-4.00 County Equalization Grants.

4.01 Determination of Eligibility. Determination of eligibility will be made as follows: 4.01 (1) Counties with Populations over 2,000. Counties with populations over 2,000 whose assessed valuation times the formula mill rate identified in 4.01 (3) yields less than the amount necessary for minimum library service as determined by the Colorado State Library and whose county per capita income is at or below the state's median county per capita income shall be eligible for equalization grants. 4.01 (2) Counties with Populations of 2,000 or less. Counties with populations of 2,000 or less whose assessed valuation times the required mill rate yields less than the amount necessary for minimum library service as determined by the Colorado State Library shall be eligible for equalization grants even if their per capita income is above the median. 4.01 (3) The following criteria shall be used to determine the eligibility of counties as described in 2490-R-4.01 (1) and 2490-R-4.01 (2):

County Per Capita Percent of Maximum Income Local Support Authorized by Colorado Statutes Without Vote of Qualified Electors (Formula Mill Rate)

Per Capita income up to 33 1/3% of legal and including 75% of maximum median From 76% of median up 50% of legal maximum to and including median Above median (for 66 2/3% of legal counties with population maximum.

of 2,000 or less only)

4.01 (4) Sources for Per Capita Income and Population.

4.01 (4) (a) Per capita income: U.S. Bureau of Economic Analysis. 4.01 (4) (b) Population: Colorado Division of Local Government. 4.01 (5) The State Board of Education annually shall allocate the amounts for county equalization grants to the regional library service systems for distribution to counties eligible for grants under these Rules.

4.02 Maintenance of Effort and Eligiblity. The Colorado State Library additionally shall establish the eligibility of a county to participate through determining that the total local tax-generated revenue for libraries for the year preceding their current budget year (a) is not lower than the minimum level mill levy or mill rate equivalency of .5 mills, and (b) is not lower than the second preceding year as reported and certified to the Colorado State Library under 24-90-109(2), C.R.S. The reports shall be certified by the library director and the chairman of the board of trustees of the library. In counties without a county library, individual library revenues will be combined to determine maintenance of effort.

4.02 (1) additional revenues - other sources of revenue of a city or county from such revenues as derived from municipally-owned utilities, mineral leases, coal mines, trusts, etc., may be acceptable upon approval of the Colorado State Library. 4.02 (2) in-kind support - the Colorado State Library shall accept as a source of revenue in-kind support up to 20% of the net expenditures. In-kind payments shall be certified by the library director and the chairman of the board of trustees as to actual amounts of tax money represented, and shall be itemized and available for audit. Examples of in-kind contributions are: office supplies, equipment, staffing, maintenance supplies and service supplied by the local governmental unit, and reasonable rental for buildings. 4.03 Maintenance of effort - extenuating circumstances. 4.03 (1) In cases where the county is providing the legal maximum mill levy support for the library or libraries but the actual dollar amount going to the library or libraries is reduced because of a decrease in assessed valuation, the county shall remain eligible for an equalization grant provided that all other eligibility criteria are met and assuming that the mill rate remains the same.

4.03 (2) In a county where a reduction in total library revenue is part of across the board budget reductions, the county can retain its eligibility for an equalization grant if the percent reduction in total library revenue is no greater than the percent reduction overall for the county. If the library revenue is reduced by a greater percentage, then the county shall not be eligible to receive an equalization grant during the current grant year but shall be eligible subsequent years. In addition, any subsequent decrease in library revenue shall not be greater than decreases in overall county revenue for the same fiscal year. Likewise, if the county revenue increases, library revenue shall increase by at least the same percent until the revenue level is equal to the level prior to the initial reduction. 4.03 (3) In a county where mill rates are reduced to accommodate legal limits on annual percentage increases in revenue, even if the mill rate for library revenue falls below .5 mills, the county can remain eligible for an equalization grant if there is no decrease in the actual dollar amount of revenue going to libraries. 4.04 Notification. The Colorado State Library shall notify the counties of eligibility by July 31, of each year and shall, at the same time, notify Regional Library Service Systems of counties in their systems eligible to receive grants.

4.05 Process of Appeal. In cases where the eligibility status of any county government and/or public library is in question, the county government and/or the library shall have the opportunity to request a hearing with the Deputy State Librarian and, if requested, the Deputy State Librarian may refer the appeal to the State Board of Education.

4.10 County Equalization Grants: Formula.

4.10 (1) Determination of Equalization Grant Amounts. The Colorado State Library shall determine the amount of the grants according to the following formula: minimum library service budget minus (required mill rate specified in 2490-R-4.01 (3) multiplied by county assessed valuation) equals state support. When the amount allocated for county equalization grants is less than the total of the amounts for state support for each eligible county as determined by the formula calculations, then the percent of the total amount that is actually funded is applied to each county grant and each county receives the same percentage of its state support amount except as noted in 2490-R-4.10 (2) and 2490-R- 4.10 (3).

4.10 (1) (a) The minimum library service budget is established annually by the Colorado State Library.

4.10 (1) (b) Source of Assessed Valuation: State of Colorado, Annual Report of the Division of Property Taxation.

4.10 (2) No grants will be awarded for less than $250.00. If the formula calculation results in a grant or grants under $250.00, the grant amount(s) will be increased to $250.00 and the difference will be subtracted from the other grants in amounts proportional to the percentage of the total county equalization funds received. 4.10 (3) No individual grants shall be awarded for more than ten percent of the total available county equalization funds appropriated in any year. If the formula results in grants of more than ten percent of the total available funds, the excess amounts shall be added to the other grants in amounts proportional to the percentage of the total county equalization funds received.

4.20 County Planning Committee for Libraries. Each county eligible for an equalization grant shall plan for library service under one of the following options: 4.20 (1) In counties where a county library is the only library established under 24-90-107, C.R.S. or there is a county-wide regional library district established under 24-90-110, C.R.S. the board of trustees of the library district shall be the county planning committee for libraries. 4.20 (2) In counties with a county library established under 24-90-106, C.R.S. or a regional library district established under 24-90-110, C.R.S. and representing more than 50 percent of the population of the county, and one or more legally established public libraries, and the board of trustees of the county library, or the board of trustees of the library district, plus the chairman or one member of the board of trustees of each other legally established library shall be the county planning committee for libraries. 4.20 (3) In the event that neither 2490-R-4.20 (1) nor 2490-R-4.20 (2) is applicable, an ad hoc county planning committee for libraries shall be established whose membership shall be stipulated in 2490-R-4.21 (2).

4.21 Voting Membership. The voting membership of the county planning committee for libraries shall be as follows:

4.21 (1) In counties establishing a county planning committee for libraries under 2490-R-4.20 (1) and 2490-R-4.20 (2), each member of the county board of trustees, or each member of the board of trustees of the library district representing more than 50% of the population of the county, shall have one vote; and the representative of each legally-established public library shall have one vote.

4.21 (2) In counties establishing an ad hoc county planning committee for libraries under 2490-R- 4.20 (3), the committee shall consist of the following members, each having one vote: 4.21 (2) (a) A county commissioner or his/her designee, 4.21 (2) (b) The chairman or one member of each municipal or library district board of trustees within the county, 4.21 (2) (c) The superintendent of schools of each school district maintaining administrative offices within the county, or his/her designee, 4.21 (2) (d) The director of the planning and management region or his/her designee, 4.21 (2) (e) A public library member of the Regional Library Service System membership council, 4.21 (2) (f) The committee also will include the county planner or his/her designee, and the director of the council of governments or his/her designee, if these positions exist.

4.22 Role of the Regional Library Service System Director. The Regional Library Service System director shall provide consultation to the committee in developing its plans, but will not be a voting member of the committee.

4.23 Quorum. A majority of voting members and the regional library service system director or his/her designee shall constitute a quorum.

4.24 Officers. The committee shall elect a chairman, a secretary, and any other officers necessary for the transaction of business.

4.25 Meetings. Responsibility for calling the first planning meeting shall rest with one of the following: 4.25 (1) The board of trustees of the county library; or 4.25 (2) The board of trustees of any library district representing more than 50% of the population of the county; or 4.25 (3) The board of trustees of any other legally established public library in the county; or 4.25 (4) The Regional Library Service System director or his/her designee; or 4.25 (5) The county commissioner or his/her designee.

For subsequent planning meetings, the committee shall decide on the frequency of meetings, the time, and the location.

4.26 Scheduling Meetings. Planning meetings shall be scheduled at dates and times when it is possible for the regional library service system director or his/her designee to attend. 4.27 Expenses. Costs incurred for the planning meetings shall not be paid from local county equalization grant funds.

4.28 Dissolution. The ad hoc county planning committee for libraries may be dissolved upon 30 days notice to the Regional Library Service System after the plan has been submitted and accepted by the Regional Library Service System governing board, the Colorado State Library, and the State Board of Education, and when a board of trustees is designated to perform the management and control function of the plan.

4.30 Plan of Service. The plan shall be related directly to the provision of basic library service. 4.31 The plan shall include:

4.31 (1) Names of participating libraries and governmental units. 4.31 (2) A statement assuring access to free library service to all residents of the county or counties involved.

4.31 (3) Goals and purposes. The plan shall include, but is not limited to, one or more of the following goals:

4.31 (3) (a) To demonstrate a county-wide service program, 4.31 (3) (b) To establish a county-wide base for funding, 4.31 (3) (c) To improve the quality of or accessibility of the established county-wide service, if a county-wide library program exists, 4.31 (3) (d) To plan or implement library service by a group of counties. 4.31 (3) (e) To improve the quality or accessibility of services of individual public libraries providing free county-wide access.

4.31 (4) Specific program objectives related to the goals. 4.31 (5) Method and time-table for monitoring and evaluating the program. Evaluation shall be related to the stated objectives of the plan.

4.31 (6) Designation of ownership of materials and equipment purchased under the program. 4.31 (7) Proposed expenditures should be itemized to include: salaries, travel, materials, operating, equipment, other.

4.31 (8) The plan shall be signed by the chairman, one other officer of the county planning committee, and a county commissioner who shall certify that necessary funds to qualify under the grant shall be available (see 2490-R-4.02 and 4.03). 4.31 (9) The plan shall specify the fiscal agent (county commissioners, county library board, city council, etc.) to whom payment shall be made.

4.40 Plan Submission and Approval. The chairman of the county planning committee shall submit the certified plan OF service to the Regional Library Service System governing board by a date to be determined by the regional library service system director. Notices of approval, rejection, or requests for modification shall be sent by the Regional Library Service System governing board to the ad hoc county planning committee by October 31.

4.41 The plan shall be prepared and submitted on a form determined by the State Library. 4.42 The plans recommended for approval shall be submitted by the Regional Library Service System governing board to the Colorado State Library no later than November 15 for review and submission to the State Board of Education at their December meeting for final action. 4.43 Plans of service shall be reviewed as received and notices of approval, rejection, or a request for modification shall be sent to the county planning committee. (See 4.40) 4.44 Appeals Process. Appeals concerning plans shall be made in writing to the Regional Library Service System which shall act upon the appeal. In cases where the appeal remains unresolved, the county and/or public library in question shall have the opportunity to request a hearing with the Deputy State Librarian, who may refer the appeal to the State Board of Education for final resolution.

4.45 County equalization grants shall be paid by the Regional Library Service System governing boards to the specified county fiscal agents upon written notification by the Colorado State Library of the approval of the plans by the State Board of Education. Payment shall be made within 30 days of notification to systems by the Colorado State Library.

4.46 A semi-annual and annual evaluative, fiscal, and narrative report shall be submitted by the county planning committee or board of trustees if the planning committee has been dissolved according to 4.28 of these Rules to the Regional Library Service System governing board on forms provided by the Colorado State Library. A copy of each annual report shall be forwarded to the Colorado State Library by the Regional Library Service System by March 1. 4.50 Use of State Funds Allocated to Counties under the Equalization Grant. Transfer of funds may be made to public libraries established and maintained under C.R.S. Article 90 of Title 24. 4.51 Libraries serving the public but not established and maintained under C.R.S. Article 90 of Title 24, may not receive equalization grant funds but may receive services identified in the plan provided that their services are generally available to all residents of the county from which they receive funding.