Task P Five: Planning Administrative Structures

Administrative changes in the area of governance, financial management, legal services, library polices, and risk management will occur in the districting process. You should do the groundwork for these policies and procedures, even though the new board will have to finalize the changes. Some of the administrative changes that might occur are:

Name Change

In many cases, a name change will be made through the order of the county commissioners after a successful election. Any change of name should be sent to governmental agencies (such as the Internal Revenue Service, the State Library, etc.) and to major suppliers (such as book and periodical jobbers).

Board Structure

Public library districts can have five or seven members. (See Montana Code Annotated 22-1-702.) The county commission will appoint the first board. If two or more counties combine to create a library district, then the counties jointly appoint the first board. The public elects succeeding boards. You may also wish to develop a district election plan. More information about this can be found at Montana Code Annotated (MCA) 22-1-706.

Financial System

Financial systems that meet generally accepted accounting standards for local governments should be developed. Keep the procedures as simple as possible within this definition. Employ an accountant (preferably a Certified Public Accountant) to set up the new district's financial procedures. Plan to set up accounts with financial institutions. These accounts must be in accordance with the Local Government Financial Administration and Taxation laws, MCA 7-6-201 thru 7-6-213; 7-6-609 thru 7-6-1116. You may also want to investigate the possibility of placing new district funds in the state's investment pool. More information about this can be found at MCA 17-6-204.

Legal Representation

Consider how you will employ legal counsel. It is important to ask for a legal opinion when establishing new policies and procedures. Normally districts only hire attorneys on an as-needed basis. However, it is useful to find an attorney to work with throughout the districting process.

Library Policies

Develop by-laws for the board. You need policies in the areas of collection development, circulation, hours of operation, emergency procedures, and programming for adults and children. You may also need policies dealing with branch operations, use of meeting rooms and other resources, as applicable. These policies cannot be finalized until a district board is appointed. Voters or petitioners may be interested in how the new district will operate, which is where drafts of your policies can help.

Risk Management and Insurance

Consider errors or omission insurance for the district board, along with liability, theft, fire and damage insurance for the building.

Expected Administrative Changes by Type of Project

The amount of change depends upon the kind of districting project being undertaken. Here are some changes to anticipate:

1. Establishment Territory that contains no library is formed into a library district. The new district sets up its own library and provides services itself. To do: determine board structure, establish a complete bookkeeping system and establish financial accounts in accordance with MCA 7-6-609 through 7-6-616. Determine whom to employ for legal counsel, when necessary and begin drafting board by-laws and library policies.
2. Establishment/Contract Section Territory that contains no library is formed into a library district. The new district contracts with an existing library to provide services to its residents. To do: have an attorney examine the contract between the existing library and the new district and draft board by-laws.
3. Establishment/Existing Library Territory that includes one existing city or county library can be formed into a district that serves the city and surrounding territory. To do: determine board structure, establish a complete bookkeeping system, and establish financial accounts in accordance with MCA 7-6-609 through 7-6-616. Determine how you will employ legal counsel, revise board by-laws and review and modify library policies to accommodate the needs of new district customers.
4. Establishment/City Library Combination Territory that includes two or more city libraries can be formed into a district that includes untaxed territory that connects the cities together. To do: determine board structure, establish a complete bookkeeping system, and establish financial accounts in accordance with MCA 7-6-609 through 7-6-616. Determine how you will employ legal counsel, revise board by-laws and review and modify library policies to accommodate the needs of new district customers.
5. Establishment/County Library Combination Territory that includes two or more county libraries can be formed into a district. To do: determine board structure, establish a complete bookkeeping system, and establish financial accounts in accordance with MCA 7-6-609 through 7-6-616. Determine how you will employ legal counsel, revise board by-laws and review and modify library policies to accommodate the needs of new district customers.
6. Establishment/County-City Library Combination Territory that includes one or more county libraries and one or more city libraries can be formed into a district. To do: determine board structure, establish a complete bookkeeping system, and establish financial accounts in accordance with MCA 7-6-609 through 7-6-616. Determine how you will employ legal counsel, revise board by-laws and review and modify library policies to accommodate the needs of new district customers.