Sample Budgets

Budget Parameters

In Chapter 3 we looked at the costs related to installing and maintaining a computer network in libraries. Looking at the costs separately does not provide a real picture of what the collective costs mean to the library budget. In this document I present two budget configurations to show how significant the problem of sustainability is. Looking at these scenarios illustrates why I've listed lack of funding as the number one threat to the library's network resources.

Some possible equipment and operational costs associated with using technology (fax machines, telephones, additional air conditioning needed to dissipate heat created by the computers, and others) are not included in these budgets. Those included are listed to provide a realistic sense of what the library's actual costs may be. Here are some thoughts to keep in mind as you review the budgets:

  1. The maintenance costs included assume the library must contract with commercial vendors for normal computer and network support. Maintenance costs are estimated at $100 per workstation per year. Server maintenance is estimated at $150 per year. Network equipment and printer maintenance is estimated at $100 per item per year.

  2. When pooling maintenance funds, it may be possible to reduce the total of the pool by 10-30% (not every item will be worked on every year-unless equipment is unreliable or configured poorly). The more equipment you add to the pool, the lower the actual maintenance fees per item tend to be.

  3. The maximum number of years a piece of equipment is likely to be serviceable is presented in parentheses under the Annualized Replacement Cost column. Replacement cost is simply the original cost of the equipment divided by the expected number of years it will be serviceable.

  4. While the budget figures may be shocking, they are reasonably accurate. However, in most libraries these costs will be mitigated, and Sample 3 shows the budget for a tiny library with adjustments for discounts wherever they can be acquired. Here are the mitigating factors I've included in Sample 3:

  • The cost for consumables under Supply Costs should be paid on a cost-recovery basis, so these costs have been zeroed out. Do be sure your library is recovering the full cost of wasted pages as well as those actually printed.

  • The ongoing costs for Internet connectivity are current average Texas rates. The costs do not include federal E-Rate discounts, which most libraries can expect to receive in the near term. Most libraries will qualify for a 50-90% E-Rate discount. I use 70% as an average.

  • Texas regional library system members in some areas of Texas have access to TANG technicians as a resource for maintenance. Others will find local volunteers. These will be able to provide routine maintenance of workstations and patch installations on workstations and servers, so I have zeroed out the cost for obtaining commercial technical support for these items.

  • Some libraries will seek donated computers (three years old) to replace five-year-old equipment. I've reduced the replacement cost of workstations by half. If the total for equipment replacement is still untenable, the library must seek additional grant sources or other local funding to sustain its network.

If you would like to play with the numbers for your library, the budget samples and a blank template are available in Word 97 format with the electronic version of this guide. See the reverse of the title page for the web address.

Sample 1. Tiny Library Network Configuration.

Item Description

Original Cost

Main-tenance

Elec-tricity

Annualized Replacement Cost

Total Annual Cost

Equipment

Public Workstations (6)

$ 8,400

$ 600

$ 90

$ 1680 (5)

$ 2,370

Staff Workstations (2)

2,800

200

30

560 (5)

790

Circ Workstation (1 staff; 1 public)

2,800

200

30

560 (5)

790

Automation Server

5,000

150

20

715 (7)

885

Internet Server

3,500

150

20

500 (7)

670

12-port Switch

1,400

100

5

175 (8)

280

ISDN Router

700

100

5

88 (8)

193

Network Laser Printer

2,100

100

25

525 (4)

650

Total Equipment Costs:

$26,700

$1,600

$225

$ 4,803

$6,628

Security

Security Implementation

$ 1,250

Security Audit

750

Automation Server Patch Application (one hour bi-monthly/$60 per hour)

$ 360

$ 360

Internet Server Patch Application (one hour per month/$60 per hour)

720

720

Workstations (10; one hour each per six months/$50 per hour)

1,000

1,000

Other Recurring Costs

Internet Service Provision (Access, DNS service, e-mail boxes)

1,200

1,200

Data Circuit (ISDN line)

720

720

Supply Costs

Printer Paper

1,000

1,000

Toner/Ink cartridges

4,580

4,580

Media (tape cartridges, diskettes)

150

150

Total Annual Cost

$28,700

$11,330

$225

$ 4,803

$16,358

Sample 2. Small Library Network Configuration.

Item Description

Original Cost

Main-

tenance

Elec-


tricity

Annualized Replacement Cost

Total Annual Cost

Equipment

Public Workstations (20)

$28,000

$ 600

$ 300

$ 5,600 (5)

$ 6,500

Staff Workstations (4)

5,600

400

60

1,120 (5)

1,580

Circ Workstation (2 staff; 4 public)

8,400

600

90

1,680 (5)

2,370

Automation Server

5,000

150

20

715 (7)

885

Internet Server

3,500

150

20

500 (7)

670

DNS Server

3,500

150

20

500 (7)

670

24-port Switch

1,200

100

5

150 (8)

255

12-port Switch

600

100

5

75 (8)

180

T-1 Router

2,000

150

5

250 (8)

405

Network Laser Printer (2)

4,200

200

50

1,050 (4)

1,300

Total Equipment Costs:

$62,000

$2,600

$575

$ 11,640

$14,815

Security

Security Implementation

$ 3,000

Security Audit

2,000

Automation Server Patch Application (one hour bi-monthly/$60 per hour)

$ 360

$ 360

Internet Server Patch Application (one hour per month/$60 per hour)

720

720

DNS Server Patch Application (one hour bi- monthly/$60 per hour)

360

360

Workstations (30; one hour each per six months/$50 per hour)

3,000

3,000

Other Recurring Costs

Internet Service Provision (Access, e-mail boxes)

3,600

3,600

Data Circuit (ISDN line)

3,120

3,120

Supply Costs

Printer Paper

3,000

3,000

Toner/Ink cartridges

13,740

13,740

Media (tape cartridges, diskettes)

300

300

Total Annual Cost

$67,000

$30,800

$575

$ 11,640

$43,015

Sample 3. Tiny Library Network Configuration, with Discounts.

Item Description

Original Cost

Main-


tenance

Elec-


tricity

Annualized Replacement Cost

Total Annual Cost

Equipment

Public Workstations (6)

$ 8,400

$ 0

$ 90

$ 840 (5)

$ 930

Staff Workstations (2)

2,800

0

30

280 (5)

310

Circ Workstation (1 staff; 1 public)

2,800

0

30

280 (5)

310

Automation Server

5,000

150

20

715 (7)

885

Internet Server

3,500

150

20

500 (7)

670

12-port Switch

1,400

100

5

175 (8)

280

ISDN Router

700

100

5

88 (8)

193

Network Laser Printer

2,100

100

25

525 (4)

650

Total Equipment Costs:

$26,700

$600

$225

$ 3,403

$4,228

Security

Security Implementation

$ 1,250

Security Audit

750

Automation Server Patch Application (one hour bi-monthly/$60 per hour)

$ 0

$ 0

Internet Server Patch Application (one hour per month/$60 per hour)

0

0

Workstations (10; one hour each per six months/$50 per hour)

0

0

Other Recurring Costs

Internet Service Provision (Access, DNS service, e-mail boxes)

with 70%


discount:

360

with 70%


discount:

360

Data Circuit (ISDN line)

216

216

Supply Costs

Printer Paper

0

0

Toner/Ink cartridges

0

0

Media (tape cartridges, diskettes)

150

150

Total Annual Cost

$28,700

$ 1,326

$225

$ 3,403

$4,954

 

Page last modified: March 2, 2011