(For those of you familiar with how the non-resident fee works, please feel free to skip to the end of this discussion for this year’s calculation.)

The Library is required by law to offer Non-Resident borrowing privileges to people who live outside of the Library’s service area on an annual basis. The law stipulates that a Non-Resident must use the Library closest to their residence, so our Non-Resident borrowers all come from the area of unincorporated Palos Heights (approximately) between Ridgeland Avenue to the west, Central Avenue to the east, College Drive to the north, and 135th Street to the South. This service is to be paid for by that non-resident as calculated by one of three methods, although only two of these methods are available to us. Most of what is in this resolution is non-negotiable. The main issue here is which of these calculations the Library wishes to employee in determining the Non-Resident rate for the next year.

Option 1: Historically, the Library has opted to use the “general mathematical formula.” This formula takes our property tax revenues from the previous fiscal year, divides that by the total local population (which gives us an average tax dollar per resident value), and multiplies by the average household size (which gives us an average tax dollar per household value). The result is the average amount that was paid per household by residents for the use of the Library in the previous fiscal year.

Advantages of this method:

  • it is very simple and straightforward for both staff and patrons
  • previous nonresident card purchasers are already familiar with this method

Disadvantage of this method:

  • It isn’t necessarily the fairest method on an individual basis because to use an average value means that the nonresident isn’t paying the same amount that they would pay if they were a Palos Heights resident. If they live on a less expensive property than the average for Palos Heights, the average household amount is more than they would pay if they lived on that property within the City. If they live on a more expensive property, they would pay less for Library services than if they lived on that same property within the City.

Option 2: This option involves calculating a Non-Resident rate for each individual Non-Resident borrower using either the valuation of the property assessment (for homeowners) or a minimum of 15 percent of the monthly rent (for renters).

Advantage of this method:

  • It is fairer to each individual Non-Resident as the fee they pay is exactly what they would pay were their property located within the City. Renters and those living on lower-than-average-value properties won’t pay a disproportionately high rate and vice versa for those living on higher-value properties.

Disadvantage of this method:

  • It is more cumbersome and invasive for both staff and patrons. Staff have to make the calculation for each Non-Resident applying for a card. Patrons have to gather and present more documentation than they would otherwise, i.e. a property tax bill, and they might find sharing that information to be invasive. This might be a turnoff for current and past Non-Resident users as they are accustomed to a much simpler process that does not involve the disclosure of personal financial information.

In the past, I have recommended using Option 1 because it is simpler. This is the method that we have always used, and it is easier to continue a longstanding previous practice than to change it if there is no compelling reason for making a change. Monetarily, the difference to the Library should be close to nothing because the average amount paid using the second option should average out to be the same as the first.

The second method requires a bit more time and effort on the part of Library staff and collecting and bringing in more paperwork on the part of non-resident patrons. It is more invasive for patrons as it requires staff to look at their property tax bill. It would also require training staff to accurately make this calculation and having someone check after-the-fact that it was done correctly. These are by no means insurmountable issues. I have created a fillable spreadsheet that staff can use to make the correct calculation.

If we were to use the General Mathematical Formula, here is the calculation based on the most recent official census data:

Property tax income received in 2022:    $2,200,217.93
Local population (2020 census):               12,068
Average household size (2020 census):   2.55
Nonresident Card Fee:                              $464.91

This is a much higher fee than we have seen because we received part of FY2021 tax revenues in 2023 due to Cook County being so late with that year’s tax bills. Essentially, we received well over a year’s worth of tax revenues in 2023, whereas we received well under in 2022. I believe there would be some sticker shock among our half dozen regular nonresident payees. For this reason, I believe that this might be a good year to switch from our traditional General Mathematical Formula to the Property Tax Bill method. Next year, when tax revenues are back to normal, we can opt to continue or switch back.

Recommendation: I recommend that you approve “2024 ANNUAL RESOLUTION AUTHORIZING PUBLIC LIBRARY NON-RESIDENT CARDS” using the Property Tax Bill method. I have prepared two versions of this document so that we are prepared to sign and enact whichever method you approve.