405:10-7-6. Disposal of assets Upon the withdrawal of a county or counties from a library system, the disposal of assets shall be as follows:
(1) Disposal formula. The withdrawing area's share of the assets acquired by the system during the service period will be equal to the ratio that the total library ad valorem tax and other local revenues derived from the withdrawing area during the service period bear to the total of such revenues received by the system during the service period. Thus,
A = Total library ad valorem tax and other local revenues received by the system during the service period
B = Total of such revenues derived from the withdrawing area during the service period
C = Net appraised value of system assets acquired during the service period less assets purchased with funds received from sources other than ad valorem tax and local revenues.
A × C = withdrawing area's share of system assets which were acquired during the service period
(2) Exception to disposal formula. In the case of assets which can be identified as deriving from gifts or grants made under special terms or conditions or for specific purposes, the Board will order disposal of such assets in a manner which will be consistent with the special terms, conditions, and purposes of the gifts or grants.
(3) Disposal of books and other informational materials. Books and other library informational materials will be physically divided in an equitable manner taking into consideration the size of the collection at the time the withdrawing area entered the system and the additions to the collection made during the period of service to the withdrawing area. Initial collections transferred to the system by the Department of Libraries at the time the system was created shall not be included in the division, but shall continue to be used for system library service. Such division shall be made by the library system and the withdrawing area and shall be negotiated in a fair and equitable manner, and any negotiated division shall be subject to approval by the Department Board. Any disposal of other assets shall not be delayed by the Board's consideration of the disposal of books and other informational materials.
(4) Application of disposal formula to equipment, vehicles, and fixed assets.
(A) The formula in (1) of this subsection shall be applied to the appraised value of furniture and equipment, vehicles, land, and buildings acquired during the service period, to determine the dollar share of these assets which is to be distributed to the withdrawing area. Alternatively, the Board may order disposal of this share by a physical division of assets or a payment in cash.
(B) Furniture, equipment, and vehicles transferred to the system by the Department of Libraries as initial grants at the time the system was created shall not be included in the distribution, but shall continue to be used for system services.
(5) Application of disposal formula to unexpended cash on hand. The formula in (1) of this subsection shall be applied to unexpended system cash on hand at the end of the service period, less any cash on hand in the system account before service was begun to the withdrawing area.