If your municipality directly pays for any library operating costs and these costs can be documented, then you can record them under both Revenue and Expenditures on the Annual Report.
According to the DPI (and verified by the DPI staff today): "Library operating costs paid directly by the municipality may be included as income and expenditures; however, the library must be able to document the expenditure of these funds for library purposes. (For example, employee fringe benefits or library heating and electrical expenses in a shared facility may be paid directly by the municipality. If documented, these expenditures may be included.)"
Including these municipal payments is not only a way of accurately reporting the total cost of operating your library, but it will also result in increasing your library's Total Operating Expenditures, a number that is used to help calculate your library's "cost per circulation" which directly relates to both in-county and adjacent county payments.
Please let me know if you have any questions.
Peace. - Denise