(a) A public library established under this section shall provide at least the following services free of charge to the residents of the municipality or community:
(1) establish and maintain a collection of books and other materials for loaning;
(2) provide access to interlibrary loan services;
(3) provide reading or other educational programs for children; and
(4) provide reference information.
(b) A public library established under this section shall submit an annual report of its operations and the services it provides to the director of the division that has responsibility for state libraries.