AGENDA Page 1

Toronto Public Library Board Meeting No. 4: Monday, May 28, 2018, 6:00 p.m. to 7:15 p.m. Toronto Reference Library, Board Room, 789 Yonge Street, Toronto

The Chair and members gratefully acknowledge that the Toronto Public Library Board meets on the traditional territory of the Huron-Wendat, the Haudenosaunee, and Mississaugas of New Credit First Nation, and home to many diverse Indigenous peoples. Members: Ms. Sue Graham-Nutter (Chair) Ms. Dianne LeBreton Mr. Strahan McCarten (Vice Chair) Mr. Ross Parry Councillor Paul Ainslie Mr. Daniel Rotsztain Councillor Sarah Doucette Ms. Archana Shah Councillor Mary Fragedakis Ms. Eva Svec Councillor Jim Hart

Closed Meeting Requirements: If the Toronto Public Library Board wants to meet in closed session (privately), a member of the Board must make a motion to do so and give the reason why the Board has to meet privately (Public Libraries Act, R.S.O. 1990, c. P.44, s. 16.1).

1. Call to Order 2. Declarations of Conflicts of Interest 3. Approval of Agenda 4. Confirmation of April 23, 2018 City Librarian’s Performance Review Committee Meeting Minutes 5. Confirmation of April 23, 2018 City Librarian’s Performance Review Committee Closed Meeting Minutes 6. Confirmation of April 30, 2018 Toronto Public Library Board Meeting Minutes 7. Confirmation of April 30, 2018 Toronto Public Library Board Closed Meeting Minutes 8. Business Arising from the Minutes a. Extended Open Hours Pilot Project – Implementation Plan – 10 minutes October 23, 2017 Toronto Public Library Board Meeting Minutes – Resolution No. 17-165 – Verbal

AGENDA Page 2

Toronto Public Library Board Meeting No. 4: Monday, May 28, 2018, 6:00 p.m. to 7:15 p.m. Toronto Reference Library, Board Room, 789 Yonge Street, Toronto

9. Approval of Consent Agenda Items All Consent Agenda Items (*) are considered to be routine and are recommended for approval by the Chair. They may be enacted in one motion or any item may be held for discussion. *10. City Librarian’s Report 11. Communications 12. Presentations 20 minutes  Toronto Public Library Foundation - Introduction of Sarah Fulford, Chair, Toronto Public Library Foundation Board - Toronto Public Library Foundation Update, including Biblio Bash video Jennifer Jones, President, Toronto Public Library Foundation Item for Information: 13. Audit Year-End Report – December 31, 2017 – Toronto Public Library 10 minutes Board Items for Action: 14. 2017 Audited Financial Statements – Toronto Public Library Board 10 minutes *15. Naming and Sponsorship for Musical Instrument Lending Library *16. York Woods Branch Renovation – Architect Award of Contract *17. 2018-2027 Capital Budget and Plan Adjustment for St. Clair/Silverthorn Branch Project 18. 2018-2027 Capital Budget and Plan Adjustment for North York Central Library Project Items for Information: 19. TPL Board Education – Open Data – Verbal 10 minutes 20. Facilities Master Plan – Toronto Public Library Board Consultation 5 minutes *21. Intellectual Freedom Challenges – 2017 Annual Report *22. Accounts Written-off in 2017 *23. 2017 Grants *24. Operating Budget Monitoring Report – March 31, 2018 *25. Capital Budget Monitoring Report – March 31, 2018 AGENDA Page 3

Toronto Public Library Board Meeting No. 4: Monday, May 28, 2018, 6:00 p.m. to 7:15 p.m. Toronto Reference Library, Board Room, 789 Yonge Street, Toronto

*26. Board Resolutions – Status Report 27. Adjournment Attendant Care Services can be made available with some notice.

. MINUTES Page 14

Toronto Public Library Board – City Librarian’s Performance Review Committee Meeting No. 1: Monday, April 23, 2018, 12:05 p.m. – 1:20 p.m. Toronto Reference Library, Board Room, 789 Yonge Street, Toronto

Committee Members Present: Ms. Eva Svec (Committee Chair) Ms. Sue Graham-Nutter Mr. Strahan McCarten

CLPRC Call to Order 18-001 Dan Keon, Director, Human Resources and the City Librarian’s designate, called the meeting to order at 12:05 p.m.

CLPRC Election of Chair of the Committee 18-002 Dan Keon called for nominations for the Chair of the City Librarian’s Performance Review Committee.

Moved by S. McCarten: That the City Librarian’s Performance Review Committee: 1. nominates Eva Svec for Chair of the City Librarian’s Performance Review Committee. Carried.

Eva Svec agreed to stand for election.

Moved by S. McCarten: That the City Librarian’s Performance Review Committee: 1. closes nominations. Carried

Dan Keon declared Eva Svec duly elected Chair of the City Librarian’s Performance Review Committee by acclamation.

CLPRC Declarations of Conflicts of Interest 18-003 There were no Declarations of Conflicts of Interest by members of the City Librarian’s Performance Review Committee.

MINUTES Page 2

Toronto Public Library Board – City Librarian’s Performance Review Committee Meeting No. 1: Monday, April 23, 2018, 12:05 p.m. – 1:20 p.m. Toronto Reference Library, Board Room, 789 Yonge Street, Toronto

CLPRC Approval of Agenda 18-004 Moved by S. McCarten: That the City Librarian’s Performance Review Committee: 1. approves the agenda. Carried

CLPRC Communications 18-005 There were no Communications items at the April 23, 2018 City Librarian’s Performance Review Committee meeting.

CLPRC Presentations 18-006 There were no Presentations at the April 23, 2018 City Librarian’s Performance Review Committee meeting.

CLPRC Closed Meeting 18-007 At 12:10 p.m. it was: Moved by S. McCarten: That the City Librarian’s Performance Review Committee: 1. conducts a Closed meeting as the subject matter being considered (City Librarian’s 2017 and 2018 Performance Review) involves personal matters about an identifiable individual. Carried

At 1:15 p.m. the Committee resumed its meeting in public.

CLPRC Confirmation of Closed Meeting Decision 18-008 City Librarian’s 2017 and 2018 Performance Plans Moved by S. Graham-Nutter: That the City Librarian’s Performance Review Committee: 1. recommends to the Toronto Public Library Board that it approves the City Librarian’s Performance Review Committee’s confidential recommendations for the City Librarian’s 2017 and 2018 performance plans; and 2. recommends that the information concerning the City Librarian’s 2017 and 2018 performance plans not be made public as the subject matter being considered involves personal matters about an identifiable individual. Carried MINUTES Page 3

Toronto Public Library Board – City Librarian’s Performance Review Committee Meeting No. 1: Monday, April 23, 2018, 12:05 p.m. – 1:20 p.m. Toronto Reference Library, Board Room, 789 Yonge Street, Toronto

CLPRC Adjournment 18-009 Moved by S. McCarten: That the City Librarian’s Performance Committee: 1. adjourns the April 23, 2018 meeting of the City Librarian’s Performance Review Committee. Carried

The meeting ended at 1:20 p.m.

Signed: . 6

MINUTES Page 1

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

Members Present: Ms. Sue Graham-Nutter (Chair) Mr. Strahan McCarten (Vice Chair) Councillor Paul Ainslie Councillor Sarah Doucette Councillor Jim Hart Ms. Dianne LeBreton Mr. Ross Parry Mr. Daniel Rotsztain Ms. Archana Shah Ms. Eva Svec

Regrets: Councillor Mary Fragedakis

18-048 Call to Order Sue Graham-Nutter called the meeting to order at 6:05 p.m.

Ms. Graham-Nutter gratefully acknowledged that the Toronto Public Library Board was meeting on the traditional territory of the Huron-Wendat, the Haudenosaunee and Mississaugas of New Credit First Nation, and home to many diverse Indigenous peoples.

Ms. Graham-Nutter welcomed Daniel Rotsztain as a member of the Board, appointed by City of Toronto Council on March 28, 2018.

Ms. Graham-Nutter advised of the retirement of Maureen O’Reilly, President, Toronto Public Library Workers Union, Local 4948. She thanked Ms. O’Reilly for her labour leadership at Toronto Public Library, the City of Toronto, as well as at a national level. She also acknowledged Ms. O’Reilly’s contribution as a librarian for more than 30 years.

MINUTES Page 2

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

Call to Order – continued Moe Hosseini-Ara, Director, Branch Operations & Customer Experience introduced Elizabeth Malak, Area Manager, Albion, Maria S. Shchuka and York Woods Area. Ms. Malak provided a presentation regarding the history of the Albion Branch, including information concerning the programs and services in the branch and its engagement with the community.

Archana Shah, Toronto Public Library Board Liaison to Youth welcomed Christian Kin and Devonte Thomas, participants in the Youth Hub at the branch. Christian Kin spoke regarding the personal positive impact of Albion’s Youth Hub. Ms. Shah also welcomed Zara, a participant in the Poetry Saved Our Lives program. Zara performed a spoken word performance piece.

Board members thanked the youth representatives for their participation and role in improving services to youth at the Library.

Moved by R. Parry, seconded by D. LeBreton: That the Toronto Public Library Board: 1. receives the Albion Branch and Youth Programs presentations for information. Carried

18-049 Declarations of Conflicts of Interest There were no Declarations of Conflicts of Interest by members of the Library Board.

18-050 Approval of Agenda Moved by Councillor Doucette, seconded by E. Svec: That the Toronto Public Library Board approves the agenda as revised to: 1. add a presentation from Miroslav Glavić regarding Agenda Item No. 12 – Elections-Related Policies. Carried

MINUTES Page 3

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

18-051 Confirmation of February 26, 2018 Toronto Public Library Board Meeting Minutes Moved by Councillor Hart, seconded by E. Svec: That the Toronto Public Library Board: 1. confirms the Minutes of the February 26, 2018 Toronto Public Library Board meeting. Carried

Business Arising from the Minutes 18-052 There were no Business Arising from the Minutes items at the April 30, 2018 meeting.

18-053 Approval of Consent Agenda Items Moved by Councillor Ainslie, seconded by E. Svec: That the Toronto Public Library Board: 1. approves the consent agenda and all other items not held on consent. Carried

18-054 City Librarian’s Report (Received for Information by Consent) That the Toronto Public Library Board: 1. receives the City Librarian’s Report for information. Carried

18-055 Communications Moved by R. Parry, seconded by Councillor Hart: That the Toronto Public Library Board: 1. receives Communication (a) from Vickery Bowles, City Librarian, Toronto Public Library to The Honourable Charles Sousa, Minister of Finance, dated March 20, 2018, expressing support for the Ontario Library Association’s and the Federation of Ontario Public Libraries’ budget request to the Ontario provincial government, for information. 2. receives Communication (b) from Michael Shiravand to Toronto Public Library Board members, dated March 26, 2018 regarding a meeting room booking at the Fairview Branch on March 23 and 24, 2018, and requests the City Librarian to respond, incorporating the following points: MINUTES Page 4

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

Communications a) The Library learned on the evening of the first booking that the event was attracting protesters who objected to the presence of Dr. Abdolkarim Soroush. At the March 23rd event, some of the protesters entered the event, attempting to disrupt it. Police maintained order. b) The Library takes the concerns raised very seriously and assessed the situation from a legal, library and public perspective. The purpose of the event was a lecture about Iranian studies by a visiting international scholar. A staff member monitored both events and confirmed the content of the events was consistent with the purpose of the booking. It was confirmed the organizers of the event agreed to the terms and conditions as set out in the booking contract. c) Dr. Soroush is described as an Islamic scholar, intellectual and a former professor of philosophy at the University of Tehran and Imam Khomeini International University. Investigations indicated Dr. Soroush has been a visiting scholar in the United States with affiliations at Princeton, Yale and Harvard Universities and has been an invited guest speaker at the London School of Economics. Dr. Soroush was in Canada legally and has a history of speaking internationally. d) It is determined the event bookings with Dr. Soroush as a guest speaker was in compliance with the law and the Library’s Community and Event Space Rental Policy and Rules of Conduct. To deny access to booking library space for an event on the basis of the views or opinions of those who oppose Dr. Soroush contravenes the Canadian Charter of Rights and Freedoms and the principles of intellectual freedom, both cornerstones of the Library’s mission and values. e) In making this decision, the Library took the concerns expressed about these bookings very seriously and took the necessary measures to ensure the safety and security of the public and staff were not compromised. Carried

MINUTES Page 5

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

Presentations 18-056 Miroslav Glavić regarding Agenda Item No. 12 – Elections-Related Policies Mr. Glavić addressed the Board regarding his concerns that the proposed revisions to the policies are too restrictive. He suggested, for example, that candidates should be able to distribute campaign materials at events held in library spaces.

Moved by Councillor Ainslie, seconded by E. Svec: That the Toronto Public Library Board: 1. receives the presentation from Miroslav Glavić regarding Agenda Item No. 12 – Elections-Related Policies for information. Carried

Items for Action: 18-057 City-Wide Real Estate Program – Revised Authorities Moved by S. McCarten, seconded by Councillor Hart: That the Toronto Public Library Board: 1. in response to amendments to the Municipal Code: 1.1 endorses changes to the Municipal Code that authorizes the Board to negotiate and enter into agreements, provided that funds to cover the associated costs have been approved by Council in the operating budget, in the following situations: 1.1.1 for leases as landlord, provided: 1.1.1.1 the term of the lease, including renewal options, does not exceed one year; 1.1.1.2 rent reflects fair market value; 1.1.1.3 base rent for the entire term does not exceed $50,000; 1.1.2 or leases as tenant, provided: 1.1.2.1 the term of the lease, including renewal options, does not exceed one year; 1.1.2.2 base rent no greater than fair market value; 1.1.2.3 base rent for the entire term does not exceed $50,000; 1.1.3 for licenses, as licensor and licensee, provided: 1.1.3.1 the term of the license, including renewal options, does not exceed five years; MINUTES Page 6

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

City-Wide Real Estate Program – Revised Authorities – continued 1.1.3.2 where the TPL is the licensor, the agreement has a termination clause of one year's notice in favour of the TPL; 1.1.3.3 license fee for the entire term does not exceed $10,000; 1.2 approves delegation of authority for leases and licenses, provided to the Board under the Municipal Code, to the City Librarian, provided that branch leases continue to receive Board approval; 2. in response to interim changes to Council-delegated authorities to the Board: 2.1 endorses Council’s revised delegation of authority to the Board, for the period January 1 to December 31, 2018, for leases of retail and commercial space where TPL is the landlord, provided: 2.1.1 the term of the lease, including renewal options, does not exceed four years; 2.1.2 base rent is negotiated in the range of market value, except for non-profit organizations; and 2.1.3 base rent for the entire term does not exceed $250,000; 2.2 approves delegation of authority for leases, delegated to the Board by Council, to the City Librarian until Council withdraws or amends its delegation to the Board; 3. approve delegation of authority to the City Librarian to seek City approval for leases and licenses that are beyond the authority of the Board, provided that branch leases continue to receive Board approval; 4. approves delegation of authority to the City Librarian to enter into and seek City approval for intra-city real estate transactions. Carried

18-058 Data Quality Management – Award of Contract Alex Hocevar, Director, Digital Services & Emerging Technologies and EY Park, Manager, Information Management & CRM outlined the Data Quality Management Application that will assist in managing Data Governance workflows and will automate the standardization and cleansing of Data from across the organization. After the award of contract, next steps include development of a project plan, and continuation of enhancements to the Library’s Data management capabilities.

MINUTES Page 7

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

Data Quality Management – Award of Contract – continued Moved by A. Shah, seconded by E. Svec: That the Toronto Public Library Board: 1. awards a contract for a Data Quality Management application to Ataccama Inc. for a total five-year commitment value of up to $956,520, excluding Harmonized Sales Tax (HST), comprised of: a. $469,960 of capital costs; and b. $486,560 in operating costs. Carried

18-059 Elections-Related Policies Moved by S. McCarten, seconded by E. Svec: That the Toronto Public Library Board: 1. rescinds the Municipal Elections Campaign Policy, 2010 (Attachment 1); 2. adopts the Use of Library Resources during an Election Policy (Attachment 2); and 3. adopts the revised Political Activity Policy (Attachment 3). Carried

18-060 2018-2027 Capital Budget and Plan Adjustments and Commitment of Funds for Bayview-Bessarion Branch Capital Project Moved by Councillor Ainslie, seconded by Councillor Doucette: That the Toronto Public Library Board: 1. requests Council approval for the following budget adjustments: a. increase the project cost of the Bayview-Bessarion Branch capital project by $2.700 million, from $12.622 million to $15.322 million, with 2021 cash flow increasing from $2.002 million to $4.702 million funded by $1.539 million from the Development Charges reserve fund (XR2115) and $1.161 million from debt originally planned for Multi-Branch State of Good Repair Program; and b. decrease the project cost of the Multi-Branch State of Good Repair program (LIB907955) by $1.161 million gross and debt with 2021 cash flow decreasing from $5.251 million to $4.090 million; 2. approves the commitment of funds for TPL’s portion of the construction award for the Bayview-Bessarion Branch capital project, estimated at $14.000 million, subject to Council approval of the award of tender for the total shared-use Bessarion facility project. Carried MINUTES Page 8

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

18-061 2018-2027 Capital Budget and Plan Adjustments for Wychwood Branch Capital Project Moved by Councillor Doucette, seconded by D. Rotsztain: That the Toronto Public Library Board: 1. endorses the following adjustments to TPL’s 2018-2027 capital budget and plan with no net impact on annual debt levels: a. increase the cost of the Wychwood Branch capital project by $5.663 million, from $10.133 million to $15.796 million, funded by $4.509 million from the development charges reserve fund (XR2115), $0.800 million operating savings from branch closure and $0.354 million from debt originally planned for the Multi- Branch State of Good Repair program; and b. decrease the project cost of the Multi-Branch State of Good Repair program in 2020 by $0.354 million gross and debt from $4.027 million to $3.673 million; and 2. authorizes staff to forward the capital budget adjustments to the City for approval. Carried

18-062 Steeles Branch – Closure for Renovation (Approved by Consent) That the Toronto Public Library Board: 1. approves the closure of the Steeles Branch for approximately six (6) months for expansion and renovation. Carried

18-063 Open Data Policy – Revisions (Approved by Consent) That the Toronto Public Library Board: 1. approves the revised Open Data Policy in Attachment 1. Carried

Items for Information: 18-064 2017 Annual Performance Measures and Benchmarking Moved by D. LeBreton, seconded by S. McCarten: That the Toronto Public Library Board: 1. receives the 2017 Annual Performance Measures and Benchmarking for information. Carried

MINUTES Page 9

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

18-065 Strategic Plan 2016-2019: Accountability Framework and 2017 Results Copies of Attachment 2 of the Strategic Plan 2016-2019: Accountability Framework and 2017 Results report were distributed. Elizabeth Glass, Director, Policy, Planning & Performance Management reviewed the Strategic Plan Accountability Framework’s Dashboard Visualization of results and progress against the Strategic Plan’s six priorities. Details regarding influencing factors on the 2017 results, including a change in methodology in how virtual visits are counted, resulting in a decrease of overall virtual visits and the closure of the North York Central Library that normally accounts for 8.7% of total visits were provided to the Board.

Moved by A. Shah, seconded by D. LeBreton: That the Toronto Public Library Board: 1. receives the Strategic Plan 2016-2019: Accountability Framework and 2017 Results for information. Carried

18-066 Operating Budget Monitoring Report – December 31, 2017 Moved by R. Parry, seconded by S. McCarten: That the Toronto Public Library Board: 1. receives the Operating Budget Monitoring Report – December 31, 2017 for information. Carried

18-067 Capital Budget Monitoring Report – December 31, 2017 Moved by Councillor Ainslie, seconded by A. Shah: That the Toronto Public Library Board: 1. receives the Capital Budget Monitoring Report – December 31, 2017 for information. Carried

18-068 Annual Statistical Report to the Office of the Information and Privacy Commissioner of Ontario (Received for Information by Consent) That the Toronto Public Library Board: 1. receives the Annual Statistical Report to the Office of the Information and Privacy Commissioner of Ontario for information. Carried

MINUTES Page 10

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

18-069 Extended Authority – Award of Tender for Steeles Branch (Received for Information by Consent) That the Toronto Public Library Board: 1. receives the Extended Authority – Award of Tender for Steeles Branch for information. Carried

18-070 Board Resolutions – Status Report (Received for Information by Consent) That the Toronto Public Library Board: 1. receives the Board Resolutions – Status Report for information. Carried

18-071 Closed Meeting At 8:00 p.m., it was: Moved by R. Parry, seconded by A. Shah: That the Toronto Public Library Board: 1. conducts a Closed meeting as the subject matter being considered (City Librarian’s 2017 and 2018 Performance Review) involves personal matters concerning an identifiable individual. Carried

At 8:30 p.m. the Board resumed its meeting in public.

18-072 Motion to Extend the Meeting Moved by D. LeBreton, seconded by A. Shah: That the Toronto Public Library Board: 1. extends the meeting until the completion of the agenda. Carried

MINUTES Page 11

Toronto Public Library Board Meeting No. 3: Monday, April 30, 2018, from 6:05 p.m. to 8:35 p.m. Albion Branch, Auditorium, 1515 Albion Road, Toronto

Adoption of Closed Meeting Action: 18-073 City Librarian’s Performance Review Committee: City Librarian’s 2017 and 2018 Performance Review Moved by D. Rotsztain, seconded by D. LeBreton: That the Toronto Public Library Board: 1. approves the City Librarian’s Performance Review Committee’s confidential recommendations for the City Librarian’s 2017 and 2018 performance review; and 2. recommends that the information concerning the City Librarian’s 2017 and 2018 performance review not be made public as the subject matter being considered involves personal matters about an identifiable individual. Carried

18-074 Adjournment Moved by S. McCarten, seconded by E. Svec: That the Toronto Public Library Board: 1. adjourns the April 30, 2018 Toronto Public Library Board meeting. Carried

The meeting ended at 8:35 p.m.

Signed: City Librarian's Report for May 2018 10.

Below is my report for the May 2018 Toronto Public Library (TPL) Board meeting, summarizing key

activities in support of the priorities outlined in our strategic plan. This report covers items that are not part of the Board agenda package. Advancing Our Digital Platforms

TPL Email Communications Get Easier

TPL customers can now more easily sign up for and select the communications that they want to receive by going to their account notifications page on the website, or by asking staff at library branches, as we begin to broadly promote email as a preferred communications channel. Customers who choose to receive communications through email will automatically get due date reminders, helping them to return their library materials on time and avoid late fines. Future plans for the library’s email communications program include offering timely, relevant and targeted communications to our customers to improve service delivery and customer satisfaction.

Breaking Down Barriers to Access, Driving Inclusion

Bookmobile Visits Family Shelters

TPL's Community Outreach and Engagement team is supporting select branches in revitalizing their relationships with family shelters this year. In mid-April, Bookmobile and branch staff teamed up to reach an underserved population by visiting family shelters at the Lido Motel and Humewood House for the first of a series of six monthly visits to each location. Having the bookmobile and a staff member from a local library branch visit the shelter gives families the opportunity to learn about library services and enjoy literacy-based programming. After the six-month initiative, branches will sustain their relationships with the shelters through ongoing outreach and by welcoming families into the library branch. The initial shelter visits yielded 23 card registrations, and families and shelter staff were very excited to visit the bookmobile and learn about recommended children's books and songs. The kids are already anxiously awaiting the next visit, and are excited by the prospect of outdoor storytimes and activities throughout the summer.

City Librarian’s Report – May 28, 2018 1 MAP Program Offers Free Inside Out Passes in NIAs

As part of the Sun Life Financial Museum + Arts Pass Program (MAP), customers in Neighbourhood Improvement Areas of the city will be able to sign out Inside Out LGBT Film Festival passes at 10 TPL branches on two Saturdays, May 12 and 19. Each pass allows a customer two tickets to film screenings at the festival, which runs from May 24-June 3. Passes will be available at Albert Campbell, Black Creek, Cedarbrae, Downsview, Evelyn Gregory, Flemingdon Park, Jane/Dundas, Northern Elms, Parkdale and Parliament Street branches.

Newcomers Learn About TPL Resources

In early April, TPL participated in the spring Newcomers Canada Fair at the Metro Toronto Convention Centre. The TPL team connected with over 370 recent newcomers, some of whom had arrived in Canada no more than two days prior to the fair. Newcomers learned about employment and volunteering opportunities at TPL, online resources, hotspot lending, MAP passes, Library Settlement Partnerships and more. More than 100 registered on the spot for library cards. Thanks to TPL Foundation and the Doris Anderson Fund for enabling staff attendance at the fair.

TPL staff introduced newcomers to library resources at a recent Newcomer Canada Fair at the Toronto Convention Centre.

City Librarian’s Report – May 28, 2018 2 Expanding Access to Technology and Training

TPL to Showcase Digital and Tech Resources on Inaugural Digital Literacy Day

On May 31, TPL will join the City of Toronto and partners in the academic, arts, corporate and technology communities to celebrate the inaugural Digital Literacy Day by hosting a kick-off media event at the Toronto Reference Library and offering programs at branches across the city that showcase our digital and technology resources and staff expertise. Digital Literacy Day [PDF] was approved at the City’s Economic Development Committee last September and made possible through a motion last May by innovation advocate and City Councillor Michelle Holland. Digital Literacy Day will showcase the digital and technology resources available across the city and the educational, entrepreneurial, artistic and social opportunities that they enable. At branch programs and online with #DLDayTO, we will highlight TPL's role in providing free, equitable access to all kinds of technologies, as well as the digital literacy supports and resources needed to use them.

Borrow and Bring Home an Arduino Kit

TPL customers can now borrow and bring home Arduino kits from their nearest Digital Innovation Hub (DIH). An Arduino is an open-source microcontroller – a small, simple, programmable computer on a single integrated circuit. It is designed specifically for beginners who are new to coding and electronics. Each kit comes with an instructional project booklet and includes everything you need to build and code interactive projects using LED lights, motors and sensors. Through TPL's Staff Innovation Program, Fort York branch Digital Design Technician James Topping and a team of TPL staffers proposed and led the development of the Arduino lending kits, the first piece of equipment loaned out from the DIHs. The project will be reviewed at the end of 2018 and may pave the way for additional equipment lending from the DIHs.

Establishing TPL as Toronto’s Centre for Continuous and Self-Directed Learning

TPL Program Helps Seniors Identify and Prevent Elder Abuse

An Ontario Seniors Community Grant enabled TPL to offer a program series on elder abuse at nine branches this past fall and winter. Topics included elder abuse and substance abuse; predatory marriages and inheritance theft; home takeovers; elder abuse in immigrant communities; and powers of attorney abuse. Seniors learned what constitutes elder abuse, preventative strategies and resources, and supports to combat abuse.

City Librarian’s Report – May 28, 2018 3 Celebrating Bike Month at TPL

TPL is partnering with Cycle Toronto to present a series of free cycling workshops during Bike Month (May 28-June 30). Workshops will cover basic safe cycling, laws that apply to both cyclists and drivers, basic bike maintenance and more. Check out Celebrate Bike Month 2018 on our What’s On at the Library blog for more about Bike Month celebrations in Toronto. Cycle Toronto is a not-for-profit organization that works to make Toronto a healthy, safe and vibrant cycling city for all.

Children Learn STEM Skills through Fun Activities

TPL partnered with Visions of Science Network for Learning (VOSNL) to host STEM programs at 14 branches for children in grades 3 to 8 from low-income and marginalized communities. Almost 200 children attended these programs between September 2017 and April 2018, learning more about STEM and TPL resources, and registering for library cards. Children had fun working together to develop innovative solutions through a variety of activities.

Kids at Flemingdon Park Branch worked with Camlin Vinayagamoorthy from VOSNL to create structures to protect eggs – which they then dropped from a height!

City Librarian’s Report – May 28, 2018 4 Creating Community Connections through Cultural Experiences

TPL at Festival of Trees Book Awards

Once again this year, TPL was at Harbourfront promoting library resources for children and teens during all three days of the Festival of Trees (May 15, 16, 17), the largest literary event for young readers in Canada. Youth services staff handed out copies of Young Voices magazine and the newly minted 2018 issue of The List, the library's top book picks for youth readers. Children's services staff promoted English and French summer programs. The innovation services team brought along a 3D printer and other cool tech and talked to children and teachers about our Digital Innovation Hubs and Pop-Up Learning Labs. The Festival of Trees is the award celebration for the Forest of Reading series of awards presented annually by the Ontario Library Association.

"Bad Guys" Author Thrills Kids with Visit to Toronto Reference Library

Over 150 school-aged kids and parents packed Toronto Reference Library on April 22 to meet Australian author Aaron Blabey, creator of the best-selling Bad Guys series. Kids got the chance to listen to Aaron’s hilarious reading of the first book in the series, test out photo booth props, see a live drawing demo, ask Blabey questions and have their books signed. Special thanks to our partners Scholastic and Page & Panel.

City Librarian’s Report – May 28, 2018 5 "The Photography Speaks for Itself, but the Library Is Amplifying My Voice"

As part of the Scotiabank Contact Photography Festival in May, the Toronto Reference Library (TRL) Arts Department is hosting an exhibit, Reality, by photographer and disability activist Allan Cullen. Cullen uses the Digital Innovation Hub at TRL to produce his work. He values the space, equipment and staff expertise, plus the chance to meet and exchange ideas with other members of the public. His show explores his own lived reality and the intersection of homelessness, poverty and disability, documenting current urban social issues facing men struggling with a variety of physical and mental challenges.

(l-r) TRL Arts Department Senior Branch head Bill Vrantsidis interviews Allan Cullen at the opening of Cullen's photography exhibit.

Indigenous History Month Celebrations at the Library

June is National Indigenous History Month and the library is celebrating with a series of programs that include Métis stories, puppet shows, film screenings and more. The library offers indigenous programs for all ages year-round, as well as books, movies, magazines, music and more. TPL will also be on hand for the Native Canadian Centre of Toronto's June 27 National Indigenous History Month event at Yonge-Dundas Square.

Great Reads for Youth Featured in 2018 Issue of "The List"

The second edition of The List: Great Reads for Youth launched at the beginning of May, featuring 100 diverse book recommendations curated by TPL youth literature experts, and reviews by youth. A print version, featuring 50 of the books, is available in all TPL branches. The full list is available online at tpl.ca/thelist.

City Librarian’s Report – May 28, 2018 6 Doors Open Toronto Comes to Toronto Reference Library

On May 26, Toronto Reference Library hosted seven guided tours during Doors Open Toronto (May 26-27) the annual celebration of the city's most architecturally, historically, culturally and socially significant buildings. Tours included access to spaces not generally open to the public, including an open house in the Preservation and Digitization Department where participants learned about our role in digitization, conservation and bookbinding. A partnership with Human Rights Watch Film Festival saw film screenings in the Hinton Learning Centre throughout the day.

TPL Supports Library Rebuilding Project in Jaffna, Sri Lanka

TPL and the City of Toronto have joined forces to support a library in the city of Jaffna, Sri Lanka. Jaffna’s library was destroyed in the 1980s and has been gradually rebuilt, but is still in great need of Tamil books. Mayor John Tory, City Councillor Neethan Shan and City Librarian Vickery Bowles were on-hand at Malvern branch for a press conference on April 20 that featured a book exchange between Jaffna's library and TPL, as well as an announcement of an upcoming initiative to raise awareness of TPL among Toronto's Tamil community.

Transforming for 21st Century Service Excellence

Creating a Better Library Experience

In May, TPL launched the public phase of a rebranding project that began in August 2017 with consultations that sought input from staff, external contacts, partners and the TPL Board. Over the next few months, the TPL Experience 360 project will explore ideas for enhancing and modernizing the library’s brand and visual identity in today’s omnichannel world and to better reflect library service today and in the future. We’ll be seeking input from customers both online and in branches to find out how we can make their customer experience better. In addition to the Experience 360 website, promotional postcards and idea books where customers can record their thoughts and ideas will be available at all 100 TPL branches.

City Librarian’s Report – May 28, 2018 7 STAFF REPORT 13. INFORMATION ONLY

Audit Year-End Report – December 31, 2017 – Toronto Public Library Board #1 Date: May 28, 2018

To: Toronto Public Library Board From: City Librarian 3.

SUMMARY

As part of their audit function, the external auditors, PricewaterhouseCoopers LLP (PwC), is required to produce a year-end report to the Toronto Public Library Board. The attached report from PwC summarizes the results of their audit of the 2017 financial statements for Toronto Public Library (TPL).

FINANCIAL IMPACT

PwC’s fee for the 2017 audit is $25,000, inclusive of expenses and exclusive of Harmonized Sales Tax (2016 – $25,000). The amount was charged against the 2017 operating budget.

The Director, Finance & Treasurer has reviewed this financial impact statement and is in agreement with it.

ISSUE BACKGROUND

At the Board meeting of November 20, 2017, PwC’s report on the Audit Plan for the Year Ending December 31, 2017, which outlined their approach to the audit, was received for information. This is the third year of a five-year audit contract that the City has negotiated. The fee will remain unchanged for the duration of the contract.

As part of the annual audit, PwC is required to provide a year-end report to the Library Board upon completion of the audit.

COMMENTS

Attached is PwC’s 2017 year-end report to the Board for the audit of the December 31, 2017 financial statements. PwC’s report includes: status of the audit; significant audit risks; unadjusted and adjusted items; internal control recommendations, if any; and other required communications.

Audit Year-End Report – December 31, 2017 – Toronto Public Library Board 1 PwC proposes to issue an unqualified report when four outstanding matters are cleared: update on legal confirmations; receipt of a signed management representation letter as of the May 28 Board meeting date; subsequent events procedures; and Board approval of the draft financial statements.

In the Internal Control Recommendations on page 4 of Attachment 1, it is noted there are no significant internal control recommendations to report.

A representative from PwC will be in attendance at the Board meeting and as part of their audit procedures, PwC will reconfirm that the Board is not aware of any known, suspected or alleged incidents of fraud or illegal acts.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENTS

Attachment 1: Toronto Public Library Board – 2017 Year-End Report to the Board

Audit Year-End Report – December 31, 2017 – Toronto Public Library Board 2 ,pwc.com/ca Attachment 1

I Toronto Public Library Board

2017 year-end report to the Board

Prepared as of May 9,2018

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Toronto PubIJc Library Board 2017 Year-end report to the Board

Communications to the Board

— cy iiiullersj’or discussioii — Coin menis Status of the audit PricewaterhouseCoopers LLP (PwC or we) have substantially completed our audit of the financial statements (the financial statements).

Significant outstanding items at time of mailing include the following:

• update on legal confirmations;

• receipt of signed management representation letter;

• subsequent events procedures; and

• approval of the financial statements by the Board. Significant accounting, auditing and reporting matters discussed with management Risk of material misstatement due To address the risk of management override of controls, and as part to management override of our fraud procedures, we performed the following: (significant risk) • obtained an understanding of the entity’s financial reporting processes and the controls over major business processes; Accounting regulatory authorities require that the risk of material • identified risk criteria specific to the entity to scope in journal misstatement due to management entries for testtng; override of controls be considered a • inquired of individuals involved in the financial reporting significant risk on every audit process about inappropriate or unusual activity relating to the engagement. processing ofjournal entries and other adjustments; and • incorporated an element of unpredictability into the current year audit procedures.

We performed testing over a selection ofjournal entries for appropriateness and authorization. As a result of this testing, we did not note any matters that require your attention.

In addition, for the unpredictable procedure we performed testing over existence of employees in local library branches. There were no

— significantmatterstobringtoyourattenfion. - —- Risk of fraud in revenue In order to address this risk, we performed the following procedures:

recognition . (significant risk) • confirmed all revenues received and receivable with the Cityof Toronto;

Auditing standards assume a rebuttable • obtained confirmations from the Province of Ontario for presumption, that there is a significant significant funding grants; and

risk of fraud in revenue recognition in all . • agreed grants received from the Toronto businesses. Public Library Foundation (the Foundation) to the records of the Foundation.

We did not note any matters to bring to your attention.

PwC 3 TorontoPublicLibraryBoard 2017Year-endreportto the Board

key znallcrsjbr chsctssszon Conznzcnls Fraud and illegal acts No fraud involving senior management, or employees with a significant role in internal control or that would cause a material misstatement of the financial statements and no illegal acts came to our attention as a result of our audit procedures.

We wish to reconfirm that the Board is not aware of any known, suspected or alleged incidents of fraud or illegal acts not previously discussed with us. Summary of unadjusted and Final materiality’ level determined for the year ended December 31, adjusted items 2017 was $6,180,000 (previously communicated a materiality level of $6,140,000) as a result of actual results being higher than the initial estimate.

As a result of our testing, we identified an understatement of both accounts receivable from City of Toronto and accounts payable to City of Toronto of $7,932,954 due to the offsetting of financial assets and financial liabilities. Of this amount, $6,016,570 relates to unspent capital advances and other capital project funding and was adjusted in the financial statements. The remaining $1,916,384 relates to operating amounts and has not been adjusted in the financial statements. Please refer to Appendix C for details.

As a result of our audit, we conclude the above unadjusted items are immaterial to the financial statements taken as a whole. Internal control recommendations We have no significant internal control recommendations to report. Subsequent events No subsequent events which would impact the financial statements other than those disclosed have come to our attention. We would like to reconfirm that the Board is not aware of any other subsequent events that might affect the financial statements. Significant difficulties or We have no significant difficulties or disagreements during the course disagreements that occurred of the audit. during the audit Significant related party PwC reviewed related party’transactions conducted in the normal transactions course of operations related to the transfer of grants or other funding from the Foundation or the City of Toronto to the Board and the allocation of certain shared costs. No other non-routine transactions were noted.

The matters raised in this and other reports that willflow from the audit are only those that have come to our attention arising from or relevant to our audit that we believe need to be brought to your attention. They are not a comprehensive record of all the matters arising and, in particular, we cannot be held responsible for reporting all risks in your business or all internal control weaknesses, Comments and conclusions should only be taken in context of the financial statements as a whole, as we do not mean to express an opinion on any individual item or accounting estimate. This report has been prepared solely for your use. Itwas not prepared for, and is not intended for, any other purpose. No other person or entity shall place any reliance upon the accuracy or completeness of statements made herein. PwC does not assume responsibility to any third party, and, in no event, shall PwC have any liabilityfor damages, costs or losses suffered by reason of any reliance upon the contents of this report by any person or entity other than you.

PwC 4 Toronto Public Library Beard 2017 Year-end report to the Board

Appendix A: Draft auditor’s report

See Final Financial Statements —

December 31, 2017

Report No. 14

Attachment 1

PwC 5 Toronto Public Library Board 2017 Year-end report to the Board

Appendix B: Draft management representation letter

PwC 6 TORONTO LIBRARYPUBLIC

May 28, 2018

PricewaterhouseCoopers LLP PwC Tower iS York Street, Suite 2600 Toronto ON MJ 082

We are providing this letter in connection with your audit of the financiat statements of Toronto Public Library Board (The Board) as at December 31, 2017 and for the year then ended for the purpose of expressing an opinion as to whether such financial statements present fairly, in all material respects, the financial position, results of operations, changes in net debt and cash flows of The Board in accordance with Canadian public sector accounting standards. Management’s responsibilities We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated December i8, 2015. In particular, we confirm to you that: • we are responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards; • we are responsible for designing, implementing and maintaining an effective system of internal control over financial reporting to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. In this regard, ‘e are responsible for establishing policies and procedures that pertain to the maintenance of accounting systems and records, the authorization of receipts and disbursements, the safeguarding of assets and for reporting financial information; • we have provided you with all relevant information and access, as agreed in the terms of the audit engagement; and • alt transactions have been recorded in the accounting records and are reflected in the financial statements.

We confirm the following representations: Preparation of financial statements The financial statements include all disclosures necessary for fair presentation in accordance with Canadian public sector accounting standards and disclosures otherwise required to be included therein by the laws and regulations to which The Board is subject.

We have appropriately reconciled our books and records (e.g. general ledger accounts) underlying the financial statements to their related supporting information (e.g. sub ledger or third party data). All related reconciling items considered to be material were identified and included on the reconciliations and were appropriately adjusted in the financial statements. There were no material unreconciled differences or material general ledger suspense account items that should have been adjusted or reclassified to another account balance. There were no material general ledger suspense account items written off to a balance sheet account, which should have been written off to a profit and loss account and ce versa.

7 Accounting policies We confirm that we have reviewed The Board’s accounting policies and, having regard to the possible alternative policies, our selection and application of accounting policies and estimation techniques used for the preparation and presentation of the financial statements is appropriate in The Board’s particular circumstances to present fairly in all material respects its financial position, results of operations, changes in net debt and cash flows in accordance with Canadian public sector accounting standards. Internal controls over fmancial reporting We have designed disclosure controls and procedures to ensure material information relating to The Board is made known to us by others.

We have designed internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with Canadian public sector accounting standards.

We have disclosed to you all deficiencies in the design or operation of disclosure controls and procedures and internal control over financial reporting that we are aware. Minutes MI matters requiring disclosure to or approval of the Board have been brought before them at appropriate meetings and are reflected in the minutes. Completeness of transactions All contractual arrangements entered into by The Board with third parties have been properly reflected in the accounting records or/and, where material (or potentially material) to the financial statements, have been disclosed to you. We have complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance. There are no side agreements or other arrangements (either written or oral) undisclosed to you. Fraud We have disclosedto you:

• the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud;

• all information in relation to fraud or suspected fraud of which we are aware affecting The Board involving management, employees who have significant roles in internal control or others where the fraud could have a material effect on the financial statements; and

• all information in relation to any allegations of fraud, or suspected fraud, affecting The Board’s financial statements, communicated by employees, former employees, analysts, regulators or others. Disclosure of information Wehave providedyou with:

• accessto all information ofwhichwe are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters including: a contracts and related data; o information regarding significanttransactions and arrangements that are outside the normal course ofbusiness;

o minutes ofthe meetings ofthe board and committeesthe board. The most recent meetings held were May 28, 2018.

8 • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.

We have no knowledge of any allegations of fraud or suspected fraud affecting The Board received in communications from employees, former employees, analysts, regulators, short sellers, or others. Compliance with laws and regulations We have disclosed to you all aspects of laws, regulations and contractual agreements that may affect the financial statements, including actual or suspected non-compliance with laws and regulations whose effects should be considered when preparing floancial statements.

We are not aware of any illegal or possibly illegal acts committed by The Board’s directors, officers or employees acting on The Board’s behalf. Accounting estimates and fair value measurements Significant assumptions used by The Board in making accounting estimates, including fair value accounting estimates, are reasonable.

For recorded or disclosed amounts in the financial statements that incorporate fair value measurements, we confirm that: • the measurement methods are appropriate and consistently applied; • the significant assumptions used in determining fair value measurements represent our best estimates, are reasonable and have been consistently applied; • no subsequent event requires adjustment to the accounting estimates and disclosures included in the financial statements; and • the significant assumptions used in determining fair value measurements are consistent with The Board’s planned courses of action. We have no plans or intentions that have not been disclosed to you, which may materially affect the recorded or disclosed fair values of assets or liabilities.

Significant estimates and measurement uncertainties known to management that are required to be disclosed in accordance with CPA Canada Public Sector Accounting Handbook Section PS 2130, Measurement Uncertainty, have been appropriately disclosed. Related parties We confirm that we have disclosed to you the identity of The Board’s related parties as defined by CPA Canada Public Sector Accounting Handbook Section 2200, Related Party Disclosures, and all the related party relationships and transactions.

The identity of, relationship, balances and transactions with related parties have been properly recorded and adequately disclosed in the financial statements, as required by CPA Canada Public Sector Accounting Handbook Section 2200, Related Party Disclosures.

The list of related parties attached to this letter as Appendix A accurately and completely describes The Board’s related parties and the relationships with such parties. Going concern We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements (e.g. to dispose of the business or to cease operations).

9 Assets and liabilities We have satisfactory tile or control over all assets. All liens or encumbrances on The Board’s assets and assets pledged as collateral, to the extent material, have been disclosed in the financial statements.

We have recorded or disclosed, as appropriate, all liabilities, in accordance with Caoadian public sector accounting standards. All liabilities and contingencies, including those associated with guarantees, whether written or oral, under which The Board is contingenlv liable in accordance with the CPA Canada Public Sector Accounting Handbook Section PS 3300, Contingent Liabilities, have been disclosed to you and are appropriately reflected in the financial statements. Litigation and claims All known actual or possible litigation and claims, which existed at the statement of financial position date or exist now, have been disclosed to you and accounted for and disclosed in accordance with Canadian public sector accounting standards, whether or not they have been discussed with legal counsel. Misstatements detected during the audit Certain representations in this letter are described as being limited to those matters that are material. Items are also considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.

We confirm that the financial statements are free of material misstatements, including omissions.

There is one adjusted misstatements identified during your audit, which is an understatement of both accounts receivable from City of Toronto and accounts payable to City of Toronto in relation to capital advances and other capital project funding of S6,o16,57o due to offsetting of financial assets and financial liabilities. Adjusted item is summarized in the accompanying schedule (Appendix B).

We confirm there is one unadjusted misstatement identified during your audit which is an understatement of both accounts receivable from City of Toronto and accounts payable to City of Toronto in relation to operating amounts of $1,196,384 due to offsetting of financial assets and financial liabilities. The effect of the uncorrected misstatement in the financial statement is summarized in the accompanying schedule (Appendix B). Events after balance sheet date We have identified all events that occurred between the statement of financial position date and the date of this letter that may require adjustment of, or disclosure in, the financial statements, and have effected such adjustment or disclosure. Cash and banks The books and records properly reflect and record all transactions affecting cash funds, bank accounts and bank indebtedness of The Board.

All cash ba]ances are under the control of The Board, free from assignment or other charges, and unrestricted as to use, except as disclosed to you.

The amount shown for cash on hand or in bank accounts excludes trust or other amounts, which are not the property of The Board.

Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances, line of credit, or similar arrangements have been properly disclosed.

10 Mi cash and bank accounts and all other properties and assets of The Board are included in the financial statements as at December 31, 2017. Accounts receivable MI amounts receivable by The Board were recorded in the books and records.

Receivables recorded in the financial statements, represent bona fide claims against debtors for sales or other charges arising on or before the balance sheet date and are not subject to discount except for normal cash discounts.

Amounts receivable amounted to $21,378,971 and are considered to be fully collectible.

Mi receivables were free from hypothecation or assignment as security for advances to The Board, except as hereunder stated.

The Board has disclosed to us all transfers of receivables (including securitizations) that have occurred during the year.

Receivables, other than transfers receivable accounted for in accordance with the CPA Canada Public Sector Accounting Handbook Section PS 3410, Government transfers and taxes receivable accounting for in accordance with CPA Canada Public Sector Accounting Handbook Section PS 3510, Tax Revenue, recorded in the financial statements, represent bona fide claims against debtors for sales or other charges arising on or before the balance sheet date and are not subject to discount except for normal cash discounts. Tangible capital assets Ml charges to capital asset accounts represented the actual cost of additions to tangible capital assets.

No significant capital asset additions were charged to repairs and maintenance or other expense accounts.

Book values of capital assets sold, destroyed, abandoned or otherwise disposed of have been eliminated from the accounts.

Capital assets owned by The Board are being depreciated on a systematic basis over their estimated useful lives, and the provision for depreciation was calculated on a basis consistent with that of the previous date. During the year, we reviewed the appropriateness of the depreciation policy and estimate of useful lives for tangible capital assets, taking into account all pertinent factors. Any changes in our assessment from the prior year have been adequately disclosed and reflected in the financial statements.

MI lease agreements covering property leased by or from The Board have been disclosed to you and classified in accordance with CPA Canada Public Sector Accounting liandbook Guideline PSG-02, Leased Tangible Capita/Assets.

Assets held under capital leases are being amortized on a systematic basis over the period of expected use.

There have been no events, conditions or changes in circumstances that indicate that a tangible capital asset no longer contributes to The Board’s ability to provide goods and services or that the value of future economic benefits associated with the tangible capital asset is less than its net book value. We believe that the carrying amount of The Board’s long-lived tangible capital assets is fully recoverable in accordance with CPA Canada Public Sector Accounting Handbook PS 3150.

11 Long-term debt All borrowings and financial obligations of The Board of which we are aware are included in the financial statements as at December 31, 2017, as appropriate. We have fully disclosed to you all borrowing arrangements of which we are aware. Deferred revenue All material amounts of deferred revenue were appropriately recorded in the books and records. Retirement benefits, post-employment benefits, compensated absences and termination benefits MI arrangements to provide retirement benefits, post-employment benefits, compensated absences and termination benefits have been identified to you and have been included in the actuarial valuation as required.

The details of all pension plan amendments since December 31, 2015, the date of the last actuarial valuation, have been identified to you.

The actuarial valuation dated December 31, 2015 incorporates management’s best estimates, detailed as follows:

The actuarial assumptions and methods used to measure liabilities and costs for financial accounting purposes for pension and other post-retirement benefits are appropriate in the circumstances.

The Board plans to continue to make frequent amendments to the pension or other post-retirement benefit plans, which may affect the amortization period of the prior service cost.

The employee future benefit costs, assets and obligations have been determined, accounted for and disclosed in accordance with CPA Canada Public Sector Accounting Handbook PS 3250, Retirement Benefits and CPA Canada Public Sector Accounting Handbook PS 3255, Post-employment Benefits, Compensated Absences and Termination Benefits. In particular:

The significant accounting policies that The Board has adopted in applying CPA Canada Public Sector Accounting Handbook Section PS 3250 and CPA Canada Public Sector Accounting Handbook Section PS 3255 are accurately and completely disclosed in the notes to the financial statements.

Each of the best estimate assumptions used reflects management’s judgment of the most likely outcomes of future events.

The best estimate assumptions used are, as a whole, internally consistent, and consistent with the asset valuation method adopted.

The discount rate used to determine the accrued benefit obligation was determined by reference to The City’sborrowing rate using assumptions that are internally consistent with other actuarial assumptions used in the calculation of the accrued benefit obligation and plan assets.

The assumptions included in the actuarial valuation are those that management instructed Morneau Shepell to use in computing amounts to be used by management in determining pension costs and obligations and in making required disclosures in the above-named financial statements, in accordance with CPA Canada Public Sector Accounting Handbook Section PS 3250. In arrinng at these assumptions, management has obtained the advice of Morneau Shepell but has retained the final responsibility for them.

The source data and plan provisions provided to the actuary for preparation of the actuarial valuation are accurate and complete.

12 The percentage of the market value of total plan assets represented by each major category held at the measurement date is not disclosed because it is not expected to be useful in understanding the risks and expected long-term rate of return for the plan assets.

All changes to plan provisions or events occurring subsequent to the date of the actuarial valuation and up to the date of this letter have been considered in the determination of pension costs and obligations and as such have been communicated to you as well as to the actuary. Use of a specialist We assume responsibility for the findings of specialists in evaluating the accrued benefit obligation and have adequately considered the qualifications of the specialists in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists. Environmental mailers There are no liabilities or contingencies arising from environmental matters that have not already been disclosed to the auditor.

Liabilities or contingencies related to environmental matters have been recognized, measured and disclosed, as appropriate, in the financial statements.

We have considered the effect of environmental matters and the carrying value of the relevant assets is recognized, measured and disclosed, as appropriate, in the financial statements.

All commitments related to environmental matters have been measured and disclosed, as appropriate in the financial statements. Government transfers We have disclosed all significant terms and agreements in respect of transfers received from governments.

Transfers without eligibiliw criteria or stipulations have been recognized as revenue once the transfer has been authorized.

Transfers with eligibiliw criteria but without stipulations have been recognized as revenue once the transfer has been authorized and all eligibilift criteria have been met.

Transfers with or without eligibiliw criteria but with stipulations have been recognized as revenue in the year the transfer has been authorized and all eligibility criteria have been met, except when, and to the extent that, the transfer gives rise to an obligation that meets the definition of a liability for the recipient government in accordanre with CPA Canada Public Sector Accounting Handbook PS 3200, Liabilities. Statements of operations and changes in net debt All transactions entered into by The Board have been recorded in the books and records presented to you.

All amounts have been appropriately classified within the statements of operations and changes in net debt.

The accounting principles and policies followed throughout the year were consistent with prior year’s practices (except as disclosed in the financial statements).

13 Budgetary data We have included budgetan’ data in our financial statements, which is relevant to the users of the financial statements and consistent with that originally planned and approved. Planned results were presented for the same scope of activities and on a basis consistent with that used for actual results.

Yours truly,

Toronto Public Library Board

\Tickety Bowles, City Librarian

Larry Hughsam, Director of Finance and Treasurer

Wayne Lam, Manager, Accounting and Payroll

14 Appendix A — Related parties Board Members*: Mr. Sue Graham-Nutter, Chair Ms. Strahan McCarten, Vice Chair Mr. Paul Ainslie Ms. Sarah Doucette Ms. Mary Fragedakis Mr. Jim Hart Ms. Dianne LeBreton Mr. Ross Parry Ms. Archana Shah Ms. Eva Svec Mr. Daniel Rotsztain Senior Management’:

Vicken’ Bowles, City Librarian Larry Hughsam, Director of Finance and Treasurer

*Mthough not explicitly listed, immediate family members are considered included as related parties by this reference.

Toronto Public Library Foundation American Foundation for Toronto Public Library

15 City of Toronto

Entities associated with City of Toronto as follows:

Appendix A: List of related entities

Agencies and Corporations: • Eashiew Neighbourhood • Korea Town • Board of Governors of • Applegrove • Lakeshore Village Exhibition Place • Harbourfront • Leslieville • Toronto Board of Health • Cecil Street • Liberty Village • Board of Management of the • Ralph Thornton • Lithe Italy Toronto Zoo • Central Eglinton • Little Portugal • Toronto Community Housing • Scadding Court • Long Branch Corporation (“TCHC”) • Community Centre 55 • Marketo District • Build Toronto Inc. • Swansea Town Hall • Mimico by the Lake • Toronto Licensing Commission • Mimico Village • Casa Loma Corporation Business Improvement • Mirvish Village • Toronto Pan Am Sports Centre Areas: • Mount Dennis Inc. (“TPASC”) • Albion Islington Square • Mount Pleasant • Heritage Toronto (o% • Baby Point Gates • Oakwood Village proportionately) • Bloor Annex • Ossington Avenue • Invest Toronto Inc. • Bloor By The Park • Pape Village • Toronto Police Services Board • Bloor Street • Parkdale Village • Lakeshore Arena Corporation • Bloor Vest Village • Queen Street West • Toronto Public Libraiy Board • BloorYorlcville • Regal Heights Village • St. Lawrence Centre for the • Bloorcoutt Village • Riverside District Arts • Bloordale Village • Roncesvalles Village • Toronto Transit Commission • Cabbagetown • Rosedale Main Street (“nC’) • Chinatown • Sheppard East Village • The North York Performing • Church Wellesley Village • shoptheQueenswav.com Arts Centre • College Promenade • St. Clair Gardens • Toronto Waterfront • College West • St. Lawrence Market Revitalization Corporation • Corso Italia • Yonge and St. Clair Corporation (“TWRC”) (1/3rd • Crossroads of the Danforth proportionately) • Danforth Mosaic Neighbourhood • The Sony Centre for the • Danfofth Village • The Beach Performing Arts • Dovercourt Village • The Danforth • Yonge—Dundas Square • Downtown Yonge • The Eglinton Way • Toronto Atmospheric Fund • Duke Heights • The Kingsway (“TAP’) • Dundas West • The Waterfront • Dupont by the Castle • Toronto Entertainment Arenas: • Eglinton Hill • Forest Hill Memorial • Emery Village District • Moss Park • Fairbank Village • Thnitv Bellwoods • George Bell • Financial District • Upper Village • North Toronto Memorial • Forest Hill Village • Uptown Yonge • Leaside Memorial Community • Gerrard India Bazaar • Village of Ishngton Gardens • Greektown on the Danforth • West Queen ‘Nest • Ted Reeve Community • Harbord Street • Weston Village • McCormick Playground • Hillcrest Village • Wexford Heights • William H. Bolton • Historic Queen East • Wilson Village • Junction Gardens • Wvchwood Ileights Community Centres: • Kennedy Road • Yonge Lawrence Village • 519 Church Street • Kensington Market • York Eglinton

16 Government business enterprises (GBEs)

• Enwave Energy Corporation (Enwave) • Toronto Hydro Corporation

• Toronto Parking Authority

• City of Toronto Economic Development Corporation c.o.b. Toronto Port Lands Company (TPLC) (recognized as a GBE effective January 1, 2011)

17 Appendix B — Summary of unadjusted and adjusted misstatements a) Adjusted items Excess of Statement of financia1 position revenue over expenses Description Assets Liabilities Net assets

(under) over under (over) (under) over (under) over stated stated stated stated To account for offsetting of City of Toronto capital amounts receivable at December 31, 2017 6,016,570 DR. Accounts receivable (6,016,570) CR. Accounts payable

Total Snil $6,016,570 ($6,016,570) $nil b) Unadjusted items Excess of Statement of financial position revenue over expenses Description Assets Liabilities Net assets

(under) over under (over) (under) over (under) over stated stated stated stated To account for offsetting of City of Toronto operating amounts receivable at December 31, 2017

DR. Accounts receivable 1,916,384

CR. Accounts payable (1,916,384) Total $nil $1,916,384 ($1,916,384) $nil

18 ______

Toronto Public Library Board 2017 Year-end report to the Board

I Appendix C: Summary of adjusted and unadjusted misstatements a) Adjusted item Excess of Statement of financial position revenue over - -- c?:pc!!c - -- Description Assets f Liabilities Net assets

(under) over under (over) (under) over (under) over stated

— — stated - stated stated - To account for offsetting of City of Toronto capital I amounts receivable at December 31,2017

DR. Accounts receivable 6,016,570

CR. Accounts payable (6,016,570)

r f

b) Unadjus ted item

I Excess of — Statement of financial position revenue over

- - - - —- T Description Assets Liabilities Net assets

(under) over under (over) (under) over (under) over stated stated stated stated To account for offsetting of City of Toronto operating amounts receivable at December 31, 2017

DR. Accounts receivable 1,916,384

CR. Accounts payable (1,916,384)

Total - j SnU $1,9!6,384 $1,9i6,384t

19 STAFF REPORT 14. ACTION REQUIRED

2017 Audited Financial Statements – Toronto Public Library Board

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to present the Audited Financial Statements for the year ended December 31, 2017 to the Toronto Public Library Board for approval and provide highlights of the Library’s 2017 financial results.

RECOMMENDATIONS

The City Librarian recommends that the Toronto Public Library Board:

1. approves the 2017 Audited Financial Statements of the Toronto Public Library Board, appended as Attachment 1.

FINANCIAL IMPACT

These financial statements reflect the 2017 combined results of the spending of the operating and capital budgets. For 2017, there was an operating budget surplus of $0.069 million [2016 – $0.246 million], which will be returned to the City. The capital budget was 75.8% [2016 – 95.8%] expended, and the unexpended amount of $6.428 million [2016 – $2.688 million] will be carried-forward into the next year.

The Director, Finance & Treasurer has reviewed this financial impact statement and is in agreement with it.

ISSUE BACKGROUND

At the Board meeting of November 20, 2017, PricewaterhouseCooper’s (PwC) report on the Audit Plan for the year ending December 31, 2017, which outlined their approach to the audit, was received for information.

2017 Audited Financial Statements – Toronto Public Library Board 1 The Financial Statements are intended to provide the Board, City, public and other stakeholders an overview of the Library’s financial results at the end of the fiscal year and indicate revenues, expenses and funding for the year. The preparation, content and accuracy of the Financial Statements and all other information included in the financial report are the responsibility of management.

The Financial Statements have been prepared in accordance with Canadian public sector accounting standards (PSAS) for local governments as defined by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada.

These Financial Statements have been audited by PwC whose role is to express an independent opinion on the fair presentation of the Library’s financial position and operating results, and to confirm that the statements are free from material misstatement. The external auditor’s opinion is to provide comfort to third parties that the financial statements can be relied upon.

Financial Statements

The Financial Statements include the following individual statements: Name Purpose Statement of Financial Position Summarizes the assets (financial and non- financial), liabilities, net debt and accumulated surplus as at year end. Statement of Operations and Outlines revenues, expenses, surplus for the year Accumulated Surplus and accumulated surplus at year end. This statement reflects the combined operations of the operating and capital funds for the Library and provides the calculation of the Library’s accumulated surplus at year end. Statement of Change in Net Debt Outlines the changes in net debt as a result of annual operations and tangible capital asset transactions. Statement of Cash Flows Summarizes the Library’s cash position and changes during the year by outlining the Library’s sources and uses of cash.

The Notes to the Financial Statements provide further detail about the Library’s financial results and are an integral part of the Financial Statements.

Statement of Financial Position

The Statement of Financial Position is the municipal equivalent of the private sector’s balance sheet. This statement focuses on the Library’s assets (financial and non-financial) and liabilities. The difference between the liabilities and financial assets is the Library’s net debt, which represents the net amount that must be financed from future budgets.

2017 Audited Financial Statements – Toronto Public Library Board 2 As a result of significant investment in tangible capital assets, there is a large accumulated surplus. Although tangible capital asset balances are considerable, they do not provide liquidity, and are not typically available for sale, the proceeds of which could be used for other purposes. It is for this purpose that tangible capital assets are not included in the calculation of net debt.

Statement of Operations and Accumulated Surplus

The Statement of Operations and Accumulated Surplus are considered to be the municipal equivalent to the private sector’s Statement of Income and Retained Earnings.

The Statement of Operations and Accumulated Surplus provides a summary of revenues, expenses, and surplus throughout the reporting period and outlines the change in accumulated surplus.

PSAS legislation requires the operating and capital budgets as approved by Council be reflected in the Financial Statements and be adjusted for accrual based accounting. The 2017 budget values presented in this statement have been adjusted to reflect the differences between amounts as budgeted at the City and Library on a modified "cash requirements" basis and amounts now recorded in these financial statements on an accrual basis. As described in Note 2 to the financial statements (Budget figures), the total approved operating and capital budgets for 2017 have been combined and reflected in the statement of operations and accumulated surplus. The budget for acquisition of tangible capital assets, primarily comprised of expenditures of the capital budget and for library collections, results in a budget surplus.

Statement of Change in Net Debt

The Statement of Changes in Net Debt is unique to governments. This statement focuses on the debt of the Library, adjusting the annual surplus for the impact of tangible capital assets; mainly deducting the costs to acquire tangible capital assets and adding back amortization charged during the year.

Statement of Cash Flow

The Statement of Cash Flows summarizes the Library’s cash position and changes during the year. It segregates the Library’s sources (inflows) and uses (outlay) of cash into three sections: Operating activities, Capital activities and Financing activities.

COMMENTS

The draft Audited Financial Statements for the year ended December 31, 2017 are appended as Attachment 1 and provide details of the state of the Library’s finances at the end of the fiscal year, and the revenues and expenses for the year ended December 31, 2017. The financial statements are considered draft until approved by the Library Board.

2017 Audited Financial Statements – Toronto Public Library Board 3 The auditors provided an unqualified opinion in the Auditors’ Report contained in the Financial Statements (pages 2 to 3 of Attachment 1). An unqualified opinion means that the Financial Statements are presented fairly in all material respects.

Budget Monitoring Reports

At the Board meeting on April 30, 2018, the 2017 results of spending the operating and capital budgets were presented for information. The Operating Budget Monitoring Report – December 31, 2017 showed an operating surplus of $0.069 million, which will be returned to the City and is reflected in the financial statements as payable to the City (see Table 2 on page 6). The Capital Budget Monitoring Report – December 31, 2017 showed a 75.8% expenditure rate, and the unexpended amount of $6.428 million will be carried forward into the next year. The $4.575 million City portion of the capital carry-forward is reflected in the financial statements as payable to the City (see Table 2 on page 6).

Budget Figures

Budget figures in the audited financial statements, are based on the 2017 original operating and capital budgets approved by City Council. However, in the Operating and Capital Budget Monitoring Reports, the Council-approved 2017 operating and capital budget figures also include in-year Council-approved adjustments.

2017 Audited Financial Statements – Toronto Public Library Board 4 Detailed Review of Statement of Financial Position

(M= millions; K=thousands)

A more detailed review of the Statement of Financial Position is provided in the following section:

Table 1 – Statement of financial position variance (2017 vs. 2016) Actual Actual Increase /

2017 2016 (Decrease) Financial assets Cash and cash equivalents 14,006,616 10,876,052 3,130,564 Accounts receivable: City of Toronto (Table 2) 17,430,561 9,650,768 7,779,793 Other accounts receivable (Table 3) 3,948,410 4,020,919 (72,509) 35,385,587 24,547,739 10,837,848

Liabilities Accounts payable and accrued liabilities: City of Toronto (Table 2) 6,016,570 - 6,016,570 Other accounts payable (Table 4) 25,357,816 21,790,545 3,567,271 Deferred revenue 2,132,170 1,338,058 794,112 Employee benefits (Table 5) 84,420,159 86,441,642 (2,021,483) Payable to Canada Life Assurance Company 148,424 335,853 (187,429) 118,075,139 109,906,098 8,169,041

Net debt (82,689,552) (85,358,359) 2,668,807 Tangible capital assets (Table7) 325,374,100 309,506,934 15,867,166 Accumulated surplus (Table 8) 242,684,548 224,148,575 18,535,973

2017 Audited Financial Statements – Toronto Public Library Board 5 Cash and cash equivalents Cash and cash equivalents increased by $3.1M to $14.0M [2016 – $10.9M].

Accounts receivable – City of Toronto (Note 3) The breakdown of accounts receivable from the City of Toronto at year-end with prior year comparatives is as follows:

Table 2 – Account receivable and Account Payable to City of Toronto 2017 2016 Increase / (Decrease) 2017 approved City budget funding receivable - operating 14,402,760 4,094,300 10,308,460 2017 approved City budget funding receivable - capital 4,944,185 4,764,603 179,582 19,346,945 8,858,903 10,488,042 Rental receivable - 40,482 (40,482) Operating expenses (460,169) - (460,169) Operating surplus payable to City (69,490) (246,233) 176,743 Hydro charges payable (1,386,725) - (1,386,725) Capital project funding receivable - 1,437,683 (1,437,683) Unexpended capital advance (carry-forward) – City portion - (440,067) 440,067 Account receivable from City of Toronto 17,430,561 9,650,768 7,779,793

Capital project funding payable (Dawes Road) (1,440,632) - 1,440,632 Unexpended capital advance (carry-forward) – City portion (4,575,938) - 4,575,938 Account payable to City of Toronto (6,016,570) - 6,016,570

The $17.4M account receivable from the City in 2017 is comprised mainly of $19.3M related to the approved 2017 City budget funding, which was received in early 2018, offset by $1.4M of payables relating to hydro charges. The $6.0M payable to City is due to an unexpended capital advance of $4.6M and $1.4M funding for Dawes Road.

Other accounts receivable The breakdown of other accounts receivable at year-end with prior year comparatives is as follows:

Table 3 – Other receivable 2017 2016 Increase / (Decrease) Canada Revenue Agency – HST rebate 2,467,758 3,408,509 (940,751) Landlord contribution receivable (Eglinton Square branch) 339,000 - 339,000 Canada 150 grant receivable 661,375 158,156 503,219 Other 480,277 454,254 26,023 Total Other accounts receivable 3,948,410 4,020,919 (72,509)

Other accounts receivable increased by $0.1M to $3.9M [2016 – $4.0M] mainly due to a decrease in HST rebate receivable from Canada Revenue Agency netted against Landlord contributions and Canada 150 grant receivable for capital projects. In 2017, the Canada 150 grant receivable of $661K has been received by the City and therefore should have been offset against the unexpended capital advance in Table 2. This is an unrecorded adjustment in the 2017 financial statements.

2017 Audited Financial Statements – Toronto Public Library Board 6 Accounts payable and accrued liabilities The breakdown of other accounts payable and accrued liabilities at year-end with prior year comparatives is as follows:

Table 4 – Accounts payable and accrued liabilities 2017 2016 Increase / (Decrease) Salaries and benefits payable 9,961,455 9,743,615 217,840 Accounts payable and accruals 13,847,201 10,125,424 3,721,777 Holdback payable on construction contracts 1,549,160 1,921,506 (372,346) Total accounts payable and accrued liabilities 25,357,816 21,790,545 3,567,271

Accounts payable and accruals increased by $3.6M mainly due to costs related to North York Central Library renovation.

Deferred Revenue (Note 2) Deferred revenue is comprised of the balance of funds that have been received in the form of funding from the Foundation or grants for specific programs, which have not yet been expended. Programs include Kids Stop, Summer Reading Club, Museum and Arts Pass and Leading to Reading.

Employee Benefit Liabilities (Note 4) The City has employed the services of Morneau Shepell, a third party valuation expert, to value the gross employee benefits liability (identified as ‘employee benefits’ in Note 4 of the Financial Statement). Towards the end of 2015, the Library provided the necessary information on the composition of its workforce and benefits plans to the City. At the end of 2017, the Library’s gross employee benefits liability (identified as Accrued Benefit Obligation in Note 4) decreased by $3.4M to $60.2M [2016 – $63.6M]. The decrease in the liability is due mainly to the Government of Ontario’s introduction, starting January 1, 2018, of a universal prescription medication program (“OHIP+”) for children and youth that are age 24 and under. The OHIP+ plan reduces the expected claims costs for dependent children/youth drug claims. The last full valuation at December 31, 2015 had an explicit assumption for dependent children/youth claims.

Table 5 – Net employee benefits Increase / 2017 2016 (Decrease) Post-retirement benefits 28,910,539 31,815,147 (2,904,608) Disabled employees' benefits 6,117,063 6,361,018 (243,955) Income benefits 7,479,416 7,646,122 (166,706) Sick leave benefits 16,944,644 17,291,462 (346,818) WSIB 737,917 507,546 230,371 Employee Benefits/Accrued Benefit Obligation 60,189,579 63,621,295 (3,431,716) Net unamortized actuarial gain / (loss) 24,230,580 22,820,347 1,410,233 Total Net Employee Benefits 84,420,159 86,441,642 (2,021,483)

2017 Audited Financial Statements – Toronto Public Library Board 7 The net employee benefits liability decreased by $2.0M to $84.4M [2016 – $86.4M]. The components of the decrease are due to a $3.4M decrease in accrued benefit obligation and a $1.4M increase in the net unamortized actuarial gain / (loss) calculated as follows:

Table 6 – Net unamortized actuarial gain 2017 2016 Unamortized gain – beginning of year 22,820,347 23,720,403 Amortization of net actuarial gain (A) (1,859,680) (1,788,064) Actuarial gain (B) 3,269,913 888,008 Net unamortized gain – end of year (C) 24,230,580 22,820,347

Net actuarial gains and losses are amortized (A) over the expected average remaining service life of the employee group, which ranges from 12 to 16 years. In 2017, the actuarial gain is $3.3M (2016 - $0.9M). The 2017 actuarial gain was as a result of the introduction of the OHIP+ program. The amortization of the net actuarial gain is $1.9M (2016 – $1.8M). This is as a result of the 2015 actuarial gain of $17.1M being amortized.

The net unamortized actuarial gain (C) of $24.2M represents the remaining balance of annual actuarial gains/(losses) that has not yet been fully amortized.

An unamortized actuarial gain balance is added to the gross employee benefits obligation and an unamortized actuarial loss balance is deducted. The annual unamortized actuarial gain/(loss) balance (C) is drawn down as the actuarial gain/(loss) becomes fully amortized.

Long-Term Payables (Note 5) The payable to Canada Life Assurance Company decreased by $188K to $148K [2016 – 336K] and represents the balance of the 2001 energy efficiency loan, which is being repaid from energy savings.

Change in Net Debt (Statement of Changes in Net Debt of Attachment 1) Net debt is calculated as liabilities (e.g. trade and employment payables and loans) less financial assets (e.g. cash and cash equivalents and receivables), and represents the net amount that must be financed by future budgets.

The Library’s net debt at year-end decreased by $2.7M to $82.7M [2016 – $85.4M]. This decrease in the Library’s net debt is primarily due to the decrease in employee benefits liability and the change in the unspent City portion of capital funding.

While the City issues long-term debt to finance certain of its operations, none of the debt or associated financing costs are allocated to the Library.

Tangible Capital Assets (Notes 2 and 7) Note 2 outlines the Library’s significant accounting policies and provides an overview of the policy for recording tangible capital assets.

2017 Audited Financial Statements – Toronto Public Library Board 8 The breakdown of tangible capital assets at year-end with prior year comparatives is as follows:

Table 7 – Tangible capital assets 2017 2016 Accumulated Cost Amortization Net Net Land 15,376,262 - 15,376,262 15,376,262 Building and leasehold improvements 303,258,180 96,548,253 206,709,927 188,432,688 Furniture, fixtures and equipment 57,721,832 26,141,064 31,580,768 29,449,773 Vehicles 3,349,596 2,174,043 1,175,554 1,405,942 Library materials 114,398,247 55,768,910 58,629,336 57,174,256 Assets under construction 11,902,253 - 11,902,253 17,668,013 Total Tangible Capital Assets 506,006,370 180,632,270 325,374,100 309,506,934

The net value of the Library’s tangible capital assets increased by $15.9M, mainly due to capital projects related primarily to Albion, Dawes Road and North York Central Library renovations. During the year, asset additions totalled $49.2M, comprised of building improvements of $19.0M, furniture and equipment of $10.0M and library collections of $20.2M.

During the year, accumulated amortization of tangible capital assets increased $8.6M net to $180.6M [2016 – $172.0M].

Accumulated Surplus The 2017 actual accumulated surplus as shown on the Statement of Financial Position (page 4 of Attachment 1) is $242.7M. The accumulated surplus is a product of applying PSAS accounting and is comprised of the net book value of tangible capital assets, employee benefit liability and other liabilities less financial assets:

Table 8 – Accumulated surplus 2017 2016 Purchase of Tangible Capital Assets 506,006,370 481,511,279 Accumulated amortization (180,632,270) (172,004,345) Net book value of Tangible Capital Assets 325,374,100 309,506,934 Employee benefits liability (84,420,159) (86,441,642) Other liabilities less financial assets 1,730,607 1,083,283 Accumulated Surplus – End of year (Table 1) 242,684,548 224,148,575

Annual Surplus There are two annual surpluses for the year on the Statement of Operations and Accumulated Surplus (page 5 of Attachment 1; breakdown shown in Table 10): 1. Budget Surplus for the year: $16.4M 2. PSAS Actual Surplus for the year: $18.5M

The third surplus disclosed in Note 3 is the $69K under spending of the approved operating budget, which is returned to the City.

2017 Audited Financial Statements – Toronto Public Library Board 9 The reconciliation of the operating budget surplus returned to the City to the PSAS annual surplus is shown below:

Table 9 – Reconciliation of Surplus for the year 2017 2016 Operating Budget Surplus 69,490 246,233 Surplus Returned to the City (69,490) (246,233) Balance - - Net increase in net book value of Tangible Capital Assets (Table 1) 15,867,166 16,442,014 Increase / (Decrease) in unspent non-debt Capital and Library Material funding 459,895 315,628 Net decrease / (increase) in employee benefit liability (Table 1) 2,021,483 2,033,865 Net increase in employee benefit vacation liability - (13,435) Net decrease in energy savings loan (Table 1) 187,429 172,911 PSAS Surplus for the year 18,535,973 18,950,983

As described in Note 2, the audited budget on the financial statements is the sum of the approved 2017 operating and capital budgets, which have been adjusted for PSAS accounting, with a resulting budget surplus of $16.4M comprised of expenditures for the capital budget and library collections, less amortization. The budget surplus is compared to the PSAS surplus below:

Table 10 – Annual surplus (budget vs. actual) Budget PSAS Actual Surplus Surplus Capital budget expenditure 30,000,112 28,951,739 Operating budget expenditure – Library materials 19,752,354 20,254,511 Tangible assets gross amount [a] 49,752,466 49,206,250 Amortization – Capital budget expenditure (14,539,653) (14,539,653) Amortization – Operating budget expenditure – Library materials (18,799,431) (18,799,431) Total amortization [b] (33,339,084) (33,339,084) Tangible assets net book value [c = a + b] 16,413,382 15,867,166 Post-retirement and post-employment benefit expense (Table 5) - 2,021,483 Other - 647,324 Surplus for the year 16,413,382 18,535,973

2017 Audited Financial Statements – Toronto Public Library Board 10 Detailed Review of Statement of Operations and Accumulated Surplus

Revenues The following chart breaks down the total revenues (operating and capital) by funding source. The Library’s primary source of funding comes from the City of Toronto (92.4%).

2017 Actual Revenues ($224,540,219)

Province of Ontario, 6,000,980, 2.7% City of Toronto, $207,425,496 , 92.4% Federal government, 796,194, 0.4% Fines and user charges, 4,318,533, 1.9% Investment Income, 264,751, 0.1% Donations and other grants, 1,981,032, 0.9% Other income, 3,753,233, 1.7%

Figure 1 – Pie chart showing actual revenue amounts and percentages by funding source.

Table 11 – Current year revenues and prior year comparatives 2017 2017 2017 Variance 2016 Actual Budget Actual Favourable / Actual as % of (Unfavourable) Total City of Toronto 92.4 213,141,387 207,425,496 (5,715,891) 206,002,944 Province of Ontario 2.7 5,678,427 6,000,980 322,553 6,230,181 Federal government 0.4 557,312 796,194 238,882 251,239 Fines and user charges (see 1.9 Table 12) 1 5,062,195 4,318,533 (743,662) 4,480,557 Investment income 0.1 139,500 264,751 125,251 202,550 Donations and other grants 0.9 162,800 1,981,032 1,818,232 3,710,465 Other income (see Table 13) 1 1.7 1,987,800 3,753,233 1,765,433 2,868,689 Total Revenues 100.0 226,729,421 224,540,219 (2,189,202) 223,746,625 1 Included in $5,062,195 budget for Fines and user charges is $1,097,500 that should have been categorized as Other income. Similarly, the variances for both categories should be adjusted by that same amount.

Revenues for 2017 totalled $224.5M [2016 – $223.7M], which is $2.2M less than budget, due mainly to $5.7M decrease in City of Toronto funding as a result of $4.6M of unexpended

2017 Audited Financial Statements – Toronto Public Library Board 11 capital advance returned to the City, and $1.1M of in-year budget adjustments not reflected in the 2017 budget. Offsetting this funding decrease are a $1.8M funding increase from the Toronto Public Library Foundation and $0.9M miscellaneous revenue primarily due to landlord contribution for the renovation of Eglinton Square Branch.

Fines and user charges primarily consist of overdue fines and lost items. The breakdown at year-end with prior year comparatives is as follows:

Table 12 – Fines and user charges 2017 2016 Variance Fines 2,528,564 2,773,896 (245,332) Equipment & facility rentals 864,837 820,452 44,385 Photocopier receipts 813,648 782,578 31,070 Other charges 111,484 103,631 7,853 Fines and user charges 4,318,533 4,480,557 (162,024)

The reduction in fines revenue results from a combination of reduced fined rates approved by the Board and implemented late in 2016 and temporary branch closures.

Other income consists primarily of tenant rentals and revenue from premium venue space rentals. Miscellaneous income is comprised mainly of a one-time landlord contribution towards the renovation of Eglinton Square Branch. The breakdown at year-end with prior year comparatives is as follows:

Table 13 – Other income 2017 2016 Variance Tenant rentals 1,713,407 1,635,173 78,234 Premium venue space rentals 1,003,591 783,758 219,833 Sale of merchandise 136,451 122,770 13,681 Miscellaneous 899,784 326,988 572,796 Total Other Income 3,753,233 2,868,689 884,544

2017 Audited Financial Statements – Toronto Public Library Board 12 Expenses

The following chart breaks down the expenses by category. Staff costs accounted for the largest portion at 68.2% of the total amount.

2017 Actual Expense ($206,004,246)

Maintenance and Supplies, 14,568,129, 7.1%

Utility Cost, 9,588,028, 4.7% Administration Cost, Staff Cost, 3,728,477, 1.8% $140,520,085 , Rental Cost, 68.2% 3,054,747, 1.5% Library Materials, 140,054, 0.1%

Transfer to City of Toronto & Other, 1,065,642, 0.5%

Amortization, 33,339,084, 16.2%

Figure 2 – Pie chart showing actual expense amounts and percentages.

The library materials shown in the chart represent only donations to special collections, which are expensed. Note that $19.7M of expenditure on library collections, which is part of the approved operating budget, is treated as an addition to tangible capital assets.

Table 14 – Current year expenses and prior year comparatives 2017 2017 2017 Variance 2016 Actual Budget Actual Favourable / Actual as % of (Unfavourable) Total Staff costs 68.2 147,576,330 140,520,085 7,056,245 142,356,420 Maintenance and supplies 7.1 13,290,947 14,568,129 (1,277,182) 14,479,062 Utility cost 4.7 9,413,336 9,588,028 (174,692) 9,385,065 Administration cost (Table 1.8 15) 2,803,551 3,728,477 (924,926) 3,552,045 Rental cost 1.5 2,951,451 3,054,747 (103,296) 2,651,349 Library materials 0.1 - 140,054 (140,054) 191,664 Transfers to City of Toronto and other 0.5 941,340 1,065,642 (124,302) 195,893 Amortization 16.2 33,339,084 33,339,084 - 31,984,145 Total Expenses 100.0 210,316,039 206,004,246 4,311,793 204,795,643

2017 Audited Financial Statements – Toronto Public Library Board 13

Expenses for 2017 totalled $206.0M [2016 – $204.8M], which is $4.3M less than budget, primarily due to a $7.1M under-expenditure in staff costs, partially offset by increased spending in maintenance and supplies ($1.3M) mainly due to ageing buildings and increased security guard services, and administration cost ($0.9M) mainly due to enhanced spending on specific library initiatives funded by the TPL Foundation. The under-expenditure in staff costs was mainly due to a decrease in employee benefits liability payable, savings from closure of North York Central Library for renovations and lower than budgeted expenditures in benefit costs.

Table 15 – Administration cost 2017 2017 2016 Budget Actual Variance Actual Professional & other services 839,238 1,189,794 (350,557) 877,797 Training & mileage 592,159 678,969 (86,810) 674,246 Supplies & services 36,337 80,145 (43,807) 34,450 Programs, printing & advertising 1,335,817 1,779,570 (443,753) 1,965,552 Total Administration cost 2,803,551 3,728,477 (924,926) 3,552,045

Administration cost for 2017 totalled $3.7M [2016 – $3.6M], which is $0.9M higher than budget, mainly due to a $0.4M increase in programs, printing & advertising expenses, which is funded by the Toronto Public Library Foundation, and $0.3M over-expenditure in professional & other services is due to higher technical consulting and legal costs.

CONCLUSION

The financial statements are considered draft until four outstanding matters are cleared: update on legal confirmations; subsequent events procedures; the receipt of a signed management representation letter; and Board approval of the draft financial statements.

A representative from PwC will be in attendance at the Board meeting.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENTS

2017 Audited Financial Statements – Toronto Public Library Board 14 Attachment 1: Audited Financial Statements - Toronto Public Library Board - December 31, 2017

2017 Audited Financial Statements – Toronto Public Library Board 15 Attachment 1

DRAFT

Toronto Public Library Board Financial Statements December 31, 2017

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Independent Auditor’s Report

To the Members of Toronto Public Library Board

We have audited the accompanying financial statements of Toronto Public Library’Board, which comprise the statement of financial position as at December 31, 2017 and the statement of operations and accumulated surplus, change in net debt and cash flows for the year then ended, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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2017 2016 $ $ Financial Assets

Cash and cash equivalents 14,006,616 10,876,052 Accounts receivable City of Toronto (note 3) 17,430,561 9,650,768 Other accounts receivable (note 3) 3,948,410 4,020,919 35,385,587 24,547,739 Liabilities

Accounts payable and accrued liabilities City of Toronto (note 3) 6,016,570 - Other accounts payable and accrued liabilities 25,357,816 21,790,545 Deferred revenues (note 3) 2,132,170 1,338,058 Employee benefits (note 4) 84,420,159 86,441,642 Payable to Canada Life Assurance Company (note 5) 148,424 335,853

118,075,139 109,906,098

Net debt (82,689,552) (85,358,359) Non4inancial assets Tangible capital assets (note 7) 325,374,100 309,506,934 Accumulated Surplus Accumulated operating surplus 242,684,548 224,148,575

Lease commitments and contingencies (notes 6 and 8)

Approved by the Board

Toronto Public Library Board Chair City Librarian

The accompanying notes are an integral part of these financial statements. FOR DISCUSSION WITH MANAGEMENT ONLY - SUBJECT TO AMENDMENT NOT TO BE FURTHER COMMUNICATED 4 C:\Users\nmarshall\AppData\LodaI\Microsoft\WirnIowsVImnporan’ Internet FiIes\ContentOutlook\IW8FSEHI\TORON1D PUBLIC LIBRARY IIOARD(2n17)5-2-2o18 (002) FINAI,DRAfl’(o02).dnex May7, 2018 6:oi PM VERSION 20 C:\Users\nmarslla]I\AppData\LocaI\MicroslIIt\Windows\Thmporaiy The BOARD Accumulated Accumulated Surplus Amortization Transfers Administration Maintenance Staff Library Rental Utility Expenses Other Donations Fines Province City Revenues Investment Federal Toronto For Statement accompanying of the (2017) costs costs and income costs Toronto materials government year of for 5-2-2018 to user and FOR income Ontario City of of and the Public costs ended other tangible (note charges surplus surplus-Beginning Operations (002) of DISCUSSION supplies year notes Toronto grants 3) FINAL December capital are Library - DRAI’I’(002)docx End (note and an and assets integral other of NOT WITH 3) 31, Accumulated year (note Board 2017 TO part of May7, MANAGEMENT BE year 3) of 208 these FURTHER Internet 6:01 Surplus PM financial FiIes\ContentOntlook\IWHF5EH1\TORONTO VERSION 210,316,039 COMMUNICATED 226,729,421 147,576,330 213,141,387 ONLY 33,339,064 16,413.382 13,290947 statements. 2,951,451 9,413,336 2,803,551 1,987,800 5,062,195 5,678,427 20 941,340 557,312 162,800 139,500 (note Budget - SUBJECT 2) $ - 242,684,548 224,148,575 206,004,246 224,540,219 140520,085 207,425,496 TO 33,339,084 18,535973 14568,129 9,588,028 3,054,747 3,728,477 1,065,642 3,753,233 4,318,533 6,000980 1,981,032 140,054 264,751 796,194 AMENDMENT Actual I’UIILIC 2017 $ LIBRARY DRAFT 224,148,575 204,795,642 205,197,592 223,746,625 142,356,420 206,002,944 18,950,983 31,984,145 14,479,061 9,385,065 2,651,349 3,552,045 2,866,689 3,710,465 4,480,557 6,230,181 195,893 191,664 202,550 251,239 Actual 5 2016 $ The C;\Uscrs\nmarshall\AppData\Locn]\Microsoft\Windows\Teinporan’ BOARD

Acquisition Change

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Toronto

For

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year

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- SUBJEUF (82689,552)

(85,358,359) TO

(49,206,250) 33,339,064 18,535,973

2,668,807 AMENDMENT PUBLIC

2017 $

LIIIRARY DRAFT (87,867,330)

(85,358,359) (48,426,1 31,984,145 18,950,983

2,508971 6 2016

57) $ C:\Uscrs\nmarshall\AppData\Local\Microsoft\Windows\Teinporaiy The BOARD Cash Cash Increase Acquisition Principal Financing Capital Changes Surplus Operating Cash Items For Toronto Statement accompanying Accounts Accounts Deferred Amortization the (2017) Employee not and and provided for activities repayment year in 522018 affecting in of FOR cash the cash non-cash activities activities of cash tangible revenues Public payable receivable ended year benefits Cash (002) DISCUSSION equivalents equivalents of notes cash by and of tangible FINAL assets capital December Flows Canada and (used expense are cash Library DRAVt(oo2).docx accrued an and capital assets equivalents integral Life in) - - NOT WITH liabilities Beginning End 31, Assurance assets liabilities Board TO 2017 of part M0y7, MANAGEMENT year BE of 2Q18 during these of FURTHER Company Internet 6:01 year I’M financial the FiIes\Content.OntIook\IW8I5EHlVI’ORomO VERSION payable year COMMUNICATED ONLY statements. 2(1 - SUBJECf (49,206,250) TO 14,006,616 10,876,052 52,524,243 49,853,574 33,339,084 18,535,973 (7,707,284) (2,021,483) 3,130,564 9,583,841 (187,429) 794,112 AMENDMENT I’UBLIC 2017 $ LIBRARY DRL&FT (48,426,1 49,277,956 10,197,165 10,876,052 48,901,263 31,964,145 18,950,983 (4,823,748) (2,033,865) 5,744,192 (172,912) (543,751) 678,887 7 2016 57) $ C:\Users\nmarshall\AppData\Local\Microsoft\Windowsvleinporaiy BOARD

2 Toronto December Notes sabbatical terms Cash Included been Cash reported Revenues recorded have can been which Donations Accountants Government Revenue These (PSAS) Summary Basis The The assets, activities Ontario (2017) The has providing deemed Operations to be also Toronto Toronto Board provided and restrictions 522018 met and to events financial Financial reasonably FOR of revenues for 31, maturity library as designated to in as cash and for accounting

from Public leave recognition public and cash local is be cash revenue deferred 2017 (002) DISCUSSION transfers, of the Public of giving not Public reasonable a equivalents and other user Canada. statements program community. public governments is significant FINAL equivalents and Library. are subject library of measured Statements 8159,216(2016- collection in rise less charges Library the Library recognized grants

revenue. Library expenses DRAFF(002).doex the library which A Board to than services to and estimates Fundraising year summary include the have income are Foundation and Board NOT and WITH is a 90 include board as transfer as accounting are 8299,750 earned. reasonably recognized as been defined other days. collection that

a Board TO cash not revenue (the special taxes of May7, 8210,074) of established MANAGEMENT municipal, reflect prepared the efforts included BE related the occur, on Board (the 2018 by under Irrevocable amounts FURTHER library deposit, significant assured. as is to the Internet 6:oi the Foundation) of reasonably policies revenue providing the services or of Public in in Section the PM community’s under the provincial restricted service extent I:iIes\contdntoutlook\IWBF5EHIVF0RONTO these accordance can money VERSION Foundation Investment Library) Standby accounting when Sector are the be COMMUNICATED 149(1) ONLY financial the the assured. board has made. market recognized Public 2.0 amounts and transfers funds received Accounting is unique with Letter responsibility of - to a income are federal the local policies statements SUBJEUF Libraries Donations funds provide have Canadian to of Income held or are needs. at benefit board Credit grants, earned been receivable and the authorized, Board is in library Act as point The for trust short-term Tax and (note of public spent, TO the issued follows: are (Ontario) on the most of Public Act other AMENDMENT Library. resources for of available the if 3). recognized City PUBLIC with sector sale the for (Canada). any employees of Chartered grants Libraries the of securities a amount any or and eligibility LIBRARY construction The Toronto accounting when fundraising current and unspent is received in Foundation’s responsible services eligible to the Professional Act

services DRAFT with be criteria (the funds year (Ontario) amounts standards received that project. original City) 8 for to in is have have the the for net c:\Users\nmarsliall\AppData\Local\Mkrosoft\windows\Temporan’ BOARD December Notes Toronto revenues works The 5144,538(2016- Donated Contributed amount the The Assets Impairment tangible Contributed basis leasehold value fully intended Tangible Tangible Purchased statement held Materials Materials (2017) to capital Board cost Vehicles Library Furniture, Leasehold Buildings for amortized, 5-2-2018 over at of Financial under FOR 31, over the capital use art, of materials and capital for Public improvements, and their asset reviews of capital tangible normal 2017 and date (002) materials in rare which DISCUSSION any sale construction operations expenses materials of supplies the fixtures assets, estimated improvements no which FINAL. assets of supplies residual books 5356,778) tangible in Statements and provision the maintenance are assets longer contribution. capital the Library DRAFT carrying is is in measured services and are purchased and ordinary and recognized at the value or and useful has are non-financial assets (oo2).docx capital equipment the and other when NOT WITH of accumulated statement any not services services. end amount, are is works and lives course The at are recognized collections Board amortized TO long-term for the not of May fair assets as MANAGEMENT repairs, recorded Board consumption as asset the BE of 7, an recorded value. of of They amortization 2018 follows: assets art useful expense surplus operations FURTHER operations. has Internet recognizes 6:ot of until service which as are have During at Si3,66o that been an PM life in expensed cost. the t’iIcs\content.ootIook\1wsFsEH1vroRot”ro in in expense useful the vERSION in does are for potential the disposed the and date and the the Contributed financial COMMUNICATED disposals capital not ONLY (2016- year not year lives year Library’s accumulated useful of 2.0 in in available term significantly substantial of the it to the of. there extending assets estimated - acquisition. 545,161), has statements the lives when year Amortization SUBJECT of statement tangible activities been the were Board, to and of received. the surplus. discharge lease its completion. beyond incurred. which enhance vehicles contributions by tangible tangible the except capital of are management 8 5 TO or to to operations. excess is have reported useful the AMENDMENT 20 12 50 recognized existing 6 and the for assets capital PUBLIC years capital years years years current been special of service at life of the the are as LIBRARY liabilities special recorded assets assets an net year end on recorded collections potential expense a carrying of are DRAFT and straight-line collections regularly. the and as considered are at of lease on 9 are and fair not the If for of c:\Users\nnIarsIiaII\AppDati\L,caI\Microsoft\WindowsVFenIponity BOARD Toronto December Notes surplus. down known Writedowns contributions, and include Library PSAS Financial • • • • • • The Employee (2017) to subsequently Board year the employee employee past net the paid the expected rated the defined service specifies contributions multi-employer the 5-2-2018 to allows Financial FOR with accounts does 31, net effects actuarial costs Board costs Board sen-ice Public of to on has instruments 2017 sufficient recoverable (002) the benefits on independent and the DISCUSSION not contribution service of the which of health-care group, future adopted occurs. financial of makes plan Libran’ FINAL other classify termination rates receivable costs carried gains amount a Statements to gain Library amendment; are and pension benefit OMERS precision, DRAFI(002).doex which of contributions employee from Costs and the value to any or initially assets pay. at management’s administrators costs plan; of classify loss and following amortized losses plan NOT ranges the financial WITH include liabilities benefits Employees plan, with are in from and accounts and retirement benefits recognized amendments the Board expensed TO are its the on M0y7, from plan there to MANAGEMENT projected settlements policies amortized financial and instruments amortized BE behalf cost, writedown are the 2018 best of investment and are 12 payable compensated FURTHER is discounted Ontario these less benefit Internet when to at 6:oi no actuarially of employers estimate with i6 related fair future instruments realistic most any I’M cost over or years; plans, and contributions recognized FiIcs\contcnt.outI,n,k\,wgI:spulvroRoNTo value. respect at vERSIoN Municipal to curtailments impairment category performance; fair of income be the accrued using to of COMMUNICATED its ONLY and calculated absences determined prospect contribute prior received retirement value. expected to 2.0 employees. as the employee in payments, are Employees years’ liabilities. either - Financial the City’s are losses are of are SUBJECT by recognized on jointly average statement due, recovery. using ages the employee fair expensed recognized a cost OMERS benefit on present employees, health-care as They value of instruments Retirement the financial to of the remaining employees, the when borrowing; TO Financial projected are of plans: or services in plan is value when plan. operations AMENDMENT the a amortized initially the defined assets, PUBlIC is based continuation year basis; System The service accounted carried the amount are salarv assets benefits LIBRARY they recognized event on except Board’s accounted benefit and cost. life the plan are escalation, at occur. of that accumulated method amortized for length DRAFT of Currently, for a costs then plan, (OMERS), loss the as obligates at for written a 10 and related is cost of which pro in cost fees the the a DRAFT Toronto Public Library Board Notes to Financial Statements December 31, 2017

Budget figures

Budget data presented is based on the 2017 operating and capital budgets approved by the Ciw’scouncil. Adjustments to budgeted values were required to provide comparative budget values based on the PSASbasis of accounting. The following chart reconciles the approved budget with the budget figures as presented in the statement of operations and accumulated surplus.

Budget amount $ Revenues Approved budgets Operating 199,047,202 Capital 30,000,112 Less: Inter-budget transfers (2,317,693)

226,729,421 Expenses Approved budgets Operating 199,047,202 Capital 30,000,112 Less: Inter-budget transfers (2,317,893)

226,729,421 Adjustments Tangible capital assets Library materials - included in operating expenses (19,752,354) Building and equipment - capitalized for GAAP purposes (30,000,112) Amortization 33,339,084

210,316,039

Adjusted annual budget surplus on PSAS basis 16,413,382

Use of estimates

The preparation of the financial statements in accordance with PSASrequires management to make estimates and assumptions. The employee benefits liability and related costs charged to the statement of operations and accumulated surplus depend on certain actuarial and economic assumptions. These estimates and assumptions are based on the Board’sbest information and judgment and may differ significantly based on actual results.

3 Related party balances and tnmsactions

City of Toronto

As part of the terms of the agreement between the Board and the City,the Board is funded by the Cityas approved in its operating and capital budgets on an annual basis. Any operating excess or deficiency and any unexpended capital project funding is to be transferred to or recovered from the City.In addition, in the normal FOR DISCUSSION WITH MANAGEMENT ONLY - SUBJECT TO AMENDMENT NOT TO BE FURTHER COMMUNICATED c:\Users\nniarslmll\AppDaII\LovaI\Microsoft\windowsvrelnperaiy Internet Fi]es\Conlent.Ontlook\IWSF5EHI\TORONTO PUBLIC LIBRARY II BOARD(2017) 522018 ([102) FINAl. DRAFt (oo2).dncx May7, 21118 6:01 PM VERSION2.1) c:\Users\nmarshall\AppData\LncaI\Micros{,ft\winth)wsVrelflporan’

BOARD

Toronto

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in The

the

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5609,543

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Board City Other Construction Utilities Rent Maintenance City

City below Capital City Capital Unexpended City Unexpended Hydro Operating Operating Rental

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Toronto, capital

Toronto DISCUSSION Toronto project

project

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City

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FINAL City

5551,002) and

receivable

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-$274,961)

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5254,048

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(4,575,938) (1,440,632) levels. (1,386,725) 6,898,836

5,604,906

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125,928

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87,408

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2017

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City

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LIBRARY

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Toronto -$257,471)

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liability

Board

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recoverable

on are 6,072,096 7,372,209 9,650,768 9,650,768 8,858,903

1,437,683 and (440,067) (246,233) 278,751 143,483 506,465

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could

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short-term

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covered weeks

employees

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$3,710,465)

Toronto

contributions

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in

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558,223) Vehicle

annual

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152,586)

the

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City

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31,2017

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its

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at

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FiIes\Content.Outlook\IWBF5EHi\TORONTO other year.

2017

and the

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accumulation

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one-half

benefits

health,

pension

vehicle

a

the

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the

COMMUNICATED

was

or

illnesses in

calendar

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ONLY

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than stabilization

and

the

employees

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illness. Foundation,

The

other all

1.()

accumulation

or

year,

year

dental,

5882.956

as

deferred

fleet,

to

of

and

the

new

acquire

reserve

of

certain unused

-

sick

accounts

or ‘ear.

(2016-

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the

other

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that

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while

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fund

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of

which

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vehicles

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prior

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were

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time

included

to

City

greater

made

TO

salary

employees

5636,120).

April

year, established

S1,814,796

leave.

accumulate

years,

committed

to

given

AMENDMENT

defined

accidental

and or

$339,412

sick

a

putit,rc

than The

large

the

protection is

i,

in

maximum equipment

2010,

injuries $156,421

the post-employment The

51,981,032(2016-

Transfers

time

Board balance

26

are

fluctuations

LIBRARY benefit

option short-term

(2016-

by weeks’

$37,740

and

employees

enrolled

death to

(2016-

received

for

the

to a

(2016-

of

of

employees

for

maximum

pension

eligible

to

of

DRL&FT

up

130 City

the

and duration

$926,692)

the

remaining City 8342,000)

(2016-

to

in

in

days

Vehicle

Countil

were 13

26

Library.

a

the

of

plan

of

are is DRAFT Toronto Public Library Board Notes to Financial Statements December 31, 2017

130 days or moving to the short-term disability plan that does not include the accumulation of unused sick leave. The liability for the accumulated sick leave represents the extent to which sick leave benefits have vested and could then be taken in cash by employees on termination of employment.

Workplace Safety Insurance Board (WSIB)

The Board is a Schedule 2 employer and, as such, pays the full cost of all medical and all other benefits for its employees who sustain injuries at the workplace plus the administration cost as determined by the WSIB. Post-retirement and post-employment benefits

The Board provides health, dental, life insurance and long-term disability benefits to certain employees. The liability in relation to the above defined benefit plans has been noted, in aggregate, as follows: 2017 2016 $ $ Accrued benefit obligation 60,189,579 63,621,295 Net unamortized actuarial gain 24,230,580 22,820.347

Total employee benefit liability 84,420,159 86,441,642

Components of the accrued benefit obligation are as follows:

2017 2016 S $ Post-retirement benefits 28,910,539 31,815,147 Disabled employees benefits 6,117,063 6,361,018 Income benefits 7,479,416 7,646,122 Sick leave benefits 16,944,644 17,291,462 WSIB 737,917 507,546

60,189,579 63,621,295

The continuity of the accrued benefit obligation is as follows:

2017 2016 $ $

Balance - Beginning of year 63,621,295 64,755,104 Current years service cost 2,786,329 2,819,849 Interest cost 2,056,092 1,991,328 Benefits paid (4,693,279) (4,815322) Plan amendment - prior service cost (310,945) (241,656) Actuarial gain (3,269,913) (888,008)

Balance - End of year 60,189,579 63,621,295

FOR DISCUSSION WITH MANAGEMENT ONLY - SUBJECT TO AMENDMENT NOT TO BE FURTHER COMMUNICATED c:\Users\nrnirshiII\AppDitu\Loca]\Microsoft\wiridovs\Teinporan’ Internet Files\Conlent.Outlook\1W8F5EHI\TORONTO PUBLIC LIBRARY 14 BOARD (2017) 5-2-2018 (002) FINAL DRAfl’ (0n2).doex May , 2018 6:nt PM VERsION 2.0 ______

DRAFT Toronto Public Library Board Notes to Financial Statements December 31, 2017

/

The total expenses related to employee benefits other than those related to the multi-employer pension plan are included in staff costs in the statement of operations and accumulated surplus and include the following components: 2017 2016 $ $ Current year’s service cost 2,786,329 2,819,849 Amortization of net actuarial gain (1,859,680) (1,788,064) Interest cost 2,056,092 1,991,328

2.982,741 3,023,113

Cash payments made during the year are as follows

2017 2016 $ $ Post-retirement plans 1,445,444 1,445,818 Disabled employees’ benefits 1,055,078 1,114767 Sick leave benefits 1,544,632 1,091,470 4,055,154 3,652,055 / Due to the complexities in valuing the plans, actuarial valuations are conducted on a periodic basis. The most recent actuarial report was completed as at December 31, 2015. The next actuarial valuation is expected to be completed in 2018.

The significant actuarial assumptions are as follows: 2017 2016

Accrued benefit obligation Discount rate Post-retirement 3.2 3.5 Disabled employees, income benefit 2.8 2.7 Sick leave 3.0 3.1

WS IB 3.0 3.1 Accrued benefit cost Discount rate Post-retirement 3.2 3.5 Disabled employees, income benefit 2.8 2.7 Sick leave - WSIB 3.0 3.1 Health-care inflation Hospital dental care and other medical 3.0 3.0 Drugs 5.8 6.0 Rate of compensation increase 3.0 3.0 / In 2018, the drug rates are assumed to decrease by 0.25% per annum to 4%.

Total employer contributions made to OMERSfor the year amounted to $9,879,057 (2016- 810,045,785) and are included in staff costs in the statement of operations and accumulated surplus.

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$ a STAFF REPORT 15. INFORMATION ONLY

Naming and Sponsorship for Musical Instrument Lending Library

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

This report informs the Toronto Public Library Board of the renewal of the Musical Instrument Lending Library at Toronto Public Library for 2018 and 2019, and seeks approval for the sponsorship and naming. With Board approval of naming and sponsorship, the Toronto Public Library Foundation will proceed with final negotiations, including recognition, timelines and agreement.

RECOMMENDATIONS

The City Librarian recommends that the Toronto Public Library Board:

1. approves the naming of the Sun Life Financial Musical Instrument Lending Library; and

2. approves renewal of the sponsorship of the Musical Instrument Lending Library for 2018 and 2019 with funding of $140,000 over the two year, and includes the addition of a second lending branch location, under the terms and conditions as described in this report.

FINANCIAL IMPACT

The proposed sponsorship agreement will provide $140,000 of funding to cover the cost to deliver the Musical Instrument Lending Library in 2018 and 2019, including 100 musical instruments, cases and accessories for the new second branch location.

The Director, Finance and Treasurer has reviewed this financial impact statement and is in agreement with it.

Naming and Sponsorship for Musical Instrument Lending Library 1 EQUITY IMPACT STATEMENT

The Music Instrument Lending Library provides access to certain types of collections that may otherwise not be accessible to various equity-seeking groups, including: newcomers; youth; individuals, families and households with low income; and residents in Neighbourhood Improvement Areas. The proposed second branch location at York Woods is also in a Neighbourhood Improvement Area.

ISSUE BACKGROUND

In early 2015, the Toronto Public Library Foundation (TPLF) was approached by Sun Life Financial to explore the innovative idea of establishing a musical instrument lending library in public library systems across Canada. Toronto Public Library (TPL) investigated the feasibility, scope and cost of this project. The investigation determined that an instrument lending program would be an exciting and popular value-added service for TPL customers, requiring careful planning for successful implementation and an appropriate commitment of space, staff, and funding.

In 2016, the TPL Board approved the naming of the program for 2016-2017, Sun Life Financial Musical Instrument Lending Library, which has since been housed at the Parkdale Branch. This location is easily accessible with suitable space for the collection of instruments, located within one of the City’s identified Neighbourhood Improvement Areas.

Appropriateness of the Sponsor The proposed sponsorship is being recommended based on its benefits for the Library, its monetary value, the reputation of Sun Life Financial (SLF) for corporate and social responsibility and the successful ten-year partnership with SLF through its support of the Museum and Arts Pass program and The Book Lover’s Ball for total gifts of over $2.4 million.

SLF has a long-standing history of support of arts, culture and community initiatives all across Canada. Its “Making the Arts More Accessible” program, launched in 2005, grew in reach and scope during 2006, as it increased the number of arts organizations included in the program, enabling them to offer free admission, or admission at discounted rates. Through “Making the Arts More Accessible”, the experience of performing and visual arts is made available to thousands of individuals, children and families who might not otherwise be able to afford to attend.

General Terms of the Agreement Recognition benefits for the proposed 2018-2019 Musical Instrument Lending Library include the following:

Naming: • naming of the program as the Sun Life Financial Musical Instrument Lending Library; all collateral, including on-line will use the approved name;

Naming and Sponsorship for Musical Instrument Lending Library 2 In Branch: • logo recognition on on-site promotional signage at Parkdale and York Woods branches; • logo recognition on all Musical Instrument Lending Library-related promotion; • music instrument display case will feature signage with the approved name (SLF to provide); • logo recognition in the form of stickers on all instrument cases (SLF to provide); • recognition of Sun Life’s support of Musical Instrument Lending Library in association with the Music Library page in What’s On – the Library’s program guide (distribution of approx. 50,000 to all 100 branches); spring and fall issues;

Online: • name recognition on Musical Instrument Lending Library in association with the Music Library page on the Library website (27 million visits in 2017); • presence on the TPL website via program ads and spotlights;

Public Relations: • program and gift announcement featuring Sun Life Financial’s support; • launch event at York Woods; will be presented by Sun Life Financial (TBD); • instrument drive will be in association with Sun Life Financial and in support of the new location;

Donor Recognition via the Foundation: • annual and cumulative recognition on Donor Wall at the Toronto Reference Library; • corporate name recognition on the Foundation website, in What’s On and the Foundation’s Annual Report; • editorial recognition on TPLF website, annual report and newsletter; • annual stewardship report; • invitation to annual Foundation donor and special events;

Business & Rights Benefits • right of first refusal for all sponsorship opportunities pertaining to the Musical Instrument Lending Library program during the term of this agreement and for renewal of the agreement.

The Library would like to recognize the work of the TPL Foundation in their success in providing such a strong partner for this program.

COMMENTS

The Music Instrument Lending Library is supporting the next generation of aspiring artists with the tools to develop their passion and a musical foundation for success.

As the first of its kind in Toronto, and in public libraries across Canada, with the generous support of Sun Life Financial, the Library has made the musical arts available to musicians and would-be musicians. Programs such as this help break down barriers and connect people of all ages to wonderful opportunities and experiences. This program helps serve the needs of

Naming and Sponsorship for Musical Instrument Lending Library 3 various types of enthusiasts – music students, recreational musicians, young families, and those considering a future instrument purchase – all at no cost to Library card holders.

Since the pilot began, from April 2016 to March 25, 2018, the Musical Instrument Lending Library had a circulation rate of 4,640. The Library currently has 267 active instruments and on average, instruments circulated 47 times per week. The most popular instruments are 149 guitars that have had a circulation rate of 2,583, since the start of the program. A Musical Instrument Lending Library at Toronto Public Library supports TPL’s goals of engaging residents in innovation and creativity, and supporting lifelong and self-directed learning.

A wealth of scientific research demonstrates that music education is a powerful tool for attaining a child’s full intellectual, social and creative potential. Studies have shown that music can help with language skills, develop fine motor skills and improve one’s overall Intelligence Quotient.

The high cost of purchasing or renting musical instruments can be a barrier to access, however. The ability to borrow instruments from the public library makes them readily available to a wider audience.

Through this sponsorship, the Musical Instrument Lending Library broadens the opportunity for Library customers to have access to music instruments and will also achieve the following:  provide a learning opportunity for people who might not have access to music classes;  at the branch level, encourage use of library collections and attendance at programs focused on cultural activities, e.g. Artist in the Library;  serve the needs of music students; recreational musicians; and those considering a purchase in the future;  leverage other resources at the Library.

The proposed naming and sponsorship opportunities meets the criteria for naming and sponsorship as outlined in the Naming and Sponsorship policies.

CONTACT

Moe Hosseini-Ara; Director, Branch Operations & Customer Experience; Tel: 416-397-5944; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

Naming and Sponsorship for Musical Instrument Lending Library 4 STAFF REPORT 16. ACTION REQUIRED

York Woods Branch Renovation – Architect Award of Contract

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to request Toronto Public Library Board approval to award the contract for architectural services, as per the Library’s Request for Proposal (RFP) TPL 125- 2017 for the York Woods Branch capital project.

It is recommended that the contract for architectural services for the York Woods Branch project be awarded to Diamond Schmitt Architects, having achieved the highest total score in the evaluation for a fee of 9.45% of the estimated construction budget.

RECOMMENDATIONS

The City Librarian recommends that the Toronto Public Library Board:

1. awards the contract to Diamond Schmitt Architects, for architectural services for the York Woods Branch capital project based on fees of 9.45 % of the estimated construction budget of $6,600,000 resulting in a cost of approximately $623,700, excluding Harmonized Sales Tax.

FINANCIAL IMPACT

The Council-approved capital budget for the York Woods Branch project is $8,344,000, of which the current estimated construction portion of the capital budget is approximately $6,600,000.

The total contract of $623,700 for architectural services is also part of the approved capital budget. The award is based on the fee of 9.45% applied to the estimated construction budget of $6,600,000 resulting in a cost of approximately $623,700.

The Director, Finance and Treasurer, has reviewed this financial impact statement and is in agreement with it.

York Woods Branch Renovation – Architect Award of Contract 1

ALIGNMENT WITH STRATEGIC PLAN

The renovation of the York Woods Branch helps to achieve various strategic plan priorities and goals including:  increasing access to in-branch services and spaces through responsive service hours and new options to expand public and community space;  advancing State of Good Repair projects to provide welcoming, well-maintained and efficient public space;  creating in-branch environments that connect neighbourhoods and communities, offering opportunities for partnerships, civic engagement and resident participation;  building capacity to deliver elearning, and interactive distance learning services.

BACKGROUND

York Woods Branch is a two-storey 42,176 square-foot facility, which opened in 1970 and includes a theatre that was opened in 1995. As one of 17 District branches, it serves a diverse community in the north-west area of the City. It is also located in Glenfield-Jane Heights, one of the City’s Neighbourhood Improvement Areas. The Metrolinx Finch West LTR is scheduled to be completed in 2023, and will result in development and growth in the community.

The branch is very busy and plays an important role in the community by providing programming, study space, computers and wifi, and hosts cultural and arts events in the 260- seat theatre. The large community of newcomers to the area is well served by the branch’s multilingual collections and programs. The revitalization and reprogramming of interior spaces will continue to support efficient operations and deliver modern library services.

COMMENTS

The scope of the York Woods project includes an interior redesign and renovation of the ground and second floors of the branch, and a modernization of the theatre. The primary focus of the renovation will be the revitalization of the facility’s interior, and reprogramming of space to support the delivery of enhanced services to meet the changing needs and expectations of library users. Significant state of good repair requirements identified in the 2014 property condition assessment will be addressed, including a retrofit and upgrade of all building systems and infrastructure. The interior design will maximize flexibility by ensuring that the spaces are adaptable. The branch will include a Digital Innovation Hub, Discovery Zone, and a Kids Stop. There will also be multipurpose program space created to support newcomer services, co-sponsored programs and partnerships.

York Woods Branch and theatre will be closed for approximately 24 months during the renovation, and an alternate service plan will be developed.

York Woods Branch Renovation – Architect Award of Contract 2 Procurement Process and Results A Request for Proposals (RFP) for Architectural Services was issued in December 2017 and was advertised on the TPL website, and the Biddingo and MERX online bid posting sites. A total of nine submissions were received.

The RFP process two-phased as the nature and complexity of the work that is required warrants the establishment of a short list of qualified architects in Phase 1, followed by interviewing the short-listed firms in Phase 2. Architects who responded to the RFP included the following documentation in their responses:  Mandatory Submission Form acknowledging receipt and review of all pertinent documents and binding covenant to provide services in accordance with RFP documents;  Price Detail Form;  Firm’s experience with at least three projects of a similar nature, scope and scale in the last seven years;  Architect’s ability and capacity to perform the work;  Person(s) in firm responsible for this project and on the project team, including relevant experience, expertise and role;  Sub-consultants proposed, including expertise and experience of each sub-consultant and coordination techniques to be used;  Experience in working with public sector or not-for-profit clients;  Proven track record in public consultation;  Proven reputation in the design of functional interiors that encompass all current design concepts to respond in a dynamic and meaningful way to the requirements of the public;  Expertise with Toronto Green Development Standard;  Contract administration, including ability to meet project schedule and supervise a contract while project is under construction;  Architect’s experience and methods used for budgeting and financial controls; and  Three client references.

A short list of the two highest scoring firms was established based on the evaluation of the submissions in Phase 1. The short-listed proponents were invited to attend a confidential interview and make a presentation in accordance with the provisions of the RFP. Each firm was required to address the following in their presentation:  Personnel who would be involved in the project, and their roles;  Vision for the York Woods Branch renovation project;  How the firm would ensure that the building design would meet the needs of the various project stakeholders;  How the firm would approach assessing the building’s potential for renovation; and  Strategies employed by the firm to ensure that schedules are realistic, and budget and schedules are met.

The recommended firm, Diamond Schmitt Architects, achieved the highest total score in the evaluation. References were checked by the Library and were satisfactory. Diamond Schmitt Architects is a leading Canadian full-service practice. They have significant expertise in library planning and construction of state-of-the-art facilities throughout Canada

York Woods Branch Renovation – Architect Award of Contract 3 and worldwide. They have successfully completed three Toronto Public library projects in the last 17 years, including Maria A. Shchuka, Brentwood and most recently North York Central Library. The firm is recognized for design excellence and responsibly managing complex institutional projects.

The approved capital budget is $8,344,000; however, the project is at a very early stage, and as work proceeds on the planning and scoping, the project will be further refined, and additional reports brought forward to the Board for approval, as required. If the construction costs increase, or other work is required, such as furniture, shelving or millwork, the fee paid to Diamond Schmitt Architects would not exceed 9.45%.

CONCLUSION

With the selection of Diamond Schmitt Architects, work on the York Woods Branch capital project will begin immediately, starting with detailed building assessments and design development, followed by public consultation. This project will be a multi-year project, with the branch being closed during the construction period. The plan is to complete the design in 2018 with a view to completing working drawings and tender by the middle of 2019 and starting construction in the second half of 2019.

CONTACT

Moe Hosseini-Ara; Director, Branch Operations and Customer Experience; Tel: 416-397-5944; Email [email protected]

Paul Trumphour; Director, Transformational Projects; Tel: 416-395-5541; Email: [email protected]

Gail Rankin; Senior Manager, Facilities Management; Tel: 416-395-5881; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

York Woods Branch Renovation – Architect Award of Contract 4 STAFF REPORT 17. ACTION REQUIRED

2018-2027 Capital Budget and Plan Adjustment for St. Clair/Silverthorn Branch Project

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

This report requests Toronto Public Library (TPL) Board endorsement to seek City approval for an in-year capital budget adjustment to increase the approved capital budget for the St. Clair/Silverthorn Branch project by $0.918 million gross to align funding with the contract awarded. The increase is funded by $0.328 million of development charges (DC) and $0.590 million debt funding transfer from the Multi-Branch State of Good Repair (MB SOGR) program. The adjustments will have a zero debt impact on the 2018-2027 Capital Budget and Plan. The total project cost of the St. Clair/Silverthorn project will increase to $3.815 million.

RECOMMENDATIONS

The City Librarian recommends that the Toronto Public Library Board:

1. endorses the following adjustments to TPL’s 2018-2027 capital budget and plan with no net impact on annual debt levels:

a. increase the cost of the St. Clair/Silverthorn branch project by $0.918 million, from $2.897 million to $3.815 million, funded by $0.328 million from the development charges reserve fund (XR2115) and $0.590 million from debt transferred from the Multi-Branch State of Good Repair program;

b. in-year capital budget transfer of $0.590 million gross and debt from the Multi-Branch State of Good Repair program to the St. Clair/Silverthorn branch project; and

2. authorizes staff to forward the capital budget adjustments to the City for approval.

2018-2027 Capital Budget Adjustment – St. Clair/Silverthorn Branch 1 FINANCIAL IMPACT

The budget for the St. Clair/Silverthorn Branch project is being increased by $0.918 million gross, funded by $0.328 million DC and $0.590 million debt transferred from the MB SOGR program. This adjustment increases the gross cost of the St. Clair/Silverthorn project from $2.897 million to $3.815 million. Annual cash flows are as shown in Table 1:

Table 1: St. Clair/Silverthorn Branch Capital Budget ($ Millions)

Total Actual to 2018 2019 Project Approved Budget date Budget Budget Cost DC 0.161 0.259 - 0.420 Debt 0.180 1.997 0.300 2.477 2018 Approved Budget 0.341 2.256 0.300 2.897

Total Actual to 2018 2019 Project Budget Adjustment date Budget Budget Cost DC 0.148 0.180 0.328 Debt 0.570 0.020 0.590 Total Adjustment - 0.718 0.200 0.918

Total Actual to 2018 2019 Project Revised Budget date Budget Budget Cost DC 0.161 0.407 0.180 0.748 Debt 0.180 2.567 0.320 3.067 2018 Revised Budget 0.341 2.974 0.500 3.815

As detailed in Table 2 below, the budget transfer of $0.590 million gross and debt funding from the MB SOGR program reduces the budget from $15.923 million gross to $15.333 million with 2018 cash flow decreasing from $6.164 million gross to $5.594 million and 2019 cash flow decreasing from $5.732 million gross to $5.712 million.

Table 2: Multi-Branch Minor Renovation Program Capital Budget ($ Millions)

Total 2018 2019 2020 Project Approved Budget Budget Budget Budget Cost DC 0.126 0.551 0.299 0.976 Debt 5.957 5.181 3.728 14.866 Other 0.081 0.081 2018 Approved Budget 6.164 5.732 4.027 15.923 Total 2018 2019 2020 Project Budget Adjustment Budget Budget Budget Cost DC - Debt (0.570) (0.020) (0.590) Total Adjustment (0.570) (0.020) - (0.590) Total 2018 2019 2020 Project Revised Budget Budget Budget Budget Cost DC 0.126 0.551 0.299 0.976 Debt 5.387 5.161 3.728 14.276 Other 0.081 0.081 2018 Revised Budget 5.594 5.712 4.027 15.333

2018-2027 Capital Budget Adjustment – St. Clair/Silverthorn Branch 2 The Director, Finance and Treasurer has reviewed this financial impact statement and is in agreement with it.

DECISION HISTORY

At its meeting on February 12, 2018, City Council approved the Toronto Public Library Capital Budget through item EX31.2 (105a.i. and 105b) that included $2.897 million gross for the St. Clair/Silverthorn Branch capital project with cash flows over 2018 and 2019. http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2018.EX31.2

At its meeting on December 11, 2017, the Board approved the awarding of the construction contract for the St. Clair/Silverthorn Branch project to the lowest bidder, and it was noted that the costs were to be funded from the St. Clair/Silverthorn Branch project and the MB SOGR Program project.

ISSUE BACKGROUND

Financial control policies for the City and the Library allow for the reallocation of budgets between capital projects to offset anticipated over-expenditures in one project with available funding from another project.

The St. Clair/Silverthorn Branch project is a demolition and rebuild of an existing branch on the same property. The new branch will increase the public service area by approximately 1,000 square feet and will include a fully accessible elevator to service the second floor.

On October 12, 2017, TPL received tenders from four pre-qualified General Contractors with initial bids above budget. TPL was successful in negotiating with the lowest bidder to reduce the tender value by $0.660 million, but the bid still exceeded the budget by $0.918 million. To avoid further delays and potentially higher costs associated with re-tendering the project, the Library Board, at is meeting on December 11, 2017, awarded the construction contract to the lowest bidder with costs to be funded from the St. Clair/Silverthorn Branch project and the MB SOGR Program project.

COMMENTS

TPL is requesting a budget adjustment to reallocate funding in 2018 and 2019 from the MB SOGR Program to the St. Clair/Silverthorn Branch project, so as to align funding with the contract award.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

2018-2027 Capital Budget Adjustment – St. Clair/Silverthorn Branch 3 SIGNATURE

______Vickery Bowles City Librarian

2018-2027 Capital Budget Adjustment – St. Clair/Silverthorn Branch 4 STAFF REPORT 18. ACTION REQUIRED

2018-2027 Capital Budget and Plan Adjustment for North York Central Library Project

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

This report requests Toronto Public Library (TPL) Board endorsement to seek City approval for an in-year capital budget adjustment to increase the approved capital budget for the North York Central Library (NYCL) Phase 1 project by $2.500 million gross (zero net) due to higher costs related to scope changes and cost escalation. The increase is funded from additional operating savings due to the extended branch closure for construction in 2018 of $2.250 million, as well as development charges (DC) funding of $0.250 million. The adjustments will have a zero debt impact on the 2018-2027 capital budget and plan. The total project cost of the NYCL project will increase to $17.474 million.

This adjustment is subject to City approval.

RECOMMENDATIONS

The City Librarian recommends that the Toronto Public Library Board:

1. endorses the 2018 capital budget adjustment to increase the cost of the North York Central Library Phase 1 project by $2.500 million, from $14.974 million to $17.474 million, with 2018 cash flow increasing from $2.781 million to $5.281 million funded by $2.250 million of additional operating savings due to the extended branch closure for construction in 2018 and $0.250 million of development charges, with no impact to City debt; and

2. authorizes staff to forward the capital budget adjustments to the City to seek approval.

FINANCIAL IMPACT

The budget for the NYCL Phase 1 project is being increased by $2.500 million gross and $0 debt, funded by $2.250 million of additional operating savings due to the extended branch closure for construction in 2018 and $0.250 million of development charges. This adjustment

2018-2027 Capital Budget Adjustment – North York Central Library 1 increases the gross cost of the NYCL Phase 1 project from $14.974 million to $17.474 million with 2018 gross cash flow increasing from $2.781 million to $5.281 million. The Director, Finance and Treasurer has reviewed this financial impact statement and is in agreement with it.

DECISION HISTORY

At its meeting on February 12, 2018, City Council approved the Toronto Public Library Capital Budget through item EX31.2 (105a.ii. and 105b) that included a $14.974 million project cost for the NYCL Phase 1 capital project with $2.781 million cash flow in 2018. http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2018.EX31.2

ISSUE BACKGROUND

NYCL is a 168,022 sq. ft. branch spread over seven floors, with a planned renovation split into two separate phases. Phase 1 of the renovation was approved in 2015 at a cost of $14.974 million with cash flows over 2015 to 2018. In February 2018, Council approved Phase 2 of the NYCL project at a cost of $10.880 million with cash flows over 2018 to 2020.

The scope for Phase 1 of the NYCL renovation project includes the renovation and reconfiguration of floors 1 to 5 and addresses several State of Good Repair (SOGR) issues. NYCL was closed in December 2016 and the plan was to re-open the branch in early 2018. The current plan is to re-open most of the branch in the summer of 2018.

COMMENTS

The longer than expected library closure provided an opportunity to do additional SOGR work (e.g. exterior cladding and roofing) discovered during construction that was not in the original scope of work, and therefore an increase to the project budget to address the scope changes and cost escalations is required.

The benefits of the scope increase and the completion of this work during the current branch closure include:  avoids additional library closures in the future;  minimizes further cost escalation;  further reduces the SOGR backlog;  lessens disruption to service, staff and the public when the branch re-opens;  more effective project planning.

The extended closure of the branch in 2018 will generate additional operating savings in staffing and operating costs of approximately $2.250 million. As these operating cost savings are a direct result of the delayed re-opening of NYCL, the proposal is to apply the anticipated operating cost savings to fund the additional scope changes and cost escalation for Phase 1.

TPL is requesting a budget adjustment to increase the cost of the NYCL Phase 1 project by $2.500 million, from $14.974 million to $17.474 million, with 2018 cash flow increasing

2018-2027 Capital Budget Adjustment – North York Central Library 2 from $2.781 million to $5.281 million, funded from additional operating savings due to the extended branch closure for construction in 2018 of $2.250 million and DC funding of $0.250 million, with no impact to City debt as show in Table 1 below. The re-allocation of the operating savings to fund the increased budget prevents the displacement of other SOGR projects in the Multi-Branch SOGR program, which would be the only other funding source.

Table 1: North York Central Library Capital Budget ($ Millions)

Actual to 2018 Project Approved Budget date Budget Cost DC 0.713 0.725 1.438 Operating Savings 4.000 - 4.000 Debt 7.480 2.056 9.536 2018 Approved Budget 12.193 2.781 14.974

Actual to 2018 Project Budget Adjustment date Budget Cost DC - 0.250 0.250 Operating Savings - 2.250 2.250 Debt - - - Total Adjustment - 2.500 2.500

Actual to 2018 Project Revised Budget date Budget Cost DC 0.713 0.975 1.688 Operating Savings 4.000 2.250 6.250 Debt 7.480 2.056 9.536 2018 Revised Budget 12.193 5.281 17.474

This adjustment is subject to City approval.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

2018-2027 Capital Budget Adjustment – North York Central Library 3 STAFF REPORT 20. INFORMATION ONLY

Facilities Master Plan – Toronto Public Library Board Consultation

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to inform the Toronto Public Library Board of the work taking place on the Facilities Master Plan and to provide information about specific Board member consultations.

The creation of a Facilities Master Plan is a goal in the 2018 strategic plan work plan. The Master Plan will provide both a framework and a roadmap for branch capital investment decision making in both the near and long term. Toronto Public Library (TPL) staff and Ernst & Young (EY) consultants are conducting an intensive investigation into a range of factors impacting in-branch library service and facilities infrastructure as part of the development of the plan. The final Facilities Master Plan will present recommendations for reinvestment in library infrastructure that is based on a range of weighted criteria.

The Facilities Master Plan will assist library staff to make the best decisions in the face of mounting and competing pressures for investment in branch infrastructure. These pressures include a growing state of good repair backlog, accelerating population growth in specific locations across the city, the need to continue to invest in branches serving high-priority neighbourhoods, and a range of new city-led development projects that include a library branch as part of multi-use facilities.

It is important that the Facilities Master Plan is informed by input provided by many stakeholder groups that range from the public, city divisions and agencies, and library partners. A key stakeholder group is the Toronto Public Library Board. Library Board input is being requested and will take place in two ways: an electronic survey will be circulated to Board members that asks specific questions about TPL’s capital program. Board members will also be invited to meet with the Facilities Master Plan working team in order to explore issues relating to capital investment in branch infrastructure in the near and long term.

Facilities Master Plan – Toronto Public Library Board Consultation 1 FINANCIAL IMPACT

This report has no financial impact beyond what has already been approved in the current year’s budget.

The Director, Finance & Treasurer has reviewed this report and agrees with the financial impact information.

ALIGNMENT WITH STRATEGIC PLAN

The development of Toronto Public Library’s Facilities Master Plan aligns with strategic priority 2 – breaking down barriers to access, and priority 3 – transforming for 21st century service excellence.

DECISION HISTORY

At the January 29, 2018 meeting, the Toronto Public Library Board approved the 2017 Strategic Work Plan Status Update and 2018-2019 Strategic Work Plan. The work plan includes an initiative to create a Facilities Master Plan. https://www.torontopubliclibrary.ca/content/about-the- library/pdfs/board/meetings/2018/jan29/15-2017-strat-plan-work-plan-update-2018-2019- work-plan-combined.pdf

ISSUE BACKGROUND

The Toronto Public Library is developing a Facilities Master Plan that will guide the development of priorities for current and future capital investments in branch infrastructure. The formation of a master plan is necessary because TPL is facing numerous and competing pressures for investment in branch infrastructure. These pressures are well documented and include:  a growing state of good repair (SOGR) backlog. Approximately 70% of library branches are between 40 and 50 years old and the current SOGR backlog is $66 million. Without additional investment beyond the current debt targets it will grow to $146 million by 2027;  population growth in many areas of the city is occurring rapidly and will require reinvestment and expansion of library branches to provide library services for new residents. For example, the TO Core Planning study indicates that the downtown population of Toronto will grow from approximately 250,000 to over 400,000 in the next two decades. Currently nearly 8,000 new people move into the downtown area each year. Other areas of significant growth include south Etobicoke, North York Centre, and midtown Toronto;  while it is important that TPL provide quality library service in these growing communities, it is equally important that the Library invest in branches in low and no growth areas that typically serve high-priority neighbourhoods so that these residents can also have access to 21st century library service;

Facilities Master Plan – Toronto Public Library Board Consultation 2  the City of Toronto is engaging in a range of new capital projects that involve collocating various city services, including libraries. The Etobicoke Civic Centre, Danforth Barns, and the Parkdale Community Hub are three examples of projects that include a library. All are currently unfunded;  finally, the debt targets that the City established for the Library are shrinking in the near and medium term. Without significant additional capital funding, TPL will struggle to meet the needs of its current branch network, let alone accommodate the growth that will occur over the next 20 years.

In order for TPL to manage these competing pressures, it is necessary to develop a strong capital planning framework that helps staff make recommendations for capital investments over the next 10 to 20 years. This capital planning framework will be a core part of a Facilities Master Plan that is now under development.

In 2017, library staff issued a Request for Proposal (RFP) for a consultant to assist with the development of the Facilities Master Plan. The scope of work for the project includes the following:  developing a mechanism that will assist staff to determine which branches require capital investment for revitalization and/or expansion;  enabling strategic decision making that will ensure the library meets its current and future strategic plan goals;  confirming medium- and short-term priorities for capital investment (2018-2027) and considering longer-term investment that aligns with planning processes;  creating a roadmap for capital investment based on equitable access to library service, community needs and requirements, and the Library’s capacity to meet these requirements.

The RFP also stipulated that the final plan would need to be flexible so that TPL can adapt its investment strategy to meet future circumstances. It will also be used to provide input into the City’s Real Estate strategy.

The successful proponent for the RFP was Ernest & Young LLP (EY). The firm is a global leader in assurance, tax, transaction and advisory services that includes transaction real estate advisory services. The transaction real estate practice provides integrated solutions to both the public and private sector in areas of portfolio management, asset management, facilities management, and capital planning.

COMMENTS

Toronto Public Library staff and EY have finished the first two phases of the Facilities Master Plan. This work has focused on a review of TPL’s current capital planning decision making process, a facilities condition index assessment, examination of property condition assessments, detailed demographic analysis, library sector scan of real estate portfolio management, and an environmental scan of 21st century library service practice in other jurisdictions.

Facilities Master Plan – Toronto Public Library Board Consultation 3 Consultation Recently TPL has been consulting with a wide range of external groups, expert library users and the public on the library user experience. Some of the information gathered through these consultations focuses on branch facilities and in-branch library user requirements. More extensive public consultation was conducted through focus groups and satisfaction surveys as part of the Strategic Planning process. Library staff have also conducted public consultations as part of branch renovation projects. All of the relevant information gathered through these consultations will be used to inform the development of the Facilities Master Plan.

While broad-based consultation has been conducted with key library staff and the City Planning department, further consultation with library specific and city stakeholder groups is also required. The Toronto Public Library Board is a key stakeholder group whose input is required to inform the development of the Facilities Master Plan. TPL Board input will be sought in two ways. An on-line survey will be sent to all Board members that asks specific questions about branch capital planning and the alignment between the capital projects and the strategic plan. Board members are also invited to make broader comments about capital projects and planning through the survey. Board members will also be provided with the opportunity to meet with the Facilities Project team for an in-person consultation about the development of the Facilities Master Plan.

Further consultation sessions have been held or will be held with the following city divisions, the school board, and staff:  Toronto Public Library Branch Heads;  Parks, Forestry & Recreation;  Social Development, Finance & Administration;  Children’s Services;  Toronto Community Housing;  Toronto District School Board;  CreateTO.

All of the information that is gathered through the consultation process will be used to ensure that the Facilities Master Plan is informed by a wide range of stakeholders.

Next Steps Along with the consultations that are currently taking place, work is underway on the development of methodology to assess and weigh various criteria that will be used to prioritize capital investment. The information gained through the consultation process will also contribute to the formation of the methodology used to determine capital investment priorities. Following the completion of this phase of the Facilities Master Plan, work will begin on the final stages of creating a roadmap for capital investment in library infrastructure that is based on the weighted criteria that is under development. Further public and stakeholder consultation will be conducted following this stage in the project. A final implementation plan along with recommendations will be presented to the Board in the fall.

Facilities Master Plan – Toronto Public Library Board Consultation 4 CONTACT

Paul Trumphour; Director, Transformational Projects; Tel: 416-395-5541; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

Facilities Master Plan – Toronto Public Library Board Consultation 5 STAFF REPORT 21. INFORMATION ONLY

Intellectual Freedom Challenges – 2017 Annual Report

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to provide an overview of the processes for dealing with challenges to intellectual freedom and to provide a summary of the five complaints received in 2017 – three regarding library materials, one use of library space and one technology.

This report is now being broadened to include challenges relating to library programming, technology and library space in order to provide a more comprehensive view of challenges relating to intellectual freedom.

FINANCIAL IMPACT

There is no financial impact arising from the information in this report.

The Director, Finance and Treasurer has reviewed this Financial Impact Statement and is in agreement with it.

ALIGNMENT WITH STRATEGIC PLAN

The Challenges to Intellectual Freedom for 2017 report supports the Strategic Plan goals of:  building a diverse collection in a variety of formats in response to changing community needs;  creating online and in-branch environments that connect neighbourhoods and communities, offering opportunities for partnerships, civic engagement and resident participation;  meeting or exceeding public expectations and demand for technology to support school, work and daily life.

Intellectual Freedom Challenges – 2017 Annual Report 1 ISSUE BACKGROUND

The Library believes that a vital society encourages members of its community to actively participate in an open exchange of ideas and opinions, and it offers materials, technology, programs and services to support this goal. The Library seeks to offer a welcoming, inclusive environment while upholding the principles of freedom of speech and expression.

At present, intellectual freedom challenges are dealt with in the context of the applicable policy governing that area of service. To promote a more comprehensive approach, the Library proposes to develop an overarching intellectual freedom framework and to examine relevant administrative policies and procedures that will support this framework. The current process for handling requests for reconsideration of library materials is highly developed and well understood by staff, and will provide a model for development of processes relating to other types of intellectual freedom challenges.

COMMENTS

Challenges to the Use of Collections The Library provides a process for members of the public to identify concerns about books and other material in the Library’s collection. These customer complaints are dealt with in the context of the Materials Selection Policy and the principles of intellectual freedom, both of which were approved by the Board at its meeting on June 26, 2000. Subsequently, the Board approved a revision of the policy in December 2007 and, in June 2012, endorsed two Ontario Library Association statements on intellectual rights, which are now appended to the policy. The relevant section of the policy is restated here.

The library believes that a vital society encourages members of its community to actively participate in an open exchange of ideas and opinions. Material selectors consequently strive to provide the widest possible range of resources within Toronto Public Library collections.

The content or manner of expressing ideas in material that is purposely selected to fill the needs of some library users, may, on occasion, be considered to be offensive by other library users. The library recognizes the right of any individual or group to reject library material for personal use, but does not accord to any individual or group the right to restrict the freedom of others to make use of that same material.

Library users who object to materials located in a library collection are asked to complete a written request for reconsideration of the materials. Request forms are available for this purpose at local library branches.

The procedures for the reconsideration of library materials are intended to ensure that the concerns of the customer are dealt with in a timely manner and with sensitivity. Typically, complaints are received at the branch level. Staff then have the opportunity to discuss the customer’s concerns with them and to provide them with a copy of the

Intellectual Freedom Challenges – 2017 Annual Report 2 Materials Selection Policy. This discussion often satisfies the customer and no further action is required. Customers wishing to pursue their complaint fill out a form detailing their concerns, which is sent to the Collection Development Manager, who forwards it to the Materials Review Committee. A letter of acknowledgement is sent to the customer explaining the process.

The Materials Review Committee is chaired by the Manager, Collection Development and is drawn from a group of experienced public service librarians based on the subject of the complaint. These librarians have a mixture of expertise in adult, children’s and teen materials in a variety of formats and the Manager may also call in other experts, for example, language specialists, as needed. The committee researches the disputed title by considering reviews, the author’s reputation, coverage of the subject in the collection, its popularity, historical importance, etc., all within the context of the Materials Selection Policy. The decision on the disposition of the item is communicated in writing by the Director, Collections & Membership Services. If the customer wishes to dispute the decision, they may do so to the City Librarian.

Challenges to titles in the collection received by the Materials Review Committee in 2017 and the actions taken by the Library are listed in Attachment 1.

There were complaints about three titles. One was a children’s book in Tagalog with accompanying English translation and two were adult books in English. The children’s book was withdrawn from the collection; one adult book was moved to the Toronto Reference Library for research purposes, and all other copies withdrawn; one adult book was retained.

Challenges to the Use of Community Space Challenges are dealt with in the context of the Community and Event Space Rental Policy, which was revised following the incident described below in response to a request from the Mayor. The review of the policy included seeking the advice of external legal counsel, a review of the policy objectives, consideration of feedback from the public and stakeholders and an examination of relevant legislation and pertinent City policies. The resulting revisions provide a pragmatic and defensible approach to booking decisions and explicitly states the conditions under which the Library will allow or deny room bookings. The policy was approved by the Library Board on December 11, 2017.

The relevant sections of the revised policy are as follows:

Toronto Public Library meeting rooms, auditoriums, theatres and event spaces are made available to the general public for a fee when not being used for Library purposes. The purpose of this policy is to promote the Library’s objectives of providing equitable access to services and maintaining a welcoming and supportive environment free from discrimination and harassment, and to outline the fees, the underlying principles for those fees, the priorities for use and the conditions of use for community and event spaces available for rent from the Library.

Intellectual Freedom Challenges – 2017 Annual Report 3 When making the Library’s Community Space Rentals available for use, the Library is committed to ensuring the dignity and safety of the public and staff without disruption to Library services, and to maintaining the security of Library property. a) The Library reserves the right to deny or cancel a booking when it reasonably believes: i. use by any individual or group will be for a purpose that is likely to promote, or would have the effect of promoting discrimination, contempt or hatred for any group or person on the basis of race, ethnic origin, place of origin, citizenship, colour, ancestry, language, creed (religion), age, sex, gender identity, gender expression, marital status, family status, sexual orientation, disability, political affiliation, membership in a union or staff association, receipt of public assistance, level of literacy or any other similar factor; ii. use by any individual or group will be for a purpose or action that is contrary to the law or any of the Library’s policies or Rules of Conduct, including violent, threatening, abusive, harassing, disruptive or intrusive language or conduct; b) The Library requires potential users of Community Space Rentals to confirm that they will not be conducting any business or activities that are in violation of 4.4(a)(i) of this policy, the Criminal Code of Canada (including hate propaganda laws) or the Ontario Human Rights Code.

Applicants who are denied permission may have the decision reviewed by the City Librarian whose decision is final.

Procedures were also changed so staff have more information about the purpose of bookings and pertinent language from the policy concerning denial of applications incorporated into contracts that all applicants must sign.

The community space rental challenge concerned a third-party room booking at Richview Branch for a memorial for Barbara Kulaszka, a lawyer known for her work on free speech cases involving far right causes, including white supremacists. A large number of complaints from the public, members of City Council and the Mayor were received. Based on the information available at the time and considering TPL’s policies and the legal opinion received, the room booking was maintained. Details can be found in Attachment 2.

Challenges to the Use of Technology In this case, the challenge was dealt with in the context of the Internet Use Policy, which was approved by the Library Board in 2002. The relevant sections of the policy are below.

With the exception of filters on designated children’s workstations, the Library does not manage the content of the information accessed through the Internet and assumes responsibility only for the information provided on its own home pages. The Library is not responsible for the site content of links or secondary links from its home pages.

Intellectual Freedom Challenges – 2017 Annual Report 4

Toronto Public Library’s users are subject to federal, provincial and municipal legislation regulating Internet use, including the provisions of the Criminal Code regarding obscenity, child pornography, sedition and the incitement of hate. The use of the Library’s Internet services for illegal purposes is prohibited and may result in prosecution.

The technology challenge was a complaint to the Library Board Chair and City Librarian concerning the Library’s policy of not using filtering software on adult Internet workstations. In response, the Library undertook a review of its policies and practices around Internet use and the current legal framework. Ultimately the Library’s Internet Use Policy was unchanged and the request to install filtering software denied. Details are in Attachment 3.

In general, the volume of complaints received relative to the population served is very low, reflecting the Toronto public’s appreciation of the breadth of TPL’s collection, the importance of public libraries in providing access to public space and computers, and its understanding of the application of intellectual freedom in a library setting.

CONTACT

Susan Caron; Director, Collections & Membership Services; Tel: 416-395-5506; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENTS

Attachment 1: Challenges to Intellectual Freedom 2017 – Library Materials Challenges to Intellectual Freedom 2017 – Use of Community Space Challenges to Intellectual Freedom 2017 – Internet Filtering

Intellectual Freedom Challenges – 2017 Annual Report 5 Attachment 1

Challenges to Intellectual Freedom 2017 – Library Materials

Date Item Description Summary of Customer Findings and Action Taken Resolved Comments April Pitong Anghel (Seven  Promotes a racist  The book tells the story of a young girl and her series of 2017 Angels) stereotype of Muslims. caregivers (“angels”).  Remove from the  The author is a well-regarded teacher, poet and writer in the Written by Genaro R. collection. Philippines. Gojo Cruz, Lampara  The girl is warned that “the man with the beard” might Publishing, 2014 come and take her away. The man illustrated could be assumed to be Muslim based on his appearance. Other Children’s Picture Book males in the books are not depicted this way.  This is problematic and children could interpret it to mean that men who look like this are dangerous.  The Library does not own other works with illustrations by the same artist.  Withdrawn from the collection

May What the (Bleep) Just  Extensively  The book is a critique of Barack Obama and his policies, 2017 Happened?: The plagiarized. written by a syndicated radio host and former Fox News Happy Warrior’s  Remove from the contributor. Guide to the Great collection.  News organizations reported that her book contained over American Comeback 50 instances of plagiarized text from various sources including Wikipedia, the New York Times and Wall Street Written by Monica Journal. Crowley, Broadside  In response to the controversy, the publisher announced that Books, 2012 the book would no longer be offered for purchase.  The book may be of interest to researchers due to its news Adult Book value and as an example of plagiarism.  Withdrawn from the circulating collection and one copy transferred to the Toronto Reference Library for research purposes

Date Item Description Summary of Customer Findings and Action Taken Resolved Comments August Mein Kampf  The work is a  Mein Kampf is Adolf Hitler’s autobiography and political 2017 manifesto of Nazi manifesto, outlining his ideas of racial superiority and his Written by Adolf Hitler, ideology and is anti- plans for Germany’s future under the leadership of the 1925, 1971, Houghton Semitic. Nazis. Mifflin  Remove all formats of  It is central to understanding the origins of National the work from the Socialism and the World War II era in general, and is a Adult Book collection. crucial text for those who study the Holocaust, propaganda and totalitarian psychology.  It appears on course lists at the university level and is available in public and university libraries across Canada.  Retained in the adult collection

2 Attachment 2

Challenges to Intellectual Freedom 2017 – Use of Community Space

Date Incident Summary of Public Findings and Action Taken Response July 2017 Challenge to a room  Approximately 1,600  Legal advice from the City of Toronto suggested TPL did booking for a memorial emails, phone calls not have the grounds to deny the booking for the memorial service for Barbara and social media service based on the Canadian Charter of Rights and Kulaszka, a lawyer messages were Freedoms, the Library’s Rules of Conduct or other policies. known for her work on received from the  A Senior Manager and other staff attended the memorial free speech cases public, most service to ensure there were no policy or legal violations involving far right expressing opposition and to respond to media requests and questions or concerns causes, including white to the room booking. from the public. No violations occurred. supremacists.  Members of Council,  A rigorous and thorough review of the Community and including Mayor John Event Space Rental Policy was conducted, including a third- Tory, voiced their party legal review, a peer review of revisions to the policy disapproval. In an and consultations with stakeholders. The Board approved official statement, the the revised policy at its December 2017 meeting. Mayor asked the  Room booking was maintained Library to review its rental policy in the wake of the event.  General theme of feedback was that by upholding the booking the Library was endorsing the views of the individuals organizing the meeting.

Attachment 3

Challenges to Intellectual Freedom 2017 – Internet Filtering

Date Incident Summary of Public Findings and Action Taken Comments Sept. 2017 Challenge to the  A group expressed  TPL reviewed its policies and practices around internet use. Library’s Internet Use concern about library  Current legal advice is that filtering all internet workstations Policy, which states customers viewing would amount to a prima facie infringement of the right of that filtering software is pornography on library freedom of expression contained in section 2(b) of the not installed on all computers. Canadian Charter of Rights and Freedoms. internet workstations,  Requested that  Library users are subject to legislation regulating Internet beyond designated filtering software be use, including the provisions of the Criminal Code, such as children's workstations. installed on all internet section 163.1, which relates to child pornography. workstations.  If material being viewed on TPL computers or personal devices in the library interferes with the welcoming environment, library staff will investigate and take appropriate actions including asking the person viewing the material to stop the activity.  Given the importance of public libraries as an access point for technology and the internet, TPL’s commitment to intellectual freedom, and the limitation of filtering solutions, TPL will maintain its current policy of not filtering adult workstations and continuing to filter workstations designated for children.  Internet Use Policy upheld

1 STAFF REPORT 22. INFORMATION ONLY

Accounts Written-off in 2017

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to inform the Toronto Public Library Board of accounts written- off during 2017 under delegated authority provided to the City Librarian. Accounts written- off are predominantly comprised of customer accounts purged by the Integrated Library System (ILS). For 2017, $869,064 of accounts were purged, which represents a small increase of $28,614 or 3% from the prior year.

FINANCIAL IMPACT

In 2017, customer accounts totalling $869,064 were purged and written-off by the ILS, which represents a small increase of $28,614 or 3% from the prior year, and is 12% below the five- year annual average. Declining fines revenue over the past five years, a trend being experienced by nearly all public libraries, is the primary reason for the relatively lower purge amount.

As fines are recorded as revenues only when actually received, which is standard practice in public libraries, the write-offs are not shown as a loss in the 2017 operating results. The operating budget is only based on customer fines that are actually expected to be collected during the year. This accounting practice for fines has been reviewed with the external auditors and the Auditor General.

The Director, Finance & Treasurer has reviewed this financial impact statement and is in agreement with it.

ALIGNMENT WITH STRATEGIC PLAN

TPL’s 2016-2019 strategic plan priorities include breaking down barriers to access and driving inclusion by removing systemic barriers, especially for families and households living in poverty. In March 2016, the Board approved reducing fines that act as a barrier for service. TPL will continue to be fiscally responsible while delivering relevant, accessible and responsive library services and supporting Council priorities.

Accounts Written-off in 2017 1 ISSUE BACKGROUND

The Public Libraries Act is based on a principle of free library services. Toronto Public Library’s mandate is, above all, to preserve and promote equitable, universal access to information and high-quality services and programs, in a welcoming and supporting environment.

The practice of charging customers fines for overdue or lost items is covered in the Circulation and Collection Use (including Fees and Fines) Policy, most recently approved by the Board at the meeting on May 15, 2017. Fines are charged as an incentive to encourage return of library collections on time. When an item is lost or damaged, a replacement charge is assessed based on the original invoiced cost, regardless of the age or condition of the lost item or whether that item is replaced in the collection. A pre-due notification email process was introduced in 2013, which allows customers to better manage their accounts. In April 2018, pre-due notifications became the default notification preference, rather than the opt-in feature, for all customers with email.

The purging of fines, which is a system write-off of fines that are deemed to be uncollectible, is standard business practice for libraries and serves very practical and pragmatic business and financial purposes. Purging is covered in the Circulation and Collection Use (including Fees and Fines) Policy, which sets two criteria for the regular annual purge of outstanding account balances from the ILS database:  when the last use of the library card is more than two years and the total balance owing is less than $100; or  when the last use of the library card is more than five years and the total balance is greater than $100.

The Library purges fines only after taking all of the following actions to collect accounts:

1. Borrowing privileges are suspended as soon as: a. $30 of fines is owing; or b. 15 items are overdue.

2. Telephone or email notifications at seven days and 21 days overdue.

3. Final mail notice with account billing and collection agency warning.

4. Adult accounts over $10 are referred to a collection agency, with instructions for the customer to contact the Library to clear their account. The collection agency does not collect payments. Only if a customer contacts the Library and resolves their account, which includes a collection fine of $5 to $15, does the collection agency get paid a percentage of the amount collected.

5. Only when all these measures have failed, and a minimum number of years have passed (two years for accounts less than $100 and five years for accounts greater than $100), are the accounts purged from the system.

Accounts Written-off in 2017 2 Fines Collection Since amalgamation, the Library has focused on and significantly improved its fines collection processes, policies and procedures to achieve the complementary objectives of customer retention, operational efficiency and fiscal responsibility. Careful consideration has been given to the policies established and resources allocated to achieving these goals. Literature and experience of the Toronto Public Library and other library systems across North America, have shown there is a point of diminishing returns as more punitive fines or penalties do not necessarily increase revenues collected, and have, in fact, been shown to have detrimental effects on both the financial and business performance of the Library as customers choose not to pay fines or return materials, and may even stop using the Library altogether.

Significant changes have been made in the area of fines collections following the introduction of a single ILS in 1999 that allowed a common database of library collections:

1. Immediately after amalgamation, the circulation and fines policy was harmonized.

2. Benchmarks were developed to monitor the amount of fines collected and the amount waived, and the benchmarks are essentially being met.

3. Cash registers were introduced to approximately 50% of the branches, which had never used cash registers, so now all branches have registers. As part of a technology innovation project, in 2018, TPL will be replacing the cash registers with point of sale machines that are integrated with the ILS, which will lead to increased accuracy and efficiencies.

4. Detailed cash-handling procedures were harmonized and performance benchmarks developed.

5. Extensive staff training has been provided on how to deal with customers on fines collection and cash handling, and how to use systems and equipment.

6. Copy cards and point-of-sale machines were introduced to reduce cash handling and to facilitate payments, which also serve to reduce account write-offs.

7. Fines were introduced for holds not picked up, interlibrary loans and for digital equipment.

8. Use of a collection agency was introduced in 2003 to deal with uncollected adult accounts greater than $50. In 2012, use of the collection agency was extended for uncollected adult fines over $10. At the time when the collection agency option was being assessed, an environmental scan showed that TPL already had one of the most stringent collections processes for overdue and lost items fines.

Accounts Written-off in 2017 3 Since 2003, using the collection agency for uncollected accounts has resulted in cash collection of $2,667,317 net of the collection agency commission and $3,013,028 of collections returned.

9. Fines rates for children and adults were significantly increased in 2012 and then partially rolled back in 2016 when it started to present a significant barrier to service.

10. New lower fines were introduced for teens and young adults to reduce barriers.

11. A system enhancement in late 2013 allows customers to pay fines on-line that will further reduce cash handling and staff intervention. In 2016, the on-line payment service fee was eliminated.

12. As part of a technology innovation project, in 2018 and 2019, TPL will introduce the ability for customers to pay fines at self-checkout stations.

COMMENTS

Section 19.1 of the approved Financial Control Policy authorizes the City Librarian to write- off outstanding accounts of $10,000 or less owing to the Library as uncollectible provided that reasonable efforts have been made to collect the outstanding amount. Any single account balance greater than $10,000 would need Board approval for write-off and there were none in 2017. Below is a five-year summary of total write-offs:

Total Write-Offs

Annual Type of Fine 2013 2014 2015 2016 2017 Average Fines for past due 240,711 704,566 458,096 383,881 406,784 438,808 Lost Materials 286,667 707,282 513,392 396,970 392,433 459,349 Referral fees 24,999 197,122 84,749 59,184 69,846 87,180 Total Purged 552,377 1,608,970 1,056,237 840,035 869,064 985,337 Other write-offs 701 176 414 - Total write-offs 552,377 1,609,671 1,056,413 840,449 869,064

Since 2011 there have been a number of significant changes made to fines rates and structure and the expanded use of the collection agency, which resulted in unusual fluctuation in purges over the 2013 to 2014 period. The 2017 purge totalling $869,064 represents a small increase of $28,614 or 3% from the prior year, and is 12% below the five-year annual average. The increasing use of e-materials, which incur no fines, and the lower fine rates implemented in late 2016 are expected to result in lower fines revenue over time. However, by making it easier to pay fines online and at self-checkout terminals, this could help to mitigate the declining fines trend.

Lost items purged in 2017 totalled $392,433 and represents 45% of the total purge. It should be noted that the purge value represents the original purchase value of the lost items, and the

Accounts Written-off in 2017 4 market value for the lost item may be significantly less than the purged amount because the lost item is in circulation and its value has depreciated over time with use. The estimated number of lost items purged is 29,700 items, which represents 0.10% of the total annual circulation of 30,098,890. In other words, 99.90% of all items borrowed are returned.

2013 2014 2015 2016 2017 Annual Average

Fines purged* 552,377 1,608,970 1,056,237 840,035 869,064 985,337 Number of accounts purged 44,708 69,559 53,678 46,338 46,115 52,080 Average account balance 12.36 23.13 19.68 18.13 18.85 18.43

* children & teens fines purged 242,989 218,905 298,645 250,507 252,593

The average customer account balance purged is $18.85, which is relatively unchanged from the previous year. It should also be noted that of the amounts purged in 2017, $252,593 or 29% was owed by children and teens, whose accounts are not sent to the collection agency.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

Accounts Written-off in 2017 5 STAFF REPORT 23. INFORMATION ONLY

2017 Grants

Date: May 28, 2018 13 To: Toronto Public Library Board

From: City Librarian . SUMMARY #

This purpose of this report is to inform the Toronto Public Library Board of grants in excess of $50,000 received and recognized in 2017, excluding funding received from the Toronto Public Library Foundation. This report is required pursuant to article 22.3 of the Financial Control Policy.

FINANCIAL IMPACT

Grants serve to supplement the approved budget funding received from the City of Toronto, allowing Toronto Public Library (TPL) to enhance library services.

The Director, Finance & Treasurer has reviewed this financial impact statement and is in agreement with it.

ISSUE BACKGROUND

The City is the primary source of funding for the TPL operating budget. The approved 2017 operating budget was 90% funded by the City and the remaining portion was funded through Provincial grants (3%), fines, fees and rentals (4%), and other revenues (3%) comprised mainly of contributions from development charge reserves for Library collections.

2017 Grants 1

2017 Gross Operating Budget By Source ($198,993,175)

Provincial Grants, 5,678,427 , 3% City of Toronto, 179,107,760 , 90% Fines, Fees & Rentals, 7,122,295 , 4%

Development Charges & Other, 7,084,693 , 3%

Source of Funding 2017 Revenue Budget ($) Percentage of Budget City of Toronto 179,107,760 90% Provincial Grants 5,678,427 3% Fines, Fees & Rentals 7,122,295 4% Development Charges & Other 7,084,693 3% Total 198,993,175 100%

In addition to the Council-approved budgets, TPL receives additional funding from the Toronto Public Library Foundation and by applying for grants as opportunities arise. Pursuant to article 22.3 of the Financial Control Policy this report only contains grants over $50,000. Also, funding received from the Foundation is reported to the Board separately and not included in this report.

COMMENTS

The Household Operating Grant ($4,127,362) is provided under the Public Libraries Act as provincial funding for general operations and has been unchanged since 1999 despite inflation and a significant increase in households. The province also recognizes the Toronto Reference Library and its role in providing province-wide services by providing a Virtual Reference Library Grant ($1,446,565), and that has been unchanged since 2000. These two provincial grants are covered by legislation, are provided every year, and treated as part of the base budget funding; the grant amounts have not increased for 18 years.

Other government grants are designated for specific initiatives and so cannot be treated as base funding, though some may be budgeted (along with the associated costs) on a year-by- year basis, such as the provincial Literacy & Basic Skills Program grant ($106,500), which supports the delivery of adult literacy programming.

2017 Grants 2

In 2017, TPL received and recognized grant revenues (in excess of $50,000) totalling $6,731,787, which is $1,053,362 higher than budget, and includes $300,000 in grant funding from the Improving Library Digital Services Fund, and $657,219 from the Canada 150 Community Infrastructure Program. More details on the total grant amounts, purpose of the grants and grant periods are shown on Attachment 1.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENT

Attachment 1: 2017 Summary of Grant Funding Recognized Over $50,000

2017 Grants 3 Toronto Public Library Board Attachment 1 2017 Summary of Grant Funding Recognized over $50,000 (excludes funding from Toronto Public Library Foundation)

APPROVED 2017 2017 Grant Program Name Purpose / Comments Grant Period Grant Revenue Budget Amount

Provincial Legislative Grants:

Ministry of Tourism, Culture and Sport Public Library Operating Grant Program Household Operating Grant 1-Apr-17 to 31-Mar-18 4,127,362 4,127,362 4,127,362

To support the delivery of the Virtual Reference Library by providing Ministry of Tourism, Culture and Sport Virtual Reference Library Operating Grant a suite of online resources that provide high-quality e-content to 1-Apr-17 to 31-Mar-18 1,446,565 1,446,565 1,446,565 Ontarians

Subtotal 5,573,927 5,573,927 5,573,927

Other Provincial Grants:

Ministry of Training, Colleges and To support the delivery of adult literacy programming through one- Literacy & Basic Skills Program 1-Apr-16 to 31-Mar-17 105,500 25,362 Universities on-one tutoring

Ministry of Training, Colleges and To support the delivery of adult literacy programming through one- Literacy & Basic Skills Program 1-Apr-17 to 31-Mar-18 106,500 88,666 104,500 Universities on-one tutoring

Ministry of Tourism, Culture and Sport Improving Library Digital Services To enhance collections with new technology such as e-books 1-Apr-17 to 31-Mar-18 300,000 300,000

Subtotal 512,000 414,028 104,500

Federal Grants:

To partner with eight local agencies providing Newcomers with Citizenship & Immigration Canada Library Settlement Partnerships 1-Apr-16 to 31-Mar-17 80,000 26,683 - settlement information and related programs at 16 library branches.

To partner with eight local agencies providing Newcomers with Citizenship & Immigration Canada Library Settlement Partnerships 1-Apr-17 to 31-Mar-18 100,160 59,932 - settlement information and related programs at 16 library branches. Federal Economic Development Agency To repair, rehabilitate and expand existing community infrastructure for Southern Ontario (administered by Canada 150 Community Infrastructure Program 1-Apr-17 to 31-Mar-18 94,856 87,433 - assets at Humber Summit branch City of Toronto) Federal Economic Development Agency To repair, rehabilitate and expand existing community infrastructure for Southern Ontario (administered by Canada 150 Community Infrastructure Program 1-Apr-17 to 31-Mar-18 280,560 263,252 - assets at Lillian H Smith branch City of Toronto) Federal Economic Development Agency To repair, rehabilitate and expand existing community infrastructure for Southern Ontario (administered by Canada 150 Community Infrastructure Program 1-Apr-17 to 31-Mar-18 66,800 62,698 - assets at Riverdale branch City of Toronto) Federal Economic Development Agency To repair, rehabilitate and expand existing community infrastructure for Southern Ontario (administered by Canada 150 Community Infrastructure Program 1-Apr-17 to 31-Mar-18 296,258 243,836 - assets at Richview branch City of Toronto) Subtotal 918,634 743,834 -

Total grants 7,004,561 6,731,789 5,678,427

24. STAFF REPORT INFORMATION ONLY

Operating Budget Monitoring Report – March 31, 2018

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to provide the Toronto Public Library Board with a summary of the gross and net operating expenditures of Toronto Public Library (TPL) for the three-month period ending on March 31, 2018, as well as projected expenditures to December 31, 2018.

As detailed in Appendix A, as of March 31, 2018, TPL is reporting a favourable net expenditure variance of $0.404 million comprised of a favourable revenue variance of $0.521 million partially offset by an unfavourable expenditure variance of $0.116 million. The delayed re-opening of North York Central Library (NYCL) will result in additional staffing and related savings of $2.250 million and the proposal is to seek City approval to apply these savings toward funding the NYCL Phase I capital project to address scope changes and cost escalation. TPL’s Council-approved 2018 operating budget is $182.283 million net ($201.607 million gross) and is projected to be fully spent by year end, assuming the proposed budget adjustment to the NYCL Phase I capital project is approved.

Operating expenditures are monitored and managed on an on-going basis to ensure that spending is within the approved budget.

FINANCIAL IMPACT

As of March 31, 2018, TPL is reporting a favourable net expenditure variance of $0.404 million comprised of a favourable revenue variance of $0.521 million partially offset by an unfavourable expenditure variance of $0.116 million. The operating budget is expected to be fully spent by year end.

The Director, Finance & Treasurer has reviewed this financial impact and is in agreement with it.

Operating Budget Monitoring Report – March 31, 2018 1 ISSUE BACKGROUND

TPL’s Council-approved 2018 operating budget is $182.283 million net ($201.607 million gross). Operating results are usually reported to the Toronto Public Library Board and the City on a quarterly basis.

COMMENTS

For the three-month period ending March 31, 2018, TPL is reporting a favourable net expenditure variance of $0.404 million, comprised of a favourable revenue variance of $0.521 million partially offset by an unfavourable expenditure variance of $0.116 million as detailed in Appendix A.

The favourable revenue variance of $0.521 million is mainly attributable to supplementary revenue from the TPL Foundation and others to enhance specific library initiatives, which is partially offset by an unfavourable revenue variance in lower than expected fines and fees resulting from temporary branch closures.

The unfavourable expenditure variance of $0.116 million is mainly attributable to increased expenditures related to specific library programs funded by revenues from the TPL Foundation, which is partially offset by staffing cost savings related to benefit claims and operating cost savings associated with temporary branch closures. Though there are increased expenditures in materials and supplies, and equipment, services and rent due to enhanced specific library initiatives, these are funded by revenue from the TPL Foundation.

TPL is projecting the operating budget to be fully spent by year-end and is comprised of a favourable variance in staffing costs mainly due to the extended NYCL closure and the subsequent cascading effect of staff movement once the branch is re-opened and is offset by an unfavourable variance of in transfers to capital as explained below.

NYCL was originally scheduled to re-open in the first quarter of 2018, but has since been delayed to later in the year, resulting in additional operating savings of $2.250 million. The proposed budget adjustment to apply the $2.250 million of operating savings as a transfer to capital will help to fund changes in scope and cost escalation associated with the NYCL Phase 1 capital project.

The proposed budget adjustment within 2018 to the capital plan is included in a separate report presented at this meeting and will be sent for City approval after Board endorsement. Budgets will be updated to reflect the proposed adjustment in subsequent reports, pending City approval.

Expenditures and revenues are closely monitored throughout the year in order to manage any budget pressures.

Operating Budget Monitoring Report – March 31, 2018 2 CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENTS

Appendix A: Operating Budget Monitoring Report Three-month period ending March 31, 2018

Operating Budget Monitoring Report – March 31, 2018 3 Appendix A TORONTO PUBLIC LIBRARY Operating Budget Monitoring Report For the Period Ending March 31, 2018 ($Millions)

Year-to-Date 12 Months ending December 31

Variance Variance 2018 Fav/ Expense/Revenue Category 2018 Actual 2018 Budget Fav/ (unfav) Projected 2018 Budget (unfav)

Staffing Costs 38.245 38.216 (0.029) 146.771 148.861 2.089

Materials and Supplies 0.482 0.392 (0.089) 2.171 2.168 (0.003)

Library Materials 4.941 4.940 (0.002) 19.766 19.766 -

Equipment, Services and Rent 7.050 7.058 0.008 28.722 28.431 (0.291)

Contributions & Transfers - - - 4.626 2.376 (2.250)

Other 0.004 0.001 (0.004) 0.004 0.004 -

Gross Expenditures 50.722 50.606 (0.116) 202.061 201.607 (0.454)

Grants 1.554 1.419 0.135 5.789 5.678 0.111

Fines, Fees and Room Rentals 1.278 1.314 (0.036) 5.447 5.447 -

Contributions & Transfers - - - 5.936 5.936 -

Other 0.899 0.477 0.422 2.606 2.262 0.344

Total Revenues 3.730 3.210 0.521 19.778 19.324 0.454

Net Expenditures 46.992 47.396 0.404 182.283 182.283 -

Note: Totals may not add due to rounding

25. STAFF REPORT INFORMATION ONLY

Capital Budget Monitoring Report – March 31, 2018

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

The purpose of this report is to provide the Toronto Public Library Board with the Toronto Public Library (TPL) capital expenditures for the three-month period ended March 31, 2018, as well as projected expenditures to December 31, 2018.

As detailed in Appendix A, capital spending during the first three months of 2018 totalled $6.674 million or 18.9% of the gross cash flow of $35.267 million, and is projected to be $32.359 million or 91.8% by the end of the year. Capital expenditures are monitored and managed on an on-going basis to ensure that spending is within the approved budget.

FINANCIAL IMPACT

Based on the $6.674 million actual spending, the 2018 gross capital budget of $35.267 million is 18.9% spent as of March 31, 2018.

The Director, Finance and Treasurer has reviewed this financial impact statement and is in agreement with it.

ISSUE BACKGROUND

Toronto Public Library’s 2018 capital budget of $35.267 million gross is comprised of $28.839 million of new cash flows and $6.428 million of unspent balances carried forward from 2017.

COMMENTS

Appendix A includes a list of all active projects, providing 2018 year-to-date and life-to-date project expenditure status, as well as projected expenditures to the end of the year. As of March 31, 2018, TPL has spent $6.674 million or 18.9% of the 2018 approved cash-flow of $35.267 million. The budget expenditure for 2018 is projected to be $32.359 million or 91.8% by the end of the year.

Capital Budget Monitoring Report – March 31, 2018 1 Most of TPL’s capital projects are progressing according to plan, with the following exceptions:  The Albert Campbell Renovation project’s capital expenditure totalled $0.012 million or 2.5% of the 2018 approved cash flow of $0.483 million. Construction is delayed to next year as the project is still in the design/consultation stage. It is estimated that $0.183 million or 37.9.1% of the 2018 approved cash flow will be spent by year-end.  The Centennial Renovation & Expansion Library project, with a 2018 approved cash flow of $0.167 million for design costs, had no capital spending during the three months ended March 31, 2018. A Request for Proposal for Architectural Services is scheduled to be issued in 2018. It is estimated that $0.084 million or 50.0% of the 2018 approved cash flow will be spent by year-end.  The Parliament Street Relocation and Expansion capital project, with a 2018 approved cash flow of $0.407 million, had no capital spending during the three months ended March 31, 2018. Project expenditure is dependent on the City’s overall plan for site development. It is expected that none of the 2018 approved cash flow will be spent by year-end.  The Wychwood Library Renovation project’s capital expenditure totalled $0.004 million or 0.1% of the 2018 approved cash flow of $3.759 million. Working drawings are complete. Site plan and building permits are outstanding. Construction tender is scheduled to be awarded in June 2018. Construction start is dependent on site plan approval, which is under City review. It is estimated that $2.000 million or 53% of the 2018 approved cash flow will be spent by year-end.  The Technology Asset Management Program capital expenditures totalled $0.551 million or 13.4% of the 2018 approved cash-flow of $4.100 million. Underspending of $0.225 million is required in 2018 to offset pre-spending of 2018 budgeted cash-flows in 2017.  The Virtual Branch Services project’s capital expenditure totalled $0.207 million or 13.8% of the 2018 approved cash-flow of $1.500 million. Underspending of $0.134 million is required in 2018 to offset pre-spending of 2018 budgeted cash-flows in 2017.

In-Year 2018 Budget Adjustments

Two separate reports requesting Board endorsement for in-year budget adjustments to the St. Clair/Silverthorn Library project and the North York Central Library project are summarized below.

St. Clair/Silverthorn Library Project TPL is requesting a budget adjustment to increase the cost of the St. Clair/Silverthorn Library project by $0.918 million to align funding with the construction contract award. The increase is funded by $0.328 million from the development charges reserve fund and $0.590 million debt funding transfer from the Multi-Branch State of Good Repair program. The total project cost will increase from $2.897 million to $3.815 million.

North York Central Library (NYCL) Phase 1 Project

TPL is requesting a budget adjustment to increase the cost of the NYCL project by $2.500 million due to higher costs related to scope changes and cost escalation. The increase is

Capital Budget Monitoring Report – March 31, 2018 2 predominately funded from $2.250 million of additional operating savings generated from the delayed re-opening of NYCL, and $0.250 million of development charges funding. This adjustment would increase both the project budget and the projected 2018 cash flows by $2.500 million. The total project cost will increase from $14.974 million to $17.474 million.

CONTACT

Larry Hughsam; Director, Finance & Treasurer; Tel: 416-397-5946; Email: [email protected]

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENTS

Appendix A: Capital Budget Monitoring Report for the Period Ended March 31, 2018

Capital Budget Monitoring Report – March 31, 2018 3 Toronto Public Library APPENDIX A 2018 Capital Budget Monitoring Report For the Three Months Ended March 31, 2018

2018 - Year-to-Date 2018 - Year End Life To Date 2018 Projected Actuals Planned Spent Unspent / (Overspent) Project/Sub-Project Name Full Year to Year-end Budget Actuals Unspent / (Overspent) Year of Budget $ % $ % $ % of Budget On Budget On Time $ $ $ % Completion (a) (b) (c) =(a) / (b) (d) =(a) - (b) (e) = (d) / (a) (f) (g) (h) (i) (j) (k) (l) = (j) - (k) (m) = (l) / (j) (n) Albert Campbell Library Renovation 483,097 12,066 2.5% 471,031 97.5% 183,097 37.9% Ⓡ Ⓨ 12,165,000 52,116 12,112,884 99.6% 2021 Albion Library Renovation 229,021 59,927 26.2% 169,094 73.8% 229,021 100% Ⓖ Ⓖ 15,307,000 15,137,906 169,094 1.1% 2018 Bayview-Bessarion Library Relocation 99,670 - 0.0% 99,670 100.0% 99,670 100% Ⓖ Ⓖ 12,622,000 672,065 11,949,935 94.7% 2021 Centennial Renovation & Expansion - Design 167,000 - 0.0% 167,000 100.0% 84,000 50% Ⓨ Ⓖ 334,000 - 334,000 100.0% 2019 Dawes Road Construction & Expansion 2,182,136 1,354,467 62.1% 827,669 37.9% 2,182,136 100% Ⓖ Ⓖ 13,263,000 2,801,331 10,461,669 78.9% 2022 Fort York Library Construction 182,918 5,625 3.1% 177,293 96.9% 182,918 100% Ⓖ Ⓖ 9,192,000 9,014,707 177,293 1.9% 2019 Guldwood Renovation and Expansion 592,000 - 0.0% 592,000 100.0% 592,000 100% Ⓖ Ⓖ 1,183,000 - 1,183,000 100.0% 2019 1 North York Central Library Renovation Phase 1 2,780,955 2,152,692 77.4% 628,263 22.6% 2,780,955 100% Ⓖ Ⓖ 14,974,000 14,345,737 628,263 4.2% 2018 North York Central Library Renovation Phase 2 2,664,000 - 0.0% 2,664,000 100.0% 2,664,000 100% Ⓖ Ⓖ 10,880,000 - 10,880,000 100.0% 2020 Parliament Street Relocation and Expansion - 407,000 407,000 100.0% - 0% 815,000 - 815,000 100.0% 2019 Design Ⓡ Ⓡ Perth/Dupont Relocation-299 Campbell ave - Design 80,000 - 0.0% 80,000 100.0% 80,000 100% Ⓖ Ⓖ 80,000 - 80,000 100.0% 2018 St. Clair/Silverthorn Renovation 2,256,330 742,646 32.9% 1,513,684 67.1% 2,256,330 100% Ⓖ Ⓖ 2,897,000 1,083,316 1,813,684 62.6% 2018 Wychwood Library Renovation 3,758,734 3,772 0.1% 3,754,962 99.9% 2,000,000 53% Ⓨ Ⓡ 10,133,000 545,038 9,587,962 94.6% 2020 York Woods Renovation 2,070,000 - 0.0% 2,070,000 100.0% 2,070,000 100% Ⓖ Ⓖ 8,344,000 - 8,344,000 100.0% 2021 Multi-Branch State of Good Repair Program 7,439,805 1,393,338 18.7% 6,046,467 81.3% 7,439,805 100% Ⓖ Ⓖ 27,872,090 11,085,423 16,786,667 60.2% 2021 Technology Asset Mgmt Prog: 2017-2019 4,100,000 551,120 13.4% 3,548,880 86.6% 3,875,093 95% Ⓖ Ⓖ 8,200,000 551,120 7,648,880 93.3% 2019 Virtual Branch Services -2017-2019 1,500,000 207,017 13.8% 1,292,983 86.2% 1,366,399 91% Ⓖ Ⓖ 3,550,000 207,017 3,342,983 94.2% 2019 Integrated Payment Solutions 2,063,615 28,681 1.4% 2,034,934 98.6% 2,063,615 100% Ⓖ Ⓖ 2,250,000 28,681 2,221,319 98.7% 2018 Equipment for Operational Efficiencies 710,354 162,381 22.9% 547,973 77.1% 710,354 100% Ⓖ Ⓖ 1,806,000 162,381 1,643,619 91.0% 2018 Expansion of Technological efficiencies 950,000 - 0.0% 950,000 100.0% 950,000 100% Ⓖ Ⓖ 1,600,000 - 1,600,000 100.0% 2019 Answerline & Community Space Rental 550,000 - 0.0% 550,000 100.0% 550,000 100% 1,400,000 - 1,400,000 100.0% 2019 Modernization Ⓖ Ⓖ

Total- 2018 Capital Projects Cash Flow Gross 35,266,635 6,673,733 18.9% 28,592,902 81.1% 32,359,393 91.8% Ⓖ Ⓖ 158,867,090 55,686,839 103,180,251 64.9%

1 Current projection for the North York Central Library Phase 1 project does not include the proposed budget adjustment to increase the budget by $2.500 milliion due to higher costs related to scope changes and cost escalation.

On Time On Budget

On / Ahead of Schedule Ⓖ >70% of Approved Cash Flow

Minor Delays < 6 months Ⓨ Between 50% and 70% of Approved Cash Flow

Significant Delays > 6 months Ⓡ < 50% or >100% of Approved Cash Flow

STAFF REPORT 26. INFORMATION ONLY

Board Resolutions – Status Report

Date: May 28, 2018

To: Toronto Public Library Board

From: City Librarian

SUMMARY

This report lists the status of outstanding Toronto Public Library Board resolutions.

BACKGROUND INFORMATION

At the April 2, 2012 meeting, the Toronto Public Library Board approved the inclusion of Board Resolutions – Status Report on Library Board meeting agendas.

Attachment 1 summarizes all outstanding Toronto Public Library Board resolutions.

SIGNATURE

______Vickery Bowles City Librarian

ATTACHMENT

Attachment 1: Board Resolutions – Status Report – May 28, 2018

Board Resolutions – Status Report 1 Attachment 1

STATUS REPORT TORONTO PUBLIC LIBRARY BOARD RESOLUTIONS AS AT MAY 28, 2018

DATE OF MOTION TARGET MEETING (Ref: Minute #) STATUS DATE

Sep. 8, 2014 14-150 – Notice of Motion: Funding and Timing of Perth/Dupont Branch Relocation

5. requests that the local City Councillor IN PROGRESS Staff to bring a To be consult with the local community and make a recommendation to the Board for a new name determined recommendation to the Board for a new for the relocated branch to the Board for name for the relocated branch (which will no approval. longer be located at the corner of Perth and Dupont).

Feb. 22, 16-040 – Naming Opportunity – Daniel 2016 Grafton Hill III

2. requests staff to provide updates to the IN PROGRESS This initiative is dependent on To be Toronto Public Library Board on this a future branch capital project and consultation determined initiative at strategic intervals. process.

1