Item - 2021.EX25.8

The Executive Committee recommends that:

1. City Council receive the report (June 18, 2021) from the Chief Financial Officer and Treasurer for information.

This report responds to City Council direction during the 2021 Budget process to provide an update, in consultation with the City Librarian, on the impacts of COVID-19 on the Toronto Public Library's 2021 Operating Budget variance, and an assessment of the financial implications of proposed investment in further new and enhanced initiatives, funded by the Toronto Public Library's 2021 Operating Budget variance.                                             

This report appends a letter from the City Librarian, Toronto Public Library (TPL), regarding TPL Operating Budget Monitoring Report as of March 31, 2021 and the proposed investment of their 2021 operating underspending on two new and enhanced initiatives, namely Digital Literacy for Seniors and/or Community Librarian Outreach, adopted by the Toronto Public Library Board at its meeting on May 25, 2021.

For the period ended March 31, 2021, TPL reported a year-to-date one-time favourable operating variance of $2.575 million net, mainly due to the impact of COVID-19 on library operations. To implement the above new and enhanced initiatives in late summer 2021, provided that public health measures permit implementation, an amount of $0.459 million would be required in 2021 that would not be available were it not for experienced one-time underspending in other initiatives.

The financial impacts in 2022 will increase to $1.090 million based on a combination of the full year costs associated with these initiatives, along with one-time reallocation of funds available in 2021. As a result, implementation of these initiatives in 2021 creates an added budget pressure within the Toronto Public Library of $1.090 million in 2022 requiring Council consideration of enhanced funding through the 2022 Budget process.