This presentation to the Federation of Ontario Public Libraries (FOPL) describes the results of the economic impact study done for Toronto Public Library by the Martin Prosperity Institute.

1. So Much More:
The Economic Impact
of the Toronto Public
Library on the City
of Toronto
January 15, 2014
Katherine Palmer
Dr. Kevin Stolarick
Kimberly Silk, MLS

2. So Much More
• Funding for the study was provided through
the Toronto Public Library Foundation and
funds from the TD Bank Financial Group and
the estate of Norman G. Hinton.
• The study was begun in late May and
presented to the Board in December 2013.
2

3. Public Sector Context
• Greater accountability
• Demonstrating value
• Fiscal constraint
3

4. City and Board Context
• Core service and service efficiency reviews
• Public consultations on City budget
4

5. Context: Toronto Public Library Study
Responds to the motions by the Library Board and City
Council:
Toronto Public Library Board:
That the City Librarian undertake a study on the economic
impacts and benefits of Toronto Public Library and the role of
public libraries in economic development
Toronto City Council:
That the Chief Librarian prepare a cost-benefit analysis of
the Open Hours Policy and the economic impact of Library
services and provide a report to the City Manager for review
and report prior to the 2014 budget process.
5

6. Toronto Public Library creates
over $1 billion in total economic impact
6

7. Total direct benefits reach $502 per member
7

8. The average open hour at a branch generates
$2,515 in direct benefits
8

9. Toronto Public Library delivers $5.63 of
economic impact for every $1 spent
9

10. Return on Investment
ROI is 463%
The return from the City of Toronto’s
investment in the Toronto Public Library is
463%, which is the midpoint of a range very
conservatively estimated to be 244% and is
comfortably shown to reach 681%.
10

11. Neighbourhood Branches Provide
Communities Intangible Benefits
“Cities that promote diversity and tolerance also
tend to become places that are open to new ideas
and different perspectives, promoting creativity.
This in turn builds cities that are attractive to
individuals and businesses involved in the creation
of new ideas, products and services.”
The Importance of Diversity to the Economic and
Social Prosperity of Toronto, MPI, 2010
11

12. Intangible benefits deliver value
Opportunities for residents to
improve their literacy
skills, enhance their
educational and employment
opportunities, and improve
quality of life for themselves
and their families through
library collections, services and
programs deliver a lifetime of
value to residents and increase
the economic competitiveness
and prosperity of Toronto.

13. Methodology
MPI followed a
thorough, comprehensive
approach to calculating
the economic impact of
TPL services.
The Martin Prosperity Institute
conducted the study for the
Toronto Public Library using
accepted valuation
methodologies commonly used in
the library and public sector and
standard library statistics
collected for international and
Canadian benchmarks. The study
examined the economic impact of
the Toronto Public Library from a
number of lenses, building on
methodologies of other studies
and introducing new measures to
value library space.
13

14. Acknowledgements
Authors
Kevin Stolarick
Kim Silk
Martin Prosperity Institute
Rotman School of Management
University of Toronto
105 St. George Street, Suite 9000
Toronto, Ontario M5S 3E6
Editor
Diane Nelles
Richard Florida, Director
Jamison Steeve, Executive Director
Project Team
Michelle Hopgood
Zara Matheson
Garrett Morgan
Editorial contributions as well as Exhibits 2 and 3
provided by the Toronto Public Library.
TPL Support
Katherine Palmer
Elizabeth Glass
14

15. Q&A
(and, Thank You!)
Katherine Palmer, Director of Planning, Policy & E-Service Delivery
kpalmer@torontopubliclibrary.ca
Kevin Stolarick, Research Director
kms@martinprosperity.org | @stolarick
Kimberly Silk, Data Librarian
kimberly.silk@martinprosperity.org | @kimberlysilk
Martin Prosperity Institute, University of Toronto