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2004/11/15 CORPORATE SERVICES COMMITTEE AGENDA BARBARA MUIR FOURTH MEETING Monday, November 15, 2004 Council Chambers -6:00 p.m. 1. Minutes of the November 1, 2004 Meeting 2. Deputations re 2005 Funding: Opportunities Niagara Niagara Transit Niagara Chair-A-Van Niagara Falls Public Library Niagara Falls Tourism Doctor Recruitment (Dr. David Dec) Chippawa Volunteer Firefighters Association Take-A-Peek Thrift Shop Boys and Girls Club of Niagara 3. New Business 4. Adjournment "Brokering] Chan le, Facilitatinu Solutions, Chan li. l Lives" Working Group G Sponsors Regional Municipality o{ Naignra - CAB Office Department of Human Resources and Skills An invitation to The City of Niagara Falls to participate with De~lopment Canada Opportunities Niagara ....... J.W. McCunnell Family Foundation Canadian Tire Financial The work of Opportunities Niagara is breaking new ground in the Services, Canadian Tire field of poverty reduction in our region; we continue to reach out to Foundation for Families new partners to join us in our mission. We are inviting you to join us Algoma Central Corporation in partnership because we believe that the City of Niagara Falls values Cammunity Care of St. innovation and has a good record of accomplishment in bringing Catharinun 6 lh0mld- strong ideas to life. Cnnvunin9 Agency @rnjent S.H.A.R.E. Tamarack-An Institute for Our goal is to make a real di~erence in the lives of Niagara's most Community Engngement disadvantaged citizens. To accomplish this goal, we are seeking your UnitedWaysufNiagara expertise at the community level to help implement new ideas. We Wellund Community Resource 6 need your knowledge as an excellent corporate citizen in Niagara to Actiun Centre help change the funding culture that surrounds poverty in our YMCA of Niagara community. Most importantly, we will require your resources to help PORTCARES fund our work. In our quest to make a real dijTerenc6 we would like to Fundroising Campaign seek a multi-year financial commitment from The City of Niagara Management Team Falls. Peter P. Papp- Project In 2001 when plans were formulated to create a strong new vision for Manager poverty-reduction in Niagara we set out to find partners to assist us. Te~-tynn Dean-Project A number of key partners and sponsors came aboard to help move our []h~cer Waynellussey-Campaign plans forward from a "vision" to a strategy. We have succeeded in Counsel building a strong foundation from which we can continue with programs that aim squarely at creating less poor in Niagara, not better Campaign Steering poor. Committee I would like to take this opportunity to share with you some of our Peter Hammond Elaine Harvey exciting initiatives and demonstrate how your contribution will assist Larry Huibers us to make Niagara a "Vibrant Community". Carol Stewart-Kirkby Opportunities Niagara - Building A Vibrant Cnmmunity Part of a National Movement... Our work is designed to foster a "made-in-Niagara" solution to the persistent reality of poverty. Statistics in Niagara indicate an excess of 65,000 people living in poverty, or nearly 17% of the population across the twelve municipalities. Through your support, Opportunities Niagara is doing something about this. Based on a project called Opportunities ~000 in Waterloo Region, we have adopted the idea of changing the focus from poverty alleviation to poverty reduction. In conjunction with 1~ other communities across the country, we are part of a national, cohesive partnership entitled Vibrant Communities. This national movement includes leaders and social entrepreneurs in business, the voluntary sector and all levels of government. Through multi-sectoral collaboration, we aim to innovate and change the focus in our work to significantly reduce poverty in Canada. Thus far, we have been sponsored by three organizations with a solid record of accomplishment for social innovation: the Caledon Institute of Social Policy, Tamarack-An Institute for Community Engagement and the J.W. McConnell Family Foundation. All three award-winning organizations are widely recognized as leaders who work efficiently and collaboratively, and they have proven that they can achieve results. By ~006, we expect this partnership to grow to include ~50 voluntary organizations, over 100 businesses and all levels of government across most provinces. We are hopeful that this vision wLll result in a direct impact on $0,000 families in the next decade. There is no question that The City of Niagara Falls can be on the front line when it comes to creating a vibrant community, not only as an exemplary employer but also by promoting awareness of pressing social needs. Through your financial and in-kind assistance, we can be successful in building relationships among a diverse set of organizations across Niagara to tackle the major issue of poverty alleviation. ... With A Local Focus Our organization was convened by Community Care of St. Catharines & Thorold as an all~ encompassing regional partnership of business, non-profit groups, governments and individuals working together. We believe that by enriching the lives of individuals and families in Niagara we can set an example for all Canadians. We have set out to execute a number of ambitious, grassroots, and practical projects to achieve our goals. You sponsorship will allow us to capture the imagination of many in our community through the development of initiatives tailored to changing lives in Niagara. The following are some of the strategic actions that we have planned and undertaken: · Creation of the draft discussion paper ~Climbing Up: A Living IVag~ ,Sustainable Income for Niagara~. From our peers in other communities, we have learned of the benefits of encouraging the private and public sectors to develop policies for a living wage. This year we aim to work with the Region of Niagara on the execution of policies designed to give fairer compensation to those workers living near or below the poverty line. Opportunities Niagara - Building A Vibrant Community · Brokered a partnership between Imperial Oil of Canada, Habitat for Humanity and two levels of government toward the relocation of residential property in Welland. To encourage greater corporate social responsibility to those living in poverty we have launched Niagara: Building an Economically Healthy, Sustainable and Responsible Community. This document is a study of human resource best practices in our community. It offers creative solutions to the private sector on how to integrate social and environmental issues into their corporate strategies. Development of a wide-reaching Community Plan that has served to bring focus to the poverty-reduction efforts of over 60 local agencies. The Community Plan is a living document that not only indicates our collective commitment to those affected by poverty in the region; it is also a blueprint for the success of our strategies in the future. · We continue to develop modes of active communication with our key community stakeholders. Plans are underway for a comprehensive website, expanded distribution of our quarterly newsletter, O.N. Niagara, and, networking sessions that encourage face-to-face interaction and information sharing. · Exploration and facilitation of the re-development of a long-term care facility in Welland into a residential multi-faceted community campus. This will facilitate the space needs for up to six agencies including United Way of South Niagara, Big Brothers and Sisters of Welland and an office for family physicians. · We are pursuing the conversion of commercial properties in local municipalities (notably Downtown and North St. Catharines) into affordable housing units. The expected outcome is 100 affordable housing units created for transitional and permanent use. · Strategies are in place to re-assess and link displaced workers into higher, more sustainable employment opportunities. Engagement of Niagara College and the Local Steel Workers 1~$9 Union in assisting approximately ~60 former industry workers in Welland. · To support one of our key objectives: local action, learning and change, we are working with PORT CARES and the Catholic District School Board of Niagara. The aim is to provide the necessary training in life skills, education upgrade and literacy for low-income adults in Port Colborne. With the aim to offer specialized training and employment placement in sector-specific areas, we continue to work with several business groups. The current focus is in Welland where we hope to ultimately place thirty candidates into permanent full time positions in the hospitality industry. For the short time that we have been operating in Niagara, we have garnered a great deal of attention. Our efforts continue to be recognized from those outside of our borders and this has encouraged new local partners to take notice as well. To date we have secured such influential partners as The Regional Municipality of Niagara-CAO Office, Human Resources and Skills Development Canada, Canadian Tire Financial Services/Canadian Tire Foundation for Families, and, Algoma Central Corporation Oppudunities Niagara - Buildin9 A Vibrant Community The Right Honourable Claudette Bradshaw, Minister of I~bour praised our commitment to the Supporting Communities Partnership Initiative on her recent visit to Niagara. Her office has granted funding requests through Opportunities Niagara in large part due to the broad base of support consistently demonstrated in our community through multi-sectoral collaboration. ... We are Seeking Your Commitment Your support will be instrumental in making a difference! There is an increased awareness of the importance of local economies as the drivers not only of economic growth but also of regional innovation. Your social investment in the community at large and in Opportunities Niagara in particular, will be recognized through our work. As you are aware, a social investment of this magnitude must be well resourced. We are seeking consideration for a commitment of $75,000, over three years, from The City of Niagara Falls. Your commitment to Opportunities Niagara is vital to our ongoing success and your investment will greatly advance our abilities to service the Niagara community. We seek to co]laborate with you in any number of ways. We would like to involve your staffin poverty-reduction at the local level. This could include membership on our innovative Leadership Roundtable. Your expertise at the community level will assist us in the implementation of new ideas. Your knowledge is paramount to changing the funding culture that surrounds poverty in this country. All of the resources that you provide, fiscal and otherwise, will bring us one-step closer to realizing our vision. On behalf of the staff and volunteers with Opportunities Niagara, I want to personally thank The City o~Niagara Falls for sincerely considering our request. We take great pride in the partnerships that we have developed, especially with the City of St. Catharines, the Regional Municipality of Niagara and the City of Welland. We are hopeful that The City of Niagara Falls joins us in building our community together. Sincerely, Peter P. Papp Project Manager, Opportunities Niagara Opportunities Niagara - Building A Vibrant Community "Brnkering Change, Facilitating SnlutiDns, ~hanging Liv;s" OPPORTUNITIES NIAGARA A community-based strategy to reduce poverty and enhance quality of life Affiliated with Yibrant Communities Imagine A Community In Which Caring For And About People Is A Priority Building A Vibrant Cammunity Community-Based Plan For Poverty Reduction Through tourism, industry, public and private Opportunities Niagara is an all-encompassing sector businesses, Niagara has a diverse and regional partnership of businesses, non-profit strong economy, yet poverty continues to organizations, governments and individuals, climb in our community. Niagara's statistics who are working together to reduce poverty indicate an excess of 65,000 people living in throughout Niagara. By reducing Niagara's poverty, or nearly t7% of the population poverty rate to the lowest in Canada we can across the twelve municipalities; simply set an example for all Canadians, while translated approximately I in 9 households in enriching the lives of our community's most Niagara lives in poverty, vulnerable members. The long-term successful implementation of our strategies will make Niagara an even more attractive location for economic, health and social investment, we will help improve employee retention rates, increase affordable housing and we will help create more personal and household incomes for re-investment into the local economy. Our Our Mission Vision To reduce pove~y and enhance the quality of life in To help 2000 families/individuals move out of poven~ and Niagara by working with a multi-sector collaboration of improve their overall quality of life before the end of 2006. community leaders that work together shadng ideas, Since finances, employment, housing, training, optimal practices and polices which will strengthen community mental/physical health, and social intervention are critical based pove~y reduction initiatives in Niagara: elements in pove~y reduction strategies, we work: Together we... Together with you ... · Build and present cases that offer new and better · To engage local stakeholders in a policy of Living poverty reduction solutions to local organizations, Wage, sustainable income. Enact progressive HR businesses, govemments and the community policies focused on the benefits of corporate · Utilize Niagara's resoumes mom effectively and responsibility efficiently in addressing the issues of pove~y · To set the social agenda in favour of policies ensuing reduction optimum mental and physical health for all of Niagara And... And,.. · influence and engage a multi-representative · To work with the pdvate and public sectors on audience of key stakeholders, whose resoumes initiatives that will provide affordable housing to the are used to reach our vision most vulnerable citizens of our community Leadership Roundtable Opportunities Niagara has a unique organizational structure managed by a Leadership Roundtable, consisting of 16 members from the private, public, not-for profit sectors and Iow income residents who are responsible for program development and strategic planning of the organization ~ Brokering I~ Coordination ---~==~. ~ Technical Assistance I~ Coaching -~ ~ Expanded Access to Funding G Resources How Can You Help? DONATE, become a cornerstone partner HIRE, more Iow-income workers LEARN MORE, about poverty and its solutions DEVELOP, a poverty reduction project £orparate E/vi## Did You Know? Pays gfI · If every business committed to mentoring or training twopeople who are on social assistance... Corporations that give to there would be no poor! charities are making a- good business decision along with doing a good ·If every business committed tn turning (the equal deed, according to a Of) a#apart-fime job into a full-time job,.there new study from The Boston Foundation. would he no poor! 63% of those surveyed said they would be more · If every business committed to having just o#e likely to patronize a company if it supported person who has never had a full-time job_there a non-profit they would he no poorl considered important. ACHIEVING THE LOWEST POVERTY RATE IN CANADA CAN BE ACCOMPLISHED WITH THE INVOLVEMENT AND SUPPORT FROM BI~SINESS AND MEMBERS OF OUR COMMUNITY~ OPPORTUNITIES NIAGARA IS CONFIDENT OF SUCCESS BECAUSE THE TIME IS RIGHT, GIVEN NIAGARA'S GROWING ECONOMY. In~ SHARE Foundation YMCA O.r CommuniL~, At Work for Families O Need More Communi~ Care Df St. Catharine~ 6 ~orold Info mation? PORT CA~S Oppnrtun~tins Niagara off~v~ ~ vaviet~ ~c.~..~.~..~. ~P~P~ of educational resources to help our  community partners learn more abDut Regional MuniciPali~ of Niagara, CAD Dffice povedy reduction sDlutions, innovative initiatives, best practices, and poverty J,W. McConnell Family Foundation in general. Contact us at: 9DS-G88- Human Resoumes And Skills Development Canada 7496 or 905-688-8096 fop additional ~ infocmatiDn, or the following materials:  ~ Canadian Tire Rnancial Satires,  Algoma Central Corporation · Gaining an Understanding of Poverty in Niagara - Low Income Profile ~t~ · Climbing Up - A Living Wage, wafted Co~ni~ Sustainabie Income loc Niagara ~e~ce ~d A~io8 Centre Project S.H.A.R.E. · Community Plan- Opportunities ~mD~.e~. Niagara ~ Tamarack - Institute for Community Engagement · Niagara - Building an Economically ~ ~ ~ Healthy, Sustainable and o~i~ "esponsible ~ommunity- Wellan8 Communi~ Eesoupce S Action Centre Practices ......... ' YMCA of Niagara ' Business Plan - Oppoptunities Niagara  PORTCARES · ON Niagara- Opportunities Niagara Ouactecly Newsletter · Evaluation and Learning Uolbe~g CenCrame ~OR~C~ ~ Framework- Outcomes · :" Opportunities Niagara 63 Church St. Suite St. Catharines, ON L2R .qC4 Tel: 905-GBB-aD96 or 905-G88-7/~gG :~?~. Fax: 905-GBa-A2OD EmaiJ: peter.papp~regional.niagara.on.ca "Climbing Up" A Living Wage, Sustainable ]:ncome For Niagara Terry-Lynn Demn & Peter P. Pepp "CLIMBING UP": A LIVING WAGE FOR NIAGARA INTRODUCTION In recent years the concept of a "living wage" has gained considerable momentum in Canada and the United States. As our community takes interest in the well being of its most disadvantaged citizens, we look to the development of creative tools to bring to an end to generations of poverty. Policies and programs designed to address the issue of poverty in Canada are often as diverse as the definition of poverty itself. This paper in concert with Opportunities Niagara defines poverty as; lack of access to basic services and infrastructures, feeling powerless, and voiceless, with a lack of access and control over resources, dependency and social humility. Also, a living wage or 'sustainable income' is defined as a level of income sufficient to allow workers to support their families without dependence upon outside (public) assistance, with an income level that will keep a family above the poverty threshold, and includes health benefits, paid vacation days, flexibility, public disclosure and other forms of worker protection. Social service agencies in Ontario, notably, Niagara have dedicated substantial resources to better understanding the phenomenon of the working poor. One currently underdeveloped approach to meeting the needs of this vulnerable segment of our community is the enactment 'of a living wage/sustainable income strategy. The goal of this discussion paper is to inform the reader of the tenets of a living wage/sustainable income strategy, and the recommended roles and responsibilities of the community and local stakeholders. The salient theme in the literature reviewed is twofold; wage adjustments are only one part of a strategy to ensure a Canadian family or pers6n can earn an ()pporttlnilics N~gar~. l.ivirlg Wage' Discussit?r: l~apc*r 1 equitable income. Second, any prospect for the success of a living wage/sustainable income initiative must be bom out of strategic and flexible collaborative partnerships. The key stakeholders, i.e. businesses, governments, social agencies etc. in the community must combine their resources, both fiscal and in-kind, and exemise proactive community roles. This discussion paper offers a thorough investigation of the issues, with tho intent of expanding the knowledge b~se of what a living wage/sustainable income means, and how strategies/initiatives can be developed for Niagara. NATIONAL POVERTY Whether defined by a measure of income inequality or a statement regarding the capacity to provide basic needs, one troth is evident; poverty is one of our nation's most persistent social problems and the situation continues to escalate. Mitchell and Shillington (p.2) aptly note that "concepts of poverty are inescapably relative and the choice of measure is really a choice among policy objectives". For a large majority of Canadians the paid labour market exists as the primary source of income. Yet inclusion in the labour market, and employment itself, does not guarantee freedom from poverty. (Ibid.p.5). One of the most commonly referenced measures of poverty, Statistics Canada, illustrates the concept of the "working poor" in this way: In 1996, a full-time, full-year worker headed 19.6% of poor families, and 9.5% of poor individuals also worked full-time, full year (Statistics Canada, 1997). In 1998, 18% of two-parent families with a single eamer were poor. Adding a second earner reduced the risk of poverty to 3.7%. That same year when the official rate of unemployment had fallen to 8.3%. The rate of poverty in Canada remained close to the levels experienced in the worst part of the recession. (Statistics Canada 2000b) Opportunities Niagara. l.ivir~g Wage Discussior~ I~per 2 Canada's rate of poverty on the international scene is subject to interpretation, as there is o globally accepted definition of poverty. It can be argued that disparities in earnings from mployment have widened over the past two decades. Many Canadians are working full-time, ut they do not earn a "living wage". It is notable that almost two million Canadians work for ~'ss than $10.00 and hour - about one in four employed people (Judith Maxwell, Smart Social olicy -"Making Work Pay"p.D. National trends in 2001 are depicted in the following chart Chad 1: Canadian Policy Research Network, 2001: Job Quality ~OVERTY IN NIAGARA While national poverty rates are cresting nearly 18%, Opportunities Niagara has cited a reater need now than ever in local social investments. Niagara's statistics indicate an excess of 5,000 people living in poverty, or nearly 17% of the population across our twelve ~unicipalities. On a micro level this translates as approximately 1 of 9 households turning to the :rvices of food banks to meet their basic needs. (Opportunities Niagara, Business Plan, 2003) below the L1M. The median income across nearly all-family types (6 of 8 measures) is below that of the provincial average. WHERE DO N1AGARAN'S WORK? Through Statistics Canada, the Southern Ontario Area Economist produces a survey of labour force trends across St. Catharincs and Niagara. (:Yuarterly reports are valuable tools to understanding the participation rate in the labour force. St. Cathafines-Niagara Census Metropolitan Area Employment by Industry (Table 2) Quarter/Quarter Year/Year Mdusl~ Absolute Absolute 48,200 49,600 47,600 Cons'b'~ ~ 11,600 100 0:9 -2,300 Ma.,,e~,a~l 33,900 -1,200-3:5 3,400 Sen~:a~,,..b-~_~ ~-.,..~.,~ 147,300 139,100 146.100 8.200 5.9 1.200 rmde 29, -2 000 ~7 rmnslx)da'ion -200 :Z1 1,600 --mm~ce, Insurance, Real ~ 3,30052.4 1,700 ~ofes~, Sci~ and Technical 5,500 1,400 25.5 -400 ~lanagemen~ -400 ~8 2,000 ~ealth Care amd Social As~ 22,000 -3 000 -13L6 afmma6oa, curtain ar~l ~ 11,100: 4300 38:7 3,000 ~ccommodar~q and Food Se~ices 17,900 3 800~ 3,900 ~ ~ 4,900; 1 400 :~6 -500 .1,2oo -1,1oo? F~blic N:r~i~,~aGoa This table demonstrates clearly that the services producing sector employs the greatest number of employees, with the highest concentration in the trade, accommodations and service sector. The report observes Niagara's sensitivity to external factors due to the heavy reliance on certain industry sectors noting, "seasonal factors fuelled growth in the second quarter, with gains 5 concentrated on youth". Other notes suggest a "weakness in the trade sector" and "sharp falls in employment in wholesale and retail trade". Niagara's employment trends are also intimately linked to the number and duration of cross-border visits. Judith Maxwell (p4) concludes "sales and service occupations account for more than half of the low-paid jobs in Canada. The pre-dominant industries are retail Wade, accommodation, food, and related industries, manufacturing and £mance". The problem for Niagara, with a high concentration of workers in these industries is that these workers find it difficult to secure year round employment. Large increases in Niagara's employment rates can be attributed to a seasonal influx of workers into low paying, full and part-time jobs. Many low-paid workers need multiple jobs in order to get more hours of pay. Others are relegated to temporary, casual or contract positions as evidenced in the chart below. Chart 2: Canadian Policy Research Network, 2001: Job Quality THE CASE FOR ONTARIO Minimum wages are legislated at different rates across Canada. Minimum wage figures are salient criteria for determining the relative income of Ontario's lowest paid workers. Defined, minimum wage is the lowest hourly wage that an employer can legally pay an employee (full and part-time). As shown in the graph below Ontario's minimum wage, once one of the highest in Canada is now ranked sixth, with no increase since 1995. Graph 1: Human Resources Development Canada: Minimum Wage Database (Canadian Adult Workers, 1995 - 2003) Minimum Wages in Canada $9.00 $8.50 $8.00 x ~ $5.00 " P~:e Edllr~d Idaad Goldberg & Green (p.5) explain that in 1984 increases to the minimum wage were associated with rising employment trends across all age groups, and both genders. Schenk (p.3) observes that in 2001 the minimum wage in the province was at the same level ($6.85 per hour) as it was six years earlier in 1995. At that time the minimum wage legislation was frozen under the Harris government, and the rate flatlined. Records from 2001 (Ontario Federation of Labour) indicates these wage levels: 7 · Home Workers ($7.45/hour) · General Minimum Wage ($6.85/hour) · Students (under 18, $6.40/hour) · Liquor Servers ($5.95/hour + tips) At $6.85 per hour in 2003, a minimum wage earner working a full 40 hours per week and 52 weeks per year would make a gross income of $14,248. This sum (though unrealistically generous in that few if any workers are paid for 52 weeks), indicates that these wages clearly leave the recipients vulnerable to poverty conditions. These figures are especially poignant in the case of Niagara where sufficient hours of employment are challenging. The plight of minimum wage workers in Ontario from 1995 to present is exacerbated by situations of rising costs, and limited social spending. "Cutbacks in social spending have resulted in a major impact, particularly to those who are disadvantaged and poor in Niagara", contends Opportunities Niagara. (Opportunities Niagara, Business Plan, 2003) The Ontario Coalition for Social Justice points to a much grimmer picture of the minimum wage freezes. Noting that the majority of minimum wage workers are of colour and adult women, the coalition contends that "transitions in the work force are forcing more people into minimum wage ... (minimum wage work) is the reason why poverty is high in Ontario" (pamphlet, Ontario Needs A Raise, 2000). Clearly, one cannot underestimate the affect of low wages in perpetuating the plight of the province's most disadvantaged population. In the seven-year period from 1995 to 2002 rising costs have resulted in a significant decrease in the buying power of minimum wage workers. The Coalition for Social Justice has Opportuniiies Niagura~ l.iv~ng Wage [)iscu>sir>rr Paper 8 compiled these trends in Ontario over the aforementioned seven-year span: inflation rose 20%, food prices have increased 14%, costs of fuel, electricity and water have gone up 30%, and the average rents grew 26%, to $836.00 from $665.00 per month for a one bedroom unit (pamphlet, Ontario Needs A Raise, 2000). Combined with the limited spending on social assistance programs, Ontario has tightened eligibility requirements for programs such as employment insurance and childcare, and housing subsides. Precarious and low-wage employment is becoming an entrenched feature in the economy. Local service providers have confirmed that those who "break the cycle of poverty" tend not to rise far above it. It is becoming increasingly difficult to climb up and out of poor paying jobs. Society is beginning to worry about the consequences of having large numbers of "working poor", trapped in a low-wage "ghetto". One of the ways to address the perpetuation of this trend is through the development of living wage/sustainable income polices. WItAT IS A "LIVING WAGE/SUSTAINABLE INCOME'.'? The notions of a "living wage/sustainable income" and "minimum wage" are comparable, bm not the same. The fundamental difference is that a minimum wage loses buying power over time, and as a result forces the recipient further below the poverty line. Given that "living wage/sustainable income" concepts are intimately linked to definitions of poverty, it is worthwhile to consider how the latter is measured. As stated earlier, there is no universally accepted definition or measure for "poverty". Canada's Fraser Institute defines poverty-as "...the capacity simply to meet the most basic needs Oppo-tunities Niagara. l.iving Wage Discussion [~nper 9 for food and shelter, that is to stay alive" (Judith Maxwell p.2). Another widely used, and arguably more definitive measure is Statistics Canada's LICO (low income cutoff). By this measure, poverty is succinctly defined as "the income level where household needs for food, clothing and shelter will, on average take a share of pre-tax income that is 20% higher than the average family (Ibid, p.2). Via this measure the cut-off is more responsive to the real circumstances (i.e. city/town size) in which a family lives. The Ontario Federation of Labour offers a comprehensive delineation of wages and salaries in the province, as a starting point for discussion, A wage or salary consists of a transfer of cash and non- cash benefits to workers from employers for their work, usually for prescribed hours or for performing certain task. A wage is usually calculated on a per hour basis ... a salary (is) a weekly or even monthly amount for similar purposes. Paid time offfor vacations or statutory holidays is also a part, as are government-mandated benefits, such as, employment insurance, the public pension plan (CPP), and workers compensation. (Ontario Federation of Labour p.3) More than fiscal compensation (wages and salaries) should be considered in a discussion of a "living wage/sustainable income". A more comprehensive definition would examine issues such as, benefits from social insurance programs and access to paid time off. For the purposes of the present paper the legislated minimum wage will be the primary focus for ease and clarity, and be understood as one of a set of tools in the battle against poverty. ()p?ortunitie!~ Niagara. i.iv[~g Wage Di~cu>sio~! t~al.~er 10 WIlY A LIVING WAGE? Just what income a person or family needs to subsist is still a hotly debated issue. What is not as contentious an assertion is the fact that communities are beginning to see the costs of poverty to their overall economic well-being. Economist Erica Schoenberger rightly observes that high rates of poverty have dire consequences for the economic health of a given community. She reasons that, "...poverty, quite plainly, generates insecurity and difficulty for the rich and poor alike. It severely limits the local market ...(and) produces ill prepared workers whose lives are easily disrupted by small catastrophes. Poverty generates poor health among workers, making them less reliable and raising the costs of employing them. It creates a lack of physical security for workers, employers and property. It produces also, a meager tax base and poor physical infrastructure and public services". (quoted in Kraut, Klinger & Collins p.13) For these reasons, a policy of living wage/sustainable income can be considered an important tool in safeguarding a community's/city's economic prospects. It is imperative that. wage levels meet the standards whereby full-time, full-year workers would not find themselves, and their families living in poverty. Paying a living wage/sustainable income to all employees is good for the community, businesses and workers. The need for a living wage strategy is profound in Ontario and is particularly acute for Niagara. Christopher Schenk, in his 2001 publication "From Poverty Wages to a Living Wage" profiles minimum wage workers in the province and concludes "the wage debate is particularly applicable to the 70% of the workfome ...which lack union protection" (p.2), and he asserts that "governments today are motivated by a similar intention as in the past, to 6nsure a mere Opportunities Niagara~ l.ivirlg X,¥age [.)i~cussiov. Ca~e: 11 subsistence income" (p.2). This mandate does a disservice to a significant number of Ontarians employed in non-urdon positions. A person or family's ability to earn a decent living (or living wage) is precariously tied to changes in legislation affecting the minimum wage. Employees in the retail and restaurant industries, so called "un-skilled jobs" are not receiving a just wage for their labour, as poverty measures referenced earlier in this paper indicate. The ubiquitous nature of these jobs in Niagara leads to similar conclusions. Labour market trends in St. Catharines - Niagara (presented in table 2, page 5) indicate a high concentration of workers in the service and trade industries. These industries involve what the Caledon Institute of Social Policy has dubbed "precarious work"(p.7), characterized by low pay and kigh employment. Incidence of "precarious work" in Niagara is compounded by the ever-increasing trend toward seasonal and casual-based employment. The workers in these employment situations would benefit greatly from a policy of a living wage. This type of work involves more than just low wages; typically these jobs are afforded limited access to benefits and the consistent threat of unemployment. An associated risk of precarious work is not being "developmental", (Caledon Institute of Social Policy p.8). Non-developmental jobs are a serious problem in Niagara. By their nature, they perpetuate a generation of workers with limited capacities and skills necessary to increase their access to better paying jobs. It renders them vulnerable to market risks, such as, permanent lay-offs and traps them in the aforementioned low-wage "ghetto". Opportunities Niagara. 1,ivirlg Wage Di>cussior: I'apor 12 A second concern of those involved in precarious work, or "dead-end jobs" is the limited exercise of workers skills, in much the same way that these employees are limited in their capacities to be upwardly mobile, so too are their on-the-job capacities limited. Put simply, precarious work diminishes the employee's sense of meaning and fulfillment from the work (Ibid. p.8). Across the board employment is a valued task for reasons that go beyond economic prosperity. Work provides a point of interest, pride, dignity and good relations with others. All of these personal factors suffer when the quality of available work fails to be stimulating and satisfying. The result is that a significant sector of the workforce is dissatisfied with its level of meaningful contribution to the local economy. The situation of precarious work is further worsened by its inherent dependency on regional income support programs. To achieve the goal of high employment, policies must be created to equalize economic resources and opportunities for self-development - a living wage. Beyond simply resolving the problems with minimum wage, a living wage/sustainable income policy addresses related issues that present barriers to inclusion (Caledon Institute of Social Policy, p.9). Living wage policies promote social inclusion in the workforce by offering measured responses to classic social investments, like childcare, training and employment assistance. MISCONCEPTIONS & REALITY: TIlE CASE FOR A LBrlNG WAGE Given that a living wage policy has not been widely embraced by Canadians, there exist several misconceptions regarding the efficacy of such a policy. We have but a few American examples to learn from. The most widely recognized "pioneer" in the living wage movement is the case of Baltimore, Maryland. In 1994, a "living wage ordinance" was pas§ed due to the OpportuMties Niag~tra, I.ivir~g Wage Di:~cussiet~ l~aper 13 efforts of a widespread local coalition of community leaders. In effect a municipal law was passed requiring all corporations doing business with the city or receiving substantial contracts or subsidies to pay a "living wage". In real terms this meant a rate of $6.10 per hour in 1996, rising to $7.70 per hour one year later (Kraut, Klinger & Collins p.4). The Baltimore coalition defined the "living wage" as the amount of money required to lift a family of 3 over the national poverty line. Since 1995 over forty American cities have adopted living wage ordinances, and other communities have begun to organize for the passage of living wage laws. While various provincial jurisdictions, and the federal level have showed renewed interest in addressing poverty-level minimum wages, Canadians as a whole have been slow to react. It can be argued that tiffs is the case for two primary reasons. The American "successes" are still in their infancy, and more research needs to be done. Many still labour under misconceptions about the effects of a living wage. This present paper will briefly explore the latter concern. There are two fundamental truths about employment in Canada, and the role of a "living wage". First, incidents of involuntary unemployment remain a cyclical problem. National trends in job creation have focused largely on high-skilled, professional occupations. Judith Maxwell (p.1) clarifies the result of this trend, by explaining that "the skill requirements for a broad sweep of occupations have been increasing, as new technologies have transformed the way work is organized". In effect, those Canadians without the knowledge, opportunity and capacity to compete for these jobs are left behind! Many are relegated to precarious work, which contributes to the cycle of unemployment and underemployment. 14 The second truth about the prospects for "living wage" policies in Canada is the sad reality that even an increase in wages does not help those individuals without jobs. Cycles of unemployment it is commonly understood are intrinsically tied to cycles of poverty. While a review of the unemployment conditions in Canada is beyond the scope of this paper, it does re- emphasize the vital role that social service agencies and local responses to unemployment have on the overall economic health of the nation. One popular misconception about minimum wage workers in Ontario concerns demographics. Teenagers, living at home, with limited education are generally perceived to be the bulk of the minimum wage workers in Ontario. While this in not the case, there is good reason for this assumption. Judith Maxwell explains this misconception in terms of families adapting to shifts in market conditions. Good opportunities for low-skill workers are dwindling, claims Maxwell, as "globalizing markets have encouraged industries to shift Iow-skill production to low-wage countries...(whereas other) jobs have been replaced by technology" (Judith Maxwell, p.1). As a result of this global trend, Canadian families have responded by sending more family members, notabl'y wives into the labour force. For high school and college age children they have been forced to meet some of their own living and educational costs. Subsequently, more students stay in school longer and subsidize their education with low-paying jobs. Goldberg & Green have collected relevant provincial data to corroborate Maxwell's research. Their data breaks the popular myth about who the main minimum wage earners are in Ontario. Opportunilies N~a~ara. I,iv'.:ng Wage Discussior; Paper 15 Table 3: The Social & Economic Benefits of Minimum Wages in Canada) "Raising the Floor" GsouP FEMALES MALES ALL Teenager Age 15 - 18 32_00% ~ 38.'/0~ Young Adult A~e 19- 24 37.70% 28.70% 34.40% To~al 100% 100% 100% This chart indicates that the face of minimum wage workers is changing; it shows interesting trends between various age groups and significant gender differences. For the purposes of their study minimum wage workers were defined as all individuals whose wages were within $0.25 cents of the minimum wage in the employee's province. (Schenk p.4) Data confirms that most minimum wage workers are not in line with popular conceptions but indeed that 60% are adults, young adults 19-24 and adults 25 and over. Moreover, women comprise 64% of all minimum workers and men make up the other 36%. A closer look at minimum wage workers by age group indicates a devaluing of women's work as their ages increase. Table 4: Percentage of Minimum Wage Workers by A~e Group (wage within $.25 of the minimum wage) Goldber[I & Green "Raisin[I the Floor" Group Females Males All · % · % · Tesna~e 47,059 32% 4t,_ _?~;6 51% ~m ara; 39% Ad,it ~ ~ t6.9'/9 21% 61.4'/'1 Total 146~748 100% 81.~J6 1~0% ~ 16 To further debunk the myth about a high concentration of males and teenage minimum wage worker it can be seen that of the 88,365 total workers studied, slightly over half (47,009 or 53%) are females. These proportions increase dramatically for adults and young adults, where females represent 70% of the minimum wage workers in these age groups. This same data indicates that as males get older, their dependence on minimum wage positions diminishes. It can be concluded that while teenagers constitute a significant group of minimum wage workers, relative levels of education is equally as revealing. Table 5: Percentage of Low Wage Workers by Highest Level of Education (wages up to $7.O01hour) Goldbe~ & Green "Raisin~l the Floor~ Females Males All 'ligh School ~ t 8% 14% ~.ivo~ty Oeg~ 4% 6% 4% Fetal 100% t00% 100% Table 5 tracks the percentage of minimum wage workers by their levels of education and indicates that there are nominal differences between the genders. It is clear that over half of the workers surveyed have some form of post-secondary education. Crudely put, minimum wage workers in Ontario are not "high school dropouts". More in-depth research by Goldberg & Green confreres "most teenage minimum wage workers, 91% were full-time students during some part of the year". (Goldberg & Green p.5) This data does support the notion ora common 17 reality for many young adults; minimum wage work is an important source of income for adults. It is worthy to review minimum wage by family situation to examine how perceptions mirror reality for Ontario workers, as seen below. Table 6: Low Wa~le Workers b~/Family Situation {Goldbe~ & Green "Raisin~l the Floor") Femates Males Ali lee,~ ~ 1~- 1~) Live W'~ P'are~s 18% 24% )ther (no~ de~ne~) t% 4/. .ire ~ 4% 4% ~ve With Parents tg~ ~% .ire Alone 4% 9% )ther (not defined) 6% t0% ~/, In their work Myth and Measurement: The New Economics of Minimum Wage (1995), David Card and A. B. Krueger offer some insight into this group of young adults. The authors explain the trend toward young people living with their families longer as a response to a poor market and limited job prospects (as cited in Schenk, p.7). In effect, young minimum wage earners choose to live at home longer, and delay forming families of their own, because it is cost prohibited to live on their own. As the myth about who the minimum wage workers are in Ontario is debunked, the central question remains: why are so many trapped in these low-paying jobs? While it is clear that so many have made considerable investments in their education, why are their chances of 18 advancement so low? Ontario is devoting a lot of its potential talent to low paid work, as evidenced by the significant number of minimum wage earners with post-secondary education. Similarly, it is marginalizing married women, through their relegation to low-paying, dead-end employment. Opponents of minimum wage, and living wage policies have forwarded the argument that these initiatives have a negative affect on employment. In effect, they posit the misconception that living wage policies are "job killers". The logic being that they "...hurt the very people (they) are supposed to help by effectively pricing their labour out of the market". (Goldberg & Green p.8) Related arguments suggest that low-skilled workers will become too expensive for companies to afford if minimum wages increase, bringing an influx of people into the labour market. These long-cited fallacies portray the introduction of a living wage as damaging to the economy. The primary reason that these misconceptions persist is the lack of relevant data to the contrary. Noted earlier in this report is the fact that even the most "successful" living wage ordinance (the case in Baltimore) is still in its genesis. However, many of those arguments can be contested by challenging'the assumptions and measures on which they are based. The aim of this paper is not to offer a comprehensive response to all of these assertions, as space will not permit. Recent studies in Canada and the United States suggest that the portrayals of a living wages as "the great job killer" are not accurate. Opportunities Niagara. [,ivirlg Wage l.)i~cu~sie~'~ Pnper 19 It is notable that the Baltimore living wage ordinance, a policy less than a decade old, has already evidenced some positive trends for the city and its economy. Contrary to the belief that the living wage law would increase inflation and inhibit economic growth, a study by the Economic Policy Institute observed that the "aggregate cost to the city increased by 1.2% (after the ordinance) less than the cost of inflation. (Kraut, Klinger & Collins, p.10) These findings are consistent with a study by the Preamble Centre, which found a decline of 2.4% in inflation- adjusted contract prices after the first year of the Baltimore living wage ordinance. (Ibid, p.10) The other key argument worthy of address is the suggestion that jobs will be lost as a result of moving forward with a living wage/sustainable income policy. Or put another way, that an increase in minimum wages, to a living wage will make the cost of low-skilled workers too great for companies and they will be discouraged from hiring. Christopher Schenk explains this assertion further by explaining, "Companies would shift towards more capital intensive production (equipment, technology) and hire fewer, but more highly skilled workers". Recent Canadian research suggests that the move toward a living wage, and the fears of resultant mass job losses are really a matter of measurement, and the ability of companies to adapt. A study by the Canadian Centre for Policy Alternatives offers this caveat in their 1999 report, ...it is worth noting that, even if we were to find substantial disemployment effects that would not necessarily imply that minimum wages are a bad policy. The benefits in terms of reducing the poverty of those with jobs may be deemed large enough to offset even relatively large disemployment costs. (Canadian Centre for Policy Altemative: 1999 report, p.8) Oppoltuni~ics N~agura. l.i~ir!g Wage Di~cussiop, ?ape!' 20 The study also contends that there may be some long-term impacts of increasing the m~nimum wage to a "living wage/sustainable income" level. In the long-term, companies will be compelled to adjust their methods of production to focus more on training. This advancement in industry methods will translate into more job stability and income. The effects of an increase in income cannot be understated; greater consumer spending will stimulate certain sectors of the labour market. The end result would be that greater spending would offset any possible disemployment effects resulting from the adoption of a living wage/sustainable income policy. In addition to the fact that substantial disemployment effects of a raise in minimum wages cannot be substantiated, it must be understood that the extent of any job loss can not be equated with rising the current minimum wage of $6.85 per hour to a living sustainable income. Goldberg and Green state the case bluntly, "simple statements indicating large damage from increases in minimum wages can not be supported". (p. 12) This conclusion is especially poignant in the Canadian context, in that the authors engaged a longitudinal study of minimum wages across Ontario, British Columbia and Alberta. Portraying rising wages as the great "job killer" of the Canadian economy is not supported. The fact is that employment levels are subject tb a variety of labour market trends - the fundamental issue is one of measurement. There is substantial evidence to suggest that a number of trends and movements in the economy influence employment levels to a larger extent than do minimum wages. Using sophisticated statistical methodologies Goldberg & Green researched this central question: have changes in the minimum wage over the last 20 years induced substantial drops in. employment? Opportuni{ies Niagaru. laving ~¥age Discussion Pnper 21 They conclude that it is difficult, at best, to show minimum wage effects on a year-to-year basis. (p.9). Salient factors like cyclical economic upturns and downturns and the increase in women in the modem workforce complicate the issue. There is good evidence to show a positive effect on employment rates through the introduction of a living wage/sustainable income. A broad body of evidence documenting the effects on employment resulting from the Baltimore Living Wage Ordinance shows some positive trends. Niedt, Ruiters, Wise & Shoenberger offered the following observations in their aptly titled economic study "The Effects of the Living Wage in Baltimore" (1999), Following the (minimum wage increases), the economy continued to produce jobs at near record rates. By February 2002 only 7.2% of the working age population was not in the workforce, compared to 11% in 1994. Most remarkable were the gains made by historically disadvantaged groups. (p.34) Sander & Lokey (I 998) also evaluated a similar living wage ordinance in the city of Los Angeles, California. The positive effects of this ordinance on employment rates were qualified in this way, "overall teenage employment was at a 30-year low, while unemployment among African-American teens fell to 27.6% its lowest level since (the ordinance)". (p. 18) This is some of the clearest evidence to support the employment impacts of a living wage policy. Sander and Lokey established that the net result of this ordinance is that thousands of former welfare recipients found work, albeit at or near a level of minimum wage. Opportunities Niagara. l,iving B, age [3isct~siot: ?ape? 22 There is considerable evidence to refute the claim that a rise in minimum wages, toward a living wage/sustainable income has negative effects on employment. It is also evident that other factors in the economy and labour market exert a more substantial influence on the local rates of employment than a simple move toward a sustainable income for workers. Most compelling is data from Canadian and American researchers indicating that increases in the minimum wage have been followed by notable increases in employment. The Centre For Policy Alternatives boldly assert "attempts to place a major portion of the declines in employment at the foot of the minimum wage are simply misguided". (p.ii) So too claims the Centre, it is a fallacy to conclude that minimum wage cuts will lead to large jumps in employment. As a policy to address those at the bottom of the income ladder a living wage can be seen to have positive distributional effects. A net increase for low wage earners is good for the economy as well as the private sector. How can businesses be convinced of the advantages of promoting a sustainable income? A CASE FOR BUSINESS: LIVING }}~AGES ARE GOOD FOR BUSINESS It is a simple reality of business that higher production costs, like those that might result from an increase in wages to the level of a sustainable income mean lower profits. Lower profits are bad for business. There are several compelling arguments to be made that this business truism in not that simple after all. As the chart below indicates, a reality of the Canadian economy it that a lot of potential talent is being devoted to low-paid work. Some of this work is essential t6 our nation's Opportunities Niagara. laving Wage Discussi~*r~ I~per 23 economic growth and efficiency. This fact is especially tree in the case of Niagara, which has a high concentration of service workers, grocery store clerks and staff for hotels and industrial facilities, to name a few. Other work is essential to meet Niagara's social objectives - childcare workers and support workers - and to free up others so they can perform their work. What is this work worth? How can businesses be inspired to invest in their employees? Only a convincing business case will ensure these questions. Chart 3: Canadian Policy Research Network, 2001: Job Quality Several studies and surveys of businesses that pay decent wages describe real business advantages as a result of higher wages. Offering a higher base pay and benefits attract more qualified employees._ The benefi~ of a qualified workforce are clear;, employees have a higher morale and loyalty to the company, are more productive, and require less supervision (Krant, Klinger & Collins, p.6). The cost of employee turnover is no small matter for any business. In a 1999 report by Bliss and Gately, a formula for determining the business costs of employee turnover was 24 developed. They note that turnover can cost 150% of an employee's base salary, for example, "if a company of 50 employees has an average base salary of $15,000 (and a turnover rate of 10%), it will spend $1L2,500 to replace those employees" (Bliss & Gately, p.4). Such costs to the business may include new hires, training, and lost productivity. Higher wages can reduce the incidence of employee turnover and absenteeism. The benefits of this approach are clear to most businesses - lower costs for training and recruitment mean improvements in the quality of goods and services. This in turn leads to a higher level of satisfaction amongst clients and customers. A resulting motivated and stable workforce has clear advantages to the employee and employer. Where workers can see a benefit to their work, a strong and healthy work environment is created. For employers these benefits can substantially outweigh the higher wage and payroll taxes associated with paying a sustainable income. For public companies the drive to maximize profits is seen as a core mandate on behalf of their stakeholders. There is little doubt that a move to decrease employ6e wages in the short- term may increase quarterly profits. The counter argument contends that in the long-term a fairly paid and satisfied workforce will save the company money through sustained growth. In addition, numerous studies have challenged the simple notion that reduced labour costs will automatically result in reduced overall costs. The overall cost? can be qualified as increased shareholder value or profitability. For example, the Watson Wyatt Worldwide study (1995) concluded "less than half of companies surveyed met their expense-reduction goals after downsizing, in fact, fewer than one third even met their profit objectives"(p.28). Traditional Opportuniiics Niagar~l. IAvirlg ¥*age Discussion I~nper 25 notions of the positive effects of reducing labour costs to increase profits are often not substantiated. Collaborating evidence to challenge these well-entrenched business notions was determined by the Wharton Business School in 1997. This study assembled the results of 52 independent studies focusing on the effects of downsizing on stock performance. Data combined · from several thousand companies found that "corporate restructuring had little if any positive impact on earnings of stock performance" (p.26). This furthers the argument that a stable and satisfied workforce will lead to a company's increased flexibility to respond to shifting market demands. Put plainly, the supposed benefits of greater profitability as a result of reducing the cost of labour is negligible at best. It is in the long-term best interest of the business sector (private & public) to reward employees through a policy of sustainable income. A strong case for businesses to embrace a living wage/sustainable income policy is prefaced on the belief that the increased economic self-sufficiency of workers will enhance business productivity. The higher direct costs of labour associated with a living wage/sustainable income will be balanced against reduced indirect labour costs and higher productivity. Advocates of a living wage policy for businesses also note that improved productivity is a direct result of employers using labour more effectively. CONCLUSIONS The growing number of poor in Canada, and Ontario are shredding the traditional work ethic of "work hard and one will get ahead". Crippling rates of poverty in any c6mmunity lead Opportunities Nia~ara~ [.iv]ng Wage Di~cu~si~>n ?nper 26 to a bleak economic outlook as potential investors are disaffected, families are doomed to continue the cycle of poverty, and the business community suffers. Poverty is a problem for an entire community, and requires a sinCere response from all sectors. The move toward the adoption of a sustainable income policy will ultimately succeed if it is embraced by a broad coalition of labour, community activists, social service agencies, businesses, and political leaders. A living wage/sustainable income policy is one element of a set of tools in the baffle against excessive inequality. By "raising the floor" for low-income workers (to a level which exceeds Statistics Canada's LICO) it will help to ensure that workers receive a fair and just wage for their labour. An increase in wages to the level of sustainable income will generate greater social justice in the distribution of wages. Indeed, minimum wages in Canada, and other employment standards, were established to promote fairer treatment of workers. Entire communities gain from the introduction of living wage/sustainable income strategies. Strong evidence supports the observation that low-wage workers in communities like Baltimore and Los Angeles (with living wage ordinances) are more apt to spend locally. Circulating money back' into local economies has the potential to help re-build poorer communities and spur job growth. So rather than threatening a community's economic prospects, a living wage/sustainable income policy "(by helping to raise workers out of poverty) become a central tool for development and a positive contribution to a community's investment climate" (Choosing the High Road, p. 13). Opportunities Niagara. laving Wage Discussi(>n l~l.~e' 27 Finally, it is logical to suggest that increased economic prospects for workers will strengthen communities by shrinking the demand for government assistance to low-income families. Focusing on the sole issue of increasing the number of, and access to, better paying jobs have untold benefits for a community. Good jobs bode well for a commtmity by increasing the consumer purchasing power of its residents. This in turn stimulates the creation of still more jobs and the local and national economies grow. The barriers to the advancement of local workers' incomes are not insurmountable. Workplace barriers occur as employers concentrate more on controlling payroll than on development of skills and productivity growth. In addition, other barriers exist, such as, the structure of taxes, which further penalizes low-wage workers, and the cost of childcare, for example, far exceeds low-income budgets. The main task before legislators and business leaders is to strike a balance between workers' right to a sustainable income and the demands of the marketplace and responsible government. This paper examined the issue of a minimum wage increase to a sustainable income level as a tool to minimize social and economic inequality. Beyond the scope of this paper is a more comprehensive review of related issues like employment insurance, social housing/affordable housing, employer flexibility, employee medical benefits, access to training opportunities and universal, free childcare. Ail of these interrelated factors need further examination to truly complement the notion of a living wage/sustainable income policy, and inform a complete anti- poverty agenda. A living wage/sustainable income is not just about increasing low paid workers' hourly wages; it also entails workplace best practices, which include but are not limited to, Opportunities N iagz~r~, l.iving ¥~'age [)i:,cubsior l~li],~:' 28 flexible hours for workers with family responsibility, reduced work time options (e.g. part-time work with pro-rated benefits), guidelines for family-friendly workplaces, and profiles of model employers, continued learning and skills building, and health care benefits. This review of the crisis of low-paid work in Canada, Ontario, and to a lesser degree, Niagara raises the question, is our community convinced of the benefits of a strategy for sustainable incomes among our most disadvantaged citizens? This report poses other challenging questions of employers and governments. The responses to which will spell out the implications ora living wage/sustainable income policy for our local leaders. · Would some or all-local employers who depend on low-wages workers to operate be beneficiaries of the same efficiency payback witnessed in Baltimore? · Is it the responsibility of taxpayers to supplement low-wage employers rather than encouraging them to pay higher wages and reap the benefits? · Is the local labour market structure that which should be supported and maintained? Will it suffice to simply "'top up" low wages or can a policy be enacted to dismantle the low wage "ghetto"? · Should local governments be more assertive in setting minimum wages (in concert with others) after decades of stagnating real wages in the province? RECOMMENDATIONS That local government facilitates a broad based coalition of community stakeholders (spearheaded by Opportunities Niagara) to determine the efficacy of a Living Wage Policy for Niagara. That a report on the effects of current minimum wages in Niagara be commissioned. That this report include data from all community stakeholder groups with special attention paid to the role of "ethnic economies" within Niagara's overall ec. onomy. ()pt'~ortuniiies Niagara. l,i~,ine Wage D scussion I~aper 29 [ I That a coalition of community leaders be commissioned to report on the effects of federal, provincial and regional housing programs, child benefit rebates and related social assistance programs on the poor in Niagara, further, that this report comment on the quality of employment and the role that low wage employment in Niagara may have in reinforcing economic exclusion. That proposed changes to the Federal minimum wage policy be closely monitored (Paul Martin Administration). That the Region of Niagara explores a minimum wage policy, set at 70% of the average wage and indexed to the cost of living. That a study be conducted, and policy recommendations made, on the impacts of interrelated areas, that directly complement the adoption of a policy of sustainable incomes: 1. HIGH MARGINAL EFFECTIVE TAX RATES -- as a result of social benefits being reduced in line with increases in income 2. QUALITY UNIVERSAL CHILDCARE OPPORTUNITIES FOR ALL -- especially parents moving into work. In contrast to subsidies for childcare for those leaving social assistance (that is in training or the immediate transition from welfare to work) 3. TRAINING PROGRAMS -- not restricted to people who are unemployed. For employed people, the cost of effective training programs cost-shared between the employee and employer. Also, the issue of paid time off to complete training. Each of these recommendations has costs and benefits; some are likely to be more effective than others, but the right combination of key community stakeholders with a desire to end poverty in Niagara can/should champion this initiative. In summary there are three key policy questions to ponder: 1. WHAT Am~ THE CONSEQUENCES OF LOW PAID WORK IN NIAGARA? · Poverty: community members unable to provide for themselves and families · Poor Health: community members who are poor make greater use of our health care system · Poor Child Development: more children in our community are at risk of health, behavioral, and cognitive problems · Under-utililization of our existing human capital ()pp,.~rtm~itics Niu.u:~ra. l.iving 5Sage Di-,ctlssien I)npcr 30 · Under-development of our future human capital · Lost productivity growth 2. WFIO SItOULD TAKE RESPONSIBILITY FOR TItESE CONSEQUENCES? · THE FAMILY? o Work more hours, or send more people out to work o Share accommodations with others o Avoid having children o Avoid caring for elders o Go back to school - but who pays · THE MARKET (EMPLOYER)? o Pay a living wage o Impose living wage requirements o Offer benefits to all employees o Establish training trust funds o Provide child care/elder care supports for all employees · THE COMMUNITY? o Organize cooperative day care o Establish more community food banks o Build cooperative housing - but who pays · THE GOVERNMENT? O Raise the minimum wage o Provide wage supplements or tax credits to top up market wages o Reform taxes to avoid high marginal effective and average rates at low end o Provide training to enhance employability o Provide affordable housing and childcare 3. WHAT POLICY OPTIONS SHOULD BE CONSIDERED AND WILL BE RESPONISBLE? Opportunities Niagara believes that no one working full-time should live in poverty, and a living wage/sustainable income is good for families, businesses and the community. Based on these statements, Opportunities Niagara pledges to continue: ()pportul~iiies N~auara. I,[vine ¥, ,_~.~ 31 · TO DEVELOP STRATEGIES AND SUPPORT INITIATIVES FOR A LIVING WAGE/SUSTAINABLE INCOME POLICY · To PUBLICLY SUPPORT LIVING WAGE/SUSTAINABLE INCOME STRATEGIES/INITIATIVES IN OUR COMMUNITY · TO PUBLICLY SUPPORT LEGISLATION TO INCREASE THE MINIMUM WAGE IN ONTARIO/CANADA · To CONTINUE TO HAVE A DIALOGUE WITH KEY COMMUNITY STAKEHOLDERS~ AND BUSINESS LEADERS IN AN EFFORT TO MOVE COMPANY COMPENSATION PRACTICES TOWARD A LIV1NG WAGE · To CONTINUE TO DEVELOP GUIDELINES FOR BEST PRACTICES FOR EMPLOYERS RELATED TO POVERTY REDUCTION WITHIN THEIR WORKFORCE AND IN THE BROADER COMMUNITY Oppo~ttmities Niagara. 1.ivir~g Wage 32 BIBLIOGRAPHY Allan Day & Associates (2003). Gaining and Understanding of Poverty in Niagara Region. Paul Knafelc Community Benchmarks. Canadian Policy Research Network, .lob Quality (2001) Card, David and Alan Krueger (1995). Myth and Measurement: The New Economics of the Minimum Wage. Princeton, N.J.: Princeton University Press. Coalition for Social Justice. Pamphlet, Ontario Needs a Raise, (2000) Human Resources Development Canada, Minimum Wage Database-Canadian Adult Workers (1995-2003) Jackson, Andrew (July, 2003). Good Jobs in Good Places: Reflections on Medium-Term Labour Market Challenges. Caledon Institute of Social Policy. Kraut, Karen, Scott Klinger and Chuck Collins (2000). Choosing the High Road, Businesses that Pay a Living Wage and Prosper. Responsible Wealth Press Maxwell, Judith (July, 2002). Smart Social Policy- Making Work Pay. Submitted to the TD Forum on Canada's Standard of Living. Mitchell, Adam and Thomas Shillington (2001). Measuring Poverty in Canada. Canadian Policy Research Networks. Neit, Christopher, Greg Ruiters, Dana Wise and Erica Shoenberger (1999). The Effects of the Living Wage in Baltimore. Washington: Economic Policy Institute. Opportunities Niagara Business Plan, 2003. Schenk, Christopher (November, 2001). From Poverty Wages to a Living Wage. Ontario Federation of Labour. Statistics Canada (1997) Statistics Canada (2000b) Opportunities Niagara. l,iv:.rtg Wage 33 Southern Ontario Area Economist, Economic Analysis and Information Directorate, Ontario Region (2003). St. Catharines- Niagara Census Metropolitan Area Quarterly Labour Market Trends: Second Quarter, 2003. Watson Wyatt Worldwide (1995). Training for the New Economy- A Synthesis Report. Wharton Business School (1997). Businesses and Social Responsibility: Downsizing, Layoffs and Closings. Social Research and Demonstration Corporation. ()pportuniiie~ N ag:ira. I,ivit~g Wage 34 Niagara Transit 4320 Bridge St., Niagara Falls, Ontario, L2E 2R7 Office 905-356-1179 Garage 905-358-9749 Fax 905-356-5576 Entail tlibrock~,niagaratransit.com Website www.niagaratransit.com TO: The Chairman and Members of the Commission FROM: T.D. Librock, General Manager RE: Financial Estimates 2004 - Budget 2005 October 15, 2004 Public transit improves the quality of life for many people who depend on our service and helps to ensure mobility, preserve the environment, and protect public health and safety. Niagara Transit plays a critical role in building a healthy community, improving the air We breathe and helps reduce traffic congestion. Many of our citizens rely on public transportation to get where they need to go, safely and conveniently. In 2004, Niagara Transit had another successful year. We anticipate being under budget as a result of increased ridership and an increase in our non- transit revenues. In 2005, our estimates do not include a fare adjustment or a budget increase. Note: Niagara Transit's cost per capita for 2003 (the latest year statistics are available) was $19.85 compared to the Provincial average of $39.75. Niagara Transit's alternate sources of revenue contribute to lowering our deficit, easing the financial burden to the taxpayers, Outlined below are variances from the approved budget to estimates for 2004 and the proposed budget for 2005, under the following categories: Financial Estimates (2004/2005) The estimated operating revenues and expenditures for 2004, and the proposed budget for 2005. Operating and Capital Fund Expenditures (2004/2005) The estimated cost for tires, office and garage equipment, and capital purchases for 2004 and the proposed budget for 2005. Financial Summary (2004/2005) The overall estimated net operating and capital costs for 2004 and the proposed budget for 2005 (including estimated provincial capital subsidies). Financial Estimates - 2004 Following are the main variances from the approved operating budget to projections for 2004: 1. REVENUE - STATEMENT ONE 1) Overall, passenger revenues are projected to be over budget by approximately $24,700 mainly due to an increase in monthly pass sales. 2) An increase in the Falls Shuttle ridership of approximately 30% over 2003. The "kids ride free" promotion proved to be very popular with hotels, motels and camp grounds. We received a number compliments on our Falls Shuttle service. 3) Garage revenues will increase, by approximately $93,900. We experienced an increase from out-of-town bus companies and inter- city bus business. 4) Inter-city bus terminal revenue increased. 5) Bus advertising and bus shelter revenues increased. 2. TRANSPORTATION COSTS - STATEMENT TWO 1) Operator's wages and government imposed expenditures were slightly under budget. 2) The price of crude oil increased drastically resulting in being over budget for diesel fuel by approximately $36,500 (10.4%). 3) Bus insurance costs decreased slightly as a result of our claims experience. 4) All other costs were approximately the same as budgeted. 3. EQUIPMENT& VEHICLE MAINTENANCE COSTS - STATEMENT THREE 1) Vehicle and maintenance costs increased slightly due to the higher cost for parts. 2) Cost for bus parts sold increased significantly, but is offset by sales revenues in Statement One. 3) Replaced (1) motor and (3) transmissions (budgeted (1) transmission). 4. PREMISES AND PLANT COSTS - STATEMENT FOUR 1) Garage wages and benefits decreased as a result of turnover in staff (lower wage rate). 2) Utilities costs are under budget by approximately $9,000. 3) Maintenance costs increased slightly as a result of major repairs to hoists and bus washer. ~ 3 5. ADMINISTRATIVE COSTS - STATEMENT FIVF 1) Wage and benefit costs are slightly under budget. 2) Decrease in office supply costs. 3) The Commission sent one staff member to the Ontario Community Transportation Association annual meeting. OPERA TING AND CAPITAL FUND EXPENDITURER (ESTIMA TED - 2004) 1) The cost for tires, office equipment and garage equipment is estimated to be under budget by approximately $5,500. 2) The cost for refurbishing one transit coach, bus number #36 was estimated to be $85,100. The actual cost was $87,300 ($2,200 over budget). 3) The cost for one supervisor's vehicle was over budget by $100. 4) We pumhased two new coaches (continuation of our five-year bus replacement plan). FINANCIAL SUMMARY- 2004 If my estimates are correct, the net deficit to the City of Niagara Falls in 2004, for combined Operating and Capital expenditures will be approximately $2,685,100 some $77,500 under the approved budget. Note: These estimates are prepared approximately three (3) months prior to year-end and could change significantly if we have a dramatic loss of revenue or incur unforeseen operating expenditures such as additional unbudgeted motor, transmission replacements or soaring diesel fuel prices. 4 PROPOSED BUDGET - 2005 Financial Estimates - 2005 Following is the pr(~posed budget for 2005, accompanied by explanations for specific items. It is submitted recognizing the current economic climate in Niagara Falls. This budget proposes no fare adjustment or budget increase. REVENUE - STATEMENT ONE 1) I am not recommending a fare increase for conventional transit at this time. For your information, Niagara Transit most recent fare adjustment was January 1, 2003. Current fares are as follows: Category Fare Adult $2.25 Student 2.00 VIP (Senior/Reduced) 2.00 Child 1.00 30-Day Passes Adult $65.00 VIP (Senior/Reduced) 50.00 Student 50.00 Niagara Transit provides reduced fares to the following social agencies: · Project Share · Region Community Services Department · Family and Children Services · John Howard Society · St. Vincent de Paul Society · Ministry of Community and Social Services · Niagara College Career Employment · Niagara Support Services · Nova House · N-Tec · Occupational Help and Development Centre · St. Ann'sAdult Learning · YMCA- Employhnent Program 2) Increase in Fails Shuttle revenues, assuming the tourism market will continue to improve. 3) Approximately the same amount of garage revenue as 2004. 4) Approximately the same amount of revenue from bus terminal. 5) A slight increase in advertising and bus shelter revenue. 2 TRANSPORTATION COSTS - STATEMENT TVV~3 1) Negotiated wage increase (3%% - same as City of Niagara Falls) 2) A slight increase in government imposed expenditures. 3) A slight increase in group insurance benefits rates. 4) 8% increase in cost of diesel fuel. 5) No increase in fleet insurance rates due to our excellent claims experience. 3. EQUIPMENT & VEHICLE MAINTENANCE COSTS - STATEMENT THRFF 1) Decrease in maintenance costs as a result of the acquisition of new coaches. 2) Replacement of one motor and one transmission. 4. PREMISES AND PLANT COSTS - STATEMENT FOUR 1) A negotiated wage increase (3%% - same as City of Niagara Falls) 2) A slight increase in government imposed expenditures. 3) A slight increase in group insurance rates. 4) A 10% increase for utilities. 5. ADMINISTRATIVE COSTS - STATEMENT FIVE 1) A negotiated wage increase (3%% - same as operators and garage staff). 2) A slight increase in government imposed expenditures. 3) A slight increase in group insurance rates. OPERA TING AND CAPITAL FUND EXPENDITURES- 2005 1) A slight increase for tires and a token amount to cover garage and office equipment that may be required. 2) Two Iow-floor 40' transit coaches, previously approved by council (eligible for Provincial subsidy). 3) Bus refurbishment (#37) estimated cost $66,000 (eligible for Provincial subsidy). FINANCIAL SUMMARY- 2005 If my estimates are correct the net deficit to the City of Niagara Falls for Operating and Capital combined (including Provincial subsidy) for budget year 2005 will be $2,758,500. down $4,100 under the approved 2004 budget. In 2004, the Provincial government announced their intention to transfer 2-cents per litre of the existing Provincial tax on gasoline to municipalities for improved public transit services. The announced plan is to transfer 1-cent per litre starting October 2004, increasing to 1.5-cents per litre October 2005 and a third increase to 2-cents per litre October 2006. The distribution formula has not been finalized. Funding will apply to both conventional and specialized transit services. We have examined every facet of our operation with the aim of identifying ways to reduce the overall financial burden public transportation places on the taxpayers of the City. Niagara Transit has traditionally relied on other sources of revenue such as the garage and Falls Shuttle to offset our deficit. As we have stated in the past, staff has pursued service and maintenance contracts with local and inter-city operators with significant success. It will be our intention in the year 2005, to continue these pursuits as our investigations into these markets are encouraging. In conclusion, I recommend the Commission approve these financial forecasts. TDL/jrb NIAGARA TRANSIT STATEMENT OF REVENUE & EXPENDITURE Estimated 2004/Budget 2005 Budget Estimated Budget 2004 2004 2008 REVENUE 2,677,000 2,828,000 2,855,500 OPERATING EXPENDITURES Transportation 2,566,600 2,594,600 2,687,700 Equipment & Vehicle Maint. 481,300 582,300 540,000 Premises & Plant 1,340,000 1,294,300 1,353,000 General & Administrative 317,400 310,200 324,400 Total Operating Expense 4,705,300 4,781,400 4,905,100 EXCESS OF OPERATING EXPENDITURES 2,028,300 1,953,400 2,049,600 NIAGARA TRANSIT STATEMENT OF REVENUE STATEMENT 1 Estimated 2004/Budget 2005 Budget Estimated Budget 2004 2004 2005 REVENUE Adult 25,000 22,000 20,000 Senior 46,000 39,500 40,000 Children 15,000 15,300 15,000 30 Day Passes 125,000 153,000 165,000 Semester Passes 8,000 7,000 7.000 Cash Faro 920.000 918,000 920,000 Shuttle 350,000 359,000 375,000 Post Office 2,500 2,400 2.500 TOTAL 1,491,500 1,516,200 1,544,500 GARAGE Storage - Parking 39,000 39,500 40,000 Interior Clean 159,000 158,500 160,000 Wash 155,000 153,800 155,000 Cleaning - Washrooms 195,000 191,000 195,000 Diesel Fuel - Net 129,000 148,000 150,000 Oil & Lubricants 10,000 12.700 12,000 Labour 120,000 161,000 160,000 Bus Parts - A/C 105,000 137,000 130,000 Service Calls 10,000 15,700 15,000 Sundry 3,500 2,200 3,000 TOTAL 925,500 1,019,400 1,020,000 OTHER Bus Terminal 40.000 49,500 48,000 Sightseeing / Charter/Casino 185,000 204,400 200,000 Advertising 30,000 36,500 40,000 interest 5.000 2,000 3,000 TOTAL 260,000 292.400 291,000 TOTAL REVENUE 2,677,000 2,828,000 2,855,500 NIAGARA TRANSIT STATEMENT OF TRANSPORTATION COSTS STATEMENT 2 Estimated 2004/Budget 2005 Budget Estimated Budget 2003 2003 2004 SALARIES, WAGES & BENEFITS Operators Wages 1,258,000 1,259,000 1,303,000 Inspectors Wages 170,000 171,000 177,000 Pension 136,600 135,000 143,000 Group Insurance 225,600 224,300 237,000 Unemployment insurance 38,600 36,000 40,000 Workers' Compensation 58,600 57,600 60,000 Meal Allowance/Dry Cleaning 1,000 400 1,000 TOTAL 1,888,400 1,883,300 1,961,000 MATERIALS & SUPPLIES Timetables 4,000 4,000 4,000 Gasoline 4,000 3,400 4,000 Diesel Fuel 349,000 385,500 417,000 Oil & Lubricants 17,000 20,600 20,000 Uniforms 7,500 6,500 7,500 Sundry 5,000 6,800 5,000 Tickets 8,000 7,000 8,000 TOTAL 394,500 433,800 465,500 SERVICE & RENTS Maintenance - Signs & Shelters 1,500 400 1,000 Bus Insurance 182,000 177,600 180,000 Adve~lising 90,000 89,300 70,000 TOTAL 273,500 267,300 251,000 TRANSFERS TO GOVERNMENT Licences 10,200 10,200 10,200 TOTAL 10,200 10,200 10,200 TOTAL TRANSPORTATION COSTS 2,566,600 2,594,600 2,687,700 NIAGARA TRANSIT STATEMENT OF EQUIPMENT & VEHICLE MAINTENANCE STATEMENT 3 Estimated 2004[Budget 2005 Budget Estimated Budget 2004 2004 2005 SERVICE AND RENTS Parts & Repairs 381,300 439,300 410,000 Outside Repairs 30,000 36,000 30,000 Sales - Out-of-Town Buses 70,000 .107,000 100,000 TOTAL 481,300 582,300 540,000 STATEMENT OF PREMISES & PLANT STATEMENT 4 SALARIES, WAGES & BENEFITS Garage Wages 845,000 822,000 852,000 Pension 75,000 77,300 82,000 Group Insurance 135,000 125,600 132,000 Unemployment Insurance 25,000 22,000 25,000 Workers' Compensation 40,000 36,000 40,000 TOTAL 1,120,000 1,082,900 1,131,000 MATERIALS, SUPPLIES & UTILITIES Garage Supplies 55,000 52,000 55,000 Maintenance 40,000 44,000 40,000 Light, Heat and Water 110,000 101,000 112,000 TOTAL 205,000 197,000 207,000 SERVICES & RENTS Insurance 12,000 12,000 12,000 Telephone 3,000 2,400 3,000 TOTAL 15,000 14,400 15,000 TOTAL PREMISES & PLANT 1,340,000 1,294,300 1,353,000 NIAGARA TRANSIT STATEMENT OF GENERAL & ADMINISTRATIVE COSTS STATEMENT 5 Estimated 2004/Budget 2005 Budget Estimated Budget 2004 2004 2005 SALARIES, WAGES & BENEFITS Management & Office Salaries 192,000 191,500 198,500 Commissions' Honoraria 9,400 9,400 9,400 Pension 20,300 19,000 20,200 Group Insurance 26,000 26,000 27,500 Unemployment Insurance 4,000 3,500 4,000 Workers' Compensation 7,500 6,500 7,500 TOTAL 259,200 255,900 267,100 MATERIALS & SUPPLIES Office Expense 14,000 12,800 14,000 TOTAL 14,000 12,800 14,000 SERVICE & RENTALS Car Allowance 3,000 3,000 3,000 Commissioners' Expense 1,500 1,300 1,500 Managers Expense 1,200 1,100 1,200 Audit 14,600 12,600 13,300 Legal 5,000 4,400 5,000 insurance 1,800 1,800 1,800 Membership Fees 4,300 4,200 4,500 Cleaning - Utilities 6,800 6,500 6,800 Telephone 6,000 5,600 6,200 Conferences & Conventions 1,000 TOTAL 44,200 41,500 43,300 TOTAL GENERAL & ADMINISTRATIVE 317,400 310,200 324,400 NIAGARA TRANSIT OPERATING AND CAPITAL FUND EXPENDITURES 2.004 - 2005 Budget Estimated Budget 2004 2004 2005 OTHER EXPENDITURES Tires $ 12,000 $ 10,500 $ 8,000 Office Equipment 2,000 - 2,000 Garage Equipment 2,000 2,000 TOTAL $ 16,000 $ 10,500 $ 12,000 CAPTIAL EXPENDITURES Bus Purchases $ 945,600 $ 947,500 $ 973,900 Supervisor Vehicle 27,700 27,800 Bus Refurbishing 85,100 87,300 66,000 TOTAL $1,058,400 $ 1,062,600 $ 1,039,900 NIAGARA TRANSIT FINANCIAL SUMMARY 2004 - 2005 Budget Estimated Budget 2004 2004 2005 EXPENDITURES Operating Deficit $ 2,028,300 $ 1,953,400 $ 2,049,600 ©ther Expenditures 16,000 10,500 12,000 Sub Total 2,044,300 1,963,900 2,061,600 Capital Expenditures 1,058,400 1,062,600 1,039,900 Sub Total $ 3,102,700 $ 3,026,500 $ 3,101,500 Less Provincial Sudsidy $ 340,100 $ 341,400 $ 343,000 Net Cost $ 2,762,600 $ 2,685,100 $ 2,758,500 NIAGARA CHAIR-A-VAN Tel. 357-0122 5734 Glenholme Avenue Niagara Falls, Ontario Lg.G 4Y3 TO: The Chairman and Members of the Mana.qement Board FROM: T.D. Librock, General Mana.qer RE: Financial Estimates 2004 - Proposed Budget 200,~ September 23, 2004 Summarized' on the following pages are the variances from the 2004 Budget to the Estimated Actual, and Proposed Budget for 2005: FINANCIAL ESTIMATES - 2004 REVENUE Passenger ridership in 2004~ will be up approximately 3%. This is attributed to additional requests for medical purposes and increased evening service (Saturday night from 5:00 p.m. to 11:00 p.m.). We did not receive any requests for service from the Niagara South Board of Education or the Welland County Separate School Board. Overall, revenues are projected to be up approximately $300. EXPENDITURES It is estimated that expenditures will be approximately $600 under the approved budget. Wages, benefits and payroll costs increased slightly but were offset by reductions in van maintenance expenditures. 2 CAPITAL PURCHASE - 2004 The net cost for the new vehicle was under budget by $500. Niagara Chair- a-Van received approximately $2,000 in donations towards the purchase of the vehicle and should receive $24,600 in Provincial subsidy. SUMMARY- 2OO4 Overall, the estimated net cost to the City for physically disabled transportation, service in 2004, including capital, will be $315,700 some $1,400 under the approved budget. PROPOSED BUDGET - 2005 REVENUE This budget includes no fare adjustment, the same proposed for conventional transit and a reduction for school transportation. In addition, an estimated ridership increase due to the additional hours of service. EXPENDITURES The following are included in the 2005 Budqet: 1. Wage increase (same as Niagara Transit/City of Niagara Falls). 2. A slight increase in van maintenance costs. 3. Other costs are based on last years' actual expenditures. CAPITAL - BUDGET 2005 This budget includes the acquisition of a new vehicle in 2005 to replace van #11 a 1995 Ford, at an estimated cost of $80,000 less $2,000 in projected donations and 33% subsidy from the Provincial government (net cost - $52,600) SUMMARY- BUDGET 2005 The estimated net cost to the City of Niagara Falls for Operating and Capital combined for 2005 will be $331,700, some $13,600 over the 2004 budget (Operating - $10,600, Capital- $3,000). Note: For your information, Niagara Chair-A-Van's net operating cost per capita in 2003 (latest available statistics) was $3.13, compared to the Provincial average of $8.49. Estimates are prepared approximately three months prior to year-end and could change significantly if we have a dramatic loss of revenue or incur unforeseen operating expenditures such as a motor or transmission replacement. ibrock General Manger TDL/jrb NIAGARA CHAIR-A-VAN MANAGEMENT BOARD - Financial Forcast - 2004/2005 Budget Estimated Budget 2004 2004 2006 REVENUE Passenger Revenue $ 31,000 $ 32,400 $ 32.500 Charter Revenue 100 School Board 1,000 TOTAL REVENUE $ 32,100 $ 32,400 $ 32,500 oPERATING EXPENDITURES Operators $ 136,600 $ 136,300 $ 141,500 Dispatchers (office) 31,200 31,200 32,300 Workers Compensation . 6,200 7,700 8,000 Employment Insurance 5,300 4,300 5,000 Canada Pension Plan 7,000 7,200 7,700 Employees Benefits 15,000 16,500 17,000 Total Wages & Benefits $ 201,300 $ 203,200 $ 211,500 Administrative Costs 3,000 3,000 3,000 Rent 4,500 4,500 4,500 Telephone 2,400 2,400 · 2,500 Office Expense 3,500 3,380 3,500 Insurance 14,000 14,000 14,700 Van Maintenance 45,000 43,000 45,000 Gas & Oil 24,000 24,000 24,000 Uniform 1,200 1,000 1,200 Management Expenses 400 400 400 Audit Fees 1,100 1,100 1,100 Advertising 200 20 200 Total - Other Expenses $ 99,300 $ 96,800 $ 100,100 TOTAL EXPENDITURES $ 300,600 $ 300,000 $ 311,600 EXCESS OF EXPENDITURES OVER REVENUE $ 268,500 $ 267,600 $ 279,100 NIAGARA CHAIR-A-VAN Financial Summary - 2004/2005 Budget Estimated Budget 2004 2004 2005 Expenditures Operating $ 268,500 $ 267,600 $ 279,100 Capital 80,000 74,700 80,000 Sub-total $ 348,500 $ 342,300 $ 359,100 Subsidies Donations 5,000 2,000 2,000 MTO Subsidy 26,400 24,600 26,400 Sub-total $ 31,400 $ 26,600 $ 28,400 Net Cost $ 317,'100 $ 315,700 $ 330,700 ~ nlagara falls public libra ry October 20, 2004 forty Members of the Corporate Services Committee eight City of Niagara Falls forty eight Ladies and Gentlemen: victoria avenue n i ag ara I enclose the 2005 Proposed Operating Budget of the Niagara Falls Public Library. falls ontario Operating Budget Revenue: L2 E 4¢s The Board respectfully requests funding fxom the City of Niagara Falls of Tel.: 9o5/356-8oeo $3,071,800 for the operation of the public library in 2005. City funding for Fax: 905/356-7004 debenture charges for library capital projects are shown separately as last year. The City has already included the necessary funds for the library debenture charges in another City account similar to capital projects by City departments. After our Ontario Base Grant was reduced 40% to $130,258 in 1996/1997, it has unfortunately remained frozen at that level. There has been no announcement as yet from the new Government of Ontario of any changes to our funding in 2005 and no changes have been budgeted. Any further funding reductions will once again jeopardize our hours of operation, staffing levels and our book and non- print expenditures. User fees may increase again. 2005 is the final year of special "Early Years" funding from the Regional Municipality of Niagara and from the Ontario Ministry of Community, Family and Children's Services for a library outreach project for young children and their parents/caregivers. Staff are discussing with the auditor the surplus as of Dec. 31, 2003 required for the 2004 expenditures. Oneratin~ Budget Expenditures: Notable increases include general and group insurance, utilities and stationery and supplies. The Board also requires to replenish annually our property maintenance reserve and special automation reserve to plan prudently for future needs such as equipment replacement and computer upgrading. Salaries include a slight increase (7.5 hours per week) in the sdheduied hours of our Manager of Children's Services and increases to reflect the new Ontario Minimum Wage and movement to the next step of the labour grade for some employees. The opening of the Community Centre Branch Library is a a new service budgeted for the last six months of 2005. The residents of the southwest area of Our City will have more convenient access to a neighbourhood branch library. Please note that our request for municfipal funding of $3,071,800 may be reduced bv $32.600 for each month the Niagara Falls Community Centre opens after July 1, 2005. A firm opening date can not be finalized at this time. niagara fails Excluded from the proposed budget are sala~ and benefit amendments pending public City Council's ratification of the amended Collective Agreement with C.U.P.E. library Local 133. In order for the Corporation of the City of Niagara Falls to continue to comply with the "Pay Equity Act", employees of the Niagara Falls Public Library forty Board are subject to the same amendments. This continues City Council's past eight practice with respect to this issue. Mr. Tony Ravenda can provide any further forty information. eight victoria avenue Canital Bud,,et: niagara fails The 2005 capital Budget enables us to continue to select, order, catalogue and ontario process books and audio visual materials for the new Community Centre Branch L2 E 4 ¢ S Library and to order the shelving, computers, furniture and equipment for its Tel.: 905/356-8080 opening. Renovations are required at Stamford Centre Branch especially the Fax: 905/356-7004 replacement of the carpet. These projects are also funded from the Library's Development Charges Reserve, the Library's Operating Budget Contribution to the Capital Budget and Debentures. The Board plans to renew its lease for another 5 or 6 six years for Stamford Centre Branch Library at its current site when the lease expires on August 31, 2005. If City Council wishes to discuss a future capital budget project to purchase land and construct a building for Stamford Centre Branch Library in a similar strategic location, the Board would welcome such a dialogue. Report on Reserve Funds: The following is our Report on Reserve Funds as of Dec. 31, 2003 (subject to audit): Automation Reserve $174,383; Gift/Special Projects Reserve $239,242; Property Maintenance Reserve $50,218; Development Charges Reserve $365,927. LIBRARY RESOURCES & THEIR USE: Total Number of active library cardholders: 33,044 in a Typical IVeek: # of people who enter the library in person 10,632 # of items borrowed 11,334 # ofelectxonic visits to library 4,968 # of materials used in-library only 6,288 # of reference questions 1,709 # of programs held 26 # attending library programs 442 We ask for your support in 2005 to continue our efforts to provide a contemporary public library service to our community. Niagara Falls Public Library Board Niagara Falls Public Library Board Operating Budget 2004 2004 2005 Budget Revised Budget PROPOSED BUDGET City Grant-operating 2,678,242 2,678,242 3,071,800 City Grant-debentures 83,695 83,695 99,766 Ontario Base Grant 130,300 130,300 130,300 Ont. Min. of Culture Grant 0 38,800 0 Early Years Grants 8,200 12,200 10,000 HRDC Grant (Federal) 1,500 1,500 3,800 Transfer from Automation Reserve 35,000 35,000 30,000 Transfer from Gift Reserve 20,000 20,000 20,000 Transfer from Property Maim. Reserve 1~000 47,000 1,000 Library Receipts 88,100 97,000 88,100 Fundraising 12,000 12,000 12,000 Surplus from previous year 0 0 0 3,058,037 3,155,737 3,466,766 EXPENDITURES Audit Fees 5,200 8,500 5,200 Books & Non-Print Materials 334,600 359,700 359,600 Collection of Overdues 1,942 1,942 1,900 Contribution to Capital Budget 50,000 50,000 50,000 Debenture Charges 83,695 83,695 99,766 Employment Insurance (E.I.) 48,900 48,400 53,200 Equipment & Furniture 3,900 3,900 3,900 Equipment/Service Contracts 44,100 45,800 49,000 Freight, Postage, Mileage 10,900 10,900 11,400 Fundraising Projects 12,000 12,000 12,000 General Insurance 40,300 42,000 49,500 Gift Reserve Projects 20,000 20,000 20,000 Group Insurance 135,800 131,800 148,900 Miscellaneous 3,000 3,000 3,500 Ont. Employer Health Tax 35,200 34,700 37,500 Pension (CPP + OMERS) 173,800 167,800 189,800 Programs, Pub. Relations, Displays 15,500 16,200 16,500 Property Maintenance Projects 1,000 47,000 16,000 Public Utilities 119,000 119,000 148,000 Rent, Taxes (Stamford Br.) 61,400 60,400 67,000 Repairs & Maintenance 41,000 34,700 77,800 Salaries 1,707,400 1,729,700 1,902,400 Salaries: Early Years + HRDC 14,400 13,000 20,000 Special Automation Projects 35,000 47,000 50,000 StaffDevelopment & Memberships 3,700 3,700 6,700 Stationery & Supplies 34,400 39,400 41,400 Telecommunications 14,000 14,000 17,800 Workplace Safety & Insurance Bd. 7,900 7,500 8~000 3,058,037 3,155,737 3,466,766 Oct. 20, 2004 11/04/04 TI~I1; 11:04 FAX 2951~94 C,V,F.A, ~001 Chippawa Volunteer Firefighters Association 8696 Banfing Avenue Niagara Falls, Ontario L2G 6Z8 ' September 24, 2004 Mr Dean Iorfida, City Clerk City of Niagara Falls 4310 Queen Street Niagara Falls, Ontado L2E 5X5 Dear Mr, Ion'ida, As per our conversation this morning, I am requesting that our association be included on the November 15th, 2004 budget committee agenda. At this time we will be addressing members in a request to fund new kitchen facilities at Fire Station ~.4. The existing facilities date back to the buildings construction in 1961. This year we had planned to complete minor renovations to this .area, however a meeting with the Public Health Department brought forward areas we need to address. These items Ilave now created a project beyond our financial ability. At this time we are still in the process of compiling cost estimates. We will have a firm amount and further information to include in the agendas of members prior to this meeting. Please do not hesitate to contact me should you require further information in regards to the matter. I can be reached at (905) 932- 3657. Sincerely, Dan Dilts President The Boys and Girls Club of Niagara Prelimina~ Case for Support Core Values: We care about children. The Boys and Girls Club of Niagara has been serving the Niagara Peninsula for forty-four years, "Celebrating the Potential of All Children and Youth". Its 22,000 square-foot building houses a swimming pool, gymnasium, craft room, pre-school room, game room, computer room, kitchen, Ontario Early Years Centre and a Teen Centre, offedng a wide range of integrated programs for children and youth. With 1,737 full year child and youth Club members registered in 2003, it also serves an additional 5,903 program members. we ~cknow~ a ~ of The organization prides itself on accessibility with a seE-worth Is fundamental to indMdua; d~n~. philosophy that no child is ever denied access to programs or services due to financial constraints. The Boys and Girls Club strives to eliminate any barriers that could prevent a child from utilizing the facility, such as available transportation, age, culture, or religion, and also believes that today's youth are our future. Its programs provide the opportunities to develop the skills, knowledge and values that children and youth seek to become fulfilled individuals. By providing many options and affordable services, every child can be successful in an area of their choice and every child has potential. We understand children and that youth need to be heard. A number of core programs offer supportive services to children and youth, including: · Child and Youth Development Programs and courses designed to develop leadership skills, build self-esteem and strengthen the ddve to learn -- most programs and courses result in certification. "No one wishing to join the Boys and Girls Club will ever be denied access due to financial concerns. Anyone requiring financial assistance for program fees or memberships will be considered on an individual basis." The Boys and Girls Club of Niagara Case Statement Page 1 · *Award Winning Licensed Child Care Services to , provide a safe, nurturing environment for day care, before-and-after school care, evening care, family resource support and an Ontado Early Years Centre site. · Sports and Leisure Programs to enhance safe risk- taking, individual growth and skill development. A range of activities include swim programs, camps, music and dance, gymnastics, karate and adventure programs. · Drop-In and Meal Programs for children and youth We believe a sense of to participate in pick-up activities or socialize in a safe belonging is essential to healthy growth, environment with qualified staff. Full meals are available as well. In total, 645 meals are provided weekly, throughout the school year. · Transportation Services to 19 area schools. The Boys and Girls Club of Niagara is not just a physical facility or building in our community where children and We foster cultural youth go for recreation. The club is a nurturing place where understanding and young adults like Kyle, a 17 year-old with special needs who acceptance, has been attending Boys and Girls Club programs for nine years, has been able to make great friends and build social skills enabling him to become a responsible volunteer leader. The Boys and Girls Club of Niagara is a place where Mike, who has volunteered for the homework and supper clubs for several years, has experienced the rewards of involvement firsthand, both for himself and for club members: "There is nothing more rewarding than seeing how excited the children get after they have accomplished the rock climbing wall in the gym. Or how much confidence they build up after completing the math problem they had for homework with the help from staff. When you take time to think about it, and take a look at all you have helped the children do, accomplish, and watching them grow, it is very easy to see that every child has potential." *Boys and Girls Club of Niagara received the prestigious Canadian Donner Award from the Canadian Donner Foundation in 2003 for "Excellence in Child Care." "No one wishing to join the Boys and Girls Club will ever be denied access due to financial concerns. Anyone requiring financial assistance for program fees or memberships will be considered on an individual basis." The Boys and Girls Club of Niagara Case Statement Page 2 A strategic plan in 1998 forecasted that the current 44 year- We valu~ I~arning as a I~, long go~. old facility located on Culp Street would not accommodate the growth of Niagara Falls and parallel needs of the Boys and Girls Club of Niagara. This prediction has already become a reality: the Boys and Gids Club of Niagara has seen an increase in the demand for recreational programs and services in Niagara Falls. As well, a public opinion survey conducted in Niagara Falls in 2002 supports this: Seventy-one percent of respondents were aware of the programs offered by the Boys and Girls Club of Niagara; 81% stated that their children participated in sport and leisure activities; and 51% responded that they would be likely to utilize the Boys and Gids Club facility. The Club has tried to compensate for increased needs by utilizing every possibility m adding portables, converting storage rooms to programming space and expanding to five additional locations throughout the city. Unfortunately, the Culp Street building will not sustain any additional retrofitting. At this time, there simply is no more space to maintain the programs of the Boys and Girls Club of Niagara while maintaining their quality and safety. Moreover, we don't want to turn away any child! We understand and respond to youth's sense of The Boys and Gids Club of Niagara has been blessed with the generous donation of several acres of land located on McLeod Road, between Kalar and Garner Roads, from the Badger Family. The benefits of building a new facility at this site include: · ensuring accessibility for children and youth through ~ maintaining Iow costs and providing adequate space _~.--~ r :; for generations to come; · serving twice as many families in the Niagara Region; · realizing cost savings and increased economic efficiencies that parallel a new facility in that it provides an opportunity for shared expenses and spaces and operating cost estimates at only $6 per square foot; "No one wishing to join the Boys and Ch'tls Club will ever be denied access due to financial concerns. Anyone requiring financial assistance for prognnn fees or memberships will be considered on an individual basis." The Boys and Girls Club of Niagara Case Statement Page 3 we ~ck. ewled;a the · enhancing the quality of programs and services importance of family, through modern facilities and equipment; · offering a broader range of programs and services through increased partnerships; · benefiting families with the convenience of many child and youth programs and services under one roof; · taking advantage of the generous gift of land for the building site; An additional and key benefit of the new site is offering a permanent home for two partners of the Boys and Gids Club of Niagara, The Niagara Falls Red Raiders Basketball Association and the Niagara Falls Lightening Gymnastics Club. These two agencies serve over 1200 youth with their popular programs and have the same needs for additional space. We are cemmi~ted to volunteer~m. Input and data has been compiled to determine space requirements now and into the future. Total costs for this new facility are estimated at $11 million. Municipal funding is currently being pursued for half of the costs and it is anticipated that the remainder will come from our local community in the form of a public capital campaign with a goal of $5.5 - $6 million. We value and practice cooperative approach..The Boys and Girls Club of Niagara, the Niagara Falls Red Raiders Basketball Association and the Niagara Falls Lightening Gymnastics Club ail have a long-standing history of support in Niagara Falls and all parties are strongly committed to the success of this endeavor. A new facility represents a bold step toward a viable We seek neighbourhood and community ~olution.. and prosperous future for these three child and youth serving organizations. We recognize the need and the appropriate planning has We acknowledge ourrolebeen done; the time has now come to move forward. This u advocates for children will only be possible through the generous support of and familia., individuals, associations and organizations, corporations, foundations and the leadership of our community. It is our hope that they will join us in achieving success with this project for the future of our children. "No one wishing to join the Boys and Girls Club will ever be denied access due to financial concerns. Anyone requiring financial assistance for program fees or memberships will be considered on an individual basis." The Boys and Girls Club of Niagara Case Statement Page 4 "Since joining the Club, my children have become more confident and well rounded They have made many friends with other children their ages and consider the counselors their friends also. Without the club's help I could not do this on my own ..... " Julie Ball, Mother of three club members "The positive reinforcement that I have seen in the staff is helping my child set and reach new goals throughout the year. In particular the youth mentoring relationships that exist between the youth and the staff are very essential to the future development of my child." Julle Pasley, Mother of two club members Future Home of &.Girls¢lub Of Niagara "No one wishing to join the Boys and Girls Club will ever be denied access due to finaneial concerns. Anyone requiring financial assistance for program fees or memberships will be considered on an individual basis." The Boys and Girls Club of Niagara Case Statement Page 5