2007/10/29CORPORATE SERVICES COMMITTEE AGENDA
TWELFTH MEETING
Monday, October 29, 2007
COMMITTEE ROOM #2 - 4:30 PM
1. REPORTS: STAFF CONTACT
a) F2007-35 Todd Harrison
2006 Financial Statements
Presentation by Mark Pa/umbi, Crawford, Smith and Swa//ow
b) CPS-2007-03
Water and Sewer Rates Review
Deputation from Mr, Ed B/e/awski
COUNCIL CHAMBERS - 6:00 PM
2. 2008 FUNDING REQUESTS
Devutations
Niagara Falls Public Library
GNGH Foundation
Niagara Falls Board of Museums
Winter Festival of Lights
Niagara Falls Tourism
Additions/Attachments for Information Purvoses;
Niagara Chair-A-Van
Project S.H.A.RE.
YWCA Niagara Region
United Way of Niagara Falls
Niagara District Airport Commission
Ken Burden
Niagara Falls Big Brothers Big Sisters Association
Women's Place of South Niagara Inc.
V 41.VY~i1 L~7, LVV!
~r
Niagara,F'alls
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2007-35
2006 Consolidated Financial Statements
RECOMMENDATION:
For the information of the Corporate Services Committee.
BACKGROUND:
F-2007-35
Attached for your information is a copy of the audited 2006 Consolidated Financial
Statements for the Corporation of the City of Niagara Falls. The financial statements were
audited by the City's Auditor, Crawford, Smith and Swallow.
Upon approval of the report, the 2006 Consolidated Financial Statements will be posted
to the City's website.
Recommended by:
Todd HarFison, Acti~g Director of Financial Services
F
Approved by:
K. E. Burden, Acting Executive Director of Corporate Services
Respectfully submitted: ~~, ~
Jo MacDonald, Chief Administrative Officer
',, u~.,«
d<
G;
5*
Working Together to Serve Our Community
Corporate Services Department
Finance
Crawford
smith ~
swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
Consolidated Financial Statements
December 31, 2006
Crawford
smith(,
swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
Consolidated Financial Statements
December 31, 2006
Table of Contents
Page
Auditors' Report 1
Consolidated Statement of Financial Position 2
Consolidated Statement of Financial Activities 3
Consolidated Statement of Changes in Financial Position 4
Notes to Consolidated Financial Statements 5 _ lg
Consolidated Schedule of Operating Fund Activities 19
Consolidated Schedule of Capital Fund Activities 20
Consolidated Schedule of Reserves and Reserve Funds 21
Auditors' Report -Trust Funds 22
Statement of Financial Position -Trust Funds 23
Statement of Financial Activities and Changes in
Fund Balances -Trust Funds 24
Notes to Financial Statements -Trust Funds 25
Crawford, Smith and Swallow f
Chartered Accountants LLP Craw
ord
474t Oueen Street l
_Cmlth / ~[ )
Niagara Falls, Ontario ~•.J~iL 1111 ~`~
ll
Te ephone (905) 356-4200 swa
ow
Telecopier (905) 356-3410
Offices in:
Niagara Falls, Ontario
St. Catharines, Ontario
Fort Erie, Ontario
Niagara-on-the-Lake, Ontario
Port Colborne, Ontario
AUDITORS' REPORT
To the Members of Council, Inhabitants and Ratepayers
of Corporation of the City of Niagara Falls, Ontario
We have audited the consolidated statement of financial position of Corporation of the City of
Niagara Falls, Ontario as at December 31, 2006 and the consolidated statements of financial
activities and changes in financial position for the year then ended. These consolidated financial
statements are the responsibility of the city's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.
In our opinion, these consolidated financial statements present. fairly, in all material respects, the
financial position of the city as at December 31, 2006 and the results of its operations and its cash
flows for the year then ended in accordance with Canadian generally accepted accounting
principles.
~ /~
Niagara Falls, Ontario
May 22, 2007 CRAWFORD, SMITH AND SWALLOW
CHARTERED ACCOUNTANTS LLP
LICENSED PUBLIC ACCOUNTANTS
1
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 31, 2006
2006 2005
$ $
Financial Assets
Cash -note 3 25,360,282. 30,926,320
Investments -note 4 22,662,306 16,550,544
Taxes receivable -note 5 13,569,650 13,541,355
Accounts receivable -notes 6 4,037;707 2,954,446
User charges receivable Z 1;50$,320 8,950,327
Long-term receivables 599,$72 642,676
Note receivable -note 7 22;000;000' 22,000,000
Long-term investment -note 7 41,532,805 39,834,442
:1.41;270,942 135,400,110
Contingent Liabilities -note 19
Liabilities
Temporary loan 14,479,304
Accounts payable and accrued liabilities 28,400;010 20,302,967
Deferred revenue -obligatory reserve funds -
note 9 22,141,861 18,374,886
Deferred revenue 3:05,743 614,669
Other current liabilities 7,793.;490 1,409,046
Post-employment benefits -note 10 19;342,208 17,818,378
Net long-term liabilities -note 11 32;557,650 12,023,224
104,540,962: 85,022,474
Net Financial Assets 36,729,980 50,377,636
Non Financial Assets
Inventories and prepaid expenses 893,395 868,541
Net Assets 37,b23,375 51,246,177
Municipal Position
Operating fund -note 12(a) 5,142;120 4,918,260
Capital fund -note 12(b) (8,140,548) (8,435,576)
Reserves and reserve funds -note 12(c) 28,988,:856 22,770,653
Niagara Falls Hydro Holding Corporation net
equity -note 12(d) fi3;532,805 61,834,442
89,523,23.3 81,087,779
Amounts to be recovered {51,899,8.58) (29,841,602)
37,623,375 51,246,177
See accompanying notes
2
Crawford smith ~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
for the year ended December 31, 2006
2006 2005
Revenues
Taxation -note 5 58,754,965 59,966,624
User fees and charges 43,.671,562 43,410,779
Government of Canada grants 5,012 18,076
Province of Ontario grants 5,119,199 8,813,172
Other municipal grants 60,524 96,654
Provincial Offences Act 177,432 132,249
Interest and penalties 2,269,631 2,238,631
Investment income 3,110,948 2,507,026
Casino and gaming revenues 2;600,000 2,600,000
Ontario Power Generation Community
Impact Agreement 300,000 1,546,000
Niagara Falls Hydro Holding Corporation
net income -note 7 1;698,363 1,561,636
Contributions from Obligatory Reserve
Funds 621,236 1,145,776
Proceeds on disposal of property 5,795;083 189,000
Other 3,949,170 6,619,940
1.28,133,125 130,845,563
Expenditures
General government 1.6;762,056 17,756,731
Protection to persons and property 16,782,953 15,542,582
Transportation services 36,108.;602 24,533,683
Environmental services 51,492,.526 37,418,070
Health services 1,888,336 1,736,065
Social and family services 398,8.53 375,040
Recreation and cultural services 14,265,273 19,572,385
Planning and development 4,057,32'8 3,615,040
141;755,927 120,549,596
Net Revenues (Expenditures) (13,622,802) 10,295,967
Add: New debt issued or assumed 2],922;000 1,431,000
Add: Post-employment benefits 1,523;830 1,437,245
Less: Debt principal repayments (].,387,574) (1,369,894)
Increase in amounts to be recovered 22,058;256 1,498,351
Change in Fund Balances :8,435,454 11,794,318
See accompanying notes
3
crawlord smith C,BZ swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
for the year ended December 31, 2006
2006 2005
`$ $
Operations
Net revenues (expenditures) (1.3,622,802) 10,295,967
Sources (Uses)
Change in investments (6,111;762) (641,375)
Change in taxes receivable (28,295) 2,354,483
Change in accounts receivable (1,083,261) 7,343,239
Change in user charges receivable (2,557,993) (888,899)
Change in long-term receivables 42,804 124,178
Change in inventories and prepaid
expenses (24,854) 44,675
Change in temporary loans (14,479,304) 3,431,799
Change in accounts payable and accrued liabilities 8,097,043 (4,252,920)
Change in deferred revenue -obligatory
reserve funds 3,766,975 3,060,989
Change in deferred revenue (308;926) (59,592)
Change in other current liabilities 3.84,444 323,101
Change in post-employment benefits 1,523,830 1,437,245
(10,779,299) 12,276,923
Net income of Niagara Falls Hydro Holding Corporation (1,698,363) (1,561,636)
Net increase (decrease) in cash from operations (26,1.00,464) 21,011,254
Financing
Long-term debt issued 21;922,000 1,431,000
Long-term debt repaid (1,387,574) (1,369,894)
Net increase in cash from financing 20;534,426 61,106
Increase (Decrease) in Cash Position (5,566,038) 21,072,360
Cash Position, Be~innin~ of Year 30,926,3.20 9,853,960
Cash Position, End of Year .25,360,282 30,926,320
See accompanying notes
4
Crawford smith C8Z swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
1. Significant Accounting Policies
The consolidated financial statements of the Corporation of the City of Niagara Falls,
Ontario (the "Municipality") are the representations of management prepared in accordance
with local government accounting standards established by the Public Sector Accounting
Board ("PSAB") of the Canadian Institute of Chartered Accountants with the exception of
providing budget figures (note 17).
(a) Basis of consolidation
(i) These consolidated financial statements reflect the assets, liabilities, revenues and
expenditures of the operating fund, capital fund, reserves and reserve funds and
include the activities of all committees of council and the following boards,
municipal enterprises and utilities which are under the control of council:
Library Board
Transit Commission
Waterworks Operation
Chippawa Business Improvement Area
Clifton Hill Business Improvement Area
Downtown Board of Management
Fallsview Business Improvement Area
Lundy's Lane Business Improvement Area
Main & Ferry Business Improvement Area
Victoria & Centre Business Improvement Area
Board of Museums
Niagara Falls Hydro Holding Corporation
All inter-fund assets and liabilities and sources of financing and expenditures have
been eliminated with the exception of loans or advances between reserve funds
and any other fund of the Municipality and the resulting interest income and
expenditures.
The Niagara Falls Hydro Holding Corporation ("NFHHC") is accounted for on a
modified equity basis, consistent with the accounting treatment for government
business enterprises. Under the modified equity basis, the business enterprise's
accounting principles are not adjusted to conform with those of the Municipality,
and inter-organizational transactions and balances are not eliminated. The
Municipality recognizes its equity interest in the annual income or loss of NFHHC
in its "Consolidated Statement of Financial Activities" with a corresponding
increase or decrease in its investment asset account. Any dividends that the
Municipality may receive from NFHHC will be reflected as reductions in the
investment asset account.
(ii) Partial-consolidated entity
The following joint local board is proportionately consolidated. See note 16.
Niagara District Airport Commission
5
crawforzl smith ~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
1. Significant Accounting Policies -continued
(iii) Accounting for Region and School Board transactions
The taxation, other revenues, expenditures, assets and liabilities with respect to the
operations of the school boards and the Region of Niagara are not reflected in the
municipal fund balances of these consolidated financial statements.
(iv) Trust funds
Trust funds and their related operations administered by the Municipality are not
consolidated, but are reported separately on the "Trust Funds Statement of
Financial Position and Statement of Financial Activities and Changes in Fund
Balances".
(b) Basis of accounting
(i) Revenues and expenditures are reported on the accrual basis of accounting.
(ii) The accrual basis of accounting recognizes revenues as they become available and
measurable; expenditures are recognized as they are incurred and measurable as a
result of receipt of goods or services and the creation of a legal obligation to pay.
(iii) Inventories
Inventories are valued at average cost.
(iv) Capital assets
Capital assets are recorded as an expenditure on the "Consolidated Statement of
Financial Activities" in the year of acquisition.
(v) Deferred revenue
Funds received for specific purposes are accounted for as deferred revenue until
the Municipality discharges the obligation which led to the receipt of the funds.
(vi) Investment income
Investment income earned on current surplus funds, capital funds, reserves and
reserve funds (other than obligatory reserve funds) are recorded as revenue in the
period earned. Investment income earned on obligatory reserve funds are recorded
directly to each fund balance.
(vii) Amounts to be recovered
The balance referred to as "Amounts to be recovered", includes balances for post-
employment benefits and net long-term liabilities.
(viii) Use of estimates
The preparation of the financial statements in conformity with Canadian generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.
6
crawlord srruth ~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
2. Operations of School Boards and the Region of Niagara
Further to note 1(a)(iii), the taxation, other revenues, expenditures and overlevies of the
school boards and the Region of Niagara are comprised of the following:
School Boards
2006 2005
$ $
Taxation and user
charges 42,92,693 40,891,533
Payments-in-lieu of taxes .3;2$9 2,315
Amounts received or
receivable 42,905,982 40,893,848
Requisitions 42,905,982 40,893,848
Overlevies (Underlevies)
at the end of year
3. Cash
Region
2006-
_ 2005
$ $
57,129,910 54,363,218
7,294,561 11,499,100
64,424,471 65,862,318
64,424,471 65,862,318
This represents cash and short term investments from both the operating fund and the reserve
funds (including those funds set aside in deferred revenue):
2006 2005
$ $
Operating Fund l 1,492,Q54 19,496,590
Reserve Funds 13,.868.;228 11,429,730
2'5,360,282 30,926,320
4. Investments
Total investments amounting to $ 22,662,306 ($ 16,550,544 - 2005) are recorded on the
"Consolidated Statement of Financial Position" at the lower of cost or market. The market
value as at December 31, 2006 is $ 22,662,306 ($ 16,550,544 - 2005).
7
Crawford srruth ~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
5. Tax Receivables and Revenues
Property tax billings are prepared by the Municipality based on an assessment roll prepared
by the Municipal Property Assessment Corporation ("MPAC"). The property tax receivables
and tax revenue of the Municipality are subject to measurement uncertainty as a significant
number of appeals submitted by ratepayers have yet to be heard. The Municipality has
established an allowance for doubtful accounts in the amount of $ 920,000 ($ 920,000 -
2005).
The Province of Ontario instituted a mandatory capping program through the provisions of
Bill 79, which limited assessment related increases to 10% in 1998, and an additional 5% in
each of 1999 and 2000. Multi-residential, commercial and industrial property owners
experiencing decreases were also capped at appropriate levels to fund the phasing-in of
increases. The Province has enacted Bill 140, which serves to extend the capping provisions
of Bill 79 indefinitely. The new legislation will limit assessment related increases in
property tax bills to 5%.
6. Interfund Receivables (Payables)
As a means of financing certain activities, funds are borrowed by the operating fund from
several reserve funds. Both financing and repayments are reflected as interfund transfers and
therefore are eliminated from the "Consolidated Statement of Financial Activities".
Likewise interfund receivable and payable balances are not reflected on the "Consolidated
Statement of Financial Position". The interfund receivable and payable balance as at
December 31, 2006 was ($ 2,494,793) (($ 715,446) - 2005).
7. Investment in Niagara Falls Hydro Holding Corporation
`006 2005
Statement of Financial Position
Current assets 34,55,384 31,404,434
Capital assets 60,620,OT7 60,302,431
Other assets 1,466,256 4,460,083
Total Assets 96,671,657 96,166,948
Current liabilities 22,680,692. 23,195,144
Other liabilities 4,696,76$ 4,684,238
Note payable 22,000;000 22,000,000
Long-term debt 5.,761.,392 6,453,124
Total Liabilities 55,13!8,852 56,332,506
Net Assets 41,532,8OS 39,834,442
8
crawlord smith ~ swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
7. Investment in Niagara Falls Hydro Holding Corporation -continued
2006 2005
$ $
Statement of Financial Activities
Revenues 82,377,968 86,670,543
Operating expenses 80,679,605 85,108,907
Net Income 1,698,363 1,561,636
8. Letter of Credit
The Municipality has an authorized letter of credit in favour of CN/CP of $ 4,000,000 of
which NIL has been drawn upon as at December 31, 2006. See note 14.
9. Deferred Revenue -Obligatory Reserve Funds
The following balances are reflected as deferred revenue -obligatory reserve funds as
provincial legislation restricts how these funds may be used and under certain circumstances
these funds may be refunded.
2% Parkland dedication
Public purpose
Federal gas tax rebate -transit
Provincial gas tax rebate -transit
Discounted development charges
Non-discounted development charges
Crawford smith C~, swallow
2006 2005
782,745 649,334
846,413 432,354
1,842,539 768,421
785,769 68,217
1,115,084 314,520
16,769,310 16,142,040
22,141,861 18,374,886
9
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
10. Post-Employment Benefits
Post-employment benefits
Accumulated sick leave
WSIB - Schedule II future liability
Vacation pay
2006
12,136,881
3,313,324
2,866,754
1,025,249
2005
11,100,736
3,022,717
2,674,220
1,020,705
19,342,208 17,818,378
Post-Employment Benefits and Accumulated Sick Leave
The Municipality pays certain medical, dental and life insurance benefits on behalf of its
retired employees. The Municipality recognizes these post-retirement costs in the period in
which the employees rendered the services.
As a result of actuarial valuations on post-employment benefits, it was determined that
actuarial losses of $ 1,951,492 existed. These amounts are being amortized over the
expected average remaining service lives of several employee groups. The unamortized
value is $ 1,507,314. The actual obligation is $ 13,644,195.
Under the Municipality's sick leave benefit plan, unused sick leave can accumulate and
employees may become entitled to a cash payment when they leave the Municipality's
employment.
As a result of actuarial valuations on the accumulated sick leave liability, it was determined
that actuarial losses of $ 169,797 existed. These amounts are being amortized over the
expected average remaining service lives of several employee groups. The unamortized
value is $ 155,005. The actual obligation is $ 3,468,329.
A reserve fund has been established for the accumulated sick leave liability. The balance as
at December 31, 2006 is $ 1,033,828 ($ 998,616 - 2005).
The liabilities for post-employment benefits and accumulated sick leave as reflected in these
consolidated financial statements have been determined on an actuarial basis using a
discount rate of 5.25%.
Workplace Safety and Insurance Board - Schedule II Future Liability
The Municipality has elected to be treated as a Schedule II employer and as such, is required
to remit payments to the Workplace Safety and Insurance Board ("WSIB") to fund disability
payments. The liability as reflected in these consolidated financial statements has been
determined on an actuarial basis using a discount rate of 5.25°Io.
As a result of an actuarial valuation on the WSIB - Schedule II liability, it was determined
that an actuarial loss of $ 1,031,000 existed. This amount is being amortized over the
expected average remaining service lives of several employee groups. The unamortized
value is $ 355,189. The actual obligation is $ 3,221,943.
A reserve fund has been established for this liability. The balance as at December 31, 2006
is $ 1,203,950 ($ 1,163,667 - 2005).
The next valuation for all benefit groups is for the year ending December 31, 2008.
10
crawlord smith ~ swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
10. Post-Employment Benefits -continued
Vacation Pay
As at December 31, 2006, employees of the Municipality have accumulated vacation pay
credits in the amount of $ 1,025,249 ($ 1,020,705 - 2005). Any unused credits may be
carried forward to future years.
Pension Agreements
The Municipality makes contributions to the Ontario Municipal Employees Retirement
System ("OMERS "), which is amulti-employer plan, on behalf of its staff. The plan is a
defined benefit plan which specifies the amount of the retirement benefit to be received by
the employees based on the length of service and rates of pay.
The amount contributed to OMERS for 2006 was $ 2,050,115 ($ 1,941,301 - 2005) for
current services.
11. Net Long-Term Liabilities
(a) The balance of net long-term liabilities reported on the "Consolidated Statement of
Financial Position" is made up as follows:
.2006 2005
Total long-term liabilities incurred by the
Municipality including those incurred on behalf
of school boards, other municipalities and
municipal enterprises and outstanding during the
year is 32,557,650 12,023,224
Net long-term liabilities, end of year 32,557,650 12,023,224
(b) Of the net long-term liabilities reported in (a) of this note, $ 13,626,537 in principal
payments are payable from 2007 to 2011 and $ 18,931,113 from 2012 to 2026.
(c) The long-term liabilities in (a) issued in the name of the municipality have received
approval of the Ontario Municipal Board for those approved on or before December 31,
1992. Those approved after January 1, 1993 have been approved by by-law. The annual
principal and interest payments required to service these liabilities are within the annual
debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.
(d) Total charges for the year for net long-term liabilities which are reported on the
"Consolidated Statement of Financial Activities" are as follows:
Principal
Interest
2006
1,387,574
1,095,490
2,483,064
2005
1,369,894
594,544
1,964,438
11
Crawford srruth ~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
12. Municipal Fund Balances at the End of the Year
(a) Operating fund balance
For general reduction of taxation
For general reduction of user charges
respecting waterworks
For general reduction of user
charges respecting sewers
For general use by Library Board
For general use by the Business Improvement
Areas
For general use by the Board of Museums
For general use by Airport Commission
2006 2005
$ $
748;0$1 629,065
838,330 758,575
.2,176,770 2,338,697
83,83`7 71,702
1,111,542 1,046,705
$5.,404 17,670
98,156 55,846
5,142,I20 4,918,260
2006 2005
$ $
(b) Capital fund balance
Acquisition of capital assets to be
recovered through taxation or user
charges
Acquisition of capital assets to be financed
from the proceeds of long-term liabilities
Acquisition of capital assets to be
recovered from transfers from reserves
and reserve funds
Acquisition of capital assets to be financed
from proceeds of disposition of property and
billings to third parties
Funds available for the acquisition of capital
assets
(6,474,308) (1,007,865)
(4,020,018) (16,247,782)
(1'.8,429,166) (6,035,529)
(7,86T;~18)
28,650,262
0,140,548)
(5,948,606)
20,804,206
(8,435,576)
12
Crawford smith C~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
12. Municipal Fund Balances at the End of the Year -continued
(c) Reserves and reserve fund balances
Reserves set aside by council for specific
purposes:
Special purposes
Working capital
Watermain improvements
Metering program
Sewage capital
Water capital
Total Reserves
:2006 2005
$ $
10,551,854 11,470,029
265,000 265,000
9,000
42,763
82.1,763 303,726
1,165,097 70,000
12„803,714 12,160,518
13
erawford smith ~, swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
12. Municipal Fund Balances at the End of the Year -continued
(c) Reserves and reserve fund balances -continued
2006 2005
Reserve Funds set aside by council for specific
purposes:
Licence agreements - 40 years
Sick leave liability
Greater Niagara Senior Citizen Association
Lundy's Lane Battlefield debt retirement
WSIB -Schedule II
Fire station #5 debt retirement
Niagara Falls Hydro Holding Corporation
debenture
Recreation trail development
Capital/Operations
Tree planting -developers
Park development
Sewer and water impost
Expansion and renewal
Drainage
Prepaid works projects contributions
Sidewalk construction
Future municipal works
Lot drainage
Library funds
Sanitary
Sports fund
Projects -special needs children
Parking
Collins/Toby debt retirement
Heritage Week Niagara
Coat of Arm's
Lundy's Lane business improvement purposes
Board of Museum purposes
Niagara Tunnel Community Improvement
Ontario Power Generation Agreement
Water patrol boat
Branscombe Family Grant
Total Reserve Funds
Total Reserves and Reserve Funds
48,701 50,156
1;033,828 998,616
6,181
64,364 70,921
1,203,954 1,163,667
100,217 111,520
82;649 212,528
SI,264 47,828
6,222,520 410,214
15,703 10,716
118,620- 127,236
1,161,884 1,113,218
207,4"37 199,124
556;546. 532,656
1°79,394 172,086
261;003 250,280
722,318 692,125
145;091 139,294
720,016 696,262
346,622 332,325
4,545: 4,375
14;307 13,773
892,659 1,225,456
4~~,364 47,330
53,953 54,443
2,085 2,831
270,48:6 220,317
127,644 158,657
1,285,818 1,546,000
208,574
25;000:
14,580
1 b,185,142 10,610,135
28,988,856 22,770,653
14
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
12. Municipal Fund Balances at the End of the Year -continued
(d) Niagara Falls Hydro Holding Corporation net equity
2006 2005
$ $
Niagara Falls Hydro Holding Corporation net equity 63,532,805 61,834,442
13. Trust Funds
Trust funds administered by the Municipality amounting to $ 2,587,775 ($ 2,443,792 - 2005)
have not been included in the "Consolidated Statement of Financial Position" nor have their
operations been included in the "Consolidated Statement of Financial Activities".
14. Contractual Obligations and Commitments
Capital expenditures
The estimated future capital expenditures based on projects in progress at December 31,
2006 is approximately $ 16,173,000 ($ 13,980,000 - 2005) after deducting the expenditures
incurred as at December 31, 2006. These projects will be financed by grants, subsidies and
long-term liabilities in future years.
International Railway Bridge
The Municipality, as a condition of the purchase of the CN/CP Railway Corridor, has the
responsibility for the costs of demolition of the International Railway Bridge by May 2007.
This condition is subject to being waived if the bridge is subsequently sold to a third party or
if demolition procedures have not commenced by CN/CP prior to May 2007. The
Municipality has arranged for a Letter of Credit in the amount of $ 4,000,000 for this
purpose. See note 8.
15
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
15. Financial Instruments
Credit Risk
The Municipality is exposed to credit risk on taxes receivable, user charges receivable,
accounts receivable and long-term receivables from its customers. Allowances are
maintained for the potential credit losses. However, because of the large number of
customers, credit risk concentration is minimal.
Cash Flow Risk
The Municipality is exposed to the risk that the interest earned on its investments will
fluctuate due to changes in market interest rates. The Municipality manages its investments
based on its cash flow needs and with a view to optimizing its interest income.
Interest Rate Risk
The Municipality is exposed to the risk that the value of investments will fluctuate due to
changes in market interest rates. The Municipality manages its investments based on its cash
flow needs and with a view to optimizing its interest income.
The balances for certain temporary loans and long-term debt bear interest at fixed rates.
Consequently, the risk exposure associated with these balances is minimal.
Market Risk
Certain investments held by the Municipality are subject to the risk that the value will
fluctuate as a result of changes in market prices, whether those changes are caused by factors
specific to the individual security, its issuer, or factors affecting all securities traded in the
market.
Fair Value
The fair value of the post-employment benefits, accumulated sick leave and WSIB -
Schedule II future liability were determined using actuarial valuations based on the
information presented in note 10 to the financial statements.
Long-term debt is stated at face value. It is not practicable within the constraints of
timeliness or cost to determine the fair value of this financial Iiability with sufficient
reliability.
The note receivable and long-term investment are stated at cost. It is not practicable within
the constraints of timeliness or cost to determine the fair value of these financial assets with
sufficient reliability.
The fair values of the Municipality's other financial instruments corresponds to their carrying
values due to their short-term maturity.
16
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
16. Contributions to Joint Board
Further to note 1 (a)(ii) the following contributions were made by the Municipality to:
2006 2005
Niagara District Airport Commission 87,679 86,500
The Municipality's share of the net assets of the Niagara District Airport Commission is
approximately 32%.
17. Budget Figures
The approved operating budget for 2006 is reflected on the "Consolidated Schedule of
Operating Fund Activities". These numbers have not been audited but are presented for
information purposes only. The budgets established for capital funds, reserves and reserve
funds are on aproject-oriented basis, the costs of which may be carried out over one or more
years. As such, they are not directly comparable with current year actual amounts and have
not been reflected on their respective schedules.
18. Classification of Expenditures by Object
The "Consolidated Statement of Financial Activities" presents the expenditures by function;
the following classifies those same expenditures by object:
Salaries, wages and employee benefits
Operating materials and supplies
Contracted services
Rents and financial expenses
External transfers to others
Tangible capital assets
Debt service
Total expenditures by object
Crawford smith ~ swallow
2006 2005
$ $
44,844;185 42,853,568
17,721,789 16,746,643
29,912,950 31,337,949
1.,076,699 998,134
3,364,353 3,216,982
43,700,461 24, 801,776
1,095,490 594,544
141,755,927 120,549,596
17
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2006
19. Contingent Liabilities
The Municipality has been named as one of several defendants in a legal action seeking
$ 20,000,000 for loss or damage to property and lost revenue. The Municipality's maximum
insurance coverage per claim at the time of the suit was $ 15,000,000. The Municipality is
also being sued for aggravated and punitive damages in the amount of $ 5,000,000. There is
no insurance coverage for punitive damages. The Municipality's legal counsel is unable to
assess the potential liability, if any, resulting from this action. Any settlement will be
reflected as a charge to operations in the year incurred.
The Municipality has been named as one of several defendants in a legal action seeking
$ 21,200,000 for general and special damages. The Municipality's maximum insurance
coverage per claim at the time of the suit was $ 20,000,000. The Municipality's legal
counsel is unable to assess the potential liability, if any, resulting from this action. Any
settlement will be reflected as a charge to operations in the year incurred.
No provision for possible loss has been included in these consolidated financial statements.
As at December 31, 2006, the Municipality has certain other legal claims outstanding. It is
management's assertion that adequate insurance coverages are in effect for the settlement of
these claims, if necessary.
18
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED SCHEDULE OF OPERATING FUND ACTIVITIES
for the year ended December 31, 2006
Revenues
Taxation -note 5
User fees and charges
Government of Canada grants
Province of Ontario grants
Provincial Offences Act
Interest and penalties
Investment income
Casino and gaming revenues
Ontario Power Generation Community
Impact Agreement
Proceeds on disposal of property
Other
Expenditures
General government
Protection to persons and property
Transportation services
Environmental services
Health services
Social and family services
Recreation and cultural services
Planning and development
Net Revenues
Financing and Transfers
Debt principal repayments
Post-employment benefits
Transfers from (to) reserves and reserve
funds
Transfers to capital fund
Net financing and transfers
Change in Operating Fund
Operating Fund, Be~innin~ of Year
Operating Fund, End of Year
See accompanying notes
Budget 2006 2005
$ $ $
57,564,794 58,754,965 59,966,624
35,982,945 43.;_671,562 43,410,779
5,012 18,076
3,019,250 3,206,551 6,176,930
210,000 177,432 132,249
2,048,000 2,269,631. 2,238,631
2,075,000 2,697,326 2,316,973
2,600,000 2,600,000 2,600,000
300,000 1,546,000
5,795,083 189,000
3,568,313 2,551,791 2,072,388
107,068,302 1.22,029,3.53 120,667,650
13,162,101 16,084,151 17,060,386
13,807,193 15,114,23Q 14,075,036
21,670,414 18,658,318 19,584,579
31,896,705 30,181,66 29,149,996
1,317,545 1,860,889 1,708,575
398,853 375,040
12,690,765 11,739,598 10,244,981
4,577,856 4,.01.8,361 3,549,227
99,122,579 9$,055,466 95,747,820
7,945,723 23,973;8:87 24,919,830
(1,387,630) (1,387,574) (1,369,894)
1,523;830 1,437,245
7,794,657 (6;518,41.3). (3,928,651)
(14,352,750) (17,367,870) (20,581,139)
(7,945,723) (23,750,027) (24,442,439)
223,860 477,391
4,918,260 4;918,260 4,440,869
4,918,260 5,142,120 4,918,260
19
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED SCHEDULE OF CAPITAL FUND ACTIVITIES
for the year ended December 31, 2006
2006 2005
$ $
Revenues
Province of Ontario
Other municipal grants
Other
Expenditures
General government
Protection to persons and property
Transportation services
Environmental services
Health services
Recreation and cultural services
Planning and development
Net Expenditures
Financing and Transfers
Long-term debt issued
Transfers from operating fund
Transfers from reserves and reserve funds
Net financing and transfers
Change in Capital Fund
Capital Fund, Beginning of Year
Capital Fund, End of Year
See accompanying notes
1,912,648 2,636,242
60,524 96,654
.1,336,008 4,455,783
3,309,180 7,188,679
677;905 696,345
1,668,723 1,467,546
1.7,450,284: 4,949,104
.21,311,460:.. 8,268,074
27,447 27,490
2,525;675 9,327,404
38,967 65,813
43,700,461 24,801,776
(40,391,281) (17,613,097)
21,922,000 1,431,000
17,367,870 20,581,139
1,396;439 1,438,410
40,686,309 23,450,549
295,028. 5,837,452
('8,435,576) (14,273,028)
(8,140;548): (8,435,576)
20
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED SCHEDULE OF RESERVES AND RESERVE FUNDS
for the year ended December 31, 2006
200b 2005
Revenues
Contributions from Obligatory Reserve
Funds
Investment income
Other
Financing and Transfers
Transfers to capital fund
Transfers from (to) operating fund
Net financing and transfers
Change in Reserves and Reserve Funds
Reserves and Reserve Funds, Beginning
of Year
Reserves and Reserve Funds, End of Year
See accompanying notes
621,236 1,145,776
413,622 190,053
61,37 91,769
1;096,.229 1,427,598
(1,3~9~6,439) (1,438,410)
6,51.8:;413 3,928,651
5,121;974 2,490,241
:6,218,203 3,917,839
22,770,653. 18,852,814
28,9138,856 22,770,653
21
crawiord smith C,BZ swallow
Crawford, Smith and Swallow Crawford
Chartered Accountants LLP ~'/~ ~~
474t Oueen Street ~1~Y71/ r7 / S! 1
Niagara Falls, Ontario ~~~jLll I`71W/
Te ephone (905) 356-4200 swallow
Telecopier(905) 356-3410
Offices in:
Niagara Falls, Ontario
St. Catharines, Ontario
Fort Erie, Ontario
Niagara-on-the-Lake, Ontario
Port Colborne, Ontario
AUDITORS' REPORT -TRUST FUNDS
To the Members of Council, Inhabitants and Ratepayers
of Corporation of the City of Niagara Falls, Ontario
We have audited the statement of financial position of the trust funds of Corporation of the City of
Niagara Falls, Ontario as at December 31, 2006 and the statement of financial activities and
changes in fund balances for the year then ended. These financial statements are the responsibility
of the city's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial
position of the trust funds of the city as at December 31, 2006 and the continuity of trust funds for
the year then ended in accordance with Canadian generally accepted accounting principles.
~ -- ~
Niagara Falls, Ontario
May 22, 2007 CRAWFORD, SMITH AND SWALLOW
CHARTERED ACCOUNTANTS LLP
LICENSED PUBLIC ACCOUNTANTS
22
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
STATEMENT OF FINANCIAL POSITION -TRUST FUNDS
December 31, 2006
Ontario
Home Cemetery
Renewal Perpetual
Assets
Cash
Investments -note 2
Federal
Corporate
GST receivable
Due from (to) operating fund
Loans receivable -note 3
Fund Balances
See accompanying notes
Total Plan Care
$ $ $
379,910 15,868 269,526
1,277,598 1,277,598
865,634 864,434
2,143,232 2,142,032
101 101
56,332 368 56,438
8,200 8,200
64,633 8,568 56,539
2,587,775 24,436 2,468,097
2,587,775 24,436 2,468,097
Other
94,516
1,200
1,200
(474)
(474)
95,242
95,242
23
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
STATEMENT OF FINANCIAL ACTIVITIES AND CHANGES IN FUND
BALANCES -TRUST FUNDS
for the year ended December 31, 2006
Balance, Beginning of Year
Receipts
Cemetery lot receipts
Interest
Expenditures
Cemetery Care
Loan repayments to
Province of Ontario
Trust closed
Balance, End of Year
See accompanying notes
Total
2,443,792
Ontario
Home
Renewal
Plan
29,931
Cemetery
Perpetual
Care
2,316,790
151,307
100,321 1,869
251,628 1,869
95,242
7,364
5,039
107,645
2,587,775
151,307
94,768
246,075
94,768
7,364
7,364 94,768
24,436 2,468,097
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Other
97,071
3,684
3,684
474
5,039
5,513
95,242
24
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO FINANCIAL STATEMENTS -TRUST FUNDS
for the year ended December 31, 2006
1. Basis of Accounting
Basis of accounting
Receipts and disbursements on the statement of continuity are reported on the cash basis
of accounting, with the exception of revenue derived from cemetery lot sales due to the
Cemetery Perpetual Care Fund which has been accrued at year end.
2. Investments
Trust fund investments of $ 2,143,232 ($ 2,040,285 - 2005) are recorded on the "Statement
of Financial Position" at the lower of cost or market. The market value as at December 31,
2006 is $ 2,177,114 ($ 2,075,799 - 2005).
3. Ontario Home Renewal Program
The Ontario Home Renewal Program was established by the Ontario Ministry of Housing in
1973 to provide grants for municipalities to make loans to assist owner occupants to repair,
rehabilitate and improve their homes to local property standards. Individual loans are
limited to $ 7,500 of which the maximum forgivable portion is $ 4,000.
On July 13, 1993, the Ontario Home Renewal Program was discontinued. The municipality
ceased issuing new loans as of this date and is required to remit the balance of the trust
account to the Ontario Ministry of Housing by March 1, 1994. Loan receivables collected in
each subsequent calendar year after 1993 must be remitted to the Province by March 1st of
each year.
In the event of the sale or lease of the home or in the event of the homeowner ceasing to
occupy the home, the balances of the repayable loans and the unearned forgivable loan
immediately become due and payable by the homeowner.
4. Financial Instruments
Interest Rate Risk
The City's trust funds are exposed to the risk that the value of investments will fluctuate due
to the changes in market interest rates. The City manages its trust fund investments based on
its cash flow needs and with a view to optimizing its interest income.
Market Risk
Certain investments within the City's trust funds are subject to the risk that the value will
fluctuate as a result of changes in market prices whether those changes are caused by factors
specific to the individual security or its issuer or factors affecting all securities traded in the
market.
25
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October 29, 2007
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: CPS-2007-03
Water and Sewer Rates Reviiew
RECOMMENDATION:
CPS-2007-03
1. That the information provided in response to "Water Rate Study" be received and
filed,
2. That the Corporate Services Committee authorizes Staff to engage consulting
services to review the City's water and sewer rates.
BACKGROUND:
On July 23, 2007, Staff presented report CPS-2007-02, BMA Management Consulting Inc.
Proposal, that requested the Committee to authorize Staff to engage the consultant to
review the City's water and sewer rates. During the Committee's consideration of this
report, the Committee also heard a deputation from Mr. Ed Bielawski, who presented
several conclusions in a handout document, entitled "Water Rate Study". The deputation
made reference to staff reports and awater/sewer rate study done by Loudon & Fortin
(November 2000). Following the deputation, the Committee approved the following four
recommendations which were ratified by City Council:
1) That Staff report back to Committee on the report provided and presented by Mr.
Ed Bielawski,
2) That Staff contact Mr. Michael Loudon as a follow-up to his 2000 report,
3) That Staff provide Committee with a copy of the Loudon report, and
4) That Staff undertake a water and sewer rates review in time for consideration of the
2008 utility budget.
Staff has contacted Mr. Michael Loudon regarding the Niagara Falls Rate Report, prepared
and submitted by Loudon and Fortin in November 2000. This report focused on the
existing water and sewer rates and made recommendations on future ra~:A~ a~ a resutt-of
_ ~ ° Working Together to Serve Our Community Corporate Services Department
Finance
> s
_ ~
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October 29, 2007 - 2 - CPS-2007-03
the newly implemented metering program
Committee's information.
A copy of the report is attached for the
Staff requested Mr. Loudon to prepare and submit afollow-up to the November 2000
report. Staff also sent a copy of Mr. Bielawski's Water Rate Study document to Mr. Loudon
for information. Mr. Loudon is willing to prepare afollow-up to his November 2000 report,
which also addresses the conclusions raised by Mr. Bielawski. Mr. Loudon advised the
follow-up report would incur some cost. Staff believes the follow-up report could be
undertaken by a qualified consultant during the engagement for a review of the water and
sewer rates. Consequently, Staff did not pursue the follow-up report from Mr. Loudon.
Staff has not yet proceeded with undertaking a water and sewer rates review. As the
Committee was interested in the Loudon report and the conclusions raised by Mr.
Bielawski, the rate review was postponed pending the Committee's further consideration
of the proposal from BMA Consulting Inc. Staff continues to recommend the proposed
engagement of the consultant as presented in the earlier report CPS-2007-02.
Information provided in response to "1Nater Rate Studv"
Staff has investigated and prepared the following information that responds to the seven
conclusions raised in Mr. Ed Bielawski's deputation as they appear in his "Water Rate
Study" document.
Conclusion -The City has no water/sewer utility
Mr. Bielawski observed that a city report dated March 27, 1995, provided several
objectives, one of which was that the city establish awater/sewer utility. Mr. Bielawski
commented that awater/sewer utility if it is going to be run like a business, then it would
be no different than the Niagara Falls Hydro. Nis conclusion states the City does not have
a separate authority (such as NFH) responsible for the water/sewer utility and that as a
resul# the utility is fragmented by having several functional parts reporting to the Council.
The reportwhich Mr. Bielawski referenced was MW-95-58 Water/Wastewater Utility. The
recommendation from the Community Services Committee to and approved by Council
was as fiollows:
"That endorsement be given to the establishment of aSelf-Supporting, User-Pay
Water/Wastewater Utility, including Universal Water Metering, effective January 1997;
"That a Public Education/Awareness Program, including a public Attitude Survey, on the
Utility Concept and its impacts be undertaken with the results of same to be reported to
Council before any implementation action; and
"That Stati be directed to develop an Implementation Strategy for the Water/Wastewater
Utility with periodic Status Reports or Approval Reports for the various components. "
For the years 1995-2000, Staff undertook the directions of Council in an exhaustive effort
to encourage as much Public Participation as possible. One of the foremost concerns of
ratepayers was the ability to control the costs of water and sewer service. At that time, the
City was using a flat rate billing structure for residential ratepayers. Residents were
concerned that there was no ability to reduce their individual water billing by reducing their
October 29, 2007 - 3 - CPS-2007-03
consumption of water. This concern also raised the significant issue of water conservation.
On December 11, 2000, Council approved the following recommendations from the
Corporate Services Committee which were based on the Loudon & Fortin November 2000
report:
"That the proposed use-based billing structure be adopted for determining water/sewer
utility rates, and
"That the proposed use-based billing structure be applied to the 2000 Budget Expenditures
to set rates for the new Water By-Law; and
"That the Updated Water By-Law be adopted."
Staff advises that the City has operated a water system as aself-supporting fund up until
1999, when the existing fund was expanded to include the operation of the sanitary sewer
system. The self-supporting fund is separate from the General Purposes Operating Fund,
Although the water and sewer system was renamed Municipal Utility, staff notes that
Council has not approved the implementation of an appointed/elected authority that was
separate from and reporting to the City Council.
In 2004, the water/sewer fund was separated into two funds; one each for the water system
and the sanitary sewer system. The separation was done in compliance to the current
legislation wherein the water and sanitary sewer services must have separate fund entities.
Staff advises that today's presentation of the water and sanitary sewer budgets has used
the header "Municipal Utility" in continuance of the familiar identity for the water and sewer
systems. City Council is the management authority and is responsible for the water and
sewer systems. Staff administrates this responsibility in two parts: the operations part is
administrated by the Municipal Works Division, the billing/collection part is administrated
by the Finance Division.
Staff advises that Mr. Bielawski's comparison of the water/sewer system to Niagara Falls
Hydro as a utility may not be applicable. The operating structure for an electricity utility
versus the operating structure for a water or sewer utility is identified by the legislation that
governs each service. The Niagara Falls Hydro, which was incorporated under provincial
legislation, falls under special business corporation legislation. Its governance and
structure must adhere to the Electricity Act. Water and sewer services also comply with
provincial legislation, mainly the Municipal Act, as well as other specific legislation such as
the Safe Drinking Water Act, and the Sustainable Water and Sewage Systems Act.
Staff advises that the Loudon report in November 2000, did not address the governance
structure for awater/sewer utility. Council has always maintained that the water and sewer
funds would be directly controlled by the Council and not be managed by an
appointed/elected Board or Commission reporting to Council.
2. Conclusion -The use-based principle for water billing
is applicable only for the consumption chase
Mr. Bielawski, in his comments, stated that the more you use, the less you pay. In his
Water Rate Study, he combined the fixed monthly charge with the consumption charge for
October 29, 2007 - 4 - CPS-2007-03
increasing amounts of water usage. He showed that the combined charge decreases on
a per unit basis as the consumption of water increases. He showed that the annual
percentage increase for high consumption was less than the percentage increase for low
consumption. Mr. Bielawski's analysis basically shows the inverse cost relationship of a
fixed charge being applied to a variable factor.
Staff advises the water and sewer billing is composed of fixed and volumetric charges.
The two part charges were implemented in 2001, when metering was fully implemented.
Each charge is designed to collect sufficient revenues to offset the relevant direct costs.
Staff advises that the fixed monthly charge is not related to the direct costs of consumption.
The fixed charges are intended to offset the fixed costs of maintaining the water and
sanitary sewer systems. The City has the responsibility to provide safe potable water in
sufficient supply for all users including fire suppression. The City is responsible for
providing the collection of sanitary sewage. The direct operating costs of labour and
materials, and the direct construction costs of repairs and maintenance are incurred
regardless of the users' consumption. The fixed monthly charges are not dependent upon
or related to the amount of consumption incurred.
The volumetric charge is a per cubic meter rate that is the same for every user. The rate
does not decrease or increase with the amount of consumption. The revenues collected
from the consumption charges are intended to offset the costs of water purchased from the
Region and the sewertreated by the Region. These costs are also based on a volumetric
charge, whose rates are the same for all the municipalities in the Region of Niagara.
Staff understands that the use-based principle can apply to both a fixed charge and a
consumption charge. The use-based principle applies to a fixed charge because the user
is connected to water and sewer systems that are always ready to serve the user. The
user pays for the right to draw water and/or to flush sewage. The use-based principle also
applies to a consumption charge because the quantity of usage is measured and billed to
the user.
3. Conclusion -The use of meter size for
allocation of service charge is totally flawed
During the meetings that Mr. Bielawski attended with staff, his comments cited that the use
of meter sizing for the allocation of monthly service charges is flawed. His comments are
directed at the City's use of the AWWA standard for differentiating between the sizes of
meters and using the differences to allocate costs.
Staff advises that the size of a water meter relates to the size of the demand flow for water
provided to the user. Some users require a larger demand flow than others. Both the
water and sanitary sewer systems are engineered to accommodate the variant sizes of
both water flows and sewer usage. Staff advises that the AWWA standard is recognized
and approved in municipalities throughout Ontario, Canada and the United States. As this
standard is recognized and used, Staff believes it is an appropriate standard by which to
allocate fixed costs to users having different sizes of meters.
Mr. Bielawski commented that allocating fixed costs on the basis of meter size is also
flawed. His comments were directed at users who consume large quantities of water in
comparison to residents who use very little water. He suggested that the basis for the
October 29, 2007 - 5 - CPS-2007-03
allocation of fixed costs should reflect the amount of water usage and not the size of the
water demand flow.
Staff advises that the fixed monthly charges for maintaining the water and sewer systems
include all of the infrastructure costs. The systems are composed of different sizes of pipe,
valves, pumps, and meters. Infrastructure costs can be significantly different for repairing
the various components of the systems. Tracking and allocating these costs to individual
users based on their actual usage would present a significant mathematical undertaking.
For example, the actual repair for a section of water-main pipe can be easily costed, but
very difficult to determine which downstream users should be charged and how much. The
use of the AWWA standard provides an efficient engineering approach to allocate the
infrastructure costs using the size of a meter to estimate the user demand on the systems.
4. Conclusion -All multi-unit structures that have a single
meter are significantly subsidized by residential customers
In Mr. Bieiawski's Water Rate Study document, he provided an analysis named "Customer
Service Charge Cost/Unit". The analysis compared the fixed monthly charge for customers
who have different sizes and quantities of water meter service. The analysis calculates the
monthly fixed cost per customer based on the quantity of customers being serviced by the
q uantity and size of meter. He concludes that the cost/unit varies in accordance with these
factors, and further concludes that the higher cost/unit customers are subsidizing the lower
cost/unit customers.
Staff advises that acost/unit analysis may be interpreted as a Poll tax. The emphasis of
the analysis is focused on the number of customers served, even though some of the
customers are not separately served by the water and sewer systems. The analysis could
be expanded to any water meter that serves more than one identifiable customer, e.g.
hotel rooms, retail mall tenants, business mall tenants, apartment building units. A poll tax,
which is not allowed by the Municipal Act (Sec.393), imposes a charge on the reason that
persons/businesses are simply resident in the municipality or a part of it. Mr. Bieiawski's
analysis assumes that the City has the right to impose a charge simply because a City
resident uses the water and sewer systems.
in general, the Municipal Act (Sec.391) only allows a municipality to impose fees and
charges for services or activities provided or done by or on behalf of the municipality. To
impose a fixed monthly water charge, the municipality must identify to whom the water
service is being provided. Currently the City's fixed monthly charges are being billed to the
customer who has the direct responsibility for the water/sewer account.
Staff advises that this same concern is evident in other municipalities where water services
to condominium units are charged differently. The differences result from the same
engineering disparity. Some condominium units have individual water services, while
others have a single service for all the units. In Staff's report CPS-2007-02, Staff
recommends that a full review of water/sewer rates be undertaken. A review would
address the concerns that Mr. Bielawski has raised.
5. Conclusion -The pricing for water and sewer service is unfair and not equitable
Mr. Bielawski's conclusion refers to the structure for the City's water/sewer rates. The rates
October 29, 2007
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: CPS-2007-03
Water and Sewer Rates Reviiew
RECOMMENDATION:
CPS-2007-03
1. That the information provided in response to "Water Rate Study" be received and
filed,
2. That the Corporate Services Committee authorizes Staff to engage consulting
services to review the City's water and sewer rates.
BACKGROUND:
On July 23, 2007, Staff presented report CPS-2007-02, BMA Management Consulting Inc.
Proposal, that requested the Committee to authorize Staff to engage the consultant to
review the City's water and sewer rates. During the Committee's consideration of this
report, the Committee also heard a deputation from Mr. Ed Bielawski, who presented
several conclusions in a handout document, entitled "Water Rate Study". The deputation
made reference to staff reports and awater/sewer rate study done by Loudon & Fortin
(November 2000). Following the deputation, the Committee approved the following four
recommendations which were ratified by City Council:
1) That Staff report back to Committee on the report provided and presented by Mr.
Ed Bielawski,
2) That Staff contact Mr. Michael Loudon as a follow-up to his 2000 report,
3) That Staff provide Committee with a copy of the Loudon report, and
4) That Staff undertake a water and sewer rates review in time for consideration of the
2008 utility budget.
Staff has contacted Mr. Michael Loudon regarding the Niagara Falls Rate Report, prepared
and submitted by Loudon and Fortin in November 2000. This report focused on the
existing water and sewer rates and made recommendations on future ra~:A~ a~ a resutt-of
_ ~ ° Working Together to Serve Our Community Corporate Services Department
Finance
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October 29, 2007 - 2 - CPS-2007-03
the newly implemented metering program
Committee's information.
A copy of the report is attached for the
Staff requested Mr. Loudon to prepare and submit afollow-up to the November 2000
report. Staff also sent a copy of Mr. Bielawski's Water Rate Study document to Mr. Loudon
for information. Mr. Loudon is willing to prepare afollow-up to his November 2000 report,
which also addresses the conclusions raised by Mr. Bielawski. Mr. Loudon advised the
follow-up report would incur some cost. Staff believes the follow-up report could be
undertaken by a qualified consultant during the engagement for a review of the water and
sewer rates. Consequently, Staff did not pursue the follow-up report from Mr. Loudon.
Staff has not yet proceeded with undertaking a water and sewer rates review. As the
Committee was interested in the Loudon report and the conclusions raised by Mr.
Bielawski, the rate review was postponed pending the Committee's further consideration
of the proposal from BMA Consulting Inc. Staff continues to recommend the proposed
engagement of the consultant as presented in the earlier report CPS-2007-02.
Information provided in response to "1Nater Rate Studv"
Staff has investigated and prepared the following information that responds to the seven
conclusions raised in Mr. Ed Bielawski's deputation as they appear in his "Water Rate
Study" document.
Conclusion -The City has no water/sewer utility
Mr. Bielawski observed that a city report dated March 27, 1995, provided several
objectives, one of which was that the city establish awater/sewer utility. Mr. Bielawski
commented that awater/sewer utility if it is going to be run like a business, then it would
be no different than the Niagara Falls Hydro. Nis conclusion states the City does not have
a separate authority (such as NFH) responsible for the water/sewer utility and that as a
resul# the utility is fragmented by having several functional parts reporting to the Council.
The reportwhich Mr. Bielawski referenced was MW-95-58 Water/Wastewater Utility. The
recommendation from the Community Services Committee to and approved by Council
was as fiollows:
"That endorsement be given to the establishment of aSelf-Supporting, User-Pay
Water/Wastewater Utility, including Universal Water Metering, effective January 1997;
"That a Public Education/Awareness Program, including a public Attitude Survey, on the
Utility Concept and its impacts be undertaken with the results of same to be reported to
Council before any implementation action; and
"That Stati be directed to develop an Implementation Strategy for the Water/Wastewater
Utility with periodic Status Reports or Approval Reports for the various components. "
For the years 1995-2000, Staff undertook the directions of Council in an exhaustive effort
to encourage as much Public Participation as possible. One of the foremost concerns of
ratepayers was the ability to control the costs of water and sewer service. At that time, the
City was using a flat rate billing structure for residential ratepayers. Residents were
concerned that there was no ability to reduce their individual water billing by reducing their
October 29, 2007 - 3 - CPS-2007-03
consumption of water. This concern also raised the significant issue of water conservation.
On December 11, 2000, Council approved the following recommendations from the
Corporate Services Committee which were based on the Loudon & Fortin November 2000
report:
"That the proposed use-based billing structure be adopted for determining water/sewer
utility rates, and
"That the proposed use-based billing structure be applied to the 2000 Budget Expenditures
to set rates for the new Water By-Law; and
"That the Updated Water By-Law be adopted."
Staff advises that the City has operated a water system as aself-supporting fund up until
1999, when the existing fund was expanded to include the operation of the sanitary sewer
system. The self-supporting fund is separate from the General Purposes Operating Fund,
Although the water and sewer system was renamed Municipal Utility, staff notes that
Council has not approved the implementation of an appointed/elected authority that was
separate from and reporting to the City Council.
In 2004, the water/sewer fund was separated into two funds; one each for the water system
and the sanitary sewer system. The separation was done in compliance to the current
legislation wherein the water and sanitary sewer services must have separate fund entities.
Staff advises that today's presentation of the water and sanitary sewer budgets has used
the header "Municipal Utility" in continuance of the familiar identity for the water and sewer
systems. City Council is the management authority and is responsible for the water and
sewer systems. Staff administrates this responsibility in two parts: the operations part is
administrated by the Municipal Works Division, the billing/collection part is administrated
by the Finance Division.
Staff advises that Mr. Bielawski's comparison of the water/sewer system to Niagara Falls
Hydro as a utility may not be applicable. The operating structure for an electricity utility
versus the operating structure for a water or sewer utility is identified by the legislation that
governs each service. The Niagara Falls Hydro, which was incorporated under provincial
legislation, falls under special business corporation legislation. Its governance and
structure must adhere to the Electricity Act. Water and sewer services also comply with
provincial legislation, mainly the Municipal Act, as well as other specific legislation such as
the Safe Drinking Water Act, and the Sustainable Water and Sewage Systems Act.
Staff advises that the Loudon report in November 2000, did not address the governance
structure for awater/sewer utility. Council has always maintained that the water and sewer
funds would be directly controlled by the Council and not be managed by an
appointed/elected Board or Commission reporting to Council.
2. Conclusion -The use-based principle for water billing
is applicable only for the consumption chase
Mr. Bielawski, in his comments, stated that the more you use, the less you pay. In his
Water Rate Study, he combined the fixed monthly charge with the consumption charge for
October 29, 2007 - 4 - CPS-2007-03
increasing amounts of water usage. He showed that the combined charge decreases on
a per unit basis as the consumption of water increases. He showed that the annual
percentage increase for high consumption was less than the percentage increase for low
consumption. Mr. Bielawski's analysis basically shows the inverse cost relationship of a
fixed charge being applied to a variable factor.
Staff advises the water and sewer billing is composed of fixed and volumetric charges.
The two part charges were implemented in 2001, when metering was fully implemented.
Each charge is designed to collect sufficient revenues to offset the relevant direct costs.
Staff advises that the fixed monthly charge is not related to the direct costs of consumption.
The fixed charges are intended to offset the fixed costs of maintaining the water and
sanitary sewer systems. The City has the responsibility to provide safe potable water in
sufficient supply for all users including fire suppression. The City is responsible for
providing the collection of sanitary sewage. The direct operating costs of labour and
materials, and the direct construction costs of repairs and maintenance are incurred
regardless of the users' consumption. The fixed monthly charges are not dependent upon
or related to the amount of consumption incurred.
The volumetric charge is a per cubic meter rate that is the same for every user. The rate
does not decrease or increase with the amount of consumption. The revenues collected
from the consumption charges are intended to offset the costs of water purchased from the
Region and the sewertreated by the Region. These costs are also based on a volumetric
charge, whose rates are the same for all the municipalities in the Region of Niagara.
Staff understands that the use-based principle can apply to both a fixed charge and a
consumption charge. The use-based principle applies to a fixed charge because the user
is connected to water and sewer systems that are always ready to serve the user. The
user pays for the right to draw water and/or to flush sewage. The use-based principle also
applies to a consumption charge because the quantity of usage is measured and billed to
the user.
3. Conclusion -The use of meter size for
allocation of service charge is totally flawed
During the meetings that Mr. Bielawski attended with staff, his comments cited that the use
of meter sizing for the allocation of monthly service charges is flawed. His comments are
directed at the City's use of the AWWA standard for differentiating between the sizes of
meters and using the differences to allocate costs.
Staff advises that the size of a water meter relates to the size of the demand flow for water
provided to the user. Some users require a larger demand flow than others. Both the
water and sanitary sewer systems are engineered to accommodate the variant sizes of
both water flows and sewer usage. Staff advises that the AWWA standard is recognized
and approved in municipalities throughout Ontario, Canada and the United States. As this
standard is recognized and used, Staff believes it is an appropriate standard by which to
allocate fixed costs to users having different sizes of meters.
Mr. Bielawski commented that allocating fixed costs on the basis of meter size is also
flawed. His comments were directed at users who consume large quantities of water in
comparison to residents who use very little water. He suggested that the basis for the
October 29, 2007 - 5 - CPS-2007-03
allocation of fixed costs should reflect the amount of water usage and not the size of the
water demand flow.
Staff advises that the fixed monthly charges for maintaining the water and sewer systems
include all of the infrastructure costs. The systems are composed of different sizes of pipe,
valves, pumps, and meters. Infrastructure costs can be significantly different for repairing
the various components of the systems. Tracking and allocating these costs to individual
users based on their actual usage would present a significant mathematical undertaking.
For example, the actual repair for a section of water-main pipe can be easily costed, but
very difficult to determine which downstream users should be charged and how much. The
use of the AWWA standard provides an efficient engineering approach to allocate the
infrastructure costs using the size of a meter to estimate the user demand on the systems.
4. Conclusion -All multi-unit structures that have a single
meter are significantly subsidized by residential customers
In Mr. Bieiawski's Water Rate Study document, he provided an analysis named "Customer
Service Charge Cost/Unit". The analysis compared the fixed monthly charge for customers
who have different sizes and quantities of water meter service. The analysis calculates the
monthly fixed cost per customer based on the quantity of customers being serviced by the
q uantity and size of meter. He concludes that the cost/unit varies in accordance with these
factors, and further concludes that the higher cost/unit customers are subsidizing the lower
cost/unit customers.
Staff advises that acost/unit analysis may be interpreted as a Poll tax. The emphasis of
the analysis is focused on the number of customers served, even though some of the
customers are not separately served by the water and sewer systems. The analysis could
be expanded to any water meter that serves more than one identifiable customer, e.g.
hotel rooms, retail mall tenants, business mall tenants, apartment building units. A poll tax,
which is not allowed by the Municipal Act (Sec.393), imposes a charge on the reason that
persons/businesses are simply resident in the municipality or a part of it. Mr. Bieiawski's
analysis assumes that the City has the right to impose a charge simply because a City
resident uses the water and sewer systems.
in general, the Municipal Act (Sec.391) only allows a municipality to impose fees and
charges for services or activities provided or done by or on behalf of the municipality. To
impose a fixed monthly water charge, the municipality must identify to whom the water
service is being provided. Currently the City's fixed monthly charges are being billed to the
customer who has the direct responsibility for the water/sewer account.
Staff advises that this same concern is evident in other municipalities where water services
to condominium units are charged differently. The differences result from the same
engineering disparity. Some condominium units have individual water services, while
others have a single service for all the units. In Staff's report CPS-2007-02, Staff
recommends that a full review of water/sewer rates be undertaken. A review would
address the concerns that Mr. Bielawski has raised.
5. Conclusion -The pricing for water and sewer service is unfair and not equitable
Mr. Bielawski's conclusion refers to the structure for the City's water/sewer rates. The rates
October 29, 2007 - 6 - CPS-2007-03
are billed in two parts: a fixed monthly charge and a volumetric charge. His conclusion
directs attention to the low volume user whose minimum monthly billing is the monthly
service charge, even if the user has not used any water. His concern is that the City's fixed
monthly charge has increased significantly over the past years, and has resulted in
unfair/not equitable charges to low volume users. He believes the water/sewer rate should
be totally volumetric with no fixed charges.
Staff advises that the water/sewer rate structure was established in 2001 when metering
was implemented. The structure was recommended in the Loudon & Fortin report which
Mr. Loudon addresses in his follow-up report. The report did examine a variety of methods
to charge for water and sewer services. Although Mr. Bielawski recommends a simple
volumetric charge, he concurs with Staff that several methods exist. In Staff's report CPS-
2007-02, Staff recommends that a full review of water/sewer rates be undertaken. A
review would address the concerns that Mr. Bielawski has raised and would compare the
simple volumetric charge method to other methods of charging for water/sewer services.
6. Conclusion - Yearly aercentaae rate increases as reported are not factual
In Mr. Bielawski's Water Rate Study, he provides an analysis of the 2007 percentage
increase for homeowners whose monthly usage of water is different. His conclusion
references Staff's report on the percentage increase, stating that the City's reported
increase is not a singular percentage, but is actually a range of percentage increases as
water usage decreases.
Staff advises that the referenced report, F-2007-07 2007 Municipal Utility Budget, does
provide individual percentage comparisons forthe fixed monthly charge and the volumetric
charge. The report also provides a percentage comparison for the combined charges
based on 30 cubic meters of water used per month. The amount of 30~m3 was chosen by
Staff to represent the average monthly usage of water; a factor used by other
municipalities for comparison purposes. In Staff's report CPS-2007-02, Staff recommends
that a full review of water/sewer rates be undertaken. A review would address the
concerns that Mr. Bielawski has raised, especially the need to inform ratepayers of the
impact of increasing rates in relation to variant water and sewer usage.
7. Conclusion -The factor used to calculate weighted
meter is unrealistic and thus totally flawed
During the meetings with Mr. Bielawski, his comments cited that the current weighting for
meters is flawed. His comments were directed at the use of the AWWA standards for
differentiating between the sizes of meters. As stated earlier, Staff advises that the size
of a water meter relates to the size of the demand flow for water provided to the user.
Some users require a larger demand flow than others. Both the water and sanitary sewer
systems are engineered to accommodate the variant sizes of both water flows and sewer
usage. Staff advises that the AWWA standard is recognized and approved in
municipalities throughout Ontario, Canada and the United States. As this standard is
recognized and used, Staff believes it provides the appropriate factors by which to weight
the different sizes of meters. In Staff's report CPS-2007-02, Staff recommends that a full
review of water/sewer rates be undertaken. A review would address the concerns that Mr.
Bielawski has raised with regard to the current practice of using the AWWA standard.
October 29, 2007 - 6 - CPS-2007-03
are billed in two parts: a fixed monthly charge and a volumetric charge. His conclusion
directs attention to the low volume user whose minimum monthly billing is the monthly
service charge, even if the user has not used any water. His concern is that the City's fixed
monthly charge has increased significantly over the past years, and has resulted in
unfair/not equitable charges to low volume users. He believes the water/sewer rate should
be totally volumetric with no fixed charges.
Staff advises that the water/sewer rate structure was established in 2001 when metering
was implemented. The structure was recommended in the Loudon & Fortin report which
Mr. Loudon addresses in his follow-up report. The report did examine a variety of methods
to charge for water and sewer services. Although Mr. Bielawski recommends a simple
volumetric charge, he concurs with Staff that several methods exist. In Staff's report CPS-
2007-02, Staff recommends that a full review of water/sewer rates be undertaken. A
review would address the concerns that Mr. Bielawski has raised and would compare the
simple volumetric charge method to other methods of charging for water/sewer services.
6. Conclusion - Yearly aercentaae rate increases as reported are not factual
In Mr. Bielawski's Water Rate Study, he provides an analysis of the 2007 percentage
increase for homeowners whose monthly usage of water is different. His conclusion
references Staff's report on the percentage increase, stating that the City's reported
increase is not a singular percentage, but is actually a range of percentage increases as
water usage decreases.
Staff advises that the referenced report, F-2007-07 2007 Municipal Utility Budget, does
provide individual percentage comparisons forthe fixed monthly charge and the volumetric
charge. The report also provides a percentage comparison for the combined charges
based on 30 cubic meters of water used per month. The amount of 30~m3 was chosen by
Staff to represent the average monthly usage of water; a factor used by other
municipalities for comparison purposes. In Staff's report CPS-2007-02, Staff recommends
that a full review of water/sewer rates be undertaken. A review would address the
concerns that Mr. Bielawski has raised, especially the need to inform ratepayers of the
impact of increasing rates in relation to variant water and sewer usage.
7. Conclusion -The factor used to calculate weighted
meter is unrealistic and thus totally flawed
During the meetings with Mr. Bielawski, his comments cited that the current weighting for
meters is flawed. His comments were directed at the use of the AWWA standards for
differentiating between the sizes of meters. As stated earlier, Staff advises that the size
of a water meter relates to the size of the demand flow for water provided to the user.
Some users require a larger demand flow than others. Both the water and sanitary sewer
systems are engineered to accommodate the variant sizes of both water flows and sewer
usage. Staff advises that the AWWA standard is recognized and approved in
municipalities throughout Ontario, Canada and the United States. As this standard is
recognized and used, Staff believes it provides the appropriate factors by which to weight
the different sizes of meters. In Staff's report CPS-2007-02, Staff recommends that a full
review of water/sewer rates be undertaken. A review would address the concerns that Mr.
Bielawski has raised with regard to the current practice of using the AWWA standard.
October 29, 2007 - 7 - CPS-2007-03
Conclusion
Mr. Bielawski has provided significant concerns in his deputation to the Corporate Services
Committee, as presented in his document "Water Rate Study", and directly to Councillors
and Staff over the past year. Although Staff has provided some commentary on Mr.
Bielawski's conclusions, the need for a water and sewer rate review is only made more
apparent. Staff and Mr. Bielawski concur that there are different methods to structure
water and sewer rates. A water and sewer rate review would not only address the
concerns raised by Mr. Bielawski but also the concerns of other residential, commercial,
industrial and institutional ratepayers. The reviewwould evaiuatethedifferent methods for
structuring rates as well as focus on other challenging issues. The review would provide
options for the City to address the issues, apply the current legislation to the City's rate
structure, and compare the advantages and disadvantages of applicable rate structures.
As the Committee was interested in the Loudon report and the conclusions raised by Mr.
Bielawski, the rate review was postponed. The Committee's further consideration of the
proposal from BMA Consulting Inc. as presented in the earlier report CPS-2007-02, is
appreciated.
Recommended by:
Respectfully submitted:
Attach.
/~fa~v.~
K. E. Burden, Acting Executive Director of Corporate Services
'~= -~-
Joh acDonald,
~''~'~
Chief Adrninistr~tive Officer
City of Niagara Falls
Study of Water & Sewer Rates Following Metering Final Report
CITY OF NIAGARA FALLS
STUDY OF WATER & SEWER RATES FOLLOWING METERING
SYNOPSIS
This report reviews the current water and sewer rates and makes recommendations on future
rates to be implemented as a result of the metering program. The level of the rates is based on
preliminary budget data and should be reviewed and revised based on final budget data once it
is available. The following summarizes the report findings:
• Metering Program -The City has completed the metering of approximately 22,500
customers billed flat rates. Most of these are residential, but there are a few commercial
customers.
• Current Situation -There are approximately 3,100 customers currently billed metered
rates. The current rates are two-part with a fixed charge variable by meter size and a
volumetric charge with 6 declining rate blocks.
• Proposed Two Part Rates -The proposed rates are also two-part with a fixed charge
variable by meter size and a volumetric charge. The proposed volumetric charge is single
block -there are no reduced volumetric rates for large volume users. This proposed
change to a single rate block is recommended due to the fact that water is purchased
wholesale from the Region at a constant rate for all usage and as a result there are no
large-volume savings realized by the City that could be passed on to large volume users.
• Water/Sewer Combined -The sewer charges are currently billed as a 150% surcharge on
the water bill. The City 2004 water and sewer budgets are prepared with the water and
sanitary sewer costs combined. As a result, a single combined water and sewer xate has
been calculated. This approach is increasingly used as it simplifies the customer billing
and improves the flexibility of financially managing the water and sewer utilities. Toronto
has followed this approach for years.
• Recommended Yolumetric Rate Option -Two options are provided for the volumetric
rates. Option 1 links the retail volumetric charge to the Region's volumetric charges. The
volumetric charge would recover about two-thirds of the user rate revenues. Option 1 is
recommended since it minimizes revenue uncertainty while maintaining a high enough
proportion of charges based on volume to encourage conservation. Option 2 is provided as
an alternative. It allocates 80% of the costs to the volumetric charge, which would
increase the conservation element, would allow more control by customer's of their water
bills, but would decrease revenue security during years with low seasonal use.
• Recommended Service Charge Option -Two service charge alternatives are provided.
Alternative A is a single service charge for all customers. It has the advantage of
simplicity. Alternative B has service charges variable by meter size. This is recommended
as it more closely allocates the costs to each customer. This is the same approach as is
currently used, except that the service charges proposed are higher for larger sized meters
than those currently applied.
NFRateReport.doc l Loudon & Fortin
November 2000
ity ofTliagara Falls
.>iudy of Water & Sewer Rates Following Metering Final Report
~ Implementation - An implementation plan is suggested in Section 8 of the detailed
report.
Proposed 2001 Water(Sewer Rates (monthly} -Recommended in Bold Italics
Option 1
(Volumetric rate recovers
{ Regional charges)
6~`olrnmetric Rates ($/cubic metre} I
i $1.309
Service Charges
-Single Uniform Charge $26.235
- r3 - Ch~~rge Variable by Meter Size
15 rnm $22, S4
18 mm $22.54
25 mm $22.54
37 mm ~ $56.35
50 mm ~ $135.23
75 mm f $270.46
~ 100 mm ,
i $495.84
. _ --
150 mm ,
$946. b1
200 mrn l $1,690.37
NFRateReport.doc 2
Option 2
(Volumetric rate
recovers 80% of costs}
$1.549
$16.182
$13.90
$13.90
$13.90
$34.75
$ 83.41
$166.82
$305.83
$583.85
$1,042.59
Loudon & Fortin
November 2000
City of Niagara Falls
Study of Water & Sewer Rates Following Metering Final Report
CITY OF NIAGARA FALLS
STUDY OF WATER & SEWER RATES FOLLOWING METERING
DETAILED REPORT
1 INTRODUCTION
During 1999 and 2000, the City of Niagara Falls has carried out a program of installing meters
on the water services to all customers. Formerly only non-residential customers were metered.
The metering program mostly is for single family dwellings, but has had the benefit of
identifying some other larger customers that escaped metering in the past and that are also
now being metered.
A previous study was carried out of water rates following meteringl that provided preliminary
rates recommendations. That study recommended two-part water rates with a single
volumetric charge and a service charge variable by meter size. The method used was as set out
in the Canadian Water & Wastewater Association Municipal Water Rate Manual.
In the following study, the estimate of water consumption following metering has been
refined based on preliminary readings taken on the newly metered customers. Expenditure
data is also based on preliminary 2001 budgets.
2 CURRENT WATER & SEWER RATES
The 2000 water and sewer rates are as follows:
Exhibit 1 2000 Volumetric Water User Rates (quarterly basis)
Block limits Industrial ~ Commercial & Residential
(gallons/quarter) $/000 gallons $/000 gallons
0 to 99,000 $3.13 $3.52
100,000 to 199,000 $2.74 $3.13
200,000 to 299,000 $2.35 $2.74
300,000 to 499,000 $2,20 $2.35
500,000 to 699,000 $2.04 $2.20
700,000 & over $1.87 $2.04
~ City of Niagara Falls Residential Water Metering Study Financial Analysis - prepared by Fortin & Loudon in
conjunction with Acres & Associated Limited -August 1998
NFRateReport.doc 3 Loudon & Fortin
November 2000
~'ity of Niagara Falls
Study of Water & Sewer Rates Following Metering Final Report
Note that some larger metered customers are billed monthly rather than the quarterly basis
used for most metered customers.
Exhibit 2 2000 Service & Minimum Charges (quarterly)
Minimum Bill
~dleter Size Service Charge
(~rEillimetres) ($/quarter) Charge Nominal Volume Allowance
($/quarter) (m /quarter) -see note
' 15 mm $1.25 $43.00 11,000
18 mm $2.00 $57.00 15,000
25 mm $2.50 $95.00 26,000
37 mm $3.00 $155.00 44,000 1
s 50 mm $4.00 $231.00 66,000
~ 75 mm $7.50 $385.00 125,000
1100 mm $12.00 $768.00 285,000
150 mm $30.00 $1,158.00 529,000
f 200 mm $50.00 $1,932.00 I 967,000
Nt7TE: The minimum consumption all owance volume is approximate anly. The dollar
°~~olume is appl ied rather than the published volume.
T`lae metered rates are mostly applied every three months (quarterly). The flat rate charge is
~~illed every four months at $82.46.
Sewer charges are levied on the water bill as a surcharge. The sewer surcharge is currently
150% of the water charge.
3 CUSTOMERS
By the time the metering program is complete, about 22,500 unmetered customers are
expected to be converted to meters. When added to the 3,100 customers previously metered,
this will bring the total number of meters to the following:
NFRateReport.doc 4 Loudon & Fortin
November 2000
City of Niagara Falls
Study of Water & Sewer Rates Following Metering Final Report
Exhibit 3 Number of Metered Customers by 2001
Meter Size Number
(millimetres)
15 mm ~ 24,250
18 mm I 387
25 mm I 343
37 mm I 221
50 rnrn I 291 l
75 mm ~ 52
100 mm I 42
150 mm I 18
200 mm I 3 1
Total I 25,607
4 CONSUMPTION
Wholesale -The City pays wholesale charges for the volume of water supplied and the
sewage treated by the Region of Niagara, which is responsible for this service. The City only
has jurisdiction over the retail operation of distributing water and collecting sewage. The
Region charges the same wholesale rates year-round and to all of the area municipalities. The
wholesale rates over the past 3 years are as shown below in Exhibit 4.
Exhibit 4 Niagara Region Water & Sewer Charges ($/m3)
~ Water ~ Sewer
1998 I $0.275 I $0.465
1999 I _$0.291 $0.479
2000 i $0.300 I $0.489
The 1999 water and sewage volumes which the Region billed the City are summarized in
Exhibit 5 below:
NFRateReport.doc 5 Loudon & Fortin
November 2000
~`ity of Niagara Falls
.Study of Water & Sewer Rates Following Metering Final Report
Exhibit 5 1999 Water & Sewage Volumes Billed to Niagara Falls by Region (m3)
Month ~ Water Sewer
January 1,269,279 1,821,812
February I 1,122,577 I 1,754,075
March I 1,233,599 I 1,836,082
;''~pril I 1,274,006 I 1,738,828
May I 1,746,304 1,616,411
'une I 2,242,640 1,582,608
,luly I 2,820,323 I 1,723,472
~~.~gust I 1,849,745 I 1,814,831
--.,
eptember
1,661,525 I
1,666,689
~ October I 1,441,157 1,697,414
T-`ovember I 1,297,101 1,739,527
~_ :ecember 1,315,656 1,747,952
~ 't'otal ~ 19,273,912 I 20,739,701
'he monthly water and sewage flows billed by the Region starting in 1998 and up to
September 2000 are graphed in Exhibit 6. This graphically illustrates the normal seasonality
of the water purchases. Monthly water flows in the summer of 1999 reached almost three
Qime.; the spring level. There was much less of an increase in 2000, a wet year.
l,he s~:wage flows, on the other hand, show less variation, with only a modest decrease in the
summer and occasional higher flows in the spring and fall, no doubt due to inflow and
iil~ltration. There are sewage flow variations in the summer of 2000 are not consistent with
l~.i~,tr.~rical trends, but could relate to the dates that the meters were read.
°or~sumption by Currently Metered Customers -There are about 3,100 customers
currently charged metered rates. Most are billed quarterly, but the larger customers are billed
rr~onthly. Their consumption for the past 2 years is as shown in Exhibit 7.
NFRateReport.doc 6 Loudon & Fortin
November 2000
City of Niagara Falls
Study of Water & Sewer Rates Following Metering Final deport
Exhibit 7 1998 & 1999 Metered Customer Consumption (m3)
1998 1999
i Quarterly metered 7,172,986 6,736,805
Monthly metered I 671,582 699,483
Total metered I 7,844,568 I 7,436,288
Pumpage I 19,541,564 I 19,646,127
Unmetered use ( 11,696,996 I 12,209,839
Unmetered Use - To narrow down the likely range of unit consumption by the newly
metered customers, meter readings were specially taken in May and June of all meters
installed to that point. There were 17,823 meters read. There were 105 customers with meter
reading dates errors. There were some very large meter readings -the Largest 10% or 178
customers were as a result treated separately. The results of the reading program are
summarized in Exhibit 8.
Exhibit 8 Newly Metered Customer Consumption Results Summary to June 2000
Description
Date errors (note 1)
0 reading
Normal residential
Larger customers
Number of
Customers
49
56
17, 540
178
Average Total Monthly
Consumption
(m3 /month)
N/a
0
431,865
38,158
Unit Consumption
(m3/month/customer)
N/a
N/a
24.6
214.4
Normal + Larger 17,648 I 470,023 26.5
Note: The reading dates were not feasible such as1980 installation or installation date after the
date of the latest meter reading
The customer name and address, meter serial number, meter installation and reading dates and
volumes were input in Excel spreadsheet format. Meter installation was spread out from about
May 1999 until the date of the special readings. The average monthly usage for all customers
was 26.5 m3/month. Much of this consumption was not in the summer. Only about 20% of the
customers had been metered by the end of last summer.
The customers are mostly residential, but there are some non-residential customers including
some larger users. If the largest 1 % of users is removed from the calculation, the average use
drops to 24.5 m3/month. 99% of the customers used less than 90 m3/month. Usage by the top
1% ranged up to in excess of 1,000 m3/month.
NFRateReport.doc '7 Loudon & Fortin
November 2000
City of Niagara Falls
• Study of Water do Sewer Rates Following Metering Final Report
Exhibit 9 illustrates the average consumption by customers and includes the variance in level
depending on how long customers have been metered. Customers that have been metered the
longest include both summer and winter usage. These are plotted on the right hand side of the
graph. The average monthly consumption level of customers that were metered prior to July
1999 was about 29.5 m3/month. These customers were metered for a full year. But as
customers are progressively metered and customers with only winter consumption are
included in the average, the level drops. This can be seen by as the vertical bars get shorter
d3aring the winter since usage by these customers only includes winter usage.
Based on the initial consumption levels, and recognizing the fact that summer usage is much
higher than winter, it seems feasible that the average usage for these newly metered customers
might well be about 28 m3/month.
Unmetered use is a combination of unaccounted for water (UFW) losses such as watermain
leakage, hydrant flushing, sewer flushing etc plus water used by unmetered customers (i.e. flat
rate customers). Exhibit 10 illustrates possible combinations of UFW and unmetered customer
c~:•nsumption in 1998 and 1999 based on 22,500 unmetered customers. An average level of 28
tn' /month /customer over a full year is equivalent to 23%UFW. This is relatively high, but
not unreasonable compared to previous staff estimates of about 19%UFW. Full meter reading
~N ill clarify this calculation. If the top 1 % of newly metered customers are excluded, then this
i~: equivalent to about 26 m3 /month /customer for residential customers. In the original
metering financial study2 it was concluded that residential usage by unmetered residential
customer is about 27 m3 /month /customer. That conclusion was based on other municipalities
a,~ well as a small sample of metered flat rate customers in the City.
Impact of Metering -Experience with the impact of metering varies. There are many
influences, primarily cost level and amount of discretionary use (primarily summer use).
Often there is an initial impact followed by a rebound, since the water is not really high
compared to other utilities. Water and sewer combined is less than cable television charges.
A typical residential customer is likely to use in the range of 18 to 22 m3/month, based on
experience in other similar Ontario municipalities. Excluding the 1 % largest users in the
rawly metered group, the likely consumption now is about 26 m3/month. According to
r=search by Environment Canada3 reduction in water use doe to metering is likely to be 30%
c; more. A drop to 20 m3/month after metering would represent a decrease from 26 m3/month
of 23%. Combining this information, it is assumed that consumption will drop by 25% in the
tzrst year. The level of consumption following metering is calculated in Exhibit 12.
5 Financial
~'he 2001 draft water and sewer budget has been prepared with water and sewer costs
combined. In the past these costs have been kept separate and the water and sewer tariffs set
z City of Niagara Falls Residential Water Metering Study Financial Analysis -Draft Discussion Paper -Fortin &
Loudon in association with Acres & Associated Ltd. -August 1998 page 14
3 Guidelines far Municipal Water Pricing -Environment Canada - McNeill and Tate -page 7
NFRateReport.doc $ Loudon & Fortin
November 2000
City of Niagara Falls
Study of Water & Sewer Rates Following Metering Final Report
separately. There is a trend in Ontario towards issuing a single combined water and sewer
charge -see Section 6 below.
The water and sewer budgets are summarized in Exhibit 1 I .
Tariff Calculations
The current water tariffs are two-part with both fixed (variable by meter size) and volumetric
(decreasing block). The following is recommended:
That water and sewer tariffs be billed as one combined rate. This is done in several
municipalities in Ontario, the largest being the City of Toronto. This was also the practice
followed in many of the six local municipalities in Metropolitan Toronto previously. The
Town of Markham has also followed this practice for many years. The Town of Markham
is similar to the City of Niagara Falls with respect to their being the retail provider of
water and sewer services inside the Region of York which bills for both wholesale
services based on volume (both water and sewer are billed based on water volumes at the
wholesale level, however). This year the Town of Newmarket has also switched to a
combined water /sewer charge. The use of a combined charge provides much greater
flexibility with regard to budgeting these services and allowing for annual revenue
fluctuations.
• Eliminate Declining Block Rates -There is little or no cost justification for declining
block rates in Niagara Falls. There are economies of scale for large water users, but these
occur mostly in the water production area, which is a Regional responsibility. It does not
affect the City's costs.
The following comments are also added regarding the water and sewer rates:
Note that the use of water consumption as a basis for billing sewer charges is common in
Ontario. This is the most feasible way of approaching user pay for recovering sewer costs.
Water meter readings are a surrogate for measuring sewage flows. During 1999, total
Niagara Falls sewage flows billed by the Region were close to total water flows, only
about 6% higher and in 1998 sewage flows were about 10% higher than water flows. In
Niagara Falls, as in most other municipalities, customer metered water flows are used in
the calculation of a customer's sewage charges. Overall this is a fair way of achieving user
pay for the sewage costs. It is meant to allocate sewer costs in proportion to each
customer's use of the system. Although there are flow differentials between water and
sewer systems due to seasonal water use in the summer and for sewer due to inflow and
infiltration, these variations more or less even out over the year. The use of water
consumption is a reasonable surrogate for sewage flows and is the only practical way of
achieving user pay for sanitary sewer charges.
• Seasonal Charges -Note that water consumption normally has a very high seasonal
component in Niagara Falls. Water consumption in the summers of 1998 and 1999
exhibited very high increases -see Exhibit 6. The wet summer of 2000 showed very little
increase. Since the cost of meeting summer peaks occurs at the Regional level, there is
NFRateReport.doc 9 Loudon & Fa•tin
November 2000
t: `i~`v of Niagara Falls
Sty dy~ of Water & Sewer- Rates Following Metering Final Report
little justification for the City to consider seasonal rates. This may have to be reconsidered
if the Region decides to utilize some farm of seasonal rates to moderate the high summer
peak water flows.
~~
The combined water and sewer rates are calculated in Exhibit 12. Two options are provided:
• Option 1 -Recover Regional Volumetric Charges from Volumetric Rate -This approach
is based on revenue security plus relating obviously variable charges to the volumetric rate
and largely fixed charges to the fixed service charge. It is a fair approach. Unfortunately,
the conservation aspect of metering is weakened since only about two-thirds of costs in
the volumetric rate.
~.~ption 2 -Recover 80% of Costs in the Volumetric Rate -This alternative would recover
all of the Regional costs in the volumetric rate, plus some of the City costs. It would have
a higher conservation element, which may translate into reduced usage and reduced
Regional charges as a result.
~'13e service charge is calculated both as (A) a single charge for all customers and (B) one
variable by meter size.
T he volumetric rates and service charges are provided in Exhibit 12.
~ Impact
Tk~e impact of the proposed rates compared to the current rates is provided in Exhibit 13.
I~k:r flat rate customers, those that use below average volumes pay less and above-average
u.ss~rs pay more. The average customer pays slightly less.
b'-~~r currently metered customers, most pay more due to the elimination of the volume
di:~counts.
Implementation
7~e following suggestions for implementation are made.
• There should be public notices in advance of the impending rates and how they might
affect customers.
• The bill should include a phone number where customers can ask questions about their
bill.
• The new tariffs should not be first applied during the summer season as the differential
from the flat rate charges will highest at that time.
® The billing staff should be prepared to answer questions about why customers' bills have
changed. They should also be helpful in suggesting ways to reduce usage.
NFRateReport.doc 10 Loudon & Fortin
November 1000
City of Niagara Falls
Study of Water & Sewer Rates Following Metering Final Report
• Also there will be high residential water users who will not be happy with paying for what
they use. It must be emphasized that this is now a user pay system and that customers
have a measure of control over the size of their bill.
• For larger customers, notification should go out in advance of their expected increase.
This will often avoid adverse reaction once the bills are received.
• Some municipalities choose to initially send out demonstration bills to illustrate the
potential impact of the metered rate charges, so that customers can adjust usage before the
real billings start.
NFRateReport.doc 11 Loudon & Fortin
November 2000
nagara
fails
public October 1, 2007
library
Members of the Corporate Services Committee
forty
eight
City of Niagara Falls
forty
eight
Ladies and Gentlemen:
victoria
avenue I enclose the 2008 Proposed Operating Budget of the Niagara Falls Public
niagara
falls
Library Board.
Ontario
L2E 4C5 Summary:
Tel.: 905/356-8080 uests funding from the City of Niagara Falls of
re
ectfull
The Board res
Fax: 905/358-7004 q
y
p
$3,584,300 for the operation of the public library in 2008. This is an
increase of $31,900 - only o.9% more than our 2007 approved municipal
operating funding.
Excluded from the proposed budget are salary and benefit amendments
pending City Council's ratification of the amended Collective Agreement
with C.U.P.E. 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 Board are subject to the same amendments.
This continues City Council's past practice with respect to this issue.
Special Capital Project Funded out of Operating Budget:
Our $50,000 Capital Project will be funded entirely from the operating
budget with no debentures required. Phase One in 2007 replaced the aged
outdoor interlock the walkways at the Victoria Avenue Library which have
been used by the public since the Library opened in 1974. Some old
parking lot lights and poles will also be replaced. Phase Two of this Capital
Project will be to replace the library parking lot surface in 2008.
Provincial Government Financial Support:
After our Ontario Base Grant was reduced 40% to $130,258 in 1996/1997,
it has unfortunately remained frozen at that level by the provincial
government. There has been no announcement yet from the Government of
Ontario of any changes to our base funding in 2008 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
iP ~ expenditures. User fees may increase again.
,~} ~-~~
~ ~~ ~.
The Ontario Ministry of Culture is reviewing provincial support programs
~
~ for public libraries. The Ministry plans "to begin discussions with the
~~ ~ ~ primary fenders of public libraries and take a closer look at financial
ries
lib
t
i
'
t
O
f
b
ra
s
n
ar
o
o
it
ene
support of public libraries to ensure maximum
and library users."
nagara
fails
public
library
forty
eight
forty
eight
victoria
avenue
niagara
falls
Ontario
L2E 4C5
Tel.: 905/356-8080
Fax: 905/356-7004
~ ~
~ ~~~
~~ - -Ll
.r' "
Our Library Board has been advocating library service to each of the local
candidates and to each of the political parties running in the Oct. 10th
provincial election. The Board wrote that "The Niagara Falls Public
Library Board encourages you and your party to support increasing
provincial funding to Ontario's public libraries. One example is the public
library per household operating provincial grant. This annual grant is
conditional on adherence to the Public Libraries Act. This grant has not
been increased in decades (only decreased). In 2007, the grant of $130,258
to the Niagara Falls Public Library represents only $3.85 for each of the
33, 871 households in our City.
Increase in Ontario Minimum Wage:
Ontario's minimum wage will increase more than 9% in 2008 which will
increase the wages of our library's lowest paid part-time employees {called
"Pages").
Books & Other Resources:
2007 is scheduled to be the final year of funding from the Capital Budget to
purchase books and other resources for the Community Centre Branch
Library. Consequently, the 2008 operating budget will be required, for the
first time, to fund entirely these books and other resources.
Report on Reserve Funds:
The following is our Report on Reserve Funds as of June 30, 2007 {subject
to audit): Automation Reserve $253,601.04; Gift/Special Projects Reserve
$287,348.05; Property Maintenance Reserve $190,536.31.
40,000+ Active Borrowers:
The Library Board serves over 40,000 active borrowers as well as
thousands using materials in the library and thousands who access our
electronic products, view exhibitions in the Rosberg art gallery, ask
reference questions to trained staff and attend programs for children and
adults. In a typical week, more than 10,000 people enter our Libraries. We
advocate on behalf of our users.
The Library Board asks for your support in 2008 to continue our efforts to
provide a contemporary public library service to our community.
Respectfully
Niagara Falls Public Library Board
NIAGARA FALLS PUBLIC LIBRARY BOARD
OPERATING BUDGET
2007 2008
Approved PROPOSED
Budget Budget
REVENUE:
City grant: operating 3,552,400 3,584,300
City grant: debentures 121,572 121,589
Provincial grants 157,100 130,300
Federal grants 0 2,100
Other grants 9,200 0
Library Receipts 121,300 107,000
Donations 12,000 12,000
Transfer from Reserves 0 17,000
Surplus from previous year 83,830 0
------------
4,057,402 -------------
3,974,289
EXPENDITURES
Labour 2,247,000 2,263,$00
Benefits 456,000 472,000
Staff Development 7,600 8,900
Books & Other Resources 383,000 328,200
Information Software 90,000 56,700
Information Hardware 25,000 15,000
Facilities: Materials 116,100 99,700
Hydro, Gas, Water, Telecomm. 182,100 199,800
Rent 76,800 79,000
Contracted Services 68,000 68,000
Insurance 50,000 51,000
Other Materials 152,000 150,600
Transfer to Reserves 32,230 10,000
Transfer to Capital 50,000 50,000
Debt Charges 121,572 121,589
4,057,402 3,974,289
+$31,900 + 0.9%
Approved by Library Board Sept. 19, 2007
G•N•G•H
FOUNDATION
^:r:~a:~~r:u~d-ua.~rr~~a.rr
Mr. Todd Harrison
October 3, 2007
Acting Director of Financial Services
The City of Niagara Falls
4310 Queen Street
P.O.Box 1023
Niagara Falls, ON L2E 6X5
Dear Todd,
Thank you for your letter of September 6, 2006 and the opportunity to submit our request
for funding support as part of the 2008 City budget process.
Once again, we are asking Council to consider a grant of $100,000 specifically for help
with the purchase of new replacement medical equipment for the emergency department
at the Greater Niagara General Hospital. Such a commitment will assist the Hospital to
replace outdated equipment in our facility with new equipment that will help to ensure
that the best possible medical care is available for everyone right here in Niagara Falls.
The GNGH Foundation, working in collaboration with the medical staff and senior
administration who determine the priority equipment needs for our hospital, seeks to
provide the necessary funding to purchase these items. Currently, over $3 million in new
equipment is needed to meet all the identified needs.
In the past, the City of Niagara Falls has generously supported their community hospital.
In 2000 and 2001, a total of $200,000 was given to the GNGH for the purchase of new
flouroscopy equipment in the Diagnostic Imaging Department and since then another
$400,000 has been committed to the building of the new ER. Since 2006 $200,000 was
received towards the purchase of new equipment for the new Emergency Department.
We would, of course, be happy to attend the October 29th meeting of the Corporate
Services Committee when they review our request -please let us know if our attendance
is required.
In the mean time, thank you again for your letter and for everything that the City of
Niagara Falls has made possible for us to do for the residents of our community.
Sincerely,
John Beyer, Chair
GNGH Foundation
Attachments (2)
GNGH Foundation
Income & Expense
Budget vs. Actual
April -August 2007
(DRAFT - No invoices from hospital for July or August and no August bank statements or investment report received)
April -August Budget YTD Variance from Annual 2007-08 April -August Budget YTD Variance from
2007 2007-08 Budget Budget 2006 2006-07 Budget
Income
Donations 226,719.14 583,333.33 (356,614.19) 1,400,000.00 326,881.76 525,000.00 (198,118.24)
Miscellaneous Income 0.00 0.00 595.39 595.39
From NHS 0.00 0.00 0.00 0.00 62,500.00 (62,500.00)
Interest & Investment Income 55,199.70 20,833.33 34,366.37 50,000.00 80,410.47 20,833.33 59,577.14
Totallncome 281,918.84 604,166.67 (322,247.83) 1,450,000.00 407,887.62 608,333.33 (200,445.71)
Expense
Salaries & Benefits 86,140.10 75,000.00 11,140.10 180,000.00 76,200.71 119,500.00 (43,299.29)
Program Expense 8,575.67 41,875.00 (33,299.33) 100,500.00 8,966.43 39,791.67 (30,825.24)
General Administration 10,179.08 7,500.00 2,679.08 18,000.00 7,337.89 7,500.00 (162.11)
Business Machines 0.00 1,458.33 (1,458.33) 3,500.00 141.94 1,458.33 (1,316.39)
Professional Development 2,877.98 2,458.33 419.65 5,900.00 0.00 2,458.33 (2,458.33)
Recognition 8 Support 5,886.90 3,750.00 2,136.90 9,000.00 6,723.43 3,750.00 2,973.43
Special Events 0.00 1,041.67 (1,041.67) 2,500.00 0.00 1,041.67 (1,041.67)
Total Expense 113,659.73 133,083.33 (19,423.60) 319,400.00 99,370.40 175,500.00 (76,129.60)
Net Income 168,259.11 471,083.33 (302,824.22) 1,130,600.00 308,517.22 432,833.33 (124,316.11)
Other Expense
Depreciation Expense 1,145.10 833.33 311.77 2,000.00 1,125.85 833.33 292.52
Investment Mgmt Fees 3,883.36 4,166.67 (283.31} 10,000.00 4,573.99 4,166.67 407.32
Loss (Gain) on Endowment Investments (9,010.27) 0.00 (9,010.27) 0.00 (4,916.54) 0.00 (4,916.54)
Donations to GNGH 163,243.48 125,000.00 38,243.48 300,000.00 29,149.01 1,129,089.17 (1,099,940.16)
Donations to Other Hospitals 0.00 0.00 0.00 0.00 135,416.67 (135,416.67)
Total Other Expense 159,261.67 130,000.00 29,261.67 312,000.00 29,932.31 1,269,505.83 (1,239,573.52)
FUNDS AVAILABLE IN CURRENT YEAR 8,997.44 341,083.33 (332,085.89) 818,600.00 278,584.91 (836,672.50) 1,115,257.41
Page 1 of 1
.>.~s;'j 4R .
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City of Niagara Falls Board of 1Vluseums
5810 Ferry Street -Niagara Falls -Ontario - L2G 1S9
Te1:905-358-5082 Fax:905-358-0920
Mr. Todd Hamson, Acting Director of Financial Services
City of Niagara Falls
City Hall
4310 Queen Street
Niagara Falls, Ontario
L2E 6X5
October 10th, 2007.
Dear Mr. Harrison,
The City of Niagara Falls Board of Museums would like to take this opportunity to accept your
invitation to present our 2008 budget requests to the Corporate Services Committee of City
Council, and will be present at City Hall on October 29th, 2007.
Mr. Gordon West, Chair of the Museums Board and Kathleen Powell, Museums Manager will be
in attendance to provide a short presentation regarding our budget requests.
Thank you very much,
Sincerely,
;'~~~
Kathleen Powell
Manager, City of Niagara Falls Museums
cc. Board of Museums
City of Niagara Falls Board of Museums Reserve Accounts
As at October 1, 2007
Board of Museums
Raflle Account 6388466 $22,081.03
Monies from this account were raised by the Board of Museums in 2007 through a rafIle whose
proceeds are to be directed towards the Board of Museums Bicentennial Battlefield Project which
includes interpretive trails on the Lundy's Lane Battlefield and and expansion of the Lundy's Lane
Historical Museum
Total $22, 081.03
Lundy's Lane Historical Museum
Earned Income Account 109047 $138,420.42
Monies from this account are intended for larger expenditures for equipment and/or repairs, and
funds raised towards a capital expansion of the facility.
Accessions Account 109022 $16,687,08
This account is maintained for purchasing artifacts for the Museum's collection, as well as items
related to the collection not budgeted for in the Museum's Operating Budget, such as shelving,
conservation equipment and conservation services.
Total $155,107. SO
Willoughby Historical Museum
Earned Income Account 7-150972-8 $6843.82
Accessions Account 7-150972-8 $993.77
Total $7838.59
The money in these accounts has been obtained through admissions, donations, photocopy
services, fundraising activities and raffles.
The earned income account is reserved for purchasing and upgrading office and museums
equipment that is not provided for in the budget. It is also used for artifact repair and
conservation.
The accessions account is reserved for purchasing artifacts related to the Museum' Statement of
Purpose.
City Held Reserve Funds
SPR #7 -New Museum Building
SPR #17 - Lundy's Lane Museum Maintenance
$28,275.00
$19,791.80 -some of this fund was spent in
2007 for repairs and maintenance to the
building
SPR # 251 -Armoury Painting and clean-up
$27,669
Heritage Week $53,953.51
This fund is for use by the Heritage Week Committee for projects related to the City's celebration
of Heritage Week.
~' ~itv of Niagara Falls Board of Museums -Combined Budget 2008
zoo? zoos
Operating Expenses
Board of Museums
Receipts
15, 879.00 19, 879.00
Municipal Grant
15,879.00 19,879.00
Total Receipts
Disbursements
567.00 567.00
Postage, Office Supplies 125.00 125.00
Miscellaneous 3,187.00 3,187.00
Advertising 000.00
2 2,000.00
Integrated Database -yearly licensing fee ,
10,000.00 14,000.00
1812-2012 Task Force
15,879.00 19,879.00
Total Disbursements
October 10, 2007"
:itv of Niagara Falls Board of Museums -Combined Budget 2008
.undy's Lane Historical Museum
October 90, 2007"
2007 2008
Receipts
Provincial Grant 13,500.00 28,670.00
Municipal Grant 201,941.50 202,940.99
Summer Career Access 3,150.00 1,770.00
Revenues 11,500.00 12,500.00
Total Receipts 230,091.50 245,880.99
Disbursements
Staffing and Wages
Wages 145,050.50 149,402.00
EHT 2,756.00 2,838.68
WSIB 493.00 507.79
CPP 7,253.00 7,470.59
UIC 5,313.00 5,472.39
OMERS 7,253.00 7,470.59
Staff Benefits 7,000.00 7,210.00
Summer Career Access 4,500.00 4,500.00
Administration
Financial Audit 3,100.00 3,100.00
Office Supplies 3,500.00 4,500.00
Memberships 600.00 1,000.00
Research Materials 150.00 200.00
Staft Training and Development 300.00 450.00
GST Paid
Website Development
Curatorial
Reference Material 349.00 350.00
Cataloguing Supplies 150.00 100.00
Training and Conferences 750.00 1,250.00
Campbell Research Room 345.00 350.00
:itv of Niagara Falls Board of Museums -Combined Budget 2008
zoo? Zoos
Oaeratina Costs
Telephone /Directory
Hydro
Heat and Fuel
Water
Advertising
Maintenance
Structural Trades
Cleaning Staff
Janitorial Supplies
Conservation
Supplies and Equipment
Outside Conservator
Disolavs and Exhibits
Exhibit Prep Room
Displays
Public Programming
Educational Programmes
Educational Programs
Saleswan:
Purchases
Safes Tax Remitted
Total Disbursements
4,000.00 4,200.00
5,990.00 6,289.50
5,990.00 6,289.50
639.00 &70.95
4,500.00 4,500.00
600.00 1, 750.00
1,600.00 1,820.00
500.00 500.00
475.00 650.00
300.00 300.00
165.00 1, 045.00
4,170.00 13, 895.00
920.00 1,555.00
9,205.00 4,069.00
2,000.00 2,000.00
175.00 175.00
230,091.50 245,880.99
October 10, 2007"
:itv of Niagara Falls Board of Museums -Combined Budget 2008
Willoughby Historical Museum
Receipts
Provincial Grant
Municipal Grant
Summer Career Access
Revenues
Tota! Receipts
Disbursements
Staffino and Wanes
Wages
EHT
WSIB
CPP
UIC
OMERS
Curatorial
Reference Material
Cataloguing Supplies
Training and Conferences
Collections Management
Administration
Bank Charges
Office Supplies
Memberships
Postage
Mileage and Trucking
Staff Training and bevelopment
Office Equipment Repairs and Mtc.
Photocopier Contract
zoo?
3,770.00
125,023.00
1,700.00
130,493.00
87,850.00
1,669.00
299.00
4, 393.00
3,218.00
4, 393.00
430.00
350.00
200.00
8, 836.00
60.00
1,100.00
200.00
200.00
100.00
200.00
250.00
250.00
240.00
soon
7,992.00
114,774.66
0.00
2,000.00
124,766.66
90,485.50
1,719.07
307.97
4,524.79
3, 314.54
4,524.79
430.00
350.00
200.00
5,210.00
60.00
1,100.00
200.00
200.00
100.00
200.00
250.00
250.00
240.00
October 10, 2007"
;itv of Niagara Falls Board of Museums -Combined Budget 2008
Oneratino Costs
Telephone /Directory
Hydro
Heat and Fuel
Water
Advertising
Maintenance
Structural Trades
Cleaning Staff
Janitorial Supplies
Equipment -mechanical &security
Conservation
Supplies and Equipment
Outside Conservator
Disolavs and Exhibits
Displays and Backgrounds
Other Misc.
Honourarium
Educational Programs
Public Programmes
5alesware
Purchases
Sales Tax Remitted
Total Disbursements
October 10, 2007"
2007 zoos
1,300.00 1,300.00
150.00 150.00
2,035.00 2,035.00
220.00 220.00
1,265.00 2, 000.00
7,540.00 2,000.00
150.00 150.00
100.00 100.00
350.00 405.00
665.00 665.00
590.00 345.00
200.00
890. DO 930.00
800.00 800.00
130,493.00 124t76S.6&
;itv of Niagara Falis Board of Museums -Combined Budget 2008
2007
tattle Ground Notel
Receipts
Municipal Grant 67,949.00
67,949.00
Total Receipts
StafFna and Wages
49,945.00
Wages 949.00
EHT 170.00
WSIB 2,497.00
CPP 1,680.00
UIC 2,497.00
OMERS
Utilities
550.00
Phone 1,128.00
Hydro 3,693.00
Gas
1,440.00
Water
Administration
700.00
Office Supplies 500.00
Advertising
Artifacts
Conservation Supplies 500.00
200.00
Displays
1, 000.00
Acquisitions 300.00
Educational Programs
Maintenance
2ooa
72,069.08
72,069.08
51,433.35
977.47
175.10
2,570.88
1,730.40
2, 570.88
550.00
1,128.00
3,693.00
1,440.00
2,700.00
1,000.00
300.00
300.00
1,000.00
300.00
October 10, 2007"
~itv of Niagara Fails Board of Museums -Combined Budget 2008
2007 Zoos
Cleaning Supplies 200.00 200.00
Cleaning Staff
Equipment
Total 67,949.00 72,069.08
October 10, 2007"
Is Board of Museums - Gompin
:ity of Niagara Falls Armoury
Recei is
Municipal Grant
Total Receipts
Staffing and Wages
Wages
UE
WSIB
EHT
CPP
Utilities
Phone
Hydro
Gas
Water
Fire Monitoring
Administration
Office Supplies
Computer & printer
Advertising
Curatorial and Public Progs.
Set-up of common exhibit and curatorial prep space
Signage, etc.
Educational Programs
Maint_ enance
zoos
zoo?
79,569.00
77,969.00
79,569.00
77,969.00
950.00
40
40,950.00 ,
1,500.00
1,500.00 139.00
139.00 780.00
780.00 2,000.00
2,000.00
000.00
2
2,000.00 ,
200.00
13
13,200.00 ,
700.00
7
7,700.00 ,
300.00
3
3,300.00 ,
1,600.00
700.00 700.00
1,000.00
500.00 500.00
1,200.00 2,200.00
October 10, 2007"
:itv of Niagara Falls Board of Museums -Combined Budget 2008
Cleaning Supplies
Cleaning Staff
Equipment
zoo? zoos
500.00 500.00
Z, 000.00 2, 000.00
500.00 500.00
Total 77,969.00 79,569.00
October 10, 2007"
;itv of Niagara Fails Board of Museums -Combined Budget 2008
Summary of Receipts, Disbursements and Municipal Grant Request
Grand Total Receipts
Grand Total L)isbursements
Grand Totai Municipal Grant -Operating
Capital and Reserve Reauest Detail
Capital
Armoury -Capital budget carry-over from 2007
Reserve
Transfer to Reserves -Battle Ground Hotel Buildings /Facilities
Reserve
Transfer to Reserves -Willoughby Historical Buildings /Facilities
Grand Total Municipal Grant Request -Capital and Reserves
October 10, 2007"
2ooT Zoos
522,381.50 542,164.73
522,381.50 542,164.73
488,761.50 489,232.73
48,000.00
5,000.00
2,000.00
55,000.00
v
NIAGARA FALLS * ONTARIO * CANADA
October 16, 2007
Corporate Services Committee
The City of Niagara Falls
City Hall, P.O. Box 1023
4310 Queen Street
Niagara Falls, ON L2E 6X5
5400 Robinson Street, 2nd Floor
Niagara Falls, ON L26 3X4
Tel: 905-374-1616 • Fax: 905-374-4683
Email: Info@wfol.com • WFOL.com
RE: Winter Festival of Lights - 2008 Proposed Operating Budget /Funding Request
Dear Members of the Corporate Services Committee:
I enclose herein for your review the 2008 Proposed Operating Budget of the Winter
Festival of Lights along with our most recent audited financial statements.
The Winter Festival of Lights Board respectfully requests 2008 funding from the City of
Niagara Falls in the amount of $380,000. This is a 0% increase from our 2007 approved
municipal funding request, and remains at the same level requested and received for the
past several years.
We ask for your continued support to allow the Winter Festival of Lights to continue to
be a powerful driver of the local economy in the winter months while enhancing the
social fabric of the community.
Sincerely,
WINTER FESTIVAL OF LIGHTS
c~s~-~x
Ethel White-Ashby
Chair
WINTER FESTIVAL OF LIGHTS
OPERATING BUDGET
2007 2008
REVENUES Ap proved Budget Pro posed Budget
Public Funding
Ontario Tourism $ 45,000.00 $ 50,000.00
City of Niagara Falls $ 380,000.00 $ 380,000.00
Employment Ontario $ 10,000.00 $ 12,000.00
Corporate Sponsors $ 226,000.00 $ 181,110.00
Other Funding $ 364,772.00 $ 373,704.00
TOTAL REVENUES $ 1,025,772.00 $ 996,814.00
EXPENDITURES
Rent
Warehouse Rent
Insurance
Telephone
Bookkeeping/Auditing Fees
Legal Fees
Bank Charges
Photocopier Exp
Internet Charges
Office Equipment Maintenance
General Meetings & Sundries
Memberships & Dues
Office Supplies
Postage/Courier
General Mileage
Miscellaneous
Freight/Shipping
Employee Health Benefits
Donations
WSIB
Office Maintenance
Salaries (incl employer deductions)
HRSDC Expenses
Volunteer Expenses
Board Expenses
Sponsorship Expenses
Fundraising Expenses
Marketing/Advertising
Opening Weekend Events
Lights & Lighting Displays
Other Events
TOTAL OPERATING EXPENDITURES
$
$
$
15,900.00
7, 800.00
6,200.00
7,500.00
4,000.00
2,300.00
500.00
1,000.00
1, 500.00
5,000.00
2, 500.00
2,500.00
2,000.00
300.00
15,000.00
400.00
750.00
207,000.00
2, 900.00
5, 800.00
150.00
30,000.00
36,700.00
167, 825.00
20,ooo.oa
290,062.00
190,153.00
1,025,740.00
$
$
17,000.00
5,406.00
6,700.00
6,000.00
9,500.00
2,500.00
3,000.00
2, 500.00
600.00
CAPITAL EXPENDITURES $
Contingency $
BALANCE $
32
1,000.00
1,800.00
6, 500.00
2, 500.00
2,500.00
2, 000.00
300.00
10,000.00
500.00
900.00
300.00
230,642.00
2,000.00
6,100.00
100.00
23,148.00
25, 000.00
190,450.00
24,000.00
157,657.00
135,296.60
875,899.60
112,810.00
3,500.00
4,604
WINTER FESTIVAL OF LIGHTS
OPERATING BUDGET
IN-KIND CONTRIBUTIONS 2008
Niagara Parks Commission $ 250,000.00
Employment Ontario $ 45,000.00
City of Niagara Falls $ 20,000.00
Tim Hortons $ 12,000.00
David Whysall Fireworks $ 8,480.00
Various Other $ 11,000.00
IN-KIND MARKETING SUPPORT
Cogeco Cable $ 20,000.00
Niagara Falls Review $ 14,310.00
Niagara this Week $ 9,010.00
105.1 FM $ 3,000.00
CAA Magazine $ 5,000
AAA Motorist Magazine $ 7,627
Niagara Falls Tourism -Ads $ 10,600.00
STAR 102.5 FM $ 5,250.00
TOTAL IN-KIND CONTRIBUTIONS $ 421,277.00
~ 2
~ 1 ~ Y
'7
WINTER FESTIVAL OF LIGHTS
Financial Statements
for the Year Ended March 31, 2007
and Auditors' Report to the Directors
DURWARD JONES BARKWELL S COMPANY LLP Chartered Accountants
WINTER FESTI~IAL OF LIGHTS
FINANCIAL STATEMENTS
MARCH 31, 2007
Auditors' Report to the Directors .........................
Statement of Operations .....................................
Statement of Fund Balances ..............................
Balance Sheet ....................................................
Statement of Cash Flows ....................................
Notes to the Financial Statements ......................
CONTENTS
..............................................................................................1
..............................................................................................2
.................................................. . ... ........................................3
....................................................... . ......................................4
............5
DURWARD JONES BARKWELL & COMPANY LLP Chartered Accountants
i CHARl'~RED ACCOLTNTAN 1~
AUDITORS' REPORT
To the Directors of
Winter Festival of Lights:
DLiRWARD JONES BARKWELL
& COMPANY LLP
3650 Portage Road, P.O. Box 873
Niagara Falls, Ontario L2E 6v6
T 905.357.5711 TF 866.223.8459 F 905.357.7932
E nfallsCudjb.com www.djb.com
We have audited the balance sheet of Winter Festival of Lights as at March 31, 2007 and the
statements of operations, fund balances and cash flows for the year then ended. These financial
statements are the responsibility of the organization's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
Except as explained in the following paragraph, we conducted our audit in accordance with Canadian
generally accepted auditing standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation.
In common with many non-profit organizations, Winter Festival of Lights derives revenue from
donations, sponsorships, and fundraising activities, the completeness of which is not susceptible to
satisfactory audit verification. Accordingly, our verification of these revenues was limited to the
amounts recorded in the records of the organization and we were not able to determine whether any
adjustments might be necessary to donation, sponsorship and fundraising revenues, excess of
revenue over expense, assets and deficit.
In our opinion, except for the effect of adjustments, if any, which we might have determined to be
necessary had we been able to satisfy ourselves concerning the completeness of the donations,
sponsorships and fundraising activities referred to in the preceding paragraph, these financial
statements present fairly, in all material respects, the financial position of the organization as at
March 31, 2007 and the results of its operations and its cash flows for the year then ended in
accordance with Canadian generally accepted accounting principles.
~.N.,.~a d~._, c~..,~, a . G..~ , o
Durward Jones Barkwell & Company LLP
Licensed Public Accountants
June 13, 2007
Big enough to low e
SMALL ENOUGH TO CARE
BURLINGTGN FORT ERIE GRIMSBY HAMILTON NIAGARA FALLS ST. CATHARINES STONEY CREEK WELLAND
WINTER FESTIVAL OF LIGHTS
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2007
2
2007 2006
REVENUE
Government funding (Note 2) °$ 429,189 $ 503,569
Corporate funding 231,036 169,500
Fundraising events 81,562 102,711
Other funding 239,042 206,162
980,829 ; 981,942
EXPENDITURES
Advertising and promotion ?71,585 164,877
Capital campaign 15,692 ' -
Depreciation -Capital Fund 86,221 61,392
Donations - 95
Festival events -
Fireworks :49,440 44,505
Misty Kids 52,630 18,305
New Year's Eve 7,288 48,864
Parades - 24,302
Fundraising events 57,970 72,649
Human resource development community .1.,437 3,049
Light display 124,524 78,087
Office administration 51,097 33,845
Opening weekend 15,029 9,814
Rent 24,363 28,761
Salaries and benefits 160,306 155,656
Sponsorship committee 20,095 ' 22,206
Staging, audio and lighting 9,591
Volunteer committee _ 4,362 5,707
842,039 781,705
INCOME FROM OPERATIONS 138,790 200,237
OTHER REVENUE
Gain on forgiveness of debt - 115,414
Gain on disposal of assets -Capital Fund 10,711 -
EXCESS OF REVENUE OVER EXPENDITURES $ 149 501 $ 315,651
DURWARD JONES BARKWELL b COMPANY LLP Chartered Accountants
WINTER FESTIVAL OF LIGHTS
STATEMENT OF FUND BALANCES
YEAR ENDED MARCH 31, 2007
3
Capital Operating Total Total
Fund Fund 2007 2006
BALANCE, BEGINNING OF YEAR $ 272,851 $' 71,188 ` $ 344,1137 $ 28,386
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (75,51Q) 225,011 _ 149,501 315,651
INVESTMENT IN CAPITAL ASSETS 228,462 (228,462) -
PROCEEDS ON DISPOSAL OF ASSETS 517,383) 17,363 - _
BALANCE, END OF YEAR $ 448 440 $ 85,098 $ .493,538 $ 344,037
DURWARD JONES BARKWELL b COMPANY LLP Chartered Accountants
WINTER FESTIVAL OF LIGHTS
BALANCE SHEET
MARCH 31, 2007
4
2007 2006
ASSETS
Current assets
Cash $ 59,675 $ 91,591
Accounts receivable 47,027..:. 71,759
Inventory ' 10,8'i4 8,644
Prepaid expenses 7,439 3,253
Capital assets (Note 3)
'; 124,955 175,247
408,440; 272,851
$ 533 395 $ 448,098
LIABILITIES
Current liabilities
Accounts payable and accrued charges $ 20,422 $ 104,061
Deferred revenue 19,435 - -
39,857 104,061
Commitment (Note 41
FUND BALANCES -
Operating Fund -Unrestricted 85,098 71,186
Capital Fund -Invested in capital assets 408x440 272,851
493538 344,037
.-...533,395 $ 448,098
Approved by the Board:
Director
........................... Director
DURWARD JONES BARKWELL b COMPANY LLP Chartered Accountants
WINTER FESTIVAL OF LIGHTS
STATEMENT OF CASH FLOWS
YEAR ENDED MARCH 31, 2007
5
20107 2006
OPERATING ACTIVITIES
Excess of revenue over expenditures $_ 149,501 $ 315,651
Items not affecting cash
Depreciation 86, 221 61, 392
Gain on forgiveness of debt - (115,414)
Gain on disposal of assets (10,711) -
225,011= 261,629
Changes in non-cash operating assets and liabilities
Accounts receivable 24,732 128
576
Prepaid expenses (2,170) ,
(8 644)
Inventory (4,186) (2,870)
Accounts payable and accrued charges (83,639),''` (200,616)
Deferred revenue ~ 19,435 (31,667)
179,183 146,408
INVESTING ACTIVITIES
Capital expenditures (228,462} (72,946)
Proceeds on disposal of assets 17,363; ' -
(211,099} (72,946)
INCREASE (DECREASE) IN CASH {31,916) 73,462
CASH, BEGINNING OF YEAR 9..1.,591 - 18,129
CASH, END OF YEAR $ 59,675 $ 91,591
DURWARD JONES BARKWELL E COMPANY LLP Chartered Accountants
WINTER FESTIVAL OF LIGHTS
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2007
6
1. SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION
Nature of business
Winter Festival of Lights was created by letters patent in June 1992 under the laws of the Province of Ontario
and operates as anon-profit organization which is responsible for promoting and organizing an event known as
the Winter Festival of Lights held each year in Niagara Falls, Ontario.
Fund accounting
The organization follows the fund method of accounting whereby financial statement elements are reported by
fund. Restricted funds have stipulations that specify how resources must be used. Unrestricted funds have no
stipulations.
The Operating Fund accounts for all of the organization's operating activities associated with the Winter
Festival of Lights and reports unrestricted resources.
The Capital Fund accounts for all of the organization's capital assets. Capital assets are recorded at cost and
are depreciated over their estimated useful lives using the declining-balance method at the following rates:
Computer equipment 30%
Computer software 100%
Floats 40%
Furniture and equipment 20%
Light displays 20%
Mascots 30%
Power supply 10%
Leasehold improvements are amortized on a straight line basis over afive-year period. Additions during the
year are depreciated from the month of acquisition. Disposals are depreciated until the month of disposition.
Revenue recognition
The organization follows the Restricted Fund method of accounting for contributions. Under this method,
unrestricted contributions are recognized as revenue of the Operating Fund in the period for which the
contribution relates. Unrestricted contributions received for future periods are deferred and recognized as
revenue in the periods the related expenses are incurred. Restricted contributions received for which a
separate fund is not presented are recognized in the Operating Fund in accordance with the deferral method,
whereby contributions for expenses of future periods are deferred and recognized as revenue in the periods
the related expenses are incurred. Corporate funding, fundraising events and other funding are recognized as
revenue as earned.
Deferred revenue
Cash received prior to year end for next year events is recorded as deferred revenue.
Contributed materials and services
The organization receives contributed materials and services which are not recognized in the financial
statements because of the difficulty in determining their fair value.
Financial instruments
The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximates their
carrying value due to the relatively short-term nature of these instruments.
DURWARD JONES BARKWELL 3 COMPANY LLP Chartered Accountants
WINTER FESTIVAL OF LIGHTS
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2007
1. SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (continued)
Use of estimates
The preparation of financial statements in accordance with Canadian generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from management's best estimates, as additional information
becomes available in the future.
2. GOVERNMENT FUNDING
City of Niagara Falls
Human Resources & Skills Development Canada
Ontario Ministry of Tourism and Recreation
Ontario Trillium Foundation
3. CAPITAL ASSETS
Computer software
Computer equipment
Floats
Furniture and equipment
Light displays
Mascots
Power supply
Leasehold improvements
4. COMMITMENT
- 2007 2006
380,000 $ 380,000
12,189 23,869
37,000 44,500
- 55,200
$ 421189 $ 503,569
ZOtj7 2006
Accumulated Net Book Net Book
Cost Depreciation Value Value
$ 8,052 $ 8,052 ~ - $ 7,952
.47,152. 25,792 21,360 30,081
55,783 46,822 8,961 14,936
11,689 9,820 1;869. 2,098
.984,623 661,814 322,805 183,022
32,555 14,521 18,034 12,169
56,123 35,789 20,334 22,593
16.,748 1,675 15,073 -
$-1,212,725 $ 804,285 $ 408 440. $ 272,851
The organization leases facilities under a lease agreement which expires in October 2009 and requires monthly
payments of $1,250 plus GST. In addition, the organization is responsible for its pro-rata share of certain
common area expenses.
5. ECONOMIC DEPENDENCE
The organization is dependent upon continued government funding at various levels in addition to corporate
sponsorships, contributed materials and services, and volunteer involvement. The operations could not be
continued without this funding, contributions or volunteer support.
DURWARD JONES BARKWELL b COMPANY LLP Chartered Accountants
~.,
ONE VNONDER AFTER ANOTHER
NIAGARA FALLS TOUItiSii
Mr. Todd Harrison
Acting I3ir. Financial Services
4310 queen Street
PO Box 1023
Niagara Falls, ON
L2E 6~5
October 9, 2007
Bear YIr. Harrison:
As per your request dated September 6th, 2007, I respectfialiy submit this request for funding to the City of
Niagara Falls an behalf of the Board and Members of Niagara Falls Tourism, During the Corporate
Services Committee 2045 Budget deliberations, Niagara Falls Tourism agreed to a decrease in Municipal
Support of $50,000.00 per year. The funding was to be augmented by a grant from the Ontario Power
Generating Corporation {$70,000.00 to be ear-marked for web-based marketing plus a care of $140,040).
In 2006, our request did indeed reflect this agreement. Unfortunately, the past year has been a struggle for
our industry. visitation fram our key US markets decreased at an astounding rate for a multitude of reasons
{confusion over passport requirements, exchange rates, perceived waiting times at border crossings, etc).
The Niagara Falls Tourism industry required a more aggressive, coordinated and far-reaching advertising
strategy in order to sotlen the blow. ~e were able to mitigate some of the downfall with a very successful
television/web campaign, however there is much more work to be done. In order to continue on the path
our Board of Directors has set, assistance will be required from experts in the advertising Feld. To this end,
our Board has asked that Nagara Falls Tourism contract the services of an Agency of Record for the
coming year. This agency would be responsible for ensuring that we present Niagara Falls in the best
possible light to our potential visitors.
In addition, our industry is currently facing a major issue with Human IZesoui°ce recruitment. ~~~/ith the
announcement of the new Convention and Civic Centre, recruitment will become a far bigger issue for our
industry in the next three years -one which needs to be addressed immediately. research shows that a
strong destination brand is essential in recruiting and retaining qualified employees. An ~igency of Record
would assist us in creating and maintaining a brand that would attract potential employees as wail as
visitors and investors.
In order to advance the organizations goals and provide the services our members so desperately need,
additional funding is required. Although membership fees have been signi#~cantly increased, more funding
will be necessary. Niagara Falls Tourism, therefore requests that a grant of $444,000,40 be considered for
the coming year. A copy of our proposed budget is attached. I would be pleased to appear before the
Council at any time to present the plan and answer any questions.
In the interim, if you have any questions or comments, please do not hesitate to contact me directly. ivly
contact information is indicated below.
~i'ours truly,
~~~ - ~~
r~zina fierce
lJxecutive Director
Niagara Falls Tourism
54DO Robinson Street
1~tiagara Fa11s, ~JN
1J2G 2~b
'Tel: {9Q5) JSb-btlbl iJxt. i7
Fax: {9(35) 35b-5567
E-mail: auie,cer?niaaara-Fallsiourism.c~:m
Niagara Falls Tourism
Budget of Revenues and Expenses - 2007/2008
EXPENSES
Member Program Exoenses
Website
Enquiry Kits
Brochure Distribution
Guide Niagara
Misty Awards
Tear Off Maps
Honeymoon Certificates
Miscellaneous Advertising Exp
Total
Co-oo Advertising Expenses
~OTMP Co-op
Dining and Shopping Guide
Destination Planner
Travel Trade
Travel Trade -Asia Pacific
AMC&IT Program
Miscellaneous Advertising Programs
Web-based Advertising Programs
2006/2007 ~u~dget
$18,000.00
$18, 500.00
$'150,000.00
$17,092.0®
$24, 000.00
$20, 094.00
$750.00
$55,419.00
~cD0 7y8~~.QQ
$486,120.001_
$44, 073.00
$75,492.00
$61, 500.00 ~
$30,000.00
$64,000.00
$70,000.00{
$0.00
$78,000.00
$20,000.00
$150,000.00
$15,®OC1.001
$18y000.00~
$21,000.00
~80a.00
i~$j'7ry+2y,000y.0y09
+Ya7 V V,O00.00
$46,200.00
$0.00
$70,000.00
$30y000.00
$55,000,00
~$p70,000.00
p~0y0®®.00
Total' $831 y185.00 $561 y20a.00
Total EXperl$es $1,135,04@.00 $1 y036,000.00
Niagara Faifs Tourism
Budget of Revenues and Expenses - 2007/2008
Revenues
Membership Fees. Grants and Miscellaneous
Membership Fees
City of Niagara Falls Annual Grant
OPG Annual Grant
WFOL (Rent)
Info Centre Revenues
Miscellaneous Revenues
Total
Member Program Revenues
Website
Enquiry Kits
Brochure Distribution
Guide Niagara
Misty's
Total
Co-Op Advertising Revenues
OTMP Co-Op Opportunities
Dining and Shopping Guide
Destination Planner
Travel Trade
Travel Trade -Asia Pacific
MC&IT Program
Miscellaneous Advertising Programs
2006/2007
X341, 754.0ry0
$280, 00®.00
X100,000.00
X15,000.00 _v...
X45,00®.00
X12,000.00
$793,754.00
$3$0,395.00 1
X50,000.00 I
X150,000.00 I
$22,450.00
X16,232.00
$610,077.00
X212,207.00
X64,500.00
X70,005.00
$69, 775.00
$28,057.00
$55,648.00
$48, 870.00
Budget
WJa7N,WoV.VV
$4oOy000.00
~~ ®®,®®0.00
$15y000.00
$50,00®.00
~15ya®0.00
$0`5,000.00
~250,000.00I
X50,0®0.00
$150,000.00
~~2yd150.o0
X18,000.00
~~~0,~50.00
$300,000.00'
rp90yaa®.®V
~a.oo
.p30g00O.00
$55,000.00
$5Oy000.00
Total ;549,062.00 $5Z38yaaa.aa
TOTAL REVEWUE~ ~ ~ $1,g61,8g3.00~~ $2,053,450.00
DRAFT - \ler. 9
Niagara Falls Tourism
Budget of Revenues and Expenses - 2007/2008
2008/2007 budget
General /~dministratic~n
Salaries and Benefits -Administration I $252,000.00 $280,00O.OOI~
Salaries and Benefits -Asia Pacific $31,800.00 ~ $35,000.00~
Salaries and Benefits - MC~IT
$55,000.00 ~ ~
$58,000.00
Salaries and Benefits -Travel Trade $48,330.00 $50,000.00
Info Centre -Robinson StJRainbow Bridge _
I $82,500.00~~ $85,000.00
Info Centre -Stanley Avenue $38,000.00 $4t0,000.00~
®ffice Expenses $20,000.00 $25,000.00
Meetings Expenses ! $22,00O.OOI~ $25,000.00~~
Postage $11,000.00 $12,000.00
Telephone/Blackberry $18,000.00 $20,000.00
Computer Support $2,000.00 $5,000.00
Research and Dev. $30,200.00 ~ $15,000.00
Assoc. Memberships ~ $24,000.00 ~ $25,000.00
Public Relations $24,530.00~~ $15,000,00
Photo & Image Library $0.00 $°10,000.00
Rent
$55, 000.00 ~ _
$80,000.00 ~
Equipment Rentals $15,000.00( $16,000.00
Maintenance $1,800.001 $2,000.00
Insurance ~ $8,054.00 $10,000.00
Legal and Accounting $8,000.00( $42,000.00~
Bank Charges and Interest
$7,000.001 ~
$7,200.00
Bad Debt $700.00 $5,000AO~
Miscellaneous
$525.00 ~
$5,000.00
(T®tal $767,430.00( $857,200.00
Total Revenues ~ $2,053,450.00
Minus General Expenses $857,200.00
Minus Marketing Expenses $1,036,000.00
$1,303,200.00 ~
Tr~tal Sur{~lu~s ~ ,~ I ~~5a,~~o.~a]
Total Deficit (~Ob~/b7) $100,000.00
Total ~t~aarrr~ X50,250.00
NIAGARA CHAIR-A-VAN
BUDGET - 2008
Actual 2007 Est Est Est Est Est 2007 Budget
Jan -Aug Sep Oct Nov Dec Total Budget 2007 Budget 2008 inc/dec
REVENUE
Passenger Revenue $ 28,126 $ 3,100 $ 3,100 $ 3,100 $ 3,100 $ 40.526 $ 36,200 $ 40,000 $ 3.800 10.50%
Charter Revenue $ 930 $ - $ - $ - $ - $ 930 $ - $ - $ -
School Board $ - $ 4,700 $ 5,850 $ 6,075 , $ 4.050 $ 20,675 $ - $ 42,703 $ 42,703 .
TOTAL REVENUE $ 29,056 $ 7,800 $ 8,950 $ 9,175 $ 7,150 $ 62,131 $ 36,200 $ 82,703 $ 46,503 128.46%
OPERATING EXPENDITURES,
Operators (4 FIT) $ 109,493 $ 14,558 $ 14,500 $ 14,500 $ 14,500 $ 167,550 $ 163,800 $ 180,000 $ 16,200 9.89%
PT I $ 19,550 $ 2,739 $ 2,600 $ 2,600 $ 2,600 $ 30,088 $ 17,645 $ 33,000 $ 15,355 87.02%
Contract Driver & monitor I $ - $ 1,900 $ 2,100 $ 2,100 $ 1,500 $ 7,600 $ - $ 19,570 $ 19,510 ~
Total Driver Wages I $ 129,042 $ 19,196 $ 19,200 $ 19,200 $ 18,600 $ 205,239 $ 181,445 $ 232,570 $ 51,125 28.18%
Dispatcher (office) inc. to 40hr ~ $ 28,102 $ 3,415 $ 3,400 $ 3,400 $ 3,400 $ 41,717 $ 41,760 $ 45,000 $ 3,240 7.76%
PT Office help [30 hrslwk] I $ - $ 1,320 $ 1,320 $ 1,260 $ 3,900 $ - $ 17,160 $ 17,160 I
Workers Compensation I $ 4,704 $ - $ - $ - $ 5,000 $ 9,704 $ 10,000 $ 11,500 $ 1,500 15.00%I
Employment Insurance I $ 3,950 $ 570 $ 590 $ 565 $ 550 $ 6,225 $ 5,420 $ 7,000 $ 1,580 29.15%~
Canada Pension Plan I $ 6,602 $ 968 $ 1,035 $ 995 $ 965 $ 10,565 $ 9,300 $ 12,000 $ 2,700 I 29.03°l0~
Employees Benefits I $ 14,729 $ 1,789 $ 1,789 $ 1,789 $ 1,789 $ 21,884 $ 20,400 $ 24,000 $ 3,600 I 17.65°!0l
Total Wages 8~ Benefits $ 187,129 $
-
- 25,938 I $ 27,334 I $ 27,269 I $ 31,564 I $ 299,235 ~ $ 268,325 I $ 349,230 $ 80,905 I 30.15%I
--
r
-- -
Advertising I
I $
170
$
25
$
-
$
200
$
-
$
395
$
400
$
500
$
100 I
25.00%~
Administrative Costs I $ 2,000 $ 1,000 $ - $ - $ 2,000 $ 5,000 $ 5,000 $ 5,000 $ - 0.00%1
Audit Fees I $ 541 $ - $ 250 $ - $ 1,300 $ 2,091 $ 1,100 $ 1,300 $ 200 18.18%
Van Maintenance I $ 30,052 $ 4,511 $ 4,200 $ 4,200 $ 4,200 $ 47,163 $ 42,000 $ 50,000 $ 8,000 19.05%
Gas & Oil I $ 28,100 $ 3,838 $ 3,500 $ 3,500 $ 3,500 $ 42,438 $ 40,200 $ 48,000 $ 7,800 19.40%
Insurance I $ 13,905 $ 1,735 $ 1,735 $ 1,735 $ 1,735 $ 20,845 $ 20,845 $ 25,000 $ 4,155 19.93%
Office Expense + $ 2,408 $ 289 $ 315 $ 315 $ 600 $ 3,927 $ 4,065 $ 4,300 $ 235 5.78°to
Rent $ 3,200 $ 400 $ 400 $ 400 $ 400 $ 4,800 $ 4,800 $ 5,000 $ 200 4.17%I
Telephone $ 1,751 $ 223 $ 225 $ 225 $ 225 $ 2,648 $ 2,580 $ 2,800 $ 220 8.53%~
Uniform I $ 1,015 $ 179 $ 250 $ 250 $ 225 $ 1,919 $ 1,700 $ 2,200 $ 500 29.41%
Management Expenses I $ - $ - $ - $ - $ 500 $ 500 $ 500 $ 600 $ 100 20.00%
Taxis $ 28 $ - $ - $ - $ - I $ 28 $ - $ - $ -
Training $ 539 $ 39 $ 60 I $ 60 $ 60 i $ 758 $ 1,000 ($ 1,200 $ 200 20.00%
Total -Other Expenses $
I 83,708 $ 12,237 $ 10,935 $ 10,885 $ 14,745 $ 132,510 $ 124,190-(-$ 145,900 $ 21,710 17.48%
TOTAL EXPENDITURES
$ 270,837
$
38,176
$
38,269
$
38,154
$
46,309
$
431,745
$
392,515 I
$
495,130
$
102,615
26.14%
EXCESS OF EXPENDITURES
OVER REVENUE I $ 241,781 $ 30,376 $ 29,319 $ 28,979 $ 39,159 $ 369,614 $ 356,315 j $ 412,428 $ 56,113 15.75%~
- ~ 4 ! 29 Stanley Avenue, Unit 2 Niagara Falls, Ontario L2E 7H3
~. .. Phone: 905.357.5121 Fax: 905.357.0143
~' » - - ~°'~' "~~~ Email: info@projectshare.ca Web: www.projectshare.ca
BOARD OF
DIRECTORS
Jim Ferraro
Chairman
john Carter Todd Harrison
Past Chairman Acting Director of Financial Services
City of Niagara Falls
Bart Maves 4310 Queen Street
City Council Representative Niagara Falls, Ontario
Anna Luciano September 14, 2007
Treasurer
Greg Medulun Dear Mr. Harrison,
Joyce Morocco
Brian Pellow As requested, we have submitted a detailed budget of revenues and expenditures
Paisley January Pool
Brian Thompson for 2008 with com arable ro ected fi ures for our 2007 o erations. Also enclosed
p p J g p
Selina Volpatti is a copy of our audited financial statements.
Members
We are reviewing our reserves annually to ensure adequate cash flows, to provide
Elaine Harvey for financing of replacements of acquisition of assets that are currently
Executive Director depreciating, to avoid borrowing requirements caused by a sudden reduction in
Karen Stearne funding, to provide financing for one-time expenditures without permanently
Honourary Member impacting our financial position, to provide flexibility and provide a source of
internal financing. A 6 month Employment Standards reserve has been established
at the recommendation of our auditors at Crawford, Smith & Swallow. We have
also been working with builders who will be doing major renovations to our
warehouse space. This project will begin next month and have a significant impact
on our reserves.
In addition to the money we receive annually from our funding sources,
(including the City of Niagara Falls), in order to balance our budget we are
required to fundraise approximately $300,000 yearly, which is over 1/3 of the total
budget. Because of recent layoffs in tourism and manufacturing sectors, some of
our previous donors are now coming to us for assistance. Many city agencies are
forced to fundraise and with fewer donors each year, it is getting harder to meet this
~~~ challenge. We really appreciate our partnership with the city of Niagara Falls.
Without your help, we would not be able to continue to help the less fortunate in
Niagara,Falls
N a ~A our community.
Niagara/`f Region Sincerely,
Building Community. Building Lives. '~~~
'P' Elaine Harvey
Executive Director
UNITED WAY OF NIAGARA FALLS
REGISTERED CHARITY NUMBER
107867338RR0001
- A measure of a community is how it treats those who are disadvantaged
Project S.H.A.R.E. Report to City Hall
October, 2007
Coordinated Emergency Services was created in 1983 as an
emergency food bank, as Niagara Falls' economy was hard hit by the
recession. In 1989 the services offered were expanded in response to an
ongoing need and renamed Project S.H.A.R.E. to include emergency
housing, utilities and prescription assistance as well as a food co-operative
for families in our community who live on a low income. All of our
programs are of a self-help nature, empowering consumers who use our
services.
Funding received from the City of Niagara Falls is used to operate
the emergency food program. The number of times people came to us for
assistance, (units of service), has almost doubled in the past 10 years. Our
city's economy has been affected by layoffs in the manufacturing and
tourism sectors over the past decade. More and more people are finding
themselves in situations where they are forced to ask for help with utilities,
food, prescriptions or housing. We received grants from the United Way
as well as the city but we still must fundraise over one third of our budget.
Our housing program, partially funded through the Ministry of Housing
filtered through the Region, has only increased from $51,343 in 1992 to
$54,036 in 2007, even though requests for housing assistance are increasing
annually. Our staff has grown from 4 to 12 full-time employees since we
opened our doors in 1989 as Project S.H.A.R.E. We are presently operating
at full capacity and without coop students, Service Canada grant staff and
volunteers we would not be able to assist the families living on low income
coming to us for help efficiently and treat them with dignity. 68% of our
volunteers are people we help who want to "give back" to our agency.
In 1989 our food coop participation program began with 10 families
as an experimental pilot project. Members who join are required to work
three hours each month at Project S.H.A.R.E. and attend bi-monthly
meetings each month. Food assistance is given once per month. They also
receive some "extras" like cleaning products or household items for their
additional work and responsibility.
Members of the Project S.H.A.R.E. Participation Program are given
donated tickets to local tourism venues and plays. Over the years we have
found that membership in the coop builds self-confidence, responsibility
and many close relationships. We have had many members make the
jump from social assistance to full-time employment. Some of our former
members stop in to donate food as a way of giving back once in a while.
Because of the success of the Project S.H.A.R.E. food coop, our
membership has grown from 10 families in 1989 to almost 100 families in
2007. This has affected the amount of food given out over the past decade.
The pounds of food we give out in our emergency, Christmas Basket
and food coop programs increased by 200% over the past 10 years. At a
cost of $1.80 per pound in 1995 the dollar amount of food given out: was
$372,988. Presently we are using a conservative estimate of $2.00 per
pound to value our food. Using this figure the dollar amount of food
given to assist those in need in 2007 will top $1,000,000.
Our statistics for emergency food assistance are once again on the
rise in 2007. We are seeing over 100 new families each month who :have
never had to use our services before. Our housing statistics have
decreased slightly only due to the method we use to record client visits to
be more in line with Regional requirements. We hired a Warehouse
Assistant through Service Canada Opportunities for people collecting
Ontario Disability. This grant will expire in November of this year.
Without this staff supplement we would have to use a volunteer for this
position. Last year we hired afull-time Volunteer Coordinator for the first
time and we are in the process of building a volunteer program.
GICs in a total amount of $230,546 have been put aside to cover
capital expenditures and employment standards, but we will soon need a
larger truck for food pickups and deliveries and computer equipment and
software need to be updated each year. Our utility costs, van fuel and
condominium fees are also rising rapidly. $50,000 has also been
appropriated for food purchases if necessary.
In addition to the money we receive from our funding sources in
2007, (including the City of Niagara Falls), to balance our budget we are
obligated to fundraise almost $300,000 and close to $1,000,000 worth of
food. Less than half the food we raise and distribute to the needy in our
community comes from donors in Niagara Falls. This food raising takes
up so much staff time that many of our staff members work at Special
Events or fundraisers on many weekends or evenings throughout t:he year.
We are in competition with other worthwhile agencies in Niagara
Falls for a limited amount of donation dollars. The economy of our' city
fluctuates annually due to factors over which we have little or no control.
The demand for our services is steadily increasing. We see a lot of
working people who just don't make enough to make ends meet. Many of
the people who come to us for help have some type of mental ilhzess or
disability. Some of the residents of our community who have givers
money or food to us in the past are now unable to do so due to the rising
cost of living or layoffs and temporary jobs in the tourism and
manufacturing sectors.
We are constantly seeking out partnerships to save money artd
improve the services we offer. Canadian Mental Health Association,
Credit Counseling of Regional Niagara, Niagara Regional Sexual Assault,
Niagara Nutrition Partners, Ontario Disability, Ontario Works, and the
Homelessness Initiative Outreach program all work out of our o:Efice on
Stanley Avenue and counsel our clients.
Revenue and expenditure budgets are included for 2007 and 2008.
As costs increase and client numbers increase we will not be able to hire
more staff to fundraise the amounts needed and are requesting funding
once again from the City of Niagara Falls.
Project SHARE 2007 Expense Budget
Budget
"Internal Working Document"
City Region Unit. Way Bingo/Nevada Health/HRDC
I I I I
Staff Salaries & Benefits 1 5273331 2561161 417391 366961
I Bank Service Charges 1 14501 I I 12001
Conferences -Education 1 30001 I 1 25001
Christmas Basket Program 1 500001 I I I
Employee Group Insurance 1 460711 25197) 1 110001
Emergency/Utilities/Uway 1 227001 I I 227001
Emerg. Dental/Prescriptions 1 22501 I I I
Emergency Services/Other 1 20001 I I I
1 Food Distribution 1 50001 35001 I I
(Food Vouchers 1 100001 50001 I I
Insurance - Bd. Of Directors 1 13391 6501 I 1801
Insurance -Building 1 52211 I 1211 51001
I Insurance -Vehicle 1 15381 1 1 15381
11 nternet 1 10001 1 1 10001
(Jump Start Sports Program 1 100001 I I I
I Building Maintenance 1 175001 1 1 160001
Van Maintenance 1 10001 I I I
Fuel for Vehicle 1 60001 50001 I I
(Niagara Region Shelter I 200001 1 200001 I
I Photocopying 1 12501 1 1 2501
(Postage 1 12001 1 1 10001
`Printing 1 10001 1 1 10001
1 Professional Fees 1 25001 5001 1 20001
1 Promotions 1 7501 I
(Special Events Expense 1 100001 I I 75001
(Staff Education 1 10001 1 10001
Supplies -Office 1 100001 10001 1 90001
Supplies -Savoury/Garden 1 30501 I I I
Trans. To Replacement Reserve 24000 5000 2000 70001
Telephone 7000 500 65001
(Transportation 1 135001 20001 80001
1Condo Fees 1 110001 1 1 110001
100001
I
132301
I
I
I
i
i
I
I
30501
I
I
I
2007 budgetcityofnf
Donations Rental
Can. Tire Fundraising
1 1595521 10000
I
1 2501
1 5001
1 500001
1 98741
I
1 22501
1 20001
1 15001
1 50001
1 5091
I I
I I
100001 I
1 15001
1 10001
1 10001
1 1000
1 200
750
25001
I
10000
1
35001
I
Travel & Mileage
Utilities
WSIB
Nevada Sellers Fees
Nevada License
Nevada Provincial Fees
Community Development
Professional Development
Board Appreciation
Volunteer Appreciation
4000 589
12000 400
2450
500
240
500
3100
1550
1000
2500
847492 304952
500 1314
11600
336 2114
500
240
500
3100
200 1350
1000
2500
74396 166142 11240
1597
16280 10000 254482
10000
Project SHARE 2008 Expense Budget "Internal Working Document" 2008 budgetcityofnf
Budget City Region Unit. Way Bingo/Nevada Health/HRDC Donations Rental
Can. Tire Fundraising
Staff Salaries & Benefits
Bank Service Charges
Conferences -Education
Christmas Basket Program
Employee Group Insurance
~ Emergency/Utilities/Uway
Emerg. Dental/Prescriptions
Emergency Services/Other
Food Distribution
Food Vouchers
Insurance - Bd. Of Directors
Insurance -Building
Insurance -Vehicle
Internet
Jump Start Sports Program
(Building Maintenance
Van Maintenance
Fuel for Vehicle
Niagara Region Shelter
Photocopying
~ Postage
1Printing
Professional Fees
Promotions
~ Special Events Expense
Staff Education
Supplies -Office
(Supplies -Savoury/Garden
Trans. To Replacement Reserve
(Telephone
Transportation
Condo Fees
536482 265265 41739 36696 10000 13230 159552 10000
1450 1200 250
3000 2500 500
50000 50000
47453 25197 11000 11256
22700 22700
2250 ~ 2250
2000 ~ 2000
5000 35001 1500
10000 50001 1 5000
~ 13391 650 180 1 509
1 52211 1 121 51001
~ 1538 ~ ~ 15381 ~ ~
1 10001 ~ 1 1000 ~ I
1 100001 I ~ I ~ 100001
~ 175001 ~ 16000 1 1 1500
1 10001 ~ I 1 I 1000
1 6000 5000 ~ 1 ~ ~ ~ 1000
1 200001 ~ 200001 + I I I
1250) I I 250 1 1 1 1000
1200 ~ ~ ~ 1000 ~ 1 1 200
10001 ~ 1 10001 ~ 1
25001 500 ~ 1 20001 1 ~ I
750 i 1 I I ~ I I 750
100001 1 1 7500) ~ 1 2500
1 10001 1 1000 1 1 ~
10000 1000 9000 i ~
30501 I I I 30501
240001 5000 2000+ 7000 1 i 10000
70001 1 500+ 65001 I I
13500 20001 80001 i 1 1 1 3500
11000 1 1 110001 I I I
Travel & Mileage
Utilities
WSIB
Nevada Sellers Fees
Nevada License
+Nevada Provincial Fees
Community Development
Professional Development
Board Appreciation
Volunteer Appreciation
4000 589
12000 400
2450
500
240
500
3100
1550
1000
2500
858023 314101
500 1314 1597 ~
11600 ~
336 2114
500
240
500
3100
200 1350 ~
1000 ~
2500
74396 166142 11240 16280 10000 255864 10000
Project S.H.A.R.E. People Served 2006
Emergency Food Jan Feb March April May June July Aug Sept Oct Nov
New Families 92 85 72 53 60 50 49 62 63 69 85
New Child Dep 70 67 58 41 54 33 35 32 47 43 52
New Adult Dep 39 32 21 16 17 13 14 19 29 25 33
F11w-up Families 1048 981 1067 945 976 888 795 956 889 991 1177
Child dep 915 830 850 837 830 773 684 790 752 877 1013
Adult Dep 337 320 324 301 331 312 266 248 219 295 353
Christmas Baskets
T
tal 2501 2315 2
392 193
2 2
268 2069 1843 2107 1999 2300 2713
,
,
,
o
Co-op Jan Feb March April May June July Aug Sept Ocf I No
New Families 0 0 10 6 7 8 11 11 6 4
New Child Dep 0 0 16 3 6 10 16 16 11 2
New Adult Dep 0 0 5 1 1 i 7 4 4 1 0
Fllw-up Families 76 76 64 74 82I 76 84 84 69 75
Child dep 91 91 72 87 93 82 92 92 78 89
Adult Dep 25 25 22 27 28 24 31 31 25 26
Total 192 192 189 198 217 207 238 238 190 196
Dec
78
45
28
1013
829
309
3465
5767
TOTAL
818
577
286
11726
9980
3615
3465
30467
Dec TOTAL
5 5 73
5 3 88
1 i 25
79 86 925
91 84 1042
26 27 317
207 206 v
2470
Support Services Jan Feb Mar Apri! May 1 June July Aug Sept I Oct Nov Dec TOTAL
Agency Referrals 120 127 116 62 100 94 71 88 92 89 99 81 1139
Only Referrals 71 66 73 36 78 65 30 67 77 55 54 41 713
Utility Subsidy Program 223 234 192 114 222 199 166 134 159 187 97 190 2117
Winter Warmth Fund 60 68 32 0 10 0 0 0 0 0 7 29 206
Share The Warmth 36 50 65 37 13 0 0 0 0 0 0 33 234
Emergency 111 129 77 65) 33 75 31 22 65 71 70 64 813
Total 621 674 555 314 456 433 298 311 _ 393 402 327 438 5222
Emergency Housing Jan Feb March April May June July ~ Aug ~ -y Sept Oct Nov Dec TOTAL
Hostel Agreements 4 5 5 4 3 6 4 4 1 1 2 6 45
Units of Service 137 143 157 129 116 117 120 117 123 111 124 133 1527
Trustees 21 19 23 23 26 23 20 20 15 15 4 2 211
Agency Referrals 274 286 314 258 323 234 240 234 246 222 235 251 3117
Total 436 453 499 414 468 380 384 375 385 349 365 392 4900
GRAND TOTAL ~ 3750 ~ 3634 3635 ~ 3119 ~ 3409 ~ 3089 ~ 2763 ~ 3031 ~ 2967 ~ 3247 ~ 3612 ~ 6803 ~ 43059
Volunteer Service ~' These totals for Volunteer Service are not included in our Grand Total
UNITS OF SERVICE Jan Feb March April May June 1 July Aug Sept Oct Nov Dec TOTAL
New Volunteers-HOURS 3 16 19 6 8 7 8 67
Active Volunteers-HOURS 88 99 111 94 108 94 82 676
Total 91 115 130 100 116 101 90 0 0 0 0 0~ 743
Year Units of Service Outgoing Food Dollar Value of
Lbs. Outgoing Food
1996 31,119 19,142/month $459,408
1997 28,515 19,221/month $461,304
1998 29,093 21,173/month $508,152
1999 27,373 19,270/month $462,480
2000 29,873 26,940/month $646,560
2001 37,500 31,369/month $752,856
2002 38,086 32,675/month $980,250
2003 45,608 32,675/month $1,283,440
2004 44,059 42,290/month $1,268,700
2005 45,042 35,752/month $1,072,560
2006 43,059 42,453/month $1,018,872*
*Food is now valued at $2.00/pound rather than $2.50 in previous few years.
i
September 27, 2007
Mr. Todd Harrison
Acting Director of Financial Services
City of Niagara Falls
4310 Queen Street
P. O. Box 1023
Niagara Falls, ON
L2E 6X5
Dear Mr. Todd Harrison:
Please accept this letter on behalf of the YWCA Niagara Region as a formal request for a
grant from the City of Niagara Falls for the year 2008. As per previous years we are
forwarding this request through the United Way of Niagara Falls grant process.
For your information I have attached a copy of our Audited Financial Statement, as well
as a copy of our Annual Report.
We have greatly appreciated the ongoing support that we receive from the City of
Niagara Falls. Last year our Culp Street shelter was able to provide safe shelter and
supportive services to 278 women and 62 children. That means in Niagara Falls we were
able to provide 4,220 nights of shelter and 13,000 meals. Your support, both personal
and financial was essential in providing these services to those women and children in
their time of need. It is my sincere hope that once again the City of Niagara Falls will be
able to assist us in providing vital services to woman and children at a critical turning
point in their lives. As a result I am requesting a grant in the amount of $63,438.00.
Once again, I would like to extend our thanks for all of your support and we look forward
to continuing to work with you.
Should you require any additional information, please contact me directly at
905-988-3528, ext. 39.
Sincerely,
.-~~/;
Eh~abeth Zimmermann
Executive Director
Enclosure
C~ ~caf ~~t ~~~c-~~,cs^~ ~~t~E~l~~,f
. ~~.
~ftlC@t~ Vit~1~
of Niagara Falls and
Greater Fort brie
October 10, 2007
Mr. Todd Harrison
Acting Director of Financial Services
City of Niagara Falls
4310 Queen Street
Niagara Falls, Ont.
L2E 6X5
Dear Mr. Harrison:
Please accept this letter as our request for a funding subsidy towards the rental of office
space in the MacBain Community Centre.
According to our 10-year lease, dated July 5, 2005, our basic rent is $9.42 per square foot
for a space of 746 square feet. The yearly grant to subsidize the rent is $872.82 plus GST
totaling $933.92, therefore, we respectfully request your inclusion of this amount as you
prepare the 2008 City of Niagara Falls budget.
I am enclosing a copy of our 2006 audited financial statements as well as a draft
operating budget for 2008 with comparatives to 2007, as per your request. The United
Way holds no designated reserve funds other than an operational reserve. Please see note
8 of the financial statements.
I trust all this information is in order and acceptable. If you have any questions, please
call me directly. Thank you.
Sincerely,
Carol Stewart-Kirkby
Executive Director
Encls.
7150 Montrose Road, Niagara Falls, ON L2H 3N3 • Tel: 905-354-9342
P.O. Box 266, Fort -Erie, ON L2A 5M5 • Tel: 905-871-5454
Fax: 905-354-2717 • unitedway@caninet.com • www.unitedwayniagara.org
United Way of Niagara Falls and Greater Fort Erie
2008 Operating Budget -DRAFT
Revenue 2007 2008 Budget
UW Grant 230,693.131 229,747.00
UW of FE Service payment 6,000.00 0.00
Investment Income 15,900.00 19,500.00
GST Rebate 2,450.00
550
00
3 2,550.00
001
3
550
HRDC -Summer Student .
,
500
00
2 ,
.
00
855
3
Miscellaneous .
, .
,
TOTAL REVENUE { 261,093.13_ 259,202.00
Expenses
Salaries 174,730.98 176,478.00
Source Deductions 11,255.00 11,367.00
WSIg 566.47 572.00
{Benefits I 5,658.18 5,940.00
{Rent 7,700.00
~ 7,700.00
(Telephone/Fax 6,100.00 4,900.00
Postage I 4,250.00 4,000.00
Printing/Photocopying 4,500.00 4,000.00
Transportation 4,550.00 3,900.00
Conferences 2,500.00 2,500.00
{National Dues 9,625.00 9,585.00
Bank Charges I 700.00 710.00
Insurance 3,500.00 2,750.00
Accounting 8,700.00 10,000.00
Training 500.00 500.00
Software & Hardware 750.00 750.00
IIT Support* 2,057.50 2,100.00
Campaign Supplies 3,100.00 3,100.00
Advertising & Marketing 1,500.00 1,500.00
AGMlAwards I 1,250.00 1,250.00
{Office Supplies 4,100.00 4,100.00
{Credit Card Fees 1,500.00 1,500.00
{Strategic Plan 2,000.00 0.00
{TOTAL 261,093.13 259,202.00
*lncludes annual license fee for Rainbow software
~~.~ ~~~
~~~~
10 September 2007
Todd Harrison
Acting Director Financial Services
Corporate Services, City of Niagara Falls
4310 Queen Street
P.O. Box 1023
Niagara Falls, Ontario
L2 E 6)C5
Dear Mr. Harrison:
Subject: !Niagara District Airp®rt Request for Funding 2x08
This will acknowledge receipt of your letter, dated September 6th, calling for funding requirements
for the Niagara District Airport for the fiscal year of 2008. The !after was passed to me by our
Airport Administrator, Patti Gamble.
In accordance with Paragraph 10 ofi the Agreement between the four communities dated August
17, 2006, "The annual budget shall be approved by the Commission at its November meeting and
codes of the said budget shall be submitted to the Clerk of the parties hereto on or before the
30 h day of November, in each year, for consideration by the respective Councils of the parties."
With that in mind, Patti Gamble has been #asked to update the fnancial status for 2007 up to and
including September 15th. We will project our expenditures to the end of our fiscal year at that
point and prepare a draft budget profiorma based on our expected 2007 performance. I will then
call on the Commissioners for input on revenues and expenditures for 2008 that have not been
forecast and incorporated into that first draft.
I have only recently joined the staff at the Airport. My information is that, in recent years, the
Commission has not submitted its budget until early in the New Year. While i will make every
attempt to meet the letter ofi the agreement of the four communities, it is unlikely that the
Commission will be able to submit anything concrete on or before the deadlines that you have
requested.
Cc: Rich Lancaster, President
°.O. Box 640, ~Pirgii, Ontario LOS 1T0
(905) 684-7447 fax(905) 684-2433
e-mail: info@niagaradistrictairport.ca - website:www.niagaradistrictairpor#.ca
October 10, 2007
Corporate Services Committee
City of Niagara Falls
C/o Mr. Todd Harrison, Acting Director of Financial Services
Dear Mr. Harrison,
~iiflCidf~8 =8115 •JIl _"_F~ ~'!~J;;
7C.5 ~.. X4;55' T,.-.
aGG :;5r .~; ~9 r-~.,
,orcrr;reer~Zini~; yarn rslls; net" tors. or _,;
a~svvv.nu:c; ~r-aiallsrnenror ;. Dr cj
Please find enclosed our pertinent information in regards to our request for funding
support in the form of subsidized rent at the MacBain Community Centre.
Our presence here at the MacBain Community Centre has been a real benefit to our
efforts to provide mentors to children and youth in our community. Since our move here
in 2005, we have increased the number of children we serve by an incredible 35%!
In fact, during our recent Big Brothers Big Sisters of Canada accreditation, the accreditor
commented that otir facilities were one of the best in the country. We wholeheartedly
agree.
I have inchided our financial information for you to the best of our abilities. Generally,
our 2008 budget isn't completed until our November board meeting, which is being held
on November 15, 2007. The budget I have submitted to you is a draft only.
Additionally, I have submitted a forecast 2007 budgets and revenues for your
consideration.
Please don't hesitate to give me a call if you have any further questions.
Sincerely,
,"
Jon`~raithwaite
Executive Director
Niagara Falls Big Brothers Big Sisters
905-357-5454 ext. 222
Ur-item !rV~Z~
.o
12007 Financials -Projected
Budget Item
Bingo Revenue
Donations
(Police Check
Nearly New Store
(Golf Tournament Receipts
BBBS sales
BFKS
Misc.
1 HRDC
(Grants
(United Way
1
1Total Income
1
1 Cost of Sales
INN
1 Hydro
1 Rent 1
1Salaries ~
1Telephone 1
1Technical Support 1
1 Equipment Maintenance
1Advertising
Maintenance
1 Other
1Total Cost
I Gross Profit
1Salaried Staff- Full-time ~
1 Staff -Contract ~
1 U.I. Expense ~
IC.P.P. Expense ~
Workers Compensation ~
Pension ~
(Payroll Expense 1
(Employee Benefits I
PD Board
PD -Caseworkers
1 PD -Executive Director
1Mileage 1
1PROGRAM EXPENSES 1
PROGRAM I
Promotion 1
Golf Tournament 1
BBBSC Membership Fees 1
(Capital Expenditures 1
1lnsurance 1
1 Professional Fees 1
1 Recruitment 1
1 BBBS Office Cleaning fees 1
~ Rent 1
(Telephone ~
2007 projected 2007 Budget 2008 Budget
8500 9000 7000
30000 30000 32000
284
37000 40000 37000
390001 32000 400001
I
620001
600001 I
667001
20001 20001 20001
50001 3700 40001
30000 20000 200001
113000 113000 1130001
I$
I
I
I
I
($
I$
326,784.00 1 $ 309,700.00 1 $ 321,700.00
I
13001 I
1500 I
16001
14000 14000 150001
8400 80001 9000
7701 8501 1000
6451 I I
10001 5001 7501
854.21 1 1
I
26,969.20 1 $
24,850.00
27350
299,814.80 1 $
I 284,850.00 ($
I 294,350.00 1
1580001
1558001 I
1600001
3734.641 50001 5000
46001 4500) 4800
71001 69001 7100
12001 12001 1300
6800 68001 60001
1000 10001 10001
43001 38001 44001
1 15001 15001
45001 40001 4000
11001 20001 2000
22001 25001 2500
I
85001
70001
10000)
33001 3000 30001
130001 13000 140001
61861 6000 65001
3000 20001 20001
2357.641 23601 2500
40001 30001 3000
180001 100001 10000
30001 29001 3000
60001 60001 60001
20001 20001 20001
Postage
General Office Expense
Printing Costs
Technical Support
Bank Charges & Interest
Credit Card Expenses
~ Miscellaneous
~BBBS Promotional Goods
Volunteer appreciation
Bowl For Kids Sake Classic ~
Total Expenses ~
~ ~
Net Profit/(Loss)
3300 3000 3000
7000 7700 8000
1300 1300 1300
200 500 500
500 500 500
120 120 120
4000
~ 2000 2000
~
~
3500)
3000 ~
3000
12524.19 15000 14000
$ 296,322.47 ~ $
~ 285,380.00 ~ $
~ 294,020.00 ~
$ 3,492.33 ~ $
(530.00) ~ $ ~
330.00 ~
Mr. Todd Harrison
Acting Director of Finance
The City of Niagara Falls
4310 Queen Street
P.O. Box 1023
Niagara Falls, Ontario
L2 E 6X5
Dear Mr. Harrison,
Re: Women's Place of South Niaaara Inc. - Reauest for Fundina for 2008
We are writing to respectfully request the City of Niagara Falls continued support
in providing services to women and children who have been victims of abuse, by
approving our request for funding in the amount of $25,000.00.
As requested in your letter we have enclosed a copy of our most recent audited
financial statements for the period April 1, 2006 to March 31, 2007. This report
provides financial information on the reserve funds we have. I ask you to direct
your attention to Item 3 in the Notes to the Financial Statements as it will provide
you with "Fund Descriptions and Restrictions" for each of the funds.
In addition, our submission provides you with information about our overall
catchment area, our mission statement, the programs and services we provide,
as well as the budget data on revenue and expenditures you are seeking.
Finally, our submission includes 20 copies of our 2006/2007 Annual Report. I
trust these will be sufficient for you to include as part of your briefing package for
the members of the Corporate Services Committee prior to the October 29th. The
report will provide the highlights of our accomplishments over the past year and
as well as the statistics for our programs and services.
The Ministry of Community and Social Services provides approximately 70% of
our overall operating budget. However, the balance of the funding we require to
deliver our vital programs and services must be solicited from the community.
Our ability to raise these dollars makes the difference between us being able to
maintain current programs and services or having to make cuts in service
delivery. Therefore, we cannot over emphasize the importance of your support.
• Women's glace of South Niagara Inc. • Nova House Shelter • P.O. Box 853 Niagara Falis, ON L2E 6V6
nL. ..... ,.. nnr ~cc -~n-~~ r_... nnr arc rc~^~ ............., .,... ,..,..-... 1.. ..... ,.... .......
Women's Place of South
September 20, 2007
Page Two
Niagara Inc. -Request for Funding for 2008
We have greatly appreciated the invaluable support of Mayor Salci, Members of
Council and the citizens of the City of Niagara Falls this year. We trust that we
can rely on your continued financial assistance which will empower women and
their children who are citizens of the City of Niagara Falls, begin living violence
free lives.
Thank you for your time and consideration of our submission. Please do not
hesitate to contact me at (905) 356-3933 extension 223 should you have any
questions or concerns.
Yours truly,
Ruthann Brown
Executive Director
Encls.
Women's Place of South Niaaara Inc.
Request for Funding for 2008
Catchment Area: - Women's Place of South Niagara Inc. operates two shelters
for abused women and their children. Nova House is a 20 bed shelter in Niagara
Falls and the Welland Centre is a 10 bed shelter in Welland. The agency
services Niagara Falls (population 78,815*), Welland (pop. 48,402), Fort Erie
(pop. 28,143), Port Colborne (pop. 18,450), Pelham (pop. 15,260) and Wainfleet
(pop. 6,255). (*population statistics derived from 2001 Statistics Canada).
Objectives of organization and services provided:
Mission Statement: Women's Place of South Niagara Inc. strives to
empower abused women and their children by providing safe shelter and
intervention services.
Our shelters both operate crisis lines and provides emergency shelter 24
hours a day, 7 days a week, 365 days a year for women and children who
are victims of abuse. Additionally we provide intervention services. These
services are provided to residents in the shelter, as well as on an outreach
basis to women living the community.
• We assist in the development of safety plans for women and their
children.
• We work with women to develop and implement their transitional plans.
• We provide services or referrals in the following areas: individual and
group counselling, parenting support, educational upgrading, job
training, income support, legal services, health and wellness services,
court support, appointment accompaniment.
• We provide advice in the areas of finding and maintaining housing,
including budget management and life skills.
• We provide advocacy with third parties, where necessary including
landlords, interactions with Family and Children's Services, court
appearances, etc.
• We provide individualized counselling for children and youth who have
been witnesses of violence.
• We provide public education and awareness through presentations to
different audiences such as schools, agencies, faith organizations,
community information days and libraries to name a few.
Women's Place of South Niaaara Inc. - Request for Fundina for Fiscal 2008
Overall Revenue and Expenses -Fiscal Reportina Period April 1 to March 31
ACTUAL FOR
REVENUE Fiscal 2006 (1) FORECAST OF 2007 FORECAST OF 2008
United Way of
South Niagara 74,605.00 72,201.00 75,000.00
I nterestiMisc. Income 16,112.00 6,011.00 6,000.00
Donations 164,766.00 187,000.00 195,000.00
Fundraising 158,543.00 160,000.00 171,677.00
Federal Gov't 7,769.00 7,840.00 8,648.00
Provincial Gov't 1,142,088.00 1,200,881.00 1,224,899.00
Municipal Gov't 38,500.00 38,500.00 38,500.00
Grants (in 06/07 funding 49
120.00 0 0
from WAVE and Trillium) ,
TOTAL REVENUE 1,651,503.00 1,672,433.00 1,719,724.00
EXPENSES
Wages/Benefits 1,284,276.00 1,384,209.00 1,425,735.00
Direct Program (2) 120,405.50 90,979.00 93,462.65
Administrative (3) 168,256.50 92,703.00 95,566.09
Occupancy (4) 78,565.00 104,542.00 104,960.00
TOTAL EXPENSES 1,651,503.00 1,672,433.00 1,719,724.00
(1) Reconciles with totals in Fiscal 06107 audited financial statements.
(2) Direct Program expenses are high because they include $47,557.00 in one-time funding from MCSS for
program enhancement activities.
(3) Please note that Administration expenses are high because they include $48,238 in expenses for
computer hardware and software that was covered by one-time fiscal year funding from the Ontario
Trillium Foundation.
(4) Please note that occupancy expenses for Fiscal 06/07 are significantly lower as our agency did not
relocate from our old 12 bed shelter to our new 13,000 square foot, 20 bed Niagara Falls shelter,
which now incorporates our Administration offices until January 15, 2007.