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2010/02/22
CORPORATE SERVICES C4MMITT'EE FIRST MEETING Monday, February 22, 2010 City Hall, Committee Room #2A & B 1) 2) a) b) c) 3) 4) Approval of the December 14, 2009 Corporate Services Minutes. REPORTS: CPS-2010-01 Boys & Girls Club ISF Capital Project CPS-2010-02 Winter Festival of Lights Line of Credit H R-2010-02 Attrition Policy STAFF CONTACT: Ken Burden Ken Burden Trent Dark NEW BUSINESS: ADJOURNMENT: IN-CAMERA`SESSION a) Resolution to go into Closed Meeting. MINUTES OF CORPORATE SERVICES COMMITTEE Twelfth Meeting Monday, December 14, 2009, Committee Room 2, 5:00 P.M. PRESENT: Councillor Victor Pietrangelo, Chair; Mayor Ted Salci, Councillors Jim Diodati, Shirley Fisher, Vince Kerrio, Bart Maves, Wayne Thomson, Janice Wing and Carolynn loannoni. STAFF: Ken Todd, Ed Dujlovic, Ken Burden, Dean lorfida, Ken Beaman, Todd Harrison, Denyse Morrissey, Serge Felicetti, Trent Dark, Alex Herlovitch, Lee Smith and Steno -Marianne Tikky. GUEST: Linda Holly - 22-2175 Mewburn Road, Darlene Cooper - 8277 Lamont Avenue, Vincent Barbarino - 5751 Hillcrest Crescent, Daniel Rodrique - 8745 Westport Drive, Margaret Dunn - 7366 Edenwood Court, Dan Jackson - 6770 Topaz Crescent, Kathleen Mann-.Banner - 6861 Hagar Avenue, Shane Cooper- 8277 LamontAvenue, Candice Rorison - 3296 Judith Avenue, Jay DesRoaches - 6086 Church's Lane, Cathy Silverstro - 6025 Church's Lane, Pamela Bain - 5569 Belmont Avenue, Barb McGilly - 4284 Kevin Drive, Patrick S. McGilly - 4343 Morrison Street, Domenic DiLalla - 3293 St. George Avenue. PRESS: Corey Larocque, Niagara Falls Review, 1) MINUTES MOVED by Mayor Salci and seconded by Councillor loannoni that the minutes of the November 30, 2009 meeting be approved. Motion: Carried Action: Recommendation submitted to Council December 14, 2009. 2) REPORTS: a) AODA Training for Councillors MOVED by Councillor Thomson and seconded by Mayor Salci that Council received a presentation from Brian Kon on the Accessibility for Ontarians with Disabilities Act Customer Service Standard. Upon completion of the presentation, the Council acknowledged reading and understanding the City's Accessible Customer Service training brochure. Motion: Carried Action: Recommendation submitted to Council December 14, 2009. -2- b) F-2009-59 2010 Debenture Issue MOVED by Councillor Thomson and seconded by Councillor Maves that the Council request the Region of Niagara issue long term financing for the City through Infrastructure Ontario by issuing debentures totaling $12,000,000.00. Motion: Carried Opposed: Councillors Wing and loannoni Action: Recommendation submitted to Council December 14, 2009. c) F-2009-61 Approval of Interim 2010 Spending Limits MOVED by Councillor loannoni and seconded by Mayor Salci that, in the absence of an adopted 2010 General Purposes Budget, City Council approves the following: City divisions be allowed to incur costs to a level of 50% of the divisions' expenditure budget of the prior year. 2. New capital expenditures which are deemed essential by a division be approved by City Council prior to purchase. 3. That this policy be communicated to all Commissions, Boards and Agencies, and that the City's contributions, to each stakeholder group be in accordance with the attached schedule. Motion: Carried Conflict: Councilor Wing -Board of Museums Action: Recommendation submitted to Council December 14, 2009. d) CPS-2009-12 General Insurance Program 2010 MOVED by Councillor loannoni and seconded by Councilor Fisher; 1) That Council authorize Staff to designate Frank Cowan Company Limited as the preferred proponent for the General Insurance Program for the City of Niagara Falls, including the Library Board, 2) That Staff negotiate with the preferred proponent, as per the Request for Proposal (RFP), to conclude the terms of a contract forthe General Insurance Program at an upset limit of $1,387,158.00 plus applicable taxes, -3- City $1,341,158.00 as per proposal, Library $ 42,749.00 as per proposal, Library $ 1,500.00 fora $5,000,000 increase in Limit of Liability. 3) That the proposed 2010 General Insurance Program be subject to annual renewal based on satisfactory performance and Council approval. 4) That staff investigate alternative insurance programs that would reduce the overall costs to the City for insurance premiums, risk management, and claims handling to be incorporated into a revised Request for Proposal, commenced during the next Council term. Motion: Carried Conflict: Councilor Maves Action: Recommendation submitted to Council December 14, 2009. e) CPS-2009-13 Niagara Fa11s Humane Society MOVED by Councillor loannoni and seconded by Mayor Salci that the City provide up to $179,000. to the Niagara Falls Humane Society (NFHS) as a five-year forgivable mortgage for the financing of completed building improvements at the NFHS animal shelter. Motion: Carried Action: Recommendation submitted to Council December 14, 2009. 3) NEW BUSINESS: a) MOVED by Councillor Fisher and seconded by Councillor Kerrio that staff ensure lighting of Cummington Square in time for Olympic Torch Run. Motion: Carried Action: Recommendation submitted to Council December 14, 2009. b) MOVED by Councillor Wing and seconded by Councillor Thomson that staff develop guidelines for voting, proxies and standardized budgets for the City's Business Improvement Areas. Motion: Carried Action: Recommendation submitted to Council December 14, 2009. 4) ADJOURNMENT: MOVED by Mayor Salci, seconded by Councillor loannoni that the Corporate Services Committee and Adjourn. Niagara~alls CPS-2010-01 February 22, 2010 REPORT TO: Councillor Victor Pietrangelo, Chair and Members of the Corporate Services Committee City of Niagara Falls, Ontario SUBMITTED BY: Corporate Services SUBJECT: CPS-2010-01 Boys and Girls Club ISF Capital Project RECOMMENDATION: That Council approve funding up to $2,000,000 for the municipal contribution of the Boys and Girls Club Infrastructure Stimulus Fund (ISF) Capital Project, 2. That the City's funding be paid in accordance with the proposed schedule of payments, as submitted by the Boys and Girls .Club, 3. That the City's funding be financed by long term debt, to be requested from the Region of Niagara following the project completion. That the City's funding be secured by a charge on the new building and property. 5. That BGCN provide an updated business plan and operating budget for the new recreation facility that would not require a significant increase in the City's annual Fee for Service. 6. That staff investigate and report on Street building and property. That numbers 1 and 4 be approved and deferred. the options for the use/disposal of the Culp the balance of the recommendations be EXECUTIVE SUMMARY The Boys and Girls Club of Niagara (BGCN) were awarded $8,000,000 in Federal and Provincial funding from the Infrastructure Stimulus Fund. The funding istwo-thirds of the $12 million capital project to erect a new recreation facility located on McLeod Road by March 2011. The remaining one-third funding is the municipal contribution, which is being shared by BGCN and the City. The City's funding would be paid in installments to BGCN. Once the final payment has been made, the City would request the Region of Niagara to issue long term debt to finance the City's funding. Similar to the Federal/Provincial ISF funding agreement, the registration of a charge on the -new facility could refund a portion of the City's funding should BGCN need to prematurely dispose of the property. As per the feasibility study prepared by Monteith Brown Planning Consultants, BGCN should provide an updated business plan and operating budget for the new recreation facility that would not require a significant increase in the City's annual Fee for Service. February 22, 2010 - 2 - CPS-2010-01 BACKGROUND The Boys and Girls Club of Niagara (BGCN) has pursued the development of a new recreation facilityto replace the aging and antiquated building located on Culp Street. This effort has been conducted in collaboration with the City. In 2007, a feasibility study prepared by Monteith Brown Planning Consultants provided the information City Council needed to support the project. Council approved a commitment in principle to fund up to $5 million, however, BGCN did not have the remaining funds to start the project. In April 2009, BGCN submitted a $12 million capital project application to the Federal/Provincial Infrastructure Stimulus Fund. The government sponsored stimulus funding would provide two-thirds of the costs for a Recreation Facility that would not otherwise have been built within the two year time limit. As required by the application process, City Council supported the application with its April 27tH resolution. The application also required aone-third funding municipal contribution, which the City pledged up to $2 million of the required $4 million. The balance of the municipal contribution would come from BGCN capital fund-raising. On December 15, 2009, Federal Minister Rob Nicholson and MPP Kim Craitor announced the award of $8 million in Federal and Provincial funding from the Infrastructure Stimulus Fund. The funding is two-thirds of the $12 million capital project to construct a new Recreation Facility located on McLeod Road by March 2011. The award has spear- headed the start of the BGCN ISF Capital Project. BGCN will soon be submitting their request for the City's funding of $2 million. ANALYSIS/RATIONALE The Culp Street building, which currently houses the Boys and Girls Club of Niagara, is an aging facility, 47 years old, and is deteriorating. The Boys and Girls Club of Niagara (BGCN) has pursued the development of a new recreation facility in collaboration with the City. A feasibility study prepared by Monteith Brown Planning Consultants provided the information City Council needed to support the project. It identified several design features that needed to be rationalized with current and future communitydemands. The proposed site evaluation and analysis also suggested reconsideration. Also, the capital funding needed to addressed in order to secure a viable fund-raising campaign and to avoid an increased operating dependence on City support/subsidy. On May 28, 2007, Council received the Consultant's final report and approved a funding commitment in principle to the BGCN of up to $5 million. The amount represented 50% of an estimated $10 million project cost. The commitment was conditional on the design, budgetary and site evaluations to be finalized, which the BGCN supported. Due in part to the recent economic challenges, the BGCN did not reach their fund-raising goal of $5 million, nor did the City provide any funding. The Canada and Ontario Launch Intake 2 of the Build Canada Fund Communities Component provided government sponsored stimulus funding for not-for-profit organizations. The funding would provide two-thirds of the costs fora $12 million Recreation Facility that would not otherwise have been built within two years. The BGCN, in cooperation with the City, prepared, submitted and was successful in being awarded $8 million towards the recreation facility project. February 22, 2010 - 3 - CPS-2010-01 Since the project funding now only requires aone-third municipal contribution, and that would be shared between the City and BGCN, the City's commitment was reduced by $3million. In light of the Provincial and Federal funding, the City's commitment is no longer contingent on design, site or capital funding milestones. Although the City's capital contribution is reduced to $2 million, the new recreation facility is estimated to cost $2 million more than the 2007 estimate. In keeping with the feasibility study prepared by Monteith Brown Planning Consultants, the BGCN should provide an updated business plan and operating budget forthe new recreation facilitywith the explicit understanding that the City's annual Fee for Service grant would not be increased. The City's annual grant will be used for operational funding, however, it is anticipated that the operating expenses will be different due to efficiencies gained from constructing a new building and may be put toward better programming for the community. When the new Recreation Facility is ready, BGCN will move from its present tenancy on Culp Street. Similar to the Stamford and Jack Bell arena properties, the City may wish to declare the property surplus and direct staff to provide a report on the highest and best use. Any proceeds from the sale of these lands would be used to offset the $2 million amount to be borrowed as long term debt FINANCIAL/STAFFING/LEGAL IMPLICATIONS Council's approval of this report's recommendations will authorize the City's $2 million funding for BGCN ISF Capital Project. The project is underway and BGCN is expected to submit a schedule of funding, which forecasts the timing and amounts of payments. During the construction period, the City would use its short term financing to send the scheduled payments to BGCN. The City's $2 million commitment may necessitate long term debt. The City would request the Region of Niagara to issue the long term debt on the City's behalf. The long term debt is usually repaid over a ten year term, although longer terms are available. The annual payments on a 10 year debt would be about $256,000. Unless Council determines another source of financing the $2 million, Staff will bring forward the appropriate resolution to approve the request to the Region of Niagara for long term debt. The Federal/Provincial ISF requires the recipient organization to sign a funding agreement, which protects the Governments' funding. The agreement stipulates that following the project completion, there is a period of several years wherein should the organization dispose of the funded property, then the organization must pay back a portion of the governments' funding. In a similar fashion, the City should also protect its funding of the project. The funding could be secured by a charge on the building and property. Similar to the ISF agreement, the charge would stipulate a period of several years wherein should BGCN dispose of the funded property, then BGCN would pay back a portion of the City's funding. Council can direct that a charge be registered on the new building and property. Approved by: K. E. Burden, Executive Director, Corporate Services Respectfully submitted: Ken odd, Chief Administrative Officer KB Niagara~alls CANADA CPS-2010-02 February 22, 2010 REPORT TO: Councillor Victor Pietrangelo, Chair and Members of the Corporate Services Committee City of Niagara Falls, Ontario SUBMITTED BY: Corporate Services SUBJECT: CPS-2010-02 Winter Festival of Lights: Line of Credit RECOMMENDATION That Council decline the request to guarantee a Line of Credit for the Winter Festival of Lights EXECUTIVE SUMMARY The Winter Festival of Lights (WFOL) has requested the City to guarantee a $500,000 credit facility arranged with RBC Royal Bank. The City does .not authorize a guarantee of a credit facility for other organizations. The guarantee would place the City at risk to pay WFOL creditors for any outstanding financial commitments to a maximum of $500,000. Authorizing a guarantee for WFOL may encourage other organizations to make similar requests to the City. The Council should decline the request as the City provides an annual grant to WFOL. BACKGROUND On February 10, 2010 the CAO received a written request from Dino Fazio, General Manager, Winter Festival of Lights (WFOL). The request was for the City of Niagara Falls to guarantee a $500,000 credit facility arranged with RBC Royal Bank. The credit facility would be a Line of Credit to cover WFOL's portion of capital expenditures and operational expenses for the new Rink at the Brink attraction. The request included a Draft 2010-11 Budget for the Winter Festival of Lights/Rink at the Brink. Council has previously received WFOL's request fora 2010 annual grant of $342,000. ANALYSIS/RATIONALE As per the March 31, 2009 Financial Statements, WFOL had a $75,000 Line of Credit for operating expenses. Staff has requested an up-to-date financial statement. The new credit facility amount of $500,000 is a significant increase. The new amount is approximately 40% of WFOL 2010-11 budget revenues and is approximately 50% of net capital assets, which has likely cautioned RBC Royal Bank to demand a guarantor. Mr.Fazio cited an example of a municipal guarantee of a credit facility for a local organization. The example is the Niagara Wine Festival in St.Catharines. Staff has confirmed that the City of St.Catharines acts as a guarantor fora $100,000 Line of Credit for the Niagara Wine Festival. The Festival Board requested the financial assistance in order to satisfy accumulated financial commitments. St.Catharines staff perform regular monitoring duties to insure that the organization maintains the conditions of the agreement. February 22, 2010 - 2 - CPS-2010-02 FINANCIAL/STAFFING/LEGAL IMPLICATIONS The City has received many requests from worthy organizations for financial assistance. The City does authorize permissive grants and fees for service, but does not guarantee the credit facilities of such organizations. WFOL is a current recipient of an annual grant of $342,000, and has already submitted their request fora 2010 grant. The guarantee would place the City at risk. The guarantee would enable WFOL creditors, namely RBC Royal Bank, to requisition the City to pay for any outstanding financial commitments to a maximum of $500,000. This $500,000 liability would be in addition to the annual grant to WFOL. Authorizing a guarantee of a credit facility for WFOL may encourage other organizations to make similar requests to the City. Since WFOL is a permissive grant recipient and that the guarantee of a credit facility would put the City at risk, Staff recommends that Council decline the request. However, the Council may want to consider an agreement with W FOL in order to grant the request. The agreement could require certain financial performance conditions, similar to the St.Catharines example. The agreement may also include the registration of a charge on WFOL capital assets. As per the Notes to WFOL Financial Statements March 31, 2009, Net Capital Assets totalled $417,107 ; in addition WFOL acquired $565,170 Rink at the Brink Capital Assets. Further, the agreement would stipulate that the amount of the credit facility would not exceed the amount of the City's annual grant to WFOL, which is currently $342,000 . LIST OF ATTACHMENTS Feb.10/10 Letter from Dino Fazio, General Manager, Winter Festival of Lights Oct.28/09 2010 Municipal Grant Application from Winter Festival of Lights Schedule of Rink at the Brink Capital Assets Approved by: Respectfully submitted: ~~~ K. E. Burden, Executive Director, Corporate Services Ken Todd, Chief Administrative Officer KB 1/ NIAGARA FALLS * ONTARIO * CANADA February 10, 2010 Mr. Ken Todd, CAO The City of Niagara Falls City Hall, P.O. Box 1023 4310 Queen Street. Niagara Falls, ON L2E 6X5 RE: Credit. Facility Guarantee Dear Ken: .5400 Rot~inson Street, 2nd Floor Niagara Falls, ON L2G 3X4 Tel: 905-374-1 b l b • Fax: 905-374-4683 Email: Info@wfol.com • WFOL.com Further to our meeting of February 8~', the Winter Festival of Lights has arranged- fora $500,000 credit facility with RBC Royal Bank to cover its portion of capital expenditures as well as operational expenses for the Rink at the Brink. However, the bank requires a guarantee from the City of Niagara Falls in order for the Festival to secure these funds. While the Festival has never made such a request of the City in the past, its requirement is not unique as the Niagara Wine Festival in St. Catharines has been required to secure a similar guarantee for its credit needs. To put in plainly, without the City guarantee, the Festival would not be able to secure the funds and would thus be forced into dire financial consequences and would not be able to maintain its future operations.. As requested, please find attached copies of the Winter Festival of Lights 2010-11 projected budget.. Please note that it has not yet been vetted by the WFOL Finance Committee nor approved by the WFOL Board. While we are expecting a near break-even result, there are several assumptions detailed within the budget that could alter its projections. If you have any questions, please feel free to contact me 905 374-1616x. 46. Sincerely, WINTER FESTIVAL OF LIGHTS Dino Fa General Encl. cc: Joe Mizsk, WFOL Chair 2010-11 WINTER FESTIVAL OF LIGHTS / RINK AT THE BRINK BUDGET (Fiscal Year-Ending March 31, 2011) WFOL RATB WFOL /RATE REVENUE ESTIMATE ESTIMATE COMBINED Public Funding Celebrate Ontario 2010 $ - $ - $ - Ci of Nia ara Falls $ 342,000.00 $ - $ 342,000.00 Em to ment Ontario JCP $ - $ - $ - Ontario Tourism (OTMPC - TEMPP) $ 45,000.00 $ - $ 45,000.00 TOTAL -Public Funding $ 387,000.00 $ $ 387,000.00 Sponsorship & Advertising S onsors $ 186,400.00 $ 20,000.00 $ 206,400.00 Rink Advertisements $ - $ 30,000.00 $ 30,000.00 Co-o Marketin /WFOL.com Advertisements $ 35,000.00 $ - $ 35,000.00 WFOL Magazine Advertisements $ 60,000.00 $ - $ 60,000.00 TOTAL -Sponsorship & Advertising $ 281,400.00 $ 50,000.00 $ 331,400.00 Operational Funding Donations, Events, Merchandise & Other $ 209,525.00 $ 13,000.00 $ 222,525.00 RATB Admissions (net of taxes) $ - $ 284,950.00 $ 284,950.00 TOTAL -Operational Funding $ 209,525.00 $ 297,950.00 $ 507,475.00 TOTAL REVENUES $ 877,925.00 $ 347,950.00 $ 1,225,875.00 Cash Summary of Operations Total Revenues $ 877,925.00 $ 347,950.00 $ 1,225,875.00 Total Expenses $ 830,321.88 $ 359,567.00 $ 1,189,888.88 Surplus/(Deficit) Before Depreciation $ 47,603.12 -$ 11,617.00 $ 35,986.12 Net Cash Before Capital Expenditures $ 47,603.12 -$ 11,617.00 $ 35,986.12 Deduct: Capital Expenditures $ 44,037.00 $ - $ 44,037.00 Net Cash Position, End of Year $ 3,566.12 -$ 11.,617.00 -$ 8,050.88 2010-11 WINTER FESTIVAL OF LIG HTS / RINK AT THE BRINK BUDGET (Fiscal Year-Ending March 31, 2011) WFOL RATE WFOL/RATB OPERATING EXPENSES ESTIMATE ESTIMATE COMBINED Administration $ 98,375.00 $ 25,559.00 $ 123,934.00 Pa roll $ 323,503.00 $ 100,026.00 $ 423,529.00 Marketin $ 105,003.45 $ 50,000.00 $ 155,003.45 Activities/Events/O erations $ 140,436.49 $ 120,982.00 $ 261,418.49 Li ht & Dis la Maintenance $ 142,203.94 $ - $ 142,203.94 Debt Re a ment/Interest Fees $ 10,800.00 $ 48,000.00 $ 58,800.00 Contingency $ 10,000.00 $ 15,000.00 $ 25,000.00 TOTAL OPERATING EXPENSES $ 830,321.88 $ 359,567.00 $ 1,189,888.88 CAPITAL EXPENDITURES Capital Expenditures $ 44,037.00 $ - $ 44,037.00 TOTAL CAPITAL EXPENDITURES $ 44,037.00 $ - $ 44,037.00 ASSUMPTIONS WFOL secures Canadian Jr. Hockey Exhibition Game in December 2010 (City assistance will be required to secure ice time). NPC approves extension of WFOL operations to January 31, 2011. NPC allows the Rink at the Brink facility to remain installed rather than torn down after the 2010-11 season. Provincial and munici al fundin levels remain the same as 2009. '~~~ ® ~ ,:; N ~'~ ~.,. ~stifu~tl~L~ghts NIAGARA FALLS * PNTARIO CANADA October 28, 2009 Mr. Todd Harrison, Director of Finance Corporate Services Department The City of Niagara Falls. 4310 Queen Street, P.O. Bow 1023 Niagara Falls, ON L211 bX5 ItEa 201a 1vlu~nieipal Grant Application Dear Todd: _5400 Rob(nson Street 2nd Floor Niagara Fails, ON L2G 3X4 Tel; 905-374-1616 • Fax: 905-37.4-4b83 Finail: info@wfoi.com • WFOL,com First, I wanted to thank you for allowing us an extension to the submission deadline. With the 2009 Winter Festival of Lights fast approaching we are inhyper-operational mode and suffice it to say, extremely busy. Nevertheless; I enclose herein for your review the 2010 Winter Festival of Lights Municipal Grant Application. The Winter Festival of Lights Board respectfully requests 2010 City of Niagara Falls funding in the amount of $342,000, which is a 0% increase from our 2009 approved municipal grant. I would like to point out that this represents a significant decrease in the percentage of the Festival's budget that is derived from municipal funding. ~As it stands, City funding would decrease from 35% of the Festival's budget in 2009 to less than 25% in 2010. That said, the support received from the City of Niagara Ealls is still a integral part of the Winter Festival of Lights' ability to continue to be a powerful driver of the local economy in the winter months while enhancing the social fabric of the community. Sincerely, `~VgN7s.'1+~,I~ Y+`lES'TI~~L ~F` .i.~1CE['I'~ Dino Fa General Enci. cc: Joe Miszk, WFOL Chair Corporate Services Committee, City of Niagara Falls Dean Iorfida, City Clerk - ~~ I~ila~r~~'~!J!~ Municipal Grant Application 4310 Queen Street P.O. Box 1023 Niagara Falls, Ontario L2E 6K5 TEL. (905} 356-7521 Ext. 4286 FAX (945) 356-2016 APPLICATION FOR GRANT DEA[}LINE FOR SUBMISSION .~ Octobew 234 200 Section one° 2 3. Name and address of organization; Name: ~_ Winter Festival of Lights .__ ,_ __ __ , ,~_: Address: 5400 Robinson Street 2"d Floor Postal Code: L2G2A6 Telephone Number: 905-374-1616 x 46 Name of contact person within organization; Name; Dino Fazio Office/position held:__. General Manager Address: 54.00 Robinson Street 2nd Floor Pascal Code: L2G2A6 Telephone: Home: 905-329-2334 Office: 905-374-1616 x 46 Under what classification are you requesting a grant? Complete section as indicated: A CAPITAL EQUIPMENT R3 C SEED I-UNG~iNG 4. 5. 6. Amount of grant requesteti:,~,_~342,0©(~ _ Amount of any previous grant receive~l:~. 342,040. PR®,fECT FUNIOING SPEt~IAI, ~F~INDING J Reason for requesting a grant:~T„f~:, , N~; w.~ The Winter Festiva! of Lights has grown tremendously over the past five years, in bath the quantity and quality of its illuminations and events, and its relevance to the local tourism community and residents alike, It is responsible far attracting visitors to Niagara Falls during the local tourism industry's off-season; enhancing the economic impact of off-season tourism an the community; promoting activities tha# will enhance the ~"~' t~Ii~,p~,~rs~;~r~'.~ta 2 Municipal Glrant Appficatian participation of residents and pride in their community; and providing local residents opportunities for a healthy, lifestyle through active participation and volunteering. Section finro• Classification `®' ~ Reauest for Special Fundiner or operational iFur~din~ Where the service can be provided without City support under n©rmaf circumstances but because cif unforeseen or extraordinary circumstances, a special or operational Banding may be required. (i} Amount of request $ 342 00~_, {Il) Provide details of operational funding needed. The municipally-granted funds received by the Winter Festival of Lights are used for operational expenses including wages, rent, insurance, utilities and so forth. Whenever possible, the Festival attempts to secure sponsorship or other revenue sources to offset expenses. (iii} Describe your organizations' fund raising plans. The Winter Festival of Lights endeavors to raise funds from a variety of source. It employs a Manager - 5ponsorship & Sales, to actively pursue corporate sponsorships, as weal as website, magazine and rink board advertisements. Collectively, this is expected to generate nearly 25 percent of the Festival's 2010 budget. Whenever feasible, it applies for funding from a variety of public sources including: Ontario Tourism Marketing Partnership Corporation TEMP Program, Employment Ontario Job Creations Program, Celebrate On#ario 2009; The Ontario Trillium Foundation; and the federal Marquee Tourism Events Program. Lastly, the Winter Festival of Lights generates revenues by holding fundraising events, through donations at Dufferin Islands and Rink at the Brink ticket sales. Collectively, this should generate over 45 percent of the Festival's 2010 budget. Section three° ~. ~inar~cial data required. r~. I°'inancial Staten`tent fflr prior year including donations, fund raising events, and all expenditures including salaries, administration, rental, equipment, travel, etc. Attached If Na, Yes1NA Bate Available YES B. Budget #or current year including detailed estimated expenditures and revenue. YES ~~ ~ E'~1i~r~9rs~~' ;trJ'J~ Municipal Grant Application Section four: Names and addresses of executive ofi'icers, directors or board of management. Andrew Bilous, Director-3719 Cunning Drive, Niagara Falls, ©N L2G 6L5 Jack Ousters, Director ~• 7170 MacLeod Rd, Niagara Falls, ON L2E 3.W4 Jim Diodati, Director e 65421anuary Dr., Niagara Falls, ON l.2J 4J4 Dave Ciliies, Director--7127 5tanleyAve, Niagara Faiis, ON L2G 7K2 Kevin Harding, Director--• John Kernahan, Director~7400 Portage Rd., Niagara Falls, ON L2E 5T2 Joe Miszk, Chairm 8921 Sodom Rd., Niagara Falls, ON L2E 6S6 Joyce Morocco, Director- 5400 Robinson St., Niagara Fails, ON L2G 2A6 Wayne Thomson, Director- 6700 Fallsview Blvd., Niagara Faiis, ON L2G 3W6 Bob VanKleek, Director - 829 Richmond St., London, ON N6A 3W7 Michael Yerich, Director-5339 Murray Will, Niagara Falls, L2G 2J3 Serge Felicetti Non-Voting, Director-4310 Queen St., Niagara Falls, L2E 2M1 Sarah Wood, Non-Voting, Director - 7400 Portage Rd., Niagara Faiis L2E 6T2 2. Describe the general aims and function of your organization, the geographic area of operation and a brief history of the organization. Attach Gonstitution, if available. The mission of the Winter Festival of Lights is to produce the foremast illumination festival in North America while organizing events that will appeal to both locals and visitors to Niagara Fails. its mandate is to: Attract visitors to Niagara Falls during the local tourism industry's off-season; Enhance the economic impact ofoff-season tourism on the community; Promote activities that will enhance the participation of residents and pride in their community; and Provide opportunities for a healthy, lifestyle to local residents through active participation and volunteering. The Winter Festival of Lights includes over ADO animated displays and 3 million lights found along the Niagara Parkway and within the City of Niagara Fails. Its calendar n# festive events includes: WFOL Opening Ceremonies which includes one of Canada's only appearances by Walt I?isney~ World Resort characters like Mickey ~ Minnie Mouse; weekly Fireworks overthe Falls; Sparkle i.ighting Awards; Christmas Concert Series; Industry Lights Luncheon Fundraiser; CYi'EC t:andy Cane lane Sic Race ge Fun Run; Volunteer Recruitment BBC! and Volunteer Appreciation Party; and a fundraising Colf Tournament. The Festival is an active promoter of both the benefits of volunteering and volunteer opportunities to the community. We offer numerous opportunities to hundreds of Iocai residents. in fact, 150 people volunteer 2800 hours to the 2008 Winter Festival of Lights. In particular, the Festlvai offers many opportunities to 1) senior citizens--as part of a physically, socially and mentally active lifestyle and 2) students - as a method of learning new skills, putting their existing education to real-world experiences, and networking within the community. _~~~ I'~ia~.~rsf ±~rJ'~~ 4 Municipal Grant Applicafiion We provide internship opportunities to both high school students and post-secondary students through their co-op education departments, event management and tourism programs. In fact, we currently have both a Westlane High Schaal and Niagara College intern. In the early 1980x, a group consisting of the Niagara Fails Canada Visitor and Convention Bureau (now Niagara Fails Tourism}, the City of Niagara Faits, The Niagara Parks Commission and numerous local businesses banded together to discuss potential opportunities that would stimulate wintertime tourism to Niagara Falls at a time when it was nearly non-existent. At that time, hotel occupancy rates havered around 11 percent and many tourist attractions dosed for the season. Having seen the success experienced by the lights festival in Niagara Fails, NY, it was decided that a similar event would also fare well in Niagara f=alls, Ontario. As a result, the Winter Festival of f-ights was launched in 1453. That year approximately 250,000 people and 35 motor coaches visited Niagara Falls during the Winter Festival of Lights. Since then, it has grown to become Canada's largest fights festival and one of the premiere illuminatfan festivals in North America. In 2008, it attracted over 1 million visitors including 749 motor coaches, and the Niagara Falls tourism industry now experiences hotel occupancy rates that hover near 40 percent during the Winter Festival of lights time period. During the 2008 event, 17,575 vehicle exit surveys were conducted at Dufferin Islands. From those, we extrapolated that Festival attendees primarily reside within Ontario (Niagara Region - 53% of which nearly 60% are from Niagara Fails; 19% -Greater Toronto Area; Outside Niagara/GTA -12%}. The remainder hail from the United States (12%}, Canada -outside Ontario (2%}and outside North America (2%}. Demographically speaking, 74 percent are between 30 - 69 years old with a large portion of the remainder being children under the age of 12 years old. This fs consistent with the Festival being recognized as a wintertime, family tradition for many. In 1942, the Winter Festival of i.ights was registered as an Ontario, not-far-profit Corporation. `fhaf same year, a marketing relationship was launched with Disney Canada Inc:. that introduced the infamous Enchantment of DisneyW displays. Thanks in part to a staff with aver 45 years of business and event management experience; a strong Board o~f ©irectors consisting of community feeders including members of City Council; and hundreds of dedicated and song-serving volunteers, the Winter Festival of Lights has been successfully operating for over 26 years. During #hat time, it has been honoured by a variety of festival and travel tourism organizations, and won many awards. A brief list includes: • North American Bus Association -Number One Event in Canada (1449} • AttractionsCanada -Award for Best Cultural Event (2002} • WinterLights Celebrations Competition (winter version of Communities in Bloom} -Hest Overall Tourism/Promotion Award citing the Winter Festival of Lights(2005} • Win#erLights Celebrations Competition (winter version of Communities in 131oam} - Winner in the 50,p00+population category (2006} .~~ I'~i!~a~arsr~~1,F~ • festivals & Events Ontario -Best Website and Official Printed Programme in the $500,000+ budget category (2005} ® Festivals & Events Ontario-Best Merchandise/Souvenir Idea in the $500,000+ budget category {2006} e Festivals & Events Ontario ~~• Best Newspaper Insert in the $500,000+ budget category (2007) a Festivals & Events Ontario -Best Overall Marketing Campaign in the $500,000-a budget category {2005 & 2007) Niagara Fails Tourism Misty Awards for Progressive Development (200} Festivals & Events Ontario ~-Top 50 Event (2005 - 200) expanded to Tap 100 (2048 ~• 2010} o Winterlights Celebrations -• City of Niagara Fails working with the Winter festival of Lights and other community partners, earned first place in the 50,000+ population category (2007}; and • American Bus Association ~ Top 100 Internationally Known Events (2007 - 2010) Municipal Grant Application 3. 4. Provide statistics relative #a the population served. Last operating year Current year Next year project 5 Total Age Percentage from number range Niagara Falls SEE QUESTION#2 How does your organization assess the community need and how wail the resident of Niagara Falls benefit? In its simplest terms, the Winter Festival of Lights helps fill the basic needs for positive social interaction, physical health, culture and economic development, the specifics of which are discussed in detail in the following question. ~. What serrvice dotes yotar targanixatio9~ pfovide specifically for the Fesiden~ of Niagara fEalls`~ `i"he Winter Festival of lights will benefit the community and its residents in the following manner: €nhancedl suceess for students and learners •- 1"he Wlr~ter Festival o•i Rights ties hundreds of volunteer opportunities for students from which they can gain real•~worid experience, learn new skill sets, earn their Community Service Fours, and network with potential future employers. Additionally, the Festival began a student bursary program in 2008 distributing $200 bursaries to 10 very deserving students residing in Niagara Falls. Lastly, the Festival provides internships for both secondary and post-secondary students. Healthier and more physically active residents -Along with the numerous, active volun#eer opportunities the Festival offers residents, it also promotes an active wintertime lifestyle by hosting such events as the CYTEC Candy Cane Lane 5k Race & Fun Run. 6 Municipal Grant Application Enhanced employment and economic potential far workers and families - A 2003 Festivals & Events Ontario Economic Impact Study revealed that the Winter Festival of lights had an economic impact of $60.4 million upon the local economy and was responsible for the creation and/or retention of over 2,000 jobs. Additionally, the Rink at the Brink will be directly responsible for the creation of six (EFl') positions and its forecast modeled by the Ontario Ministry of Tourism conservatively estimates it will have a further $3 million economic impact. More effective volunteers and more people engaged in their community--The Winter Festival of Lights has an extensive volunteer base and a superior training program; as a result, many other organizations, including the City of Niagara Fails, look for and are provided assistance from the Festival far volunteer recruitment. The Festival also works with and provides assistance to, not-for-profit and charitable organizations including Project SNARE, Niagara Falls International Marathon, Rotary Ciub of Niagara Falls-Sunrise, Celebrate Old Downtown, Boys & Girls Club, Big Brothers Big Sisters (new initiative to begin this year), Niagara Falls Tourism, The Niagara Parks Commission and the City of Niagara Falls )Parks, Recreation & Culture Department primarily) by providing them with equipment, materials, manpower, marketing support, and managerial advice for numerous events, including Communities in Bloom, Rotary RibFest, Niagara Falls Santa Claus Parade, Oylmpic Torch Run and New Year's Eve Niagara Fails. Additionally, the Festival supports opportunities for charitable organizations, like Project SNARE, to generate revenues and food donations. For instance, the CYTEC Candy Cane Lane 5k Race & Fun Run annually raises thousands of dollars in monetary and food donations for the Protect SHARE Christmas Basket Program. Without this support, it could be argued that these organizations would look to the City of Niagara Falls for support. 6. Include which Gityaowned facilities, if any, are being used by y9ur ®rganizati®n. No City-owned facilities are expected to be directly utilized by the Winter Festival of Lights in ~D10. i~I+aase ferr~rvard stay additi®~aI infer~atien which y®u feel rr~ay be ©f as$istance ia~ c~nsieierir~g year pe~uest (Attach pages if re~uire+dj. As you rrray have heard, the Winter Festival of bights is launching an outdoor ice skating facility to be known as the Rink at the Brink. It will offer the experience of public ice skating in an iconic setting similar to the Rink at Rockefeller Plaza in New York City yet mare dramactic in that it provides the breathtaking experience of the mighty cataracts with its stunning view and mighty roarl located a stone's throw from the brink of the Horseshoe Falls, it provides a magnificent location for viewing both the American and Horseshoe Falls. The capital expenditures for this project are pegged at $700,000. It is being funded through provincial and federal grant programs and the Festival's credit facilities. As you undoubtedly realize, the tourism industry in Niagara Falls is largely driven by the summer season with hotel occupancy rates averaging almost 85% over the months of June, July and August, and corresponding average monthly hotel room revenues of $56.3 million. In comparison, hotel occupancy rates from November '~~ 1'~1~~.9rs~;~rlJ~ 7 Municipal Grant Application to February 2009 averaged nearly 3930 with average monthly hotel room revenues of $18.6 m€Uion (Smith Travel Research March 2009}. The highs and €ows of the local tourism €ndustry were excruciatingly apparent In 2008 with Niagara Falls pasting the highest monthly occupancy rate in Ontario of 91.190 €n August and the lowest rate of 26.4°0 €n January. And before fire establishment of the W€nter Festival of Lights the disparity between the summer and winter tourism season was larger st€II with winter occupancy levels hovering around 11% in the Festival`s inaugural year. As a result, local tourism operatoe~s recognize the vital role the Winter Festival of L€ghts plays in attracting wintertime tourism. The Rink at the Brink's objectives are to: 1) Increase attendance at the Winter Festival of Lights; 2) improve its current event programming and enhance its day time programming; 3) Create significant media exposure opportunities for winter time Niagara Falls; 4) Provide a gated attraction that wilt allow the festival to partner with the local tourism industry to create and promote packages; 5} Increase tourism visitafiion and tourist expenditures in Niagara Falls; G} Create jabs and retain existing positions within the tourism industry during the slower winter season; and 7) Fnhance the Festival's operational effectiveness and fts ability to deliver increased programming to the community. While the Festival is still largely dependent upon public funding, the Rink at the Brink will be sustainable through self-generated revenues derived from ticket sales, skate and helmet rentals, private corporate functions, ticketed events, rink board advertisemen#s and sponsorships. Admission to the Winter Festival of Lights is free which makes the prospect of creating value-added packages (i.e. tickets plus accommodations) with local tourism operators nearly non-existent {as we have yet to discover how to provide a potential customer with more value than free). However, the Rink at the Brink will provide local accommodation, restaurant and receptive tour operators fihe opportunity to creafie and market a variety of packages. Furthermore, it is expected to attract significant media attention due to its iconic stature, which will place a positive light upon visiting wintertime Niagara Falls, and just as importantly, it will justify ongoing and increasing investment from all stakeholders in the Winter Festival of Lights and wintertime marketing. Just as importantly, the Winter Festival of Lights and Rink at the Brinlc are expected to be a highlight attraction trumpeted by the Niagara Convention and Civic Centre as -!0 percent of its business is predicted to occur in the off season. Longer term, the Rink at the Brink will aflow'rhe Winter i=estival of Lights to expand its organizational capacity and is expected to extend the Winter Festival of i.ights beyond its earlyJanuary end date, 7. All groups may be expected to make a presentation to the Corporate Services Committee Mee#ing. Check here if your organization would like to make a presentation to the Corporate Services Committee Yes J No ~'"~ ' I'~7i~~ra~vcr1'!~ Municipal Grant Appficatfon check list to fnelp You e+~rnplete vour~ a~plicatl®n: 1. A fully completed grant application form signed by and authorized ®fficer. 2. Fill in and return the page that is relevant to your required classification. o A Capital equipment o B Project funding o C Seed funding m D Special funding 3. Financial s#atements for the prior year. 4. Budget for the current year. (Oats Submitted 4310 Queen Street P.Q. Box 1023 Niagara Falls, Ontario L2E 6X5 TEL. (905) 356-7521 Ext. 4286 FAX (905) 356-201 B Signature (~ffce or Position 2010 COMBINED WINTER FESTIVAL OF LIGHTS / RINK AT THE BRIN K BUDGETS (Fiscal Year-Ending March 31, 2011) WFOL RATB WFOL /RATE REVENUE ESTIMATE ESTIMATE COMBINED Public Funding Celebrate Ontario 2010 $ 21,000.00 $ - $ 21,000.00 Ci of Nia ara Falls $ 342,000.00 $ - $ 342,000.00 Emplo ment Ontario (JCP) $ - $ - $ - Mar uee Tourism Events Pro ram (MTEP) $ - $ - $ - Ontario Tourism (OTMPC - TEMPP) $ 45,000.00 $ - $ 45,000.00 Ontario Trillium Foundation $ - $ - $ - TOTAL -Public Funding $ 408,000.00 $ - $ 408,000.00 Sponsorship 8~ Advertising Sponsors $ 186,400.00 $ 20,000.00 $ 206,400.00 Rinkboard Advertisements $ - $ 30,000.00 $ 30,000.00 WFOL.com Advertisements $ 12,500.00 $ - $ 12,500.00 Co-op Marketin Funds $ 24,500.00 $ - $ 24,500.00 WFOL Magazine Advertisements $ 60,000.00 $ - $ 60,000.00 TOTAL -Sponsorship 8~ Advertising $ 283,400.00 $ 50,000.00 $ 333,400.00 Operational Funding Donations, Events, Merchandise $ 191,562.50 $ 14,000.00 $ 205,562.50 RATE Admissions (net of taxes) $ - $ 463,124.13 $ 463,124.13 TOTAL -Operational Funding $ 191,562.50 $ 477,124.13 $ 668,686.63 TOTAL REVENUES $ 882,962.50 $ 527,124.13 $ 1,410,086.63 Cash Summary of Operations Total Revenues $ 882,962.50 $ 527,124.13 $ 1,410,086.63 Total Expenses $ 853,454.68 $ 505,427.81 $ 1,358,882.49 Surplus/(Deficit) Before Depreciation $ 29,507.82 $ 21,696.32 $ 51,204.14 Net Cash Before Capital Expenditures $ 29,507.82 $ 21,696.32 $ 51,204.14 Deduct: Capital Expenditures $ 49,737.00 $ 8,000.00 $ 57,737.00 Net Cash Position, End of Year -$ 20,229.18 $ 13,696.32 -$ 6,532.86 2010 COMBINED WINTER FESTIVAL OF LIGHTS / RINK AT THE BRINK BUDGETS (Fiscal Year-Ending March 31, 2011) WFOL RATB WFOL /RATE OPERATING EXPENSES ESTIMATE ESTIMATE COMBINED Administration $ 107,565.00 $ 28,300.00 $ 135,865.00 Pa roll $ 323,066.05 $ 176,026.61 $ 499,092.66 Marketin $ 105,003.45 $ 100,000.00 $ 205,003.45 Activities/Events/O erations $ 151,897.24 $ 191,101.20 $ 342,998.44 Li ht & Dis la Maintenance $ 155,922.94 $ - $ 155,922.94 Contingency $ 10,000.00 $ 10,000.00 $ 20,000.00 TOTAL OPERATING EXPENSES $ 853,454.68 $ 505,427.81 $ 1,358,882.49 CAPITAL EXPENDITURES Capital Expenditures $ 49,737.00 $ 8,000.00 $ 57,737.00 Contingency $ - $ _ $ _ TOTAL CAPITAL EXPENDITURES $ 49,737.00 $ 8,000.00 $ 57,737.00 The Economic Impact of Rink at the Brink: Impact of Domestic & International Tourists in Niagara Region in 2009 This report was generated by the Ontario Ministry of Tourism's TREIM model. May 5, 2009 Note: The Ministry of Tourism does not take any responsibility for inputs that the user has provided, nor for the interpretation of the results. 1. Introduction This report provides an estimate of the economic impact that Rink at the Brink: Impact of Domestic & International Tourists is expected to have on Ontario's economy, in terms of Gross Domestic Product, employment and taxes generated. The analysis is based on the following information the user has provided to the MTR's Tourism Regional Economic Impact Model: Number of Visitors for Activity (or Event) of Tvpe Anv Outdoors Same Da Overnight Origin Total Number of Visitors Percent of Visitors' Ori in Percent of Visitors' Ori in Average Length of Sta ni hts Ontario 38,160 70.00% 30.00% 1 Rest of Canada 0 0.00% 0.00% USA 9,540 65.00% 35.00% 1 Overseas 0 0.00% 0.00% otal 7,700 Given that the detailed breakdown of spending by the above visitors on category, such as transportation, accommodation, etc. is not available from the user, the TREIM utilized the average expenditure of visitors in Niagara Region with characteristics closest to those provided by the user from Statistics Canada's 2004 Canadian Travel Survey and the International Travel Survey to generate the detailed spending as followings (in dollars ): Travel Services $0 Public Trans ortation $49,287 Private Trans ortation -Rental $20,788 Private Trans ortation - O eration $616,378 Local Trans ortation $16,749 Accommodation $294,944 Food &Bevera e - At Stores $230,548 Food &Bevera e - At Restaurants/Bars $715,392 Recreation & Entertainment $599,944 Retail - Clothin $291,251 Retail -Other $220,071 Total $3,055, 352 The user also has selected the following parameters: • The visits take place in Niagara Region in 2009 • The impact is to be shown for Niagara Region and for Rest of Ontario • Induced impacts of household spending are included ~ Induced impacts of business investment are included • The economic environment is as follows: Custom 2005 2006 2007 2008 2009 Ontario Real GDP 2.84% 1 89% 1 66% 2 11 % 2 73% %chan e . . . . Ontario CPI %chan e 2.19% 1.76% 2.53% 1.84% 1.96% Ontario Population 1.14% 1.02% 0.69% 0 78% 0 87% %chan e . . Ontario Unem to ment Rate 6.59% 6.27% 6.52% 6.38% 7.98% Government of Canada 3 month T- 2.72% 4.03% 4.45% 4.78% 2.77% Bill Rate 2 2. Summary of Findings Table 1. Economic Impacts of Rink at the Brink: Impact of Domestic & International Tourists in Niagara Region in 2009 (in dollars ) Niagara Region Rest of Ontario Total Visitors' Spending $ 3,055,352 Gross Domestic Product (GDP) Direct $ 1,347,653 $ 117,416 Indirect $ 278,635 $ 77,062 Induced $ 215,522 $ 164,044 Total $ 1,841,810 $ 358,522 Labour Income Direct $ 810,873 $ 81,723 Indirect $ 195,089 $ 52,464 Induced $ 135,567 $ 105,890 Total $ 1,141,529 $ 240,076 Employment (Jobs) Direct 27 2 Indirect 4 1 Induced 3 2 Total 33 5 Direct Taxes Federal $ 391,466 $ 27,618 Provincial $ 378,562 $ 19,528 Municipal $ 2,451 $ 241 Total $ 772,480 $ 47,388 Total Taxes Federal $ 572,746 $ 81,465 Provincial $ 469,547 $ 59,065 Municipal $ 4,816 $ 11,612 Total $ 1,047,110 $ 152,143 Table 2. Economic Impacts of Rink at the Brink: Impact of Domestic & International Tourists in Niagara Region on GDP by industry (in dollars j Indust Im act on Nia ara Re ion Im act on Rest of Ontario Direct GDP Total GDP Direct GDP Total GDP Cro and Animal Production $ 5,124 $ 9,158 $ 2,486 $ 5,414 Forest , Fishin and Huntin $ 32 $ 503 $ 52 $ 846 Minin and Oil and Gas Extraction $ 0 $ 1,090 $ 0 $ 1,326 Utilities $ 0 $ 28,665 $ 0 $ 7,641 Construction $ 0 $ 30,698 $ 0 $ 6,496 Manufacturin $34,406 $57,546 $ 49,053 $ 89,046 Wholesale Trade $ 33,821 $ 59,057 $ 16,791 $ 33,543 Retail Trade $ 148,335 $ 200,935 $ 0 $ 21,458 Other Transportation and Warehousin $54,641 $ 73,563 $ 18,925 $ 30,021 Ground Passenger Transportation excl. Rail $ 10,838 $ 14,011 $ 2,260 $ 3,649 Information and Cultural Industries $ 13,196 $ 36,974 $ 1,884 $ 13,354 Other Finance, Insurance, Real Estate and Rentin and Leasin $ 0 $ 93,727 $ 0 $ 40,115 Car Rentin and Leasin $ 11,424 $ 13,399 $ 0 $ 1,069 Owner Occu ied Housin $ 0 $ 42,413 $ 0 $ 6,984 Professional, Scientific and Technical Services $ 0 $ 34,026 $ 0 $ 16,428 Other Administrative and Other Su ort Services $ 0 $ 19,457 $ 0 $ 7,823 Travel A encies $ 0 $ 0 $ 0 $ 0 Education Services $ 1,030 $ 2,210 $ 0 $ 662 Health Care and Social Assistance $ 0 $ 9,285 $ 0 $ 5,955 Arts, Entertainment and Recreation $ 204,007 $ 211,695 $ 2,558 $ 5,389 Accommodation Services $ 242,108 $ 245,434 $ 8,036 $ 10,421 Food & Bevera a Services $ 209,738 $ 218,351 $14,470 $ 20,219 Other Services (Except Public Administration $ 2,957 $ 20,520 $ 0 $ 6,098 Operating, Office, Cafeteria, and Laborato Su lies $ 0 $ 0 $ 0 $ 0 Travel & Entertainment, Advertisin & Promotion $ 0 $ 0 $ 0 $ 0 Trans ortation Mar ins $ 0 $ 0 $ 0 $ 0 Non-Profit Institutions Serving Households $ 16,508 $ 25,969 $ 0 $ 2,664 Government Sector $ 19,983 $ 34,797 $ 0 $ 6,160 Net Indirect Taxes on Production $ 0 $ 1,321 $ 0 $ 10,872 Total $ 1,347,653 $ 1,841,810 $ 117,416 $ 358,522 Appendix: The Economic Impact of Visits in Niagara Region and other Ontario regions: since no Ontario region is economically self-sustaining, in order to produce the goods and services demanded by its visitors, it will need to import some goods and services from other regions. As such, some of the economic benefits of the visitors' spending in Niagara Region will. spill over to other Ontario regions, such as the one you have selected as "additional". If the second column of Table 1 contains only zeros, then that means that Niagara Region does not trade with that region. Gross Domestic Product (GDP): value of goods and services produced by labour and capital located within a country (or region), regardless of nationality of labour or ownership. This GDP is measured at market prices. Tourism GDP refers to the GDP generated in those businesses that directly produce or provide goods and services for travelers. Direct impact: refers to the impact generated in businesses or sectors that produce or provide goods and services directly to travelers, e.g. accommodations, restaurants, recreations, travel agents, transportation and retail enterprises etc. Direct impact on GDP, employment and tax revenues is also called tourism GDP, tourism employment and tourism tax revenues. Indirect impact: refers to the impact resulting from the expansion of demand from businesses or sectors directly produce or provide goods and services to travelers, to other businesses or sectors. Induced impact: refers to the impact associated with the re-spending of labour income and /or profits earned in the industries that serve travelers directly and indirectly. Employment: refers to number of jobs, include full-time, part-time, seasonal employment, as well as both employed and self-employed. Federal tax revenues: include personal income tax, corporate income tax, commodity tax (GST, gas tax, excise tax, excise duty, air tax and trading profits) and payroll deduction that collected by the federal government. Provincial tax revenues: include personal income tax, corporate income tax, commodity tax (PST, gas tax, liquor gallonage tax, amusement tax and trading profits) and employer health tax that collected by Ontario provincial government. Municipal tax revenues: include business and personal property taxes that collected by the municipalities. Collection, however, does not follow immediately the consumption or production of goods and services in a municipality by visitors (as is the case with GST or personal income taxes). Rather, these taxes show the percent of the total properly taxes collected by a municipality that can be attributed to tourism because of tourism's contribution to the economic activity of the municipality and hence its tax base. Industry: The industry follows Statistics Canada's 1997 North America Industry Classification System (NAILS) Input-Output small aggregation industry classification. 5 WINTER FESTIVAL OF LIGHTS Financial Statements for the Year Ended March 31, 2009 and Auditors' Report to the Directors DURWARD JONES BARKWELL 8 COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS FINANCIAL STATEMENTS MARCH 31, 2009 CONTENTS Auditors' Report to the Directors ........................................................................ Statement of Operations .................................................................................... Statement of Fund Balances ............................................................................. Balance Sheet ................................................................................................... Statement of Cash Flows ................................................................................... Notes to the Financial Statements ..................................................................... .....................1 .....................2 .....................3 .....................4 .....................5 ...............6 - 9 DURWARD JONES BARKWELL & COMPANY LLP Chartered Accountants i CHARTERED ACCOUNTANTS AUDITORS' REPORT DURWARD JONES BARKWELL & COMPANY LLP 6100 Thorold Stone Road, Unit 1, P.O. Box 873 Niagara Falls, Ontario L2E 6V6 905.357.5711 866.223.8459 Fax 905.357.7932 nfalls@djb.com www.djb.com To the Directors of Winter Festival of Lights: We have audited the balance sheet of Winter Festival of Lights as at March 31, 2009 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, 2009 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. -~.~.~,,._...~ ~w .c~..,r.HSce,~ Co,~yw~...~..c.c.~° (/ Durward Jones Barkwell & Company LLP Licensed Public Accountants May 29, 2009 Big enough to know e SMALL ENOUGH TO CARE BURLINGTON FORT ERIE GRIMSBY HAMILTON NIAGARA FALLS ST. CATHARINES STONEY CREEK WELLAND WINTER FESTIVAL OF LIGHTS STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 2009 2 2009 2008 REVENUE Government funding (Note 2) Corporate funding Festival events Candle Light Stroll Candy Cane Lane 5K Race Dufferin Island Mantini Sisters Concert Other Spring in Bloom Fundraising events Golf Tournament Gospel Concert Industry Luncheon Merchandise Other funding $ .548,379 $ 442,705 177,214 152,500 6,762 5,580 7,192 1,675 100,569 120,185 - 6,701 38 414 48,386 - 23,133 24,636 - 5,880 10,804 10,618 4,679 2,776 41, 217 144, 758 968,373 918,428 EXPENDITURES Advertising and promotion 87,853 188,528 Bad debts 801 9 Bank charges and interest 880 - Capital campaign - 1,832 Depreciation -Capital Fund 111,268 117,759 Festival events Candle Light Stroll 3,063 5,240 Candy Cane Lane 5K Race .4,380 3,514 Fireworks 27,236 57,660 Mantini Sisters Concert - 7,568 Misty Kids 1,367 36,685 New Year's Eve 7,688 7,287 Opening weekend 39,819 37,064 Shrek the Halls 4,443 - Sparkle Awards 425 1,081 Spring in Bloom 177,170 - Fundraising events Golf Tournament 11,329 13,781 Gospel Concert - 12,935 Industry Luncheon 6,584 7,206 Merchandise 1,752 3,935 JCP Program 5,780 5,593 Light display 233,563 170,973 Office administration and rent 57,670 73,407 Salaries and benefits 218,304 194,081 Sponsorship committee 16,204 24,435 Volunteer committee 5,174 5,433 1,022,753 976,006 LOSS FROM OPERATIONS (54,380) (57,578) GAIN ON DISPOSAL OF ASSETS -CAPITAL FUND - 456 NET LOSS $ (54,380) , $ (57,122) DURWARD JONES BARKWELL 8 COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS STATEMENT OF FUND BALANCES YEAR ENDED MARCH 31, 2009 3 Capital Operating Total Total Fund Fund 2009 2008 BALANCE, BEGINNING OF YEAR $ 508,262 $ (71,846) $ 436,416 $ 493,538 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES (111,268) 56,888 (54,380) (57,122) INVESTMENT IN CAPITAL ASSETS 20,113' (20113) - - BALANCE, END OF YEAR $ 417,107 $ (35,071) $ 382,03fi $ 436,416 DURWARD JONES BARKWELL 8 COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS BALANCE SHEET MARCH 31, 2009 4 2009 2008 ASSETS Current assets Cash $ 4,715 $ 9,679 Accounts receivable 20,6&6 31,674 Inventory _. 10,280 9,988 Prepaid expenses ~ 12;793 : 26,272 4$,474 , >r 77,613 Capital assets (Note 3) , 417;107. 508,262 A i ~: $ ,:465,5$1 $ 585,875 LIABILITIES Current liabilities Bank indebtedness (Note 4) Accounts payable and accrued charges Deferred revenue Commitment (Note $ 5,000. $ - 73,817 130,568 4,728 18,891 83,545 149,459 FUND BALANCES Operating Fund -Unrestricted (Note 7) ~ (35,071) (71,846) Capital Fund -Invested in capital assets 417,107 508,262 382,036 436,416 $ 465,581 $ 585 875 Approved by the Board: Director .......................... Director DURWARD JONES BARKWELL 8 COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS STATEMENT OF CASH FLOWS YEAR ENDED MARCH 31, 2009 2009, 2008 OPERATING ACTIVITIES Net loss $ (54,380} $ (57,122) Items not affecting cash Depreciation 11.1.,268 117,759 Gain on disposal of assets - (456) _56;888 60,181 Changes in non-cash operating assets and liabilities Accounts receivable 10,988 15,353 Inventory ' {292} 826 Prepaid expenses `13,79 (18,833) Accounts payable and accrued charges (56,751=} 110,146 Deferred revenue (14,163 (544) a 10,149 167,129 INVESTING ACTIVITIES Capital expenditures (20,1.13) (224,125) Proceeds on disposal of assets - 7,000 (20,113} (217,125) DECREASE IN CASH ! {9,964) (49,996) CASH, BEGINNING OF YEAR ' 9,67 ' ~ 59,675 CASH (BANK INDEBTEDNESS), END OF YEAR $ ~ (28 $ 9,679 CASH (BANK INDEBTEDNESS) IS REPRESENTED BY: Cash '$ 4 , 4,715 $ 9,679 Bank indebtedness :: (5;000} - ~;{285' $ 9,679 DURWARD JONES BARKWELL & COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2009 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 reports its activities using 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. The Capital Fund is a restricted fund which reports 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. Inventory Inventory is valued at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Revenue recognition Contributions are generally recognized as revenue in the year in which they are received. Donation pledges are not legally enforceable and many pledges are due more than a year in the future. Contributions to the General Fund which are received for use in a future period are accounted for as a deferred revenue. Restricted contributions received for which a separate fund is not presented are also reported in the Operating Fund but are deferred until the period in which the related expenses are incurred. Deferred revenue Cash received prior to year end for expenditures or events in a subsequent year 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. DURWARD JONES BARKWELL & COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2009 1. SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (continued) 7 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. Significant estimates and assumptions are used when accounting for items such as the determination of useful lives of capital assets. 2. GOVERNMENT FUNDING City of Niagara Falls Employment Ontario (JCP Program) Ontario Ministry of Tourism and Recreation Ontario Trillium Foundation 2009 2008 $ 380,000 $ 380,000 11,679 12,705 125,OOD 50,000 311700 - $ ~ 58,,79 $ 442,705 3. CAPITAL ASSETS Computer software Computer equipment Furniture and equipment Light displays Mascots Power supply Leasehold improvements 200.9 2008 Accumulated Net Boak Net Book Cost .Depreciation Value Value $ 24,233 $ ` 23,423 $ 810 $ 7,608 845 .50 37,972 ~ 12,$73 16,518 . , .13,551 10,746 2,$05 1,804 -1,205,590 839,576 366,014 438,839 33,718 24,291 9,427 13,467 .56,124 39,652 16,472 18,302 17,117 8,411 $,'706 11,724 $ 1,401,178 $.' 98,071 ~$ 4'i~r;1,07'' $ 508,262 The organization received sponsorships in the amount of $41,452 to acquire new light displays. These sponsorships have been deducted from the cost of the related assets and depreciation is calculated on the net amount. 4. BANK INDEBTEDNESS The bank indebtedness is a line of credit arrangement which is due on demand and allows for a maximum borrowings of $75,000. The bank indebtedness bears interest at 1 % over the bank's prime rate of interest. DURWARD JONES BARKWELL 8 COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2009 5. FINANCIAL INSTRUMENTS The organization has classified cash as a financial asset held for trading. Financial assets classified as held for trading are reported at fair value at each balance sheet date and any change in fair value is recognized in net income in the period during which the change occurs. Accounts receivable are classified as loans and receivables. Bank indebtedness and accounts payable and accrued charges are classified as other financial liabilities. Financial instruments classified as loans and receivables and other financial liabilities are carried at amortized cost using the effective .interest method. Interest income or expense is included in net income over the expected life of the instrument. Fair Value The following policies and assumptions were used to determine the fair value of each class of financial assets and liabilities: The fair value of cash, accounts receivable, accounts payable and accrued charges approximates their carrying values due to the relatively short-term nature of these instruments. The fair value of bank indebtedness approximates carrying value as this instrument bears interest at a rate that fluctuates with market. Market Risks The organization is exposed to interest rate risk since changes in interest rates may impact the organization's borrowing costs. The organization does not use any derivative instrument to reduce its exposure to interest rate risk. Unless otherwise noted, it is management's opinion that the organization is not exposed to significant currency, liquidity and credit risks arising from its financial instruments. 6. COMMITMENT 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. 7. CHANGES IN ACCOUNTING POLICY Effective April 1, 2008, the organization adopted the following sections of the Handbook of the Canadian Institute of Chartered Accountants: Inventories CICA handbook Section 3031, Inventories, replaces corresponding Section 3030 and establishes new standards for the measurement and disclosure of inventories. This new section requires inventories to be measured at the lower of cost and net realizable value, provides guidance on the determination of cost and requires reversal of prior period write-downs when the net realizable value of impaired inventory subsequently recovers. The adoption of this section had no material impact on the audited financial statements. Capital Disclosures The Canadian Accounting Standards Board issued new accounting standard, CICA Section 1535, Capital Disclosures. This section requires the disclosure of information that enables users of financial statements to evaluate the entity's objectives, policies and processes for managing capital. This change in accounting policy resulted in additional disclosures in the financial statements and did not impact the financial results of the organization. DURWARD JONES BARKWELL & COMPANY LLP Chartered Accountants WINTER FESTIVAL OF LIGHTS NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2009 9 8. CAPITAL MANAGEMENT The organization defines its capital as the amounts included in its operating and capital fund balances. The organization's objective when managing its capital is to safeguard the organization's ability to continue as a going concern so that it can continue to provide the appropriate level of benefits and services to its beneficiaries and its stakeholders. The organization sets the amount of the captial fund in proportion to risk, manages the capital fund structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. 9. 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. 10. COMPARATIVE FIGURES Certain of the prior year's figures have been reclassified to conform to the current year's financial statement presentation. DURWARD JONES BARKWELL & COMPANY LLP Chartered Accountants Rink at the Brink: Assets Ice Skating Rink (rinkboards, refrigeration unit, piping systemhalide lights, and associated equipment/supplies) $ 220,400.00 Rubber Mats $ 11,752.00 Rink Roofing System (80' W x 140' L x 36' H) $ 254,068.43 On-Site Storage Facility $ 37,166.00 Skate Sharpener $ 3,237.10 Skates & Helmets $ 15,959.74 Storage Lockers $ 12,586.35 Miscellanous $ 10,000.00 Total Actual Cost of Assets $ 565,169.62 ~~ Nia araFalls J ('.l K.h l)A H R-2010-03 February 22, 2010 REPORT TO: Councillor Victor Pietrangelo, Chair and Members of the Corporate Services Committee City of Niagara Falls, Ontario SUBMITTED BY: Corporate Services, Human Resources SUBJECT: HR-2010-02 Employment Attrition RECOMMENDATION: That Council approve an employment attrition policy. Such policy and practice would be subject to collective agreement provisions and with the understanding that key priority services will be not jeopardized. EXECUTIVE SUMMARY: During budget discussions, staff advised Council of its intention to implement a practice of employment attrition. Employment attrition occurs when employees resign, retire orterminated for cause and not replaced, but not through layoffs. The policy requires that a review take place prior to vacancies being filled -the end goal being to reduce overall Corporate labour costs. Unless turnover becomes high, attrition will. eliminate a relatively small number of employees in the short run. For instance, during the last two years, there was an average of twenty permanent positions vacated each year within the Corporation. Only a few positions were not filled and the remainder was gapped and/or subsequently hired. As a result, the employment attrition process involves a review of departmental workloads and job descriptions, assessing organizational efficiencies, customer service impacts and health and safety considerations. The decision to permanently fill or not fill a position, is always followed in accordance with terms and conditions of the collective agreement. It applies to both union and non-union positions. ANALYSIS/RATIONALE Employment. attrition policies are compliant with collective agreements and labour law. Such a policy represents a pragmatic and sensible approach to achieving labour cost savings while maintaining key .priority services. February 22, 2010 - 2 - CITY'S STRATEGIC COMMITMENT H R-2414-03 Adopting a formal attrition policy and practice would support Council's strategic priority to improve/monitor the costs and efficiency of the organization. FINANCIAL /STAFFING IMPLICATIONS The goal of this policy is to reduce overall Corporate labour costs which will assist in the Corporation meeting its strategic priority to monitor and approve the efficiency of the organization. SUMMARY CONCLUSION: As part of the budget challenges facing the City of Niagara Falls and to achieve labour cost savings, staff is recommending that Council adopt a formal attrition policy. While staff turnover can be estimated based on past data, the actual savings of voluntary attrition will be difficult to predict (i.e., the timing of resignations and retirements are largely determined by the individual) .. . At the discretion of the Chief Administrative Officer, attrition consideration should be given to whether the position(s): will impact an essential service and/or a strategic priority of Council may jeopardize the health and safety of staff and/or residents can be substituted and/or redeployed within the organizational structure/workload Recommended by: Approved by: Respectfully submitted: ~~~ Trent Dark, Director of Human Resources ~' ~~~ K. E. Burden, Executive Director, Corporate Services Ken odd, Chief Administrative Officer The City of Niagara Falls, Ontario Resolution No. Moved by Seconded by WHEREAS all meetings of Council are to be open to the public; and WHEREAS the only time a meeting or part of a meeting maybe closed to the public if the subject matter falls under one of the exceptions under s. 239(2) of the Municipal Act, 2001 (hereinafter referred to as the "Act"); and WHEREAS s. 239(7) of the Act mandates that the municipality or local board or a committee of either of them shall record without note or comment all resolutions, decisions, and other proceedings at a meeting of the body whether it is closed to the public or not; and WHEREAS s. 239(8) of the Act requires that the record required by subsection 239(7) shall be made by the Clerk of the Corporation in the case of a meeting of council; and WHEREAS on February 22, 2010, Niagara Falls City Council will be holding a Closed Meeting as permitted under s. 239(2)(d)pertaining to labour relations. WHEREAS due to the nature of the discussion in the Closed Meeting related to labour relations, it is not appropriate for City staff to be in attendance, save the Chief Administrative Officer and the Director of Human Resources ("HR"); and WHEREAS s. 228(4) permits the Clerk the discretionary authority to delegate in writing to any person, other than a member of council, any of the clerks powers and duties under the Act. THEREFORE BE IT RESOLVED THAT on February 22, 2010, Niagara Falls Council will go into a closed meeting to consider a matter that falls under s. 239(2)(d), labour relations or employee negotiations; and FURTHER BE IT RESOLVED THAT on February 22, 2010 the Clerk, Dean Iorfida, delegates his authority to the Director of HR, Trent Dark for the items related to labour relations or employee negotiations; and FURTHER BE IT RESOLVED THAT the Director of HR will record without note or comment all recommendations to Council emanating from the Closed Meeting; and FURTHER BE IT RESOLVED THAT the Clerk will resume his duties upon conclusion of the Closed Meeting agenda. AND The Seal of the Corporation be hereto affixed. DEAN IORFIDA R. T. (TED) SALCI CITY CLERK MAYOR