2006/01/16 CORPORATE SERVICES COMMITTEE AGENDA
FIRST MEETING
Monday, January 16, 2006
Council Chambers -6:00 p.m.
Staff Contact
1. Minutes of the December 12, 2005 Meeting
2. Presentations
BMA Management Consulting Inc.
Jim Bruzzese and Catherine Minshull
Reference: Report F-2006-03 Ken Burden
Niagara Falls Tourism Serge Feliceti
The Boys and Girls Club of Niagara John MacDonald
3. Correspondence
Walter Burma, Continental Inn, 5756 Ferry Street Todd Harrison
Request to write off taxes
John Grassl, Golden Horseshoe Ventures Inc., Todd Harrison
9515 Montrose Road - Request to reconsider penalty charges
Niagara Region Children's Safety Village Patrick Burke
Request for permissive grant
YWCA - Culp Street Shelter Ken Burden
Request for permissive grant
4. 2006 BudRet
Referrals to 2006 Budget John MacDonald
per Alderman Campbell's Request
Report F-2006-01 - 2006 General Purposes Budget (see Budget Binder) John MacDonald
Report F-2006-02 - 2006-2010 Capital Projects Budget (see Budget Binder) John MacDonald
5. New Business
6. Adjournment
REMINDER ... DON'T FORGET YOUR BUDGET BINDER!
PLEASE NOTE REVISED BUDGET SHEETS ENCLOSED
MINUTES
CITY OF NIAGARA FALLS
CORPORATE SERVICES COMMITTEE
TENTH MEETING
MONDAY, DECEMBER 12, 2005
COUNCIL CHAMBERS
6:00 P.M.
PRESENT: Mayor Ted Salci, Alderman Wayne Campbell, Chair; Aldermen Jim
Diodati, Carolynn Ioannoni, Vince Kerrio, Joyce Morocco, Victor
Pietrangelo, Selina Volpatti, and Janice Wing
STAFF: John MacDonald, Dean Iorfida, Adele Kon, Karen Kelly, Ed Dujlovic,
Ken Burden, Patrick Burke, Doug Darbyson, Serge Felicetti, Todd
Harrison, Joanna Daniels
PRESS: Corey Larocque, Niagara Falls Review
MINUTES:
MOVED by Alderman Morocco, seconded by Alderman Pietrangelo, that the minutes
of the November 21, 2005, meeting be adopted as recorded.
Motion Carried Unanimously
2. REPORTS
Report F-2005-56 - 2006 General Insurance Report
MOVED by Alderman Pietrangelo, seconded by Alderman Diodati,
1. That the 2006 Comprehensive Insurance Program from Frank Cowan Co. Ltd.
be approved at an annual premium of $825,731 (2005 - $685,251), plus
applicable taxes.
2. That staff be directed to investigate the impact that may result from increasing
deductibles for some of the City's insurance policies.
Motion Carried Unanimously
-2-
Report F-2005-57 - Treasurer's Write-Off
MOVED by Alderman Volpatti, seconded by Mayor Salci, that the property tax
accounts listed in the report be removed from the City's accounts.
Motion Carried Unanimously
Report F-2005-58 - Lundy's Lane Factory Outlet Mall
Roll No. 2725-090-007-29000-0000
MOVED by Alderman Pietrangelo, seconded by Alderman Diodati, that the change
to the 2004 annualized taxes of the Lundy's Lane Factory Outlet Mall be approved
for the purposes of collecting the 2005 property taxes.
Motion Carried Unanimously
Report F-2005-59 - Property Tax Deferral for Low-Income
Seniors and Low-Income Disabled Persons
MOVED by Alderman Ioannoni, seconded by Alderman Pietrangelo, that in
cooperation with the Regional Municipality of Niagara, Staff investigate what is done
in other municipalities for property tax deferral for Iow-income seniors and
Iow-income disabled persons.
Motion Carried Unanimously
3. 2006 BUDGET
The Chief Administrative Officer and the Director of Finance presented Council with
an overview of preliminary budget figures. In order to maintain the same level of
services and include the Council-approved additional services, expenditures would
increase by $4,595,700 over 2005. To match the increase in expenditures would
result in a $72.57 change to the average household (based on an assessment of
$159,000). Staff presented options to deal with this increase; namely, the use of
reserves, debentures, and/or the introduction of new user fees.
The Director of Finance advised that a report would be forthcoming on January 16th,
2006, relating to the Municipal Performance Measures Program and a study from
MPMP and BMA Reports
It was suggested that a City have a po#cy in place with regards to the amount of
reserves in comparison to the overall budget.
MOVED by Alderman Volpatti, seconded by Alderman Ioannoni, that Staff report on
the cost of additional sidewalk snow removal.
Motion Carried Unanimously
4. NEW BUSINESS
Report BDD-2005-02 - Strategic Implementation Plan
for Downtown - U.S. Downtown Site Tours
MOVED by Alderman Ioannoni, seconded by Alderman Wing, that Staff arrange for
Council to visit the Town of Niagara-on-the-Lake and use it as their reference point.
Motion Defeated
MOVED by Alderman Volpatti, seconded by Alderman Diodati, that Council send
those Council members, along with three staff members, who wish to visit the
suggested sites in the United States that have successfully revitalized their
downtown areas.
Motion Carried
Aldermen Ioannoni and Wing Om3osed
5. ADJOURNMENT
MOVED by Alderman Kerrio, seconded by Alderman Pietrangelo, that the meeting
be adjourned at 7:50 p.m.
Alderman Campbell reminded the Committee that the next Budget Meeting is
scheduled for January 16, 2006, at 6:00 p.m.
Corporate Services Department F-2006-03
Finance Kenneth E. Burden
Tile City' of ~1~.~ 4310 Queen Street Director
Niogoro Foils==~,~1~ P.O. Box 1023
Niagara Falls, ON L2E 6X5
web
www.city.niagarafalls.on.ca
~~'.~~~'/-" Tel: (905) 356-7521
Fax: (905) 356-2016
E-maih kburden@city.niagarafalls.on.ca
January 16, 2006
Alderman Wayne Campbell, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2006-03 - BMA Management Consulting Presentation
RECOMMENDATION:
For the information of Council.
BACKGROUND:
On May 16, 2005, Alderman Diodati requested that Staffprepare a report on the use of information
from the annual Municipal Performance Measurements Program and the BMA Municipal Study for
the purpose of providing guidance in the preparation of the 2006 Budget.
Staff contacted BMA Management Consulting requesting their assistance. BMA Consulting has
responded by preparing a financial trend analysis for the City of Niagara Falls. Although the report
appears to be comprehensive, it is an overview which, through Council's direction, could lead to an
in-depth analysis of several financial indicators.
BMA Management Consulting will provide a PowerPoint presentation which will close with four
recommendations, all of which are supported by staff.
Prepared by: Respectfully subr~tted
K.E. Burden ////John MacDonald
Director of Finance ~/ Chief Administrative Officer
Approved by:
T. Ravenda
Executive Director of Corporate Services
Working Together to Serve Our Community
Clerk's · Finance · Human Resources · Information Systems · Legal · Planning & Development
Financial Review
City of Niagara Falls
Table of Contents
Executive Summary
Introduction 1
Comparisons 1
Analyzing the City's Financial Condition 2
Why Undertake A Trend Analysis 3
Section 1 - Growth Related Indicators 4
Population 4
Building Related Activity 6
Assessment Related Changes 7
Summary of Growth Related Indicators 11
Section 2 - General Financial Indicators 12
Reserves 13
Reserves as a % of Expenditures 15
Contributions from Reserves to the Operating Budget 17
Debt Management and Capital Financing 18
Debt Charges as a % of Expenditures 19
Capital Spending/Outlay 20
Debt Outstanding as a % of Expenditures 21
Debt to Reserve Ratio 22
Financial Position 23
Taxes Receivable as a % of Taxes Levied 25
Municipal Expenditures 27
Municipal Levy Per Capita 27
Conditional and Unconditional Grants as a % of Total Revenues 29
User Fees as a % of Total Expenditures 29
Expenditures by Program 30
Summary of General Financial Indicators 32
Section 3 - Analysis of Relative Municipal Burden 34
Comparison of Relative Property Tax Burden 35
Water/Sewer Costs 38
Overall Tax Burden - Typical; Resident for Municipal Services 40
Summary of Relative Municipal Burden 42
Appendix A - Summary of Municipalities included in the BMA Municipal Study 2005
· B.MA '
Financial Review
City of Niagara Falls
Executive Summary
Summary of Growth Related Indicators
· The City of Niagara Falls has experienced gradual population
increases over the past 3 years, slightly below the average of
Niagara municipalities.
· The City's population growth between 2001-2004 was 5.4%
compared with a survey average of 9.7% across a survey of 67
Ontario municipalities. Fast growing municipalities tended to be
located in the GTA.
· Building construction activity on a per capita basis in the City of
Niagara Falls exceeded the survey average of 67 municipalities
over the past 5 years. The City's construction value on a per
capita basis was second highest in the Niagara region.
· The City's assessment growth between 2004-2005 was 2.7%,
second highest in the Niagara region and at the survey average of
67 Ontario municipalities.
· The City has a unique assessment base, in comparison to other
Ontario municipalities, with a large commercial component.
Assessment composition over the past 5 years has been stable,
with approximately 70% of the assessment in residential and multi-
residential and the remainder in commercial and industrial.
· The City's unweighted assessment is slightly below the total
survey average of 67 municipalities. However, with a large
commercial assessment base, the application of the tax ratios
results in the City's weighted assessment being at the survey
average. This contributes to the City of Niagara Falls being
allocated a larger proportional share of the Region's levy in
comparison to unweighted assessment and population
comparisons.
'BMA
Financial Review
City of Niagara Falls
· Net municipal levy per capita is high in the City of Niagara Falls in
comparison to other municipalities surveyed however spending
over the past several years has closely matched inflation. There
are many factors that impact the net municipal levy which were
beyond the scope of this study. Further analysis is needed to fully
understand the driving factors from a revenue expenditure and
service level perspective.
· User fees as a percentage of expenditures has declined in the City
of Niagara Falls over the past several years. This may be the
result of user fee policies, changes in demand for services and the
cost of services.
Summary of Relative Municipal Tax Burden
· The property tax burden in the City of Niagara Falls is typically in
the mid range in comparison to other municipalities surveyed
(average)
· Water/sewer costs for all consumption levels are high in the City of
Niagara Falls, similar to a number of other Niagara municipalities.
A large portion of the revenues goes to capital infrastructure
replacement.
· With relatively Iow income levels, Iow dwelling values, high relative
municipal spending and high water/sewer rates, the municipal
burden on an average homeowner in Niagara Falls is relatively
high in comparison to 67 Ontario municipalities included in the
survey. However, the relative burden is consistent with that in
other Niagara municipalities such as Fort Erie, Niagara-on-the-
Lake, Port Colborne and St. Catharines.
'BMA
Financial Review
City of Niagara Falls
INTRODUCTION
This report provides an analysis of the financial position of the City using
a number of recognized financial indicators. The intent of providing an
evaluation of a municipality's financial condition is to provide a
systematic process to monitor and evaluate a municipality's financial
outlook and performance. BM^ Management Consulting Inc. worked in
co-operation with staff to undertake the analysis. This report is
structured to include the following:
· Section 1--Growth Related Indicators
· Section 2--General Financial Indicators
· Section 3--Analysis of Relative Municipal Burden
Comparisons
Comparisons are made in the following ways:
· Historical trends within the City for a number of indicators
· Comparisons to other Niagara municipalities to provide context
within the geographic area
· Comparisons, where applicable to a sample set of other
municipalities with similar populations, densities, as well as some
key neighbouring municipalities, border towns and/or
municipalities with a significant tourism component. A sample set
of 11 municipalities were selected in co-operation with City staff.
The municipalities included are:
· Brantford · St. Catharines
· Burlington · Waterloo
· Fort Erie · Welland
· Hamilton · Whitby
· Kingston · Windsor
· Newmarket
· Comparisons against a larger database (67 municipalities,
representing 80% of the Ontario population--see Appendix A)
using the annual BMA Municipal Comparative study
BMA ,.,.,
T~ - rr
Financial Review
City of Niagara Falls
Why Undertake A Trend Analysis
A trend analysis offers several advantages:
· It provides information on changes in the municipality in the most
Trends provide a
recent years, revealing the most current trends and their relative
better indication
of the overall impact on the financial health of the municipality
financial health of · It allows the evaluator to determine how quickly an indicator is
a municipality and changing and in which direction
identifies areas
where further · It permits one trend to be evaluated in conjunction with other
analysis may be trends
needed · It allows local trends to be compared with Regional/Provincial
trends
· It provides a database that can be used to make five or more year
projections necessary for effective budgeting, capital programming
and master planning efforts and general decision making
· It creates awareness of the trends and the potential need to modify
policies
· It provides useful information to efficiently manage public funds
and to provide adequate services
· It educates citizens about potential areas of need for additional tax
revenues and/or changing priorities
· It provides a good indication of where a municipality is heading
Appropriate comparisons of a municipality's own data with the data of
other similar municipality's is useful for purposes of financial analysis.
Benchmarking has been included in the analysis.
'BMA'
........ , . , Page 3
Financial Review
City of Niagara Falls
Figure 3--Fastest Growing
Ontario Municipalities
Figure 3 includes municipalities in
Ontario with growth from 2001-
2004 that exceeded 10%. GTA
municipalities are typically growing
at a much faster rate than other
locations across Ontario. No
municipalities within the Niagara
region experienced growth of 10%
or greater.
Figure 4 Population Change 1996-2004 of Select Municipalities
40% -
35%- Figure 4 reflects a comparison of population
3o%- changes for a number of comparable
z~%. municipalities. This includes municipalities with
20%. similar populations, densities, as well as some key
1s%. neighbouring municipalities, border towns and/or
municipalities with a significant tourism
lo%. component.
o% From 1996-2004, Niagara Falls experienced a
,~./~~..~////.t~ averageP°pulati°n increase of 8%, compared with a grOUPo, 15.4%.
'BMA
Financial Review
City of Niagara Falls
In comparison to the larger survey of 67 Ontario municipalities and
specifically against the Niagara municipalities, the City of Niagara Falls'
building permit activity on a per capita basis reflects strong growth.
Figure 7 provides a summary of the 2004 building permit activity, the 3
year average and the 5 year average on a per capita basis for
municipalities in the Niagara region. With the exception of Niagara-on-
the-Lake, the City of Niagara Falls has consistently had the highest
building permit activity of the Niagara municipalities and has exceeded
the survey average of 67 Ontario municipalities over the past 5 years.
Figure 7--Building Permit Activity--Region of Niagara
Strong and
consistent
building related
activity in the City Lincoln N/A N/A N/A
of Niagara Falls in Wainfieet $ 1,45~ I $ 1,337 N/A
comparison to West Lincoln N/A N/A N/A
other Niagara Thorold ~ 1~054 ~ 928 ~ 777
municipalities and St. Catharines ~ 11067 ~ ~80 ~ ~0~
a larger survey of Welland ~ 594 ~ 887 ~ 843
67municipalities Fort Erie $ 1,319 $ 1,268 $ 1,140
in Ontario Port Colborne $ §22 $ 598 $ 1,:342
Pelham $ 1.983 $ 1.747 $ 1.587
Nia_¢lara Falls
of 67 Municipalities
Assessment Related Changes
Assessment per capita statistics have been compared to provide an
indication of the "richness" of assessment base in each municipality as
well as changes in assessment from year to year. Assessment
composition has also been included to provide an understanding of the
mix of assessment as well as the stability of the assessment base.
Unweighted assessment per capita is the total assessment of the
municipality divided by the population. Different tax burdens are
assigned to each property class based on the tax ratio. The weighted
assessment is calculated by multiplying the total unweighted
assessment within each class by the tax ratio.
BMA
Financial Review
City of Niagara Falls
Figure 10 reflects the change in unweighted assessment between 2004-
2005 which largely reflects the impact of growth as there was no
reassessment during this period. As shown below, the City of Niagara
Falls has experienced the second highest percentage change in
assessment between 2004-2005 in the Region. In comparison to the
larger survey of 67 municipalities, the City of Niagara Falls' assessment
growth during this period was at the survey average.
Figure lO--Niagara Municipalities
Changes in Assessment 2004-2005
Assessment
change between
2004.2005 reflects Gdmsby 4.3%i
growth related Nia,cjara Falls 2.7%
changes--Niagara Lincoln 2.6%
Falls has the 2nd West Lincoln 2.5%
highest growth in Niagara-on-the-Lake 2.1%
the Niagara region Pelham 2.1%
and is at the Fort Erie 1.4%
survey average in
St. Catharines 1.1%
comparison to 67
Ontario Welland 1.0%
municipalities Wainfleet 1.0%
Thorold 0.9%
Port Colborne -0.6%
Figure 1 ~--Select Municipalities
Changes in Assessment 2003-2005
Figure 11 compares the
"%' assessment change between
3o%- 2003-2005 for comparable
municipalities. This reflects
2,%. changes due to reassessment and
~o%* growth. Communities experiencing
,,%_ population and economic growth
are likely to experience short-run
~o.,.- increases in property values. This
,.,~- is because in the short run, the
housing supply is fixed and the
o%- increase in demand created by
.~// / ,~,.~¢' / / ~/ // / // growth will force prices up.
Niagara Falls' assessment related
change during this period was
'BMA below the survey average.
........ · , Page 9
Financial Review
City of Niagara Falls
Summary of Growth Related Indicators
· The City of Niagara Falls has experienced gradual population
increases over the past 3 years, slightly below the average of
Niagara municipalities.
· The City's population growth between 2001-2004 was 5.4%
compared with a survey average of 9.7% across a survey of 67
Ontario municipalities. Fast growing municipalities tended to be
located in the GTA.
Building construction activity on a per capita basis in the City of
Niagara Falls exceeded the survey average of 67 municipalities
over the past 5 years. The City's construction value on a per
capita basis was second highest in the Niagara region.
· The City's assessment growth between 2004-2005 was 2.7%,
second highest in the Niagara region and at the survey average of
67 Ontario municipalities.
· The City has a unique assessment base, in comparison to other
Ontario municipalities, with a large commercial component.
Assessment composition over the past 5 years has been stable,
with approximately 70% of the assessment in residential and multi-
residential and the remainder in commercial and industrial.
· The City's unweighted assessment is slightly below the total
survey average of 67 municipalities. However, with a large
commercial assessment base, the application of the tax ratios
results in the City's weighted assessment being at the survey
average. This contributes to the City of Niagara Falls being
allocated a larger proportional share of the Region's levy in
comparison to unweighted assessment and population
comparisons.
'BMA ,.,.,,
Financial Review
City of Niagara Falls
ReservesmDefinition
A Financial Reserve is a financial provision or amount that is designated
for a future purpose that extends beyond the current fiscal year. While
its balance may vary over the course of a year, the Reserve is carried
forward from one fiscal year to the next to facilitate multi-year financial
planning. Reserves can be established to meet specific liabilities such
as the replacement/acquisition of capital assets or to protect against
known risks or unforeseen circumstances that may create financial
difficulties.
Why Maintain Reserves ?
Reserves are a Reserves are a critical component of a municipality's long-term financing
critical element in plan. The purpose for maintaining reserves includes:
the City's overall
· To provide stability of tax and utility rates in the face of variable
financial position and uncontrollable factors (consumption, interest rates,
unemployment rates, changes in subsidies)
· To provide financing for one-time or short term requirements
without permanently impacting the tax and utility rates
· To segregate funds received and/or to be used for a specific
purpose
· To make provisions for replacements/acquisitions of assets/
infrastructure that are currently being consumed and depreciated
· To avoid spikes in funding requirements of the capital budget by
reducing their reliance on long-term debt borrowings
· To provide a source of internal financing
· To ensure adequate cash flows
· To provide flexibility to manage debt levels and protect the City's
financial position
· To provide for future liabilities incurred in the current year but paid
for in the future
As such, Reserves serve as a mechanism to plan financially for both
today and in the future.
The City of Niagara Falls strives to maintain solid Reserves and Reserve
Fund positions to ensure future liabilities can be met, that capital assets/
infrastructure are properly maintained and that the City maintains
sufficient financial flexibility to respond to economic cycles or
unanticipated financial requirements.
· BMA ,.,.,,
T~ ' fP
Financial Review
City of Niagara Falls
Reserves as a % of Expenditures
Reserves as a % of expenditures provides a measure of the financial
health of a municipality. A comparison was made over time in Niagara
Falls as well as against a sample of municipalities, the average for 67
Ontario municipalities and against other Niagara municipalities.
Figure 14 provides a historical representation of the City's reserves as a
percentage of expenditures.
Figure 14--Reserves as a % of Expenditures 2001-2004
Niagara's 24%
reserves as a
percentage of 22%
expenditures has
shown a recent 20%
downward trend
18%
and is less than
haft that of the 1s%
survey average of
67 municipalities 14%
12%
10%
2001 2002 2003 2004
While the reserves as a percentage of expenditures increased from
2001 to 2003, between 2003 and 2004 there was a decline in reserves.
A declining trend may indicate that the municipality may have difficulties
in emergency situations and/or may not have enough for replacement/
refurbishment of capital assets. This reduces the City's flexibility to fund
ongoing maintenance, replacement of vehicles and equipment,
refurbishment of facilities and other operating programs.
In comparison to the survey of 67 Ontario municipalities, the City of
Niagara Falls, with reserves as a percentage of expenditures at 17.3% is
well below the survey average of 36.7%.
Financial Review
City of Niagara Falls
Figure 17--Contributions from Reserves and Reserve Funds to the
Operating Budget
As shown in Figure 17, the City has increasingly used reserves to fund
operating programs. Without a sustainable source of replenishment,
reserve balances will continue to decline.
$6,000,000 -~-Contributions from Reserves and
$5,000,000 Reserve Funds
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2001 2002 2003 2004
As a result of a relatively Iow level of reserves and an increasing use of
reserves to support operating programs, a detailed review of each
reserve and reserve fund should be undertaken, along with the
underlying policies for reserve use and replenishment.
'BMA
Page 17
Financial Review
City of Niagara Falls
Debt Charges as a % of Expenditures
Debt service costs as a percentage of the total expenditures highlights
the magnitude of expenditures required to service past obligation
therefore not available for other services. Care must be used in
evaluating this indicator.
The City's debt A high debt service ratio may indicate a municipality is taking on too
charges as a % of much debt but it may also indicate an aggressive approach to debt
expenditures has repayment to reduce interest costs. Similarly, a Iow debt service ratio
consistently been could indicate a municipality is strong financially and can internally
Iow
finance most capital projects. It may also indicate the municipality has
deferred capital projects and allowed infrastructure to deteriorate.
The City of Niagara Falls at 1.4% is well below the survey average of 67
Ontario municipalities (3.7%), The City's ratio has remained constant
for the past 3 years (Figure 19).
In comparison to other Niagara Figure 20--Niagara Municipalities
Niagara Falls has a Iow level of
debt charge as a percentage of Nia(3ara Falls 1,~% 1,;)% 1,4'%
expenditures (Figure 20). !Wainflee! 1.5% 1,3% 1.6%
Figure 19~Trend IPelham 2.3% 2.1% 1.8%
2001.2004 F°~ Ede 4.5~' 5,0% 3.9%
iLincoln 5.7°/ 4.7% 4.3%
3.0% :St. Cathadnes 4 · 8 °/~ 5,7% 5.8%
=Welland 5.6°A 5.3% 5.3%
2,~°/, ~.~ ~P°d Colbome 6.2 °/~3.6o~ 0.0%4~~8.7%
2-0% ~
Niaoara Averaoe 39~ :~,2% 4.8%
1.0',~ Total Survey (67
'~_ .. ~ municipalities) 3.4oA 3.9% 3.7%
"°% Figure 21--Debt Charges as a % of
o.,% Expenditures--Select Municipalities
0.0%
2001 2002 2003 2004
Debt service
charges are
amongst the
lowest in the
survey
/I '/I////////
· BMA' ,.,.,.
Financial Review
City of Niagara Falls
Figure 24--Debt Outstanding as a % of Expenditures
I-I~-T°tal-~' Excluding WaterlSewer I y
2001 2002 2003 2004
While the debt charges as a percentage of expenditures is Iow, the debt
outstanding as a percentage of expenditures is increasing as new debt
is being issued. As shown in figure 24, the debt has been increasing
since 2001 as a percentage of expenditures in total and excluding water/
sewer. This is an undesirable trend, given that assessment has not
increased at the same rate.
Consideration should be given to whether the debt is exceeding the
municipality's ability to pay and if the trend continues, it may ultimately
overburden the tax base. Credit rating agencies consider that a warning
signal occurs when overall debt outstanding exceeds 10% of total
expenditures. Niagara Falls debt outstanding exceeded the 10%
threshold in 2004. Because the debt started from a Iow position in 2001
and the debt charges are amongst the lowest in the survey, this is not an
immediate concern. However, further analysis of this indicator should
be undertaken to determine the causes of the situation and, if
necessary, devise action strategies. The analysis should include a
determination of the debt requirements over the next 3-5 years to
identify whether
$14,000,000
this is a trend
moving forward. $12,ooo,ooo
Long term $1o,ooo,ooo
liabilities have Figure 25--Long
increased since Term Liabilities $0,ooo,ooo
2001 from $4.3 $6,000,000
million to $11.9
million in 2004 $4,000,000 ,e, -~- Long Term
$2,000,000 Liab t es
$0
2001 2002 2003 2004
'BMA
Financial Review
City of Niagara Falls
Financial Position
A comparison was made of the City's overall financial position (assets
less liabilities) over time. This is calculated as follows:
Accumulated net revenue or deficit of the operating fund
· Plus the capital fund position
· Plus the discretionary reserves
· Plus equity in business enterprises
· Less long term liabilities
· Less post employment benefits
· Less interest owing
As illustrated in figure 28, Niagara Falls' net financial position (assets in
excess of liabilities) decreased by approximately $8 million between
2003 and 2004. This was mainly the result of the following:
· Increase in debt outstanding $2.8 million
· Decrease in reserves $4.5 million
· Increase in unfinanced capital $2.2 million
The City of
Niagara Fails Figure 28--Financial Position Niagara Falls 2001-2004
overall financial
position
decreased by
approximately $24 $55,000,000
million from 2003
to 2004 $50,000,000
$40,000,000 ~-
$35,000,000
$30,000,000
I--~- Municipal PositionI
$25,000,000
$20,000,000 , , ,
2001 2002 2003 2004
'BMA
............. , Page 23
Financial Review
City of Niagara Falls
Taxes Receivable as a % of Taxes Levied
Every year, a percentage of property owners are unable to pay property
taxes. If this percentage increases over time, it may indicate an overall
decline in the municipality's economic health. Additionally, as
uncollected property taxes rise, liquidity decreases.
A municipality should assess their internal collection procedures to
reduce uncollected property taxes. Further investigation should also be
conducted to classify the uncollected property taxes (residential,
commercial and industrial).
If uncollected property taxes are rising, further investigation is needed to
try to identify the causes (why is it happening?), assess the significance
and devise action strategies (what can be done?)
Figure 30- City of Niagara Taxes Receivable as a % of Tax Levies
Taxes Receivable 2~01-2004 -
are higher than
industry
standards
~%.
8%'
7%'
0%
2001 2002 2003 2004
As shown in figure 30, the taxes receivable have remained relatively
constant over the past 4 years (between 10%-12%). While there was a
small decline in 2004 uncollected property taxes as a percentage of
taxes levied of 11%, as is the case in the City of Niagara Falls is
considered high. If uncollected property taxes rise to more than 8%,
rating firms consider this a negative factor because it may signal
potential instability in the property tax base. Credit rating agencies
assume that municipalities normally will be unable to collect 2-5% of its
property taxes within the year that taxes are due.
Further analysis of this indicator is recommended to determine first the
cause and significance of the uncollected taxes and second an action
strategy to bring outstanding taxes to an acceptable level.
'BMA I~age 25
Financial Review
City of Niagara Falls
Municipal Expenditures
In order to better understand the relative tax position for a municipality,
another measure that has been included is a comparison of net
municipal levies on a per capita basis. This measure indicates the total
net municipal levy to provide services to the municipality. This analysis
does no__~t indicate value for money or the effectiveness in meeting
community objectives. Net municipal expenditures per capita may vary
as a result of:
· Different service levels
· Variations in the types of services
· Different methods of providing services
· Different residential/non-residential assessment composition
· Varying demand for services
· Locational factors
· Demographic differences
· Socio-economic differences
· Urban/ruralcomposition differences
· User fee policies
· Age of infrastructure
· What is being collected from rates as opposed to property taxes
· Use of reserves
Figure 32 provides the levy per capita in Niagara Falls from 2002-2005.
This includes both the upper and lower tier levies. Increasing per capita
expenditures can indicate that the cost of providing services is
outstripping the community's ability to pay. As shown in the graph, the
increase in levy per capita has closely matched inflation for the period.
Figure 32mNet Municipal Levy Per Capita
I-e- Levy per Capita -III- Levy adjusted for CPI1
Approximately $1,2s0
60% of the levy is $1,200
associated with
Regional $1,1s0
services, with the
remaining 40% $1,1oo
associated with $1,o$o
City services
$1,ooo
$950
$900
2002 2003 2004 2005
-BMA
Financial Review
City of Niagara Falls
Figure 35~Conditional and Unconditional Grants as a % of Total
Revenues
4.5%
Declining grants 4.0%
impacts the cost 3.5% ~.~.
of service 3.0%
2.5%
2.0% ~r
1.5%
1.0%
0.5%
0.0%
2001 2002 2903 2004
One factor that impacts the net municipal levy is the level of grants
available from other governments. As shown in figure 35, the
conditional and unconditional grants reduced in 2004 mainly attributed to
reduced CRF funding from the Province:
2001 $1,395,000
2002 $2,622,000
2003 $3,891,000
2004 $ 3,153,000
Figure 36~User Fees as a % of Total Expenditures
39% '
38% -
37%
Declining user 3s%
fees as a % of
35% -
expenditures is
also a 34%'
contributing 33'/,.
factor
31%.
3,0%
2001 2002 2003 2004
As shown in figure 36, user fees as a percentage of total expenditures
has also declined from 2001-2004. This will also contribute to higher net
expenditures per capita. A detailed analysis of each user fee should be
made to pinpoint the causes. Some of the masons may be attributed to:
· Not including all costs in the fees (direct and indirect)
· Policy decisions to not recover full costs for certain services
· Decreased demand for services
'BMA- Page 29
Financial Review
City of Niagara Falls
The operating costs for winter maintenance can be influenced by:
· The frequency and severity of winter storm events
· The extent of the road network located in urban areas
· Municipalities service threshold for responding to winter storm
There are many events
factors that · The municipalities service standard for road condition after a storm
impact the cost of · Accounting and reporting practices
service., these
vary on a service
Further analysis is needed in each case to identify the cost drivers,
by service basis
levels of service and to ensure that the services provided are in keeping
with Council approved standards and are provided using best municipal
practices. Another way of analyzing the expenditures by function is to
calculate the increases by percentage in each function from year to
year. This will show which functional areas are receiving the largest
increase and help identify the need for further analysis.
Regional Service Comparisons
As shown previously, approximately 60% of the municipal levy is
attributed to Regional services. Figure 38 provides select MPMP and
costs per capita in the Region of Niagara and other Regions in Ontario.
For example, the MPMP for winter maintenance in Niagara Region is
higher than every region except Peel, whereas, the roads costs on a per
lane kilometre basis is lower in Niagara than all other regions except
Peel. Social assistance costs in Niagara are higher than the other
regions and are above the survey average for ambulance services and
police.
Figure 38~Regional Service Comparisons
$ $ 92 $ 21 $ 499
'BMA-
Financial Review
City of Niagara Falls
· Net municipal levy per capita is high in the City of Niagara Falls in
comparison to other municipalities surveyed, however, spending
over the past several years has closely matched inflation. There
are many factors that impact the net municipal levy which were
beyond the scope of this study. Further analysis is needed to fully
understand the driving factors from a revenue expenditure and
service level perspective.
· User fees as a percentage of expenditures has declined in the City
of Niagara Falls over the past several years.. This may be the
result of user fee policies, changes in demand for services and the
cost of services.
'BMA ,.,.,,
Mr. Serge Felicetti
City Hall
4310 Queen Street
Niagara Falls, ON
L2E 2L1
December 15, 2005
Dear Serge:
As you are aware, during our budget presentation on November 21st, Niagara Falls
Tourism and City Staff were instructed to investigate the possibility of seeking
Administrative Assistance from the Niagara Falls Chamber of Commerce and the City of
Niagara Falls. After careful consideration by all of the parties involved, it has been
determined that neither of these solutions would be viable under the current
circumstances of the aforementioned organizations. It has been determined that Niagara
Falls Tourism Corporation would best serve our members by remaining an autonomous
organization under its current Board structure.
On behalf of the Board of Directors of Niagara Falls Tourism, therefore I will be
requesting that the City of Niagara Falls continue their commitment to work with our
Board, staff and industry. We are seeking funding for our organization in the amount of
$389,500.00 (the same level as 2005).
I would welcome the chance to speak to council further on this subject during the next
Budget Deliberation meeting, which I believe is scheduled for January 16~, 2006. If, in
the meantime you have any questions or require further information, please do not
hesitate to contact me directly. I can be reached at my office at Niagara Helicopters at
(905) 357-5672 Extension 221 or by e-mail at apierce@niagarahelicopters.com or
niagheli~niagara.com.
Yours truly,
Anna Pierce
Chair
Niagara Falls Tourism
cc. Mr. John MacDonald
BOYS AND GIRLS CLUB OF NIAGAI; A TODAY'S DATE
6881 CUlP Stre$1 .......... ..- .
Niagara Falls, ON L2G 2CS SENT aY
(905) 357-2444 Fax (905) 357-7401
boysandgirlsclubr~ a~era~on a b~,,, ,om TiME
[ o!-o24
ATTENTION:
iF YOU HAVE INCORRECTLY/INADVERTENTLY RECEIVED TI' IS FAX PLEASE CONTACT THE SENDER AT ONCE,
NUMBER OF PAGES INCLUDING THIS COVER SHEET: /,~
From: Dean Iorfida
To: JoAnne Hett
Date: 12/14/2005 12:46:20 PM
Subject: Re: City Council Deputation
Hi Joanne:
I received your fax. Thanks.
The meeting on Jnuary 16th will be a budget meeting through our Corporate Services Committee. It will
take place at 6:00 p.m.
Could you please advise me as to who might be speaking on behalf of your organization.
Also, if you want any information provided to the Council in advance, please provide it to me the week of
January 9th. Council does not like receiving information the night of the deputation.
If you have any questions, give me a call.
Dean Iorfida
City Clerk
905-356-7521, Ext. 4271
>>> John MacDonald 121812005 3:54 PM >>>
JoAnne:
Further to our discussion regarding the Boys & Girls Club request to make a deputation at Council, I would
suggest an appropriate time to present this report would be at our January 16, 2006 Council meeting, as
we will be discussing our Capital Budget at that time. To confirm your intention to make a deputation, I
would ask that you please contact Dean Iorfida at extension 4271 to make that request.
Aisc, I would like to clarify that the City began working on the proposal put forward by the Club
immediately after it was submitted to the City. You will recall we engaged Cam Watson at that time. We
put the proposal aside when you advised, in August 2005, that there may be a change to the funding
formula and we should not proceed until you provided an appropriate update. While we have received the
addendum to the "draft" Business Plan in November, your request to the City remains the same as
originally presented.
>>> "JoAnne Hett" <ihett~.on.aibn.com> 12/5/2005 3:10 PM >>>
Dear John:
Please accept this email as confirmation of our conversation last week. As per your comments, you have
not started work on our business plan and may not be able to complete your report until January 9, 2006.
The Boys and Girls Club wish to address Council and your report through a deputation in January. You
indicated that there could be rescheduling of meetings in January and therefore I will contact you
tommorrow after Council firms up their dates tonight. Thank you for your help. JoAnne
JoAnne Hett
Executive Director
Boys & Girls Club of Niagara
6681 Culp Street
Niagara Falls, ON
L2G 2C5
phone- 905-357-2444
fax- 905-357-7401
Corporate Services The Cffy of
Finance Division N~agara Fallst
' ' Canada
Inter-Department Memorandum
TO: Alderman Wayne Campbell, Chair, and DATE: January 11, 2006
Members of the Corporate Services Committee
FROM: Ken Burden
Manager of Finance
Ext. 4286
RE: Continental Inn, 5756 Ferry Street
Roll No. 070-001-02900
The owner of the above-noted property has provided a letter to Council requesting that taxation for
the property be written off. The current balance of taxes is $175,630.17. Of this amount, Council
can only make a decision regarding the City portion and related penalties.
Finance staff does not recommend the write-off of the City's portion of the taxes and penalties.
As this property is subject to registration, staff is eager to work with the owner to ensure payment
is made and registration is avoided.
TH:jd
Attach.
Corporate Services The City of
Finance Division N~agara Fails
· ' Canada
Inter-Department Memorandum
TO: Alderman Wayne Campbell, Chair, and DATE: January 11, 2006
Members of the Corporate Services Committee
FROM: Todd Harrison
Manager of Finance
Ext. 4286
RE: Golden Horseshoe Ventures Inc.
Attached is a letter from the owner of the above-noted company in respect to late payment
penalties charged on his property tax account.
While the majority of property owners pay in accordance with the established due dates or through
the City's payment plans, some do not. As a result, Finance staff is continually faced with property
owners who feel that late payment penalties should be waived.
Council has directed staff to work with taxpayers to resolve these matters in a fair and consistent
manner. Staff determined that an error did result in the delivery of the owner's payment. Similarly,
staff determined that the owner had a consistent payment record.
As a result, staff processed a reduction of $547.92 which is one half of the penalty charged to the
date of payment by the owner.
As the error was on the part of the taxpayer, no further adjustment is warranted.
TH:jd
Attach.
John Grassl
Golden Horseshoe Ventures Inc.
10 Westmount Park Road
Toronto, Ontario M9P 1R5
Tel. 416- 244- 4479
Mr. Salci, Mayor of Niagara Falls
4310 Queen Street
Niagara Falls, Ontario L2E 6X5
November 29, 2005
Dear Mr. Salci and City Council:
Re: Refund of Tax Penalty (approximatel~ $547.91) for Golden Horseshoe Ventures Inc.
located at 9515 Montrose Road in the City of Niagara Faltv
Tax Roll # 2725140 002108000000 for the 2005 tax year
I would like to petition you and city council to reconsider a recent tax fine I received of
approximately $547.00 for the first 2005 tax instalment year. As your finance records will
indicate, I have never defaulted in paying my tax instalments.
I would like to summarize the reason for the late payment in the hopes that you will re-consider
the penalty f'me I have paid for the 1st. 2005 tax instalment. The lessee in the building at the time
(ISRA Inc.) had defaulted on the tax payment, although I did give the owner of ISRA Inc. a
cheque. The owner assured me that she would personally deliver the cheque to the City of
Niagara Falls and pay the tax instalment that was due. The owner did not deliver the cheque and
needless to say I later discovered that not only was the tax payment in default, but other numerous
payments that were also due were not paid. (i.e. Heating, Insurance and Hydro) As soon as I
discovered that the tax payment was in default, ! immediately made the payment and did receive
a small reduction in the amount of the fine that was also due. ISRA Inc. is no longer a tenant of
mine and I am left with $500,000.00 in damages from Ibis organization.
I have been a businessman in good standing in the Niagara region for 22 years. I have been
committed to assisting in the development of the region. I do feel I made an error in judgement
by having given the cheque to someone else to be delivered, but do hope that you and the
Revenue Supervisor will reconsider crediting back the tax fine of $547.00 to my account. The
Revenue Supervisor I originally dealt with is:
A. Felicetti,
Revenue Supervisor Corporate Services Department/Finance Division
(Tel. 905 356 7521)
I would very m! :~h appr~/te a response from your office in regard to this matter.
Mr. John
Owner, ~,
Golden Horsesho, entures Inc.
NIAGARA. to REGION o, onCHILDREN'S SAFETY VILLAGE
provide safely to children of the Niagara Region
the
Mr. Ted Salci,
Mayor,
City of Niagara Falls,
4310 Queen Street,
Niagara Falls, Ontario.
L2E 6X5
Dear Mr. Mayor:
The Niagara Children's Safety Village is seeking support from the City of Niagara Falls
for a permissive grant to help to offset the overhead costs associated with the Fire Safety
Training component of our program. Last year the Regional Council directed us to seek
funding assistance from our partners including the fire services, lower tier municipalities,
the NRPS and the School Boards before they would consider financial support.
I have enclosed our audited financial statement for 2004 and the budget for 2006. We are
seeking support from all 12 lower tier municipalities to assist in the coverage of overhead
costs associated with the fire classroom and related training area (kitchen, bedroom and
escape window), which is used to demonstrate appliance safety and developing a home
fire escape plan. These costs include a portion of the scheduling and administrative
support, heat, hydro, maintenance, janitorial, etc.-We will also be seeking $50,000 from
the Region to cover overhead costs associated with the EMS/Public Health component.
The total cost for the 12 municipalities is $35,000. Niagara Falls portion is $6,860.00 for
2006.
Please feel free to contact me if you have any questions.
Yours truly,
Frank Adamson,
Executive Director
cc. Margaret Cyr, Chair
300 Woodlawn Road, Welland, ON L3C 7L3
Office: 905-714-4446 School Bookings 905-714-9333
crawford
smith~
swallow
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
Financial Statements
December 31, 2004
crawford
smitb~'&
sma110w
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
Financial Statements
December 31, 2004
Table of Contents
Page
Auditors' Report 1
Balance Sheet 2
Statement of Fund Balance 3
Statement of Income and Expenses 4
Statement of Cash Flows 5
Notes to Financial Statements 6-9
Crawtord, Smith and Swallow
Cha,,e,e , ..... ,a. LL. c -aug'o -d
L2E 2M2
Telecopier (905) 356-3410
Otlices in:
Niagara Falls, Ontario
SI Cathartnes. Ontario
Fort Erie. Ontario
Niagara-on-the-Lake. Ontario
AUDITORS' REPORT
To the Directors of
Niagara Region Children's Safety Village
We have audited the balance sheet of Niagara Region Children's Safety Village as at December 31,
2004 and the statements of income and expenses, fund balance and cash flows for the year then
ended. These financial statements are the responsibility of the corporation'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 charitable organizations, the corporation derives revenue from donations,
the completeness of which is not susceptible of satisfactory audit verification. Accordingly, our
verification of these revenues was limited to amounts recorded in the records of the corporation
and we were not able to determine whether any adjustments might be necessary to donation
income, excess of income over expenses and fund balance.
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 donations revenue
referred to in the preceding paragraph, these financial statements present fairly, in all material
respects, the financial position of the corporation as at December 31, 2004 and the results of its
operations and its cash flows for the year then ended in accordance with Canadian generally
accepted accounting principles. As required by section 96(2) of the Ontario Corporations Act, we
report that these financial statements have been prepared on a basis consistent with the prior year.
Niagara Falls, Ontario
June 30, 2005 CRAWFORD, SMITH AND SWALLOW
CHARTERED ACCOUNTANTS LLP
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
BALANCE SHEET
December 31,2004
Assets - note 5 2004 2003
$ $
Current Assets
Cash 150,649 24,873
Accounts receivable 8,036 28,889
Prepaid expenses 3,502
1,62~258 57,264
Fixed Assets - note 3 1,713,338
:
Other Assets - note 4 12,400
':~:~: Y:~ ~ '~: 1,783,002
Liabilities and Fund Balance
Current Liabilities
Bank loans ~ note 5 1,423,915
Accounts payable and accrued liabilities 43,102
Deferred contributions - note 6 327,362
1,794,379
Fund Balance (11,377)
1,783,002
Signed on behalf of the Board:
Director
Director
See accompanying notes
2
craw[ord smith ~ swallow
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
STATEMENT OF FUND BALANCE
for the year ended December 31, 2004
Invested In
Capital Assets Unrestricted 2004 2003
$ $ $ $
Fund Balance, Beginning of
Year
- as previously reported 20,466 (26,367) (5,901 ) (54,091 )
- correction of prior year (5,476) (5,476)
- as restated 14,990 (26,367) (11,3577) (54,091)
Transfers (16,040) 16,040
Excess of Income over
Expenses for the Year ~: ~ ~ 42,714
Fund Balance, End of Year }8~ ~:~ (11,377)
See accompanying notes
3
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Ii~ '
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
STATEMENT OF INCOME AND EXPENSES
for the year ended December 31,2004
2004 2003
$ $
Income
Donations 11i~533 48,325
Sponsorship 30,000
Bequests 100;000
Trillium Grant 36!474 30,726
Early Years Grant 50;272 22,600
Other grants
Fundraising 9,132
Amortization of deferred contributions - note 6 17,031
Other 374
158,18g
Expenditures
Administrative and general 5,069
Advertising and promotion 384
Amortization and depreciation 35,221
Automobile 377
Bank and interest charges 22,346
Consulting fees 576
Fundraising 29;53,5 2,989
Insurance 10i8i9 3,181
Professional fees 4;133 1,506
Program expenses 4i833 5,227
Repairs and maintenance 1,934
Salaries, wages and office support 30,964
Telephone 2,786
Utilities 2,914
115,474
Excess of Income over Expenses for the Year 42,714
See accompanying notes
4
crawford smith ~ swallow
lqlAGARA REGION CHILDREN'S SAFETY VILLAGE
STATEMENT OF CASH FLOWS
for the year ended December 31,2004
2004 2003
$ $
Operating Activities
Excess of income over expenses for the year 95,654 42,714
Amortization of deferred contributions (64,998) (70,357)
Amortization and depreciation 92,612 35,221
Working capital provided by operations 123,268, 7,578
Changes in non-cash working capital components
Accounts receivable 59,972
Prepaid expenses (3,502)
Bank loan - operating 4,000
Accounts payable and accrued liabilities 4,141
64,611
Funds provided by operating activities 72,189
Investing Activities
Capital expenditures (599,261)
Financing Activities
Financing costs 2,480
Bank loans - construction (~:9;075) 358,078
Deferred contributions ~'~iO00 195,441
Funds provided by financing activities 35~,'9~5 555,999
Increase in Cash Position 125;776 28,927
Cash Position, Beginning of Year 24;8~3 (4,054)
Cash Position, End of Year ~;50~649 24,873
See accompanying notes
5
craw[ord smith ~ swallow
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
NOTES TO FINANCIAL STATEMENTS
for the year ended December 3 l, 2004
Organization
Niagara Region Children's Safety Village was incorporated in February, 1999 under the Ontario
Corporations Act without share capital. The corporation is a registered charity and is exempt
from income taxes. Niagara Region Children's Safety Village derives income from donations to
construct and operate a safety educational centre for children in the Niagara Region.
1. Significant Accounting Policies
The financial statements of the corporation are the representations of management prepared
in accordance with Canadian generally accepted accounting principles consistently applied.
Because a precise determination of many assets and liabilities is dependent upon future
events, the preparation of periodic financial statements necessarily involves the use of
estimates and approximations. These have been made using careful judgement in the light of
available information.
Revenue recognition
The corporation follows the deferral method of accounting for contributions. Restricted
contributions are recognized as revenue in the year in which the related expenses are
incurred. Unrestricted contributions are recognized as revenue when the amount can be
reasonably estimated and ultimate collection is reasonably assured.
Gifts-in-kind
Gifts-in-kind are recognized when a fair value can be reasonably estimated, the materials
are used in the normal course of operations and the organization would have purchased
the materials or services if they had not been contributed.
Fixed assets and depreciation
Fixed assets are recorded at cost. Expenditures for maintenance and repairs are charged to
operating expenses.
Depreciation is calculated using the straight-line method at rates designed to amortize the
cost of fixed assets over their estimated useful lives as follows:
Building - 21 years
Miniature buildings - 21 years
Safety vehicles - 3 years
Computers - 3 years
Furniture and equipment - 5 years
Additions during the year are depreciated from the month of acquisition. Disposals are
depreciated until the month of disposition. Gains or losses on assets sold or otherwise
disposed of are included in the statement of operations.
Financing costs
Financing costs are included on the balance sheet with other assets at cost less
accumulated amortization. Costs are being amortized on a straight-line basis over five
years.
6
craw[ord smith (2~ swallow
' NIAGARA REGION CHILDREN'S SAFETY VILLAGE
NOTES TO FINANCIAL STATEMENTS
for the year ended December 31, 2004
2. Correction of Prior Year
During the current year, it was determined that an amount received in 2003 for a miniature
building had been classified as a donation rather than being set up as a deferred contribution
and amortized to income over ten years. The donations and amortization have been restated
for 2003.
3. Fixed Assets
Accumulated
CoSt DePrediatiOn 2004 2003
$ $- $ $
Building t:i60.}¢809 1,683,059
Miniature buildings i~-d 1:~5~ 8,589
Safety vehicles ~ 2i5'02: 4,179
Computers '': 2~64 1,056
Furniture and equipment 12,057 16,455
1-30,1~49 1,713,338
4. Other Assets
2004 2003
$ $
Financing costs 12,400
Included on the statement of income and expenses in amortization and depreciation is
amortization of financing costs for $3,720.
7
crawford smi~ ~ swallow
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
NOTES TO FINANCIAL STATEMENTS
for the year ended December 31, 2004
5. Bank Loans
2003
$
Construction loan, requiring monthly interest
payments, bearing interest at prime less one quarter ·
percent (4.00%), due on demand, secured by a first · '.
position on the mortgage of the lease, a general
security agreement over all the assets of the ·.
corporation and an assignment of contracts 1,361,830
Construction loan, requiring monthly interest
payments, bearing interest at 5.25%, due on demand,.
secured by a general security agreement over all the
assets of the corporation 27,085
Operating line of credit, requiring monthly interest
payments, bearing interest at 4.75%, due on demand,
secured by a general security agreement over all the
assets of the corporation 35,000
1,423,915
Under the provision of a loan agreement with Credit Union Central of Ontario, the
corporation is required to maintain certain financial covenants. As at December 31, 2004,
the corporation is not in compliance with these covenants.
6. Deferred Contributions
Fixed Assets Q:~her 20~4 2003
Opening balance 298;487 ? 32:7'¢7~5;i'i"- 202,278
Contributiohs received
Trillium Grant 54,500
Early Years Grant 37,400
Other 75,000 75;000 103,541
Amortization : (36,1'23) (28,875) (64¢:998) (70,357)
337,364 33?;364 327,362
7. Contractual Obligations
The corporation has entered into a 21 year lease with Niagara College to rent a 2.5 acre
property for one dollar per year commencing on the date of completion of building
construction.
8
crawFord smith ~ swallow
NIAGARA REGION CHILDREN'S SAFETY VILLAGE
NOTES TO FINANCIAL STATEMENTS
for the year ended December 31,2004
8. Financial Instruments
Cash Flow Risk
The corporation has a bank loan of $1,328,830 that bears interest based on market rates.
Accordingly, the corporation is exposed to the effects of interest rate fluctuations.
9. Going Concern
These financial statements have been prepared using the going concern basis. Continued
operations of the corporation are dependent upon future profitability and the ability of the
corporation to obtain additional funds through fundraising activities.
10. Comparative Figures
The 2003 figures, presented for comparative purposes only, have been restated to conform
with the current year's presentation.
9
crawFord smith (8~ swallow
2005 2006
Annual Budget Annual Budget
Operational Funding
4005 - Partner Funding
4020. Regional Government Grants 50,000.00 50000.00
4025 - Police Grant 35,000.00 35000.00
4030 - Fire Prevention Grant 58,000.00 25000.00
4500 - Student Class Fees 30,000.00 25000.00
4510 - Agency (government) grants 0.00
4540 - Municipal government grants 35000.00
Total 4005 · Partner Funding 173,000.00 170000.00
4015 - Family Memberships 2,500.00 2000.00
4016 - Corporate Memberships 7500.00
4400 - Annual Building Maintenance Fee 3,000.00 3000.00
4018 - Trillium Funding 15,764.00 75000.00
Total Income 194,264.00 257500.00
Expense
Advertising and Promotion
5200 - Advertising and Promotion 6,000.00 12000.00
7580 - Awards
Total Advertising and Promotion 6,000.00 12000.00
Automobile
5630 - Automobile Expenses 2,400.00 4800.00
Automobile - Other
Total Automobile 2,400.00 4800.00
Bank Charges and Interest
5110 - Mortgage Interest 60,000.00 55000.00
5400 - Bank Charges and Interest
Bank Charges and Interest - Other
Total Bank Charges and Interest 60,000.00 55000.00
Insurance
5100-Insurance 10,500.00 10500.00
Total Insurance 10,500.00 10500.00
Office and Administration
5000 · General and Admin 1282.00
5010 - Office Expenses 5158.00
5020- Postage 4517.00
5030 · Sundry 478.00
Office and Administration - Other 20,000.00 565.00
Total Office and Administration 20,000.00 12000.00
Professional Fees
5300 - Professional fees 2,800.00 2200.00
Total Professional Fees 2,800.00 2200.00
Program expenses
5320 - Program Expenses
Program expenses - Other 5,000.00 7500.00
Total Program expenses 5,000.00 7500.00
Repairs and Maintenance
5610 · Janitorial 2302.00
5620. Building repairs 3742.00
5625 - Equipment Repairs 456.00
Repairs and Maintenance- Other 6,500.00 1500.00
Total Repairs ~nd Maintenance 6,500.00 8000.00
Salaries and Benefits
5050 · Salaries and Benefits -Exec Dir 46,000.00 58000.00
5055 · Fire Instructor 25,000.00 25000.00
5060 - Office Assistance 10,000.00 25000.00
5062 - Fund Raising Co-ordinator
Salaries and Benefits - Other 23,000.00 10800.00
Total Salaries and Benefits 104,000.00 118800.00
Telephone
5500 - Telephone
Telephone - Other 4,000.00 4000.00
Total Telephone 4,000.00 4000.00
Utilities
5710 - Electric Costs 5200.00
5720 - Heating Costs 580Q00
Utilities - Other 8,000.00 1000.00
Total Utilities 8,000.00 12000.00
Total Operating Expenses 229,200.00 246800.00
Net Surplus ~ Operating Fund -34936.00 10700.00
November 30, 2005
Mayor Ted Salci and Members of Council
City. of Niagara Falls
4310 Queen Street
Niagara Falls, ON L2E 6X5
Dear Mayor Ted Salci and Members of Council:
Please accept thisletter on behalf of the YWCA St. Catharines as a formal request for a
grant from the City of Niagara Falls for the year 2006. 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 statements for our fiscal
year from September 2004 - August 2005.
Although I have only regently taken on the role of Executive Director of the YWCA, I
am well aware of the great support our agency has received from the City of Niagara
Falls. This support, both personal and financial was essential in getting the Culp Street
Shelter reopened and providing services to women and children in need. It is my hope
that once again the City of Niagara Falls will be able to assist us in providing vital
services to woman and children in need. As a result I am requesting a grant in the
amount of $62,182.00.
Again, I would like to extend my thanks for all of your support. I am very much looking
forward to working with you in the future. I would be please to meet with you to discuss
this request further. If you have any questions or require any additional information
please feel free to contact me directly at 905-988-3528, ext. 39.
Sincerely,
Lisa Whittaker
Executive Director
Enclosure
183 King Street. St. Catharines. Ontario L2R 3J5 Canada T 905. 988.3528 F 905.988.3739 reception.~t~ywcastcatharines.ca t~,~
Serving the community since 1928 A ~. ,~,,,,
T~r ~ T~
YOUNG WOMEN'S CH_.RISTIAN ASSOCIATION OF ST. CATHARINES
FINANCIAL STATEMENTS
AUGUST 31, 2005
CONTENTS
Page
Auditors' Report 1
Statement of Financial Position 2
Statement of Operations 3
Statement of Changes in Net Assets (Liabilities) 4
Statement of Cash Flows 5
Notes to Financial Statements 6-8
Leadley, Bruyns
Chartered ,4ccountants
30 Duke Street, St. Catharines, Ontario, L2R 5W5
Telephone: 905-984-4399 Fax: 905-984-5442
AUDITORS' REPORT
To the Members of the
Young Women's Christian Association
of St. Catharines
We have audited the statement of financial position of the Young Women's Christian Association of St. Catharines as
at August 31, 2005 and the statements of operati~ms, changes in net assets, and cash flows for the year then ended.
These financial statements are the responsibility of the Association's management. Our responsibility is to express an
opinion on these f'mancial statements based on our audit. '
Except as explained in the following paragraph, we conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether
the financial sthiements 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 sigu/ficant estimates made by management, as well as evaluating statement presentation.
The association derives revenue from donations the completeness of which is not susceptible of satisfactory audit
verification. Accordingly our verification of these revenues was limited to the amounts recorded in the records of the
association and we were not able to determine whether any adjustments might be necessary to revenue, net loss,
current assets and net assets.
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 donation revenues referred to in the previous
para~aph, these financial statements present fairly; in all material respects, the financial position of the Association
as at August 31, 2005 and the results of its operations and the changes in its financial position for the year then ended
in accordance with generally accepted accounting principles.
St. Catharines,Ontario Leadley, Bmyns
October 19, 2005 Chartered Accountants
LrNG WOMEN'S CI:tRISTIAN ASSOCIATION OF'ST, CATHARSES ,
STATEMENT OF FINANCIAL POSITION
AS AT AUGUST 31, 2005
ASSETS
2005 2004
CURRENT
Cash andbank $ 138,7.97 $ 48,817
Accounts receivable 129,366 43,241
Prepaid expenses 2.950
271,113 92,058
PROPERTY, PLANT AND EQUIPMENT (Notes 1 & 2) 1.975.372 877.991
$ 2.246,485 $ 970.049
LIABI[LITIES
CURRENT
Accounts payable and accrued liabilities $ 80,940 $ 78,220
Deferred revenue 14,819 175 ..
Current portion of long term debt 254.505 21.605
350.264 100,000
LONG TERM LIABILITIES (Note 3) 1,620,179 733,557
DEFERRED CONTRIBUT.tONS' (Note 4) 15,502 11,158
DEFERRED CONTRIBUTIONS RELATED
TO CAPITAL ASSETS (Note 5) 23,175 25.587
2.009.120 870.302
gET ASSETS
Net assets restricted for Ontario Opportunity Fund - 9,881
Unrestricted net assets 237.365. 99.747
$ 2.246.485 $ 970.049
! ~.~/R~;4~B~Y~~_ ,DAR~rector ~~. ~~,t~ ~ ,Director
~UNG WOi~iEN'S C]KRISTIAN ASSOCIATION OF ST, CATItARINES
STATE!~{ENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2005
2005 2004
Federal government $ 289,595 $ 277,054
Provincial government 60,976 21,146
Regional government 490,502 440,284
United Way 120,192 79,503
YMCA 19,943
Community organiza[ions 70,335 33,742
Residence rental income 43,854 50,149
User fees and other program revenue 11,280 13,922
Donations and fund raising 178,205 21,493
Amortization'of. deferred contributions (Note 5) 14.093 20.031
TotalRevenue $ 1.279,032 $ 977,267
EXPENSES
Salaries 664,631 540,130
Employee benefits 43,747 36,315
Residence and occupancy 110,941 118,953
Program expenses 264,244 129, 100
Agency dues 12,646 (5,638)
Mortgage interest 13,343 t0,210
Amortization (Note 1) 72.362 58.684
Total Expenses 1.181.914 887.754
NET INCOM_E(Loss) BEFORE OT~ER 97,118 89,513
OTHER
Loan and mortgage forgiveness (Note 3) 40.500 244.500
NETINCOME (LOSS) $ 137.618 $ 334.013
'~ YOUNG WOM~EN'S CHRISTIAN ASSOCIATION OF ST, CATHARIN~S
STATEM'ENT OF'CItANGES IN NET ASSETS (LIABIJolTIES)
FOR TItE YEAR ENDED AUGUST 31, 2005
Restricted
for Ontario
Opportunity
Fund Unrestricted 2005 2004
NET ASSETS
BALANCE- beginningofyear $ 9,881 $ 89,866 $ 99,747 $ (234,266)
Transfer to unrestricted (9,881) 9,881
ADD: Net income(loss) for the year 137,618 137.618 334.013
BALANCE- end of year $ $, 237.365 5;. 237.365 $ 99,747
' . ~' '~'J YOLING WOI~fEN'S CHRISTIAN ASSOCIATION OF 'ST, CATHARINES
~~ ' STATEMENT OF CASIt FLOWS
FOR TI:I]Z YEAR ENDED AUGUST 31, 2005
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from Federal government $ 244,323 $ 268,033
Cash received from Provincial government 64,256 39,966
Mortgage advances CMHC 1,093,679 -
Mortgage advances Niagara Credit union ,,~,uoo -
Cash received from Regional government 447,852 431,964
Cash received from United Way 120,192 79,503
Cash received from YWCA Canada 22,973
Cash received from community organizations 71,719 22,701
Cash received from rental income 43,854 50,149
Cash received from user fees and programs 10,097. 21,827
Cash received from donations and fund raising 193,024 14,289
Cash paid for salaries and benefits (722,379) (566,271)
Cash paid for materials and services (244,246) (160,125)
Cash paid for residence and occupancy (114,600) (118,653)
Mortgage interest paid (13.343) (10.210)
NET CASH GENERATED TffROUGH
OPERATI2NG ACTIVITIES $ 1.236,461 $ . 96,146
CASH FLOWS FROM FINANCING AND
12xWESTING ACTIVITIES
Purchase of capital assets (I, 134,700) (3,579)
Mortgage principal payments (11,781) (20.602)
NET CASH USED IN FINANCING AND
INVESTING ACTMTIES .(1.146.481) (24.181)
NET (DECREASE) INCREASE IN CASH 89,980 71,965
CASH (bank overdraft), be~nning of year 48.817 (23.148)
CASH'(bank overdraft), end of year $ 138.797 $ 48.817
Il'
YOUNG WOI~{EN'S CHRISTIAN ASSOCIATION OF ST. CATHARINES
NOTES TO FINANCIAL STATEM~ENT
AS AT AUGUST 31, 2005
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Revenue recognition
The association follows the deferral method of accounting for contributions. Restricted
contributions are recognized as revenue in the year in which the related expenses are
incurred. Unrestricted contributions are recognized as revenue when received or receivable if the
amounts reasonably assured. Endowment contributions are reco~mfized as direct increases in net assets.
(b) Property, plant and equipment
The Property, plant and equipment are recorded at cost. Amortization is provided using the followin
and rates.
Equipment 20% Declining balance method
Buildings 4% Declining balance method
Computers 30% Declining balance method
Software 100% Declining balance method
(c) Donated Services
The Association does not record the value of donated services.
(d) Income Taxes
As the Association as non-profit organization it is exempt from Federal and Provincial income
taxes.
(e) Use of Estimates
The preparation of financial statements in conformity with 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 date of these financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from these
estimates.
2. PROPERTY, pLANT AND EQUIPMENT
Accumulated Net Net
..Cost -Amortization 2005 2004
Land- Court Street $ 56,000 $ ~ $ 56,000 $ 56,000
Land - King Street 55,000 - 55,000 55,000
Land- Culp Street 94,273 94,273
Building - King Street 964,246 126,332 837,914 487,511
Building - Court Street 492,715 175,779 316,936 225,421
Building - Culp Street 559,945 11,989 547,956 -
Equipment 82,609 41,480 41,129 35,136
Computers 61,488 35,324 26,164 18,923
Software 7.223 7._2~ '
$ 2.373.499 $ 398.127 $ 1.975.372 $ 877.991
, ~ YOUNG WOMEN'S CHRIST~ ASSOCIATION OF ST. CATHARINES
~. ~. J NOTES TO FINANCIAL STATEM]gNT
AS AT AUGUST 31, 2005
3. LONG TERM LIABILITIES
2005 200___~4
Niagara Credit Union, first mortgage due Au~st 2006,
interest at 5.85% semi-annually, blended monthly payments
of $2,200, secured by Court Street property and chattel mortgage
on Court Street assets. $ 254,505 $ 188,162
CMHC, first mortgage.due April 1, 2016, interest at 9.25%. Secured by
the King Street porperty. Forgiveness, commencing in 2004, on the loan
will be earned at at rate of one fifteenth of the original principal mount
for each year the borrower continues to own and use the property in
accordance with the terms of the terms of the mortgage: Interest will
be for~ven on the same basis. 526,500 567,000
CMHC, first mortgage due April 1, 2020, non-interest beraring. Secured
by the Culp Street proPerty. For~veness, commencing in 2006, on the
loan will be earned at at rate of one fifteenth of the original principal
amount for each year the borrower continues to own and use the
property in accordance with the terms of the terms of the mortgage. 265,000
CMHC, loan payable, non interest bearing, the loan is to be for~ven
on June 1, 2006 . 102,39.9
CMHC, loan payable, non interest bearing, the loan is to be for~ven
on Septermber 1, 2006 366,280
CMHC, loan payable, non interest bearing, the loan is to be forgiven.
on Septermber 1, 2006 360.000
1,874,684 755,162
Less portion due within one year 254.505 21.605
$ 1.620,179 $. 733.557
YOUNG WOMEN'S CI]~ISTIAN ASSOCIATION OF ST. CATHARINES
/ .~'/ NOTES TO FINANCIAL STATEh{ENT
: AS AT AUGUST 31, 2005 .
DEFERRED CONTRIBUTIONS
Deferred contributions represent unspent resources externally restricted operating funding received in the
current or prior periods that is related to the subsequent period. Changes in the deferred contributions balances
are as follows:
2005 2004
Be~nning balance $ 11,158 $ 2,116
Less amount recognized as revenue in the year 11.158 -
2,116
Add amount received related to the following year 15,502 9.042
Ending balance $ 15.502 $ 11.158
5. DEFERRED CONTRIBUTIONS RELATED TO CAPITAL ASSETS
Deferred contributions related to capital assets represent restricted contributions with which
computers were purchased.
2005' 2004
Be~nning balance $ 25,587 $ 45,618
Contributions from Canadian Government (HRDC) 11,681
Amounts amortized to revenue (14.093) (20.031
Ending balance $ 23.175 $ 25.587
6. OPERATING LEASES
The Association has equipment leases commitments in the amount of $4,482 per annum. The leases expire as
follows:
2008 $4,27.1
2010 $ 211
7. FINANCIAL INSTRUMENTS
In the opinion of management the association is not exposed to significant interest rate or credit risk with
respect to its financial instruments.
From: John MacDonald
To: Ken Burden
Date: Wed, Dec 21, 2005 1:37 PM
Subject: Fwd: next corporate service meeting
Ken for your information see attached. Would you please see that a list of requests and there status is
prepared as requested by Wayne.
Thanks
John MacDonald
Chief Administrative Officer
City of Niagara Falls, Ontario
Tel.: (905) 356-7521, ext. 5100
Fax: (905) 374-3557
>>> Wayne Campbell 12/21/2005 8:30 AM >>>
John .... based on several concerns that have been raised by members of council, I would like to suggest
the following for the next finance/corporate services meeting.
John:
Over the past year, we have referred various financial requests/items to final budget deliberations.
To date, it would appear that staff has predetermined which of those requests will be considered in the
final budget deliberations.
I would like to suggest that staff prepare a list that indicates which of those referrals that staff removed
from the final budget deliberations and that staff be prepared to discuss/explain the rationalization behind
the removal.
Futher, in the interest of a clearly defined process, I would like to suggest that members of council wishing
to speak on a specific issue be prepared to present a motion duely seconded prior to discussion/debate.
In no way is this an attempt to limit discussion/debate. I think that it will do the opposite....it will provide a
specific focal point around which we can make decisions.
If the majority of council is supportive of this suggestion, I would appreciate that the following motion be
brought foreward at the beginning of the corporate services meeting.
motion..."that prior to debating/discussing a specific item/issue, a member of council will present a motion
for consideration of the specific item/issue to be duely seconded".
Your comments would be appreciated.
Tanx
SeeYA!!!!!
Wayne
REFERRALS TO 2006 BUDGET
Anticipated
Division Project Expense Comments
Municipal Works Winter Maintenance Program - $48,000 Council approved
Paved Surface Maintenance
Municipal Works Winter Maintenance Program - $97,103 Council approved
Sidewalk Maintenance
Municipal Works New Truck $60,000 Council approved
Municipal Works New Project Manager $64,191 Council approved
Municipal Works Main Street Reconstruction from $1,000,000
Stanley Avenue to Murray Street
Municipal Works Upgrading of granular roads to $2,000,000
hard surface
Business Development Stanley Business Park Signs $:[5,000
Parks, Recreation and Boys and Girls Club of Niagara Matching
Culture Dollars
Parks, Recreation and Millennium Trail Phases 3-6 $1,504,000 $724,700 for 2006
Culture
Parks, Recreation and Twin Pad Arena $:[7,000,000 $1,000,000 for 2006
Culture
Parks, Recreation and Parks Crew $178,276
Culture
Parks, Recreation and Playground Unit for Empire Park $25,000
Culture
Parks, Recreation and Redesign of Welcome Sign at QEW $30,000
Culture and Mountain Road
Fire Services Niagara Falls Firefighters $500,400 Impact of 2005 hiring
Additional Complement
Fire Services Niagara Falls Fire Station 6 $:[,605,000 $800,000 for 2006
Renovations
2006 GRANT REQUESTS
2006 Grant 2006 City Staff
Agency~ Board or Commission Request Recommendation
Niagara Falls Humane Society - Operating 519,709 452,542
Niagara Falls Transit Commission 2,198,800 2,171,760
Niagara Chair-A-Van 325,700 325,700
Niagara Airport Commission 87,679 87,679
Greater Niagara General Hospital Foundation 100,000 100,000
Niagara Falls International Marathon Inc. 50,000 30,000
Heart Niagara 10,000 0
MacBain Community Centre Tenants 8,603 8,603
Social Assistance:
Project Share 252,464 252,464
Women's Place in South Niagara 25,000 25,000
Women's Place in South Niagara - Capital Contributions 20,000 20,000
Culp Street YVVCA Emergency Shelter 62,182 62,182
359,646 359,646
Parks Grounds Maintenance 71,900 71,900
Niagara Falls Recreation Committee 264,050 264,050
Niagara Falls Library Board 3,461,200 3,411,200
Museums:
Niagara Falls Board of Museums 3,879 3,879
Lundy's Lane Museum 262,357 205,412
Willoughby Museum 103,727 83,958
Battle Ground Hotel 61,740 61,740
Niagara Falls Armoury 79,769 57,085
511,472 412,074
Niagara Falls Arts and Culture Commission 26,458 8,458
St. John Ambulance Boat Patrol (Including radio air time) 43,300 38,500
Tourism Development:
Niagara Falls Illumination Board 34,550 34,550
Downtown BIA Community Improvement Plan 0 0
Winter Festival of Lights 380,000 330,000
Niagara Falls Tourism Bureau 388,500 338,500
803,050 703,050
TOTAL REQUESTS $8f84:L,567 $8f445~::[62
Community Services Department BDD-2006-01
]'he City of ~l~&~ Business Development Serge Felicetti
. ==~ 4310 Queen Street Director
N~agara Falls I~.~~
A . ' I~~,.P.O. Box 1023
L;anaa?,~m~(~Niagara Falls, ON L2E 6X5
~- I ~" wet> site: www.city.niagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2354
E-mail: sfelicetti@niagarafalls.ca
January 16, 2006
Alderman Wayne Campbell, Chairperson
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: BDD- 2006-01 - Ontario Power Generation Funds
Tourism Marketing & Promotion Program
RECOMMENDATION:
Council approve the allocation of the OPG tourism funds as follows.
$900,000 - $180,000 per annum for 5 years toward the development, operation and
administration of a world-class tourism website for the destination.
$150,000 - $30,000 per annum for 5 years toward the Niagara Falls Casino Marathon
marketing and advertising program.
$150,000 toward the cost of hosting a major Televison Broadcast.
$50,000 towards the cost to promote and educate the public regarding the Hydro Tunnel
Project.
$50,000 - Contingency for promotional/marketing opportunities - as supported by Council.
BACKGROUND:
As part of the Hydro Tunnel Project the City of Niagara Falls negotiated and received $1.6 million
to be used to actively promote and market tourism activities in Niagara Falls, throughout the five
year construction period of the tunnel. Also as part of the agreement the municipality is obligated
to provide information regarding the tunnel project to the public via appropriate advertising mediums
such as, tourist information centres, the website etc.
Working Together to Serve Our Community
Municipal Works · Fire Services · Parks, Recreation & Culture · Business Development · Building & By-Law Services
- 2 - BDD-2006-01
The $1.6 million fund has been reduced by $300,000 as per Council approval on November 7, 2005
to support the continued production of the New Year's Eve broadcast by allocating $100,000 per
annum for 3 years.
The program outlined in this report has been shared with OPG to ensure the proposal meets the intent
of the Community Impact agreement. Attached is a letter from OPG providing their endorsement of
the program.
The following outlines the proposed programs.
Tourism Website Development
Tourism stakeholders have identified the development, maintenance and operation of a world-class
tourism destination website which can translate visitors to the site into retail sales as one of the most
important marketing initiatives that needs to be addressed. The use of the worldwide web to promote
and market tourism destinations has become an extremely important tool as illustrated by the
following facts:
· 88% of consumers who plan to travel use the intemet to research their trips.
· 50% of Canadians and 68% of Americans have purchased travel on-line.
· 72% of European and 62% of Asian travelers have purchased travel on-line.
· On-line travel revenues are expected to double between 2005 and 2010 to $119.1 billion
comprising 46% of all sales on-line and off-line.
· The travel industry accounts for 24% of all on-line advertising.
The points above clearly illustrates how important the development of an engaging, informative and
innovative website is a key component of the tourism marketing strategy. The site design and
programming along with the expected destination marketing information will include several
features and functions that will make the site a significant gateway for the destination.
The site will provide the ability to develop a consumer database which can be used for special email
marketing initiatives to promote special events, promotions etc. The site will also serve as a valuable
resource to gather information of importance to tourism stakeholders regarding issues such as,
product, service, experience, spending, duration of visit, visitor profile etc. It will also be critical to
ensure the website constantly appears in the top search engines such as Google, Yahoo etc.
City staff from Information Systems and Business Development will work with Niagara Falls
Tourism to establish a website development committee to design, develop, operate and administer
the site to create the most effective site possible.
A key objective of the committee will be to create a website that has the ability to generate a
significant revenue stream. This is important so that in 5 years when the OPG funding ends the
revenue that is generated from the site is able to cover the ongoing administration costs.
- 3 - BDD-2006-01
Proposed budget $180,000 per annum for 5 years = $900,000.
Niagara Falls Casino Marathon
Since 1998 the Niagara Falls International Marathon has developed into a premier event
experiencing a steady growth in the number of participants. The event also provides a significant
economic benefit to the local tourism industry during the later part October which is traditionally
slower period of the tourism season.
In 2005 the event had a total of 3,758 participants many of which traveled to Niagara Falls with
family and friends. The majority of the participants stayed 2 to 3 nights injecting $7.5 million into
the local economy.
Of the 3,758 participants approximately 1,700 were from the U.S. and international points of origin.
The goal of the organizing committee is to raise the number of participants in 2006 to 4,000. The
funds which are being suggested would be directed towards the marketing and promotion to attract
more participants.
Some of the promotion and marketing initiative are as follows:
· AIMS Membership - membership with the Association of Intemational Marathons of road
races has given the Niagara Falls International Marathon status with runners and race
organizers all over the world. Through AIMS the Niagara Falls event will be advertised in
194 member marathons along with the distribution of race applications worldwide.
· Magazine advertising in the following publications
- Runners Times
- Runners World USA
- Runners World Germany
- Masters News
- Marathon's Beyond
- Michigan Runner
- Inside Texas Running
- New England Runner
- Running Journal
- Distance Running
- Get Out There
· Race Expositions
- Bay Race (Hamilton) Marathon - March
- Boston Marathon - April
- Cleveland Marathon - May
- Vancouver Marathon - May
- London Marathon (Ontario) - May
- Mississauga Marathon - May
- Ottawa Marathon - May
- 4 - BDD-2006-01
- Calgary Marathon - July
- Utica Marathon - July
- Quebec City Marathon - August
- New York City Marathon - November
· Video promotion of the Niagara Falls Marathon to be displayed at various international
events worldwide.
The Marathon Committee continues to partner with local tourism stakeholders to build the event as
a key economic contributor to the destination during a traditionally slower period of the tourism
season.
Proposed budget $30,000 per annum for 5 years = $150,000
Host a Major Television Broadcast
In 1996, the City of Niagara Falls played host to the extremely popular U.S. daytime talk show
"LIVE". The event was the first and only remote in Canada by this top-rated morning show. A total
of 2 shows were broadcast in Niagara Falls which proved to be the most successful remote in the
history of the show. The remote and subsequent media coverage provided in excess of $2.5 million
of media exposure.
The event was made possible through the financial support of partners such as the Canadian Tourism
Commission (CTC), Ontario Tourism, Casino Niagara, Niagara Parks Commission and the City of
Niagara Falls. This year is the 10th anniversary of the shows visit to Niagara Falls. City staff along
with support of the following partners, the CTC, NPC and Fallsview Casino Resort are working to
make the return of the T.V. show to Niagara Falls a reality.
The show, now in it's 18th season has established itself as a dominant fixture on national television
airing in 200 markets across the U.S. The show continues to feature A-list celebrity guests and
musical performances that are unrivaled on daytime television. The T.V. Show draws over 5 million
viewers daily in the U.S. and 1.6 million daily in Canada.
The show is still the #1 ranked daytime talk show in it's time period in 70% of the top 25 markets
across the U.S. starting with New York and Los Angeles. The show continues to gain a greater share
of the audience than any other daytime talk show, except Oprah.
Staff has been in discussions with the shows producer to bring the show back to Niagara Falls
hopefully this Spring. A series of site visits by show producers and technicians will be taking place
this month with anticipation of securing confirmation for a Spring or early Summer remote. The
number of shows is undecided, however the costs to host 2 to 4 shows in Niagara Falls is
approximately $700,000. The advertising value is estimated to be between $3 to $4 million for the
destination. The opportunity to have the show televised from Niagara this Spring would serve as an
exciting launch to the 2006 summer season.
Proposed budget - $150,000.
- $ - BDD-2006-01
Hydro Displays
As part of the plan the municipality is obligated to promote the tunnel project through various means
such as key information centres. Staff has been in discussion with the Niagara Parks Commission
to establish an information display regarding the hydro tunnel project at the Table Rock (Journey
Behind the Falls) Information Centre. Table Rock is one of the most visited locations in the Region
attracting over 7 million visitors annually. Information Centre staff will need to be properly briefed
in order to discuss the project to the traveling public. Other locations are also being investigated. The
hydro tunnel project will also be promoted on the new tourism website as well as the City of Niagara
Falls website.
Proposed budget - $10,000 per annum for 5 years = $ 50,000.
Council's approval of the proposed OPG marketing and promotion program would be appreciated.
Recommended by: Respectfully submitted:
~Serge Felicetti /,,/ cOh~e f~adCmDi~sa~rda t i v e O ffi c er
Director of Business Development
SF/lw