2008/10/06
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G~~: ~~"C~ORPORATE~SERVICES"~COMMITTEE~~gGEND/A~~?
SEVENTH MEETING
Monday, October 6, 2008
4:00 p.m.
City Hall, Committee Room #2A & B
1) REPORTS: STAFF CONTACT:
a) F-2008-37
2007 Consolidated Financial Statements Todd Harrison
b) F-2008-39
Investing in Ontario Act Update Todd Harrison
C) F-2008-41
Lundy's Lane Battlefield Legacy Project Todd Harrison
2) NEW BUSINESS:
3) ADJOURNMENT:
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,'~~`~'~~,COMMUNITYSERVICES~COMMIT~TEE~`AGEND~4~~~ ;xl~w
EIGHTEENTH MEETING
Monday, October 6, 2008
5:00 P.M.
City Hall, Committee Room #2A & B
1) Approval of the September 8, 2008, 2008 Community Services Minutes.
2) REPORTS: STAFF CONTACT:
a) MW-2008-58
Weightman Bridge Structural Rehabilitation
Status Report Geoff Holman
b) MW-2008-59
Weightman Bridge Watermain Relocation
Status Report Geoff Holman
C) MW-2008-61
Building Canada Fund Ed Dujlovic
d) R-2008-31
Centennial Water Molecule Update Denyse Morrissey
e) TS-2008-05
Portage Road between Church's Lane and Mountain Road
Traffic Calming Follow-up Review Karl Dren
f) TS-2008-21
Woodbine Street - Traffic Calming Review Karl Dren
g) CAO-2008-05
People Mover Project Update Ed Dujlovic
3) NEW BUSINESS:
4) ADJOURNMENT:
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IN CAMERASESSIf ONf Y t>
a) Resolution to go into Closed Meeting.
October 6, 2008 F-2008-37
Nia~ara,Falls
PICA N AD A
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2008-37
2007 Consolidated Financial Statements
RECOMMENDATION:
For the information of the Corporate Services Committee.
BACKGROUND:
Attached for your information is a copy of the audited 2007 Consolidated Financial
Statements forthe Corporation of the City of Niagara Falls. The financial statements were
audited by the City's Auditor, Crawford, Smith and Swallow.
Upon approval of the report, the 2007 Consolidated Financial Statements will be posted
to the City's website.
Recommended by:
Todd Harris n,, ~Djire for of Financial Services
Approved by: ! !C /<GiFs
K. E. Burden, Executive Director of Corporate Services
Respectfully submitted: 7
John MacDonald, Chief Administrative Officer
Working Together to Serve Our Community Corporate Services Department
Finance
Crawford
smith 6,
swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
Consolidated Financial Statements
December 31, 2007
Cur om ord
s ao~w
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
Consolidated Financial Statements
December 31, 2007
Table of Contents
Page
Auditors' Report 1
Consolidated Statement of Financial Position 2
Consolidated Statement of Financial Activities 3
Consolidated Statement of Changes in Financial Position 4
Notes to Consolidated Financial Statements 5-19
Consolidated Schedule of Operating Fund Activities 20
Consolidated Schedule of Capital Fund Activities 21
Consolidated Schedule of Reserves and Reserve Funds 22
Auditors' Report - Trust Funds 23
Statement of Financial Position - Trust Funds 24
Statement of Financial Activities and Changes in
Fund Balances - Trust Funds 25
Notes to Financial Statements - Trust Funds 26
Crawford Smith Swallow Crawford and 4741 Queen
Chartered Accounia tants Li Niagara Parks. StOntreet ario smith
)
-2E
Te ephona (905) 356-4200 swallow
Telecopier (905) 356 3410
Offices in'
Niagara Falls. Ontario
51. Catharines, Ontario
Fort Erie, Ontario
Niagaraon the Lake. Ontario
Port Colborne, Ontario
AUDITORS' REPORT
To the Members of Council, Inhabitants and Ratepayers
of Corporation of the City of Niagara Falls, Ontario
We have audited the consolidated statement of financial position of Corporation of the City of
Niagara Falls, Ontario as at December 31, 2007 and the consolidated statements of financial
activities and changes in financial position for the year then ended. These consolidated financial
statements are the responsibility of the city's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.
In our opinion, these consolidated financial statements present fairly, in all material respects, the
financial position of the city as at December 31, 2007 and the results of its operations and its cash
flows for the year then ended in accordance with Canadian generally accepted accounting
principles.
Niagara Falls, Ontario
April 25, 2008 CRAWFORD, SMITH AND SWALLOW
CHARTERED ACCOUNTANTS LLP
LICENSED PUBLIC ACCOUNTANTS
1
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 31, 2007
2007 2006
Financial Assets - note 9
Cash - note 3 491415;634 25,360,282
Investments - note 4 2313=13,569 22,662,306
Taxes receivable - note 5 15;599,454 13,569,650
Accounts receivable - notes 6 5;9481624 4,037,707
User charges receivable 9;241;003 11,508,320
Long-term receivables 495,041 599,872
Note receivable - note 7 22;000,000 22,000,000
Long-term investment - note 7 441223209 _ 41,532,805
Long-term investment - note 8 1896,576,
1711133;1'12 141,270,942
Contingent Liabilities - note 20
Liabilities
Accounts payable and accrued liabilities 23;451;145 28,400,010
Deferred revenue - obligatory reserve funds -
note 10 15;691;926_-: 22,141,861
Deferred revenue 541,821 - 305,743
Other current liabilities 1;401,638_ 1,793,490
Post-employment benefits - note 11 2%-595,283 19,342,208
Net long-term liabilities - note 12 32;90&,852;.-_ 32,557,650
94;590;665. 104,540,962
Net Financial Assets 76c542,4-47 36,729,980
Non Financial Assets
Inventories and prepaid expenses 752;125:-.. 893,395
Net Assets 77;294,572 37,623,375
Municipal Position
Operating fund - note 13(a) 5,216;849 5,142,120
Capital fund - note 13(b) 7288,099 (8,140,548)
Reserves and reserve funds - note 13(c) 51;171197-4 28,988,856
Niagara Falls Hydro Holding Corporation net
equity - note 13(d) 66;223,209 63,532,805
Niagara Convention & Civic Centre Inc. net
equity - note 13(e) 896,576
130;796;707 89,523,233
Amounts to be recovered (51,502;=135) (51,899,858)
77,2941572 37,623,375
See accompanying notes
2
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
for the year ended December 31, 2007
210,017 2006
Revenues
Taxation - note 5 57;060;923' 52,940,521
User fees and charges 4, 378,605 43,671,562
Government of Canada grants 2,207 5,012
Province of Ontario grants 26;751,018'= 5,119,199
Other municipal grants 15;591,445- 60,524
Provincial Offences Act 249,500 177,432
Interest and penalties 2;237,786- 2,269,631
Investment income 3;28045= 3,110,948
Casino and gaming revenues 2;60010007 2,600,000
Ontario Power Generation Community
Impact Agreement 300,000
Niagara Falls Hydro Holding Corporation
net income - note 7 2;690;404 - 1,698,363
Niagara Convention & Civic Centre Inc. net
income - note 8 896,576
Contributions from Obligatory Reserve
Funds 11;553,825 621,236
Proceeds on disposal of property 396;611 5,795,083
Other _5;577,792 3,949,170
113;270;737 122,318,681
Expenditures
General government 14;226,221 16,762,056
Protection to persons and property 16;976 253 16,782,953
Transportation services 31;541,776 36,108,602
Environmental services 45;497;273= 45,678,082
Health services 1';959 417 1,888,336
Social and family services 456,479': 398,853
Recreation and cultural services 18;006;801 14,265,273
Planning and development 4,9'3513'20' _ 4,057,328
""1
133,599,54:0 135,941,483
Net Revenues (Expenditures) 39671,197 (13,622,802)
Add: New debt issued or assumed 2;820,006 21,922,000
Add: Post-employment benefits 1;253,075 1,523,830
Less: Debt principal repayments (2;470,798) (1,387,574)
Increase in amounts to be recovered 1602,277 22,058,256
Change in Fund Balances 41;273,474 8,435,454
See accompanying notes
3
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
for the year ended December 31, 2007
2007 2006
Operations
Net revenues (expenditures) 39;671,197,- (13,622,802)
Sources (Uses)
Change in investments (651 263) - (6,111,762)
Change in taxes receivable (2;029 804). (28,295)
Change in accounts receivable (1;91Q91-_) (1,083,261)
Change in user charges receivable 2;267 315 (2,557,993)
Change in long-term receivables 104,831 , 42,804
Change in inventories and prepaid
expenses 141;2-0= (24,854)
Change in temporary loans (14,479,304)
Change in accounts payable and accrued liabilities (4;948,865) 8,097,043
Change in deferred revenue - obligatory
reserve funds (6;4A9,935) 3,766,975
Change in deferred revenue 23'8_;978, (308,926)
Change in other current liabilities (391,852),` 384,444
Change in post-employment benefits 1;253,075 1,523,830
(12;378 067) _ (10,779,299)
Net income of Niagara Falls Hydro Holding Corporation (2;690,404)" (1,698,363)
Net income of Niagara Convention & Civic Centre Inc. (896,576)
Net increase (decrease) in cash from operations 23-706 150 (26,100,464)
Financing
Long-term debt issued 2,820,009 - 21,922,000
Long-term debt repaid (2;470,798)(1,387,574)
Net increase in cash from financing 3V,202 ` 20,534,426
Increase (Decrease) in Cash Position 24,055,352 (5,566,038)
Cash Position, Beginning of Year 25,360;28230,926,320
Cash Position, End of Year 49,415,634 25,360,282
See accompanying notes
4
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
1. Significant Accounting Policies
The consolidated financial statements of the Corporation of the City of Niagara Falls,
Ontario (the "Municipality") are the representations of management prepared in accordance
with local government accounting standards established by the Public Sector Accounting
Board ("PSAB") of the Canadian Institute of Chartered Accountants with the exception of
providing budget figures (note 18).
(a) Basis of consolidation
(i) These consolidated financial statements reflect the assets, liabilities, revenues and
expenditures of the operating fund, capital fund, reserves and reserve funds and
include the activities of all committees of council and the following boards,
municipal enterprises and utilities which are under the control of council:
Library Board
Transit Operation - see note 21
Waterworks Operation
Chippawa Business Improvement Area
Clifton Hill Business Improvement Area
Downtown Board of Management
Fallsview Business Improvement Area
Lundy's Lane Business Improvement Area
Main & Ferry Business Improvement Area
Victoria & Centre Business Improvement Area
Board of Museums
Niagara Falls Hydro Holding Corporation
Niagara Convention & Civic Centre Inc.
All inter-fund assets and liabilities and sources of financing and expenditures have
been eliminated with the exception of loans or advances between reserve funds
and any other find of the Municipality and the resulting interest income and
expenditures.
The Niagara Falls Hydro Holding Corporation ("NFHHC") and Niagara
Convention & Civic Centre Inc. ("NCCCI") is accounted for on a modified equity
basis, consistent with the accounting treatment for government business
enterprises. Under the modified equity basis, the business enterprise's accounting
principles are not adjusted to conform with those of the Municipality, and inter-
organizational transactions and balances are not eliminated. The Municipality
recognizes its equity interest in the annual income or loss of NFHHC and NCCCI
in its "Consolidated Statement of Financial Activities" with a corresponding
increase or decrease in its investment asset account. Any dividends that the
Municipality may receive from NFHHC and NCCCI will be reflected as
reductions in the investment asset account.
5
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
1, Significant Accounting Policies - continued
(ii) Partial-consolidated entity
The following joint local board is proportionately consolidated. See note 17.
Niagara District Airport Commission
(iii) Accounting for Region and School Board transactions
The taxation, other revenues, expenditures, assets and liabilities with respect to the
operations of the school boards and the Region of Niagara are not reflected in the
municipal fund balances of these consolidated financial statements.
(iv) Trust funds
Trust funds and their related operations administered by the Municipality are not
consolidated, but are reported separately on the "Trust Funds Statement of
Financial Position and Statement of Financial Activities and Changes in Fund
Balances".
(b) Basis of accounting
(i) Revenues and expenditures are reported on the accrual basis of accounting.
(ii) The accrual basis of accounting recognizes revenues as they become available and
measurable; expenditures are recognized as they are incurred and measurable as a
result of receipt of goods or services and the creation of a legal obligation to pay.
(iii) Inventories
Inventories are valued at average cost.
(iv) Capital assets
Capital assets are recorded as an expenditure on the "Consolidated Statement of
Financial Activities" in the year of acquisition.
(v) Deferred revenue
Funds received for specific purposes are accounted for as deferred revenue until
the Municipality discharges the obligation which led to the receipt of the funds.
(vi) Investment income
Investment income earned on current surplus funds, capital funds, reserves and
reserve funds (other than obligatory reserve funds) are recorded as revenue in the
period earned. Investment income earned on obligatory reserve funds are recorded
directly to each fund balance.
(vii) Amounts to be recovered
The balance referred to as "Amounts to be recovered", includes balances for post-
employment benefits and net long-term liabilities.
6
crawford smith CSZ swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
1. Significant Accounting Policies - continued
(viii) Use of estimates
The preparation of the financial statements in conformity with Canadian generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.
2. Operations of School Boards and the Region of Niagara
Further to note l(a)(iii), the taxation, other revenues, expenditures and overlevies of the
school boards and the Region of Niagara are comprised of the following:
School Boards Region
2007 2006 '2007 2006
Taxation and user
charges 44,961961: 42,902,693 65;658 539< 57,129,910
Payments-in-lieu of taxes 24;492 3,289 7;486;985,-_ 7,294,561
Amounts received or
receivable 44;986,453 42,905,982 731145;524 64,424,471
r
Requisitions 44-986453 = 42,905,982 73;145;524 64,424,471
Overlevies (Underlevies)
at the end of year
3. Cash
This represents cash and short term investments from both the operating fund and the reserve
funds (including those funds set aside in deferred revenue):
2007 2006
Operating Fund 16;231,204 11,492,054
Reserve Funds 33,184,430; 13,868,228
49,415,634 ; 25,360,282
4. Investments
Total investments amounting to $ 23,313,569 22,662,306 - 2006) are recorded on the
"Consolidated Statement of Financial Position" at the lower of cost or market. The market
value as at December 31, 2007 is $ 23,313,569 22,662,306 - 2006).
7
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
5. Tax Receivables and Revenues
Property tax billings are prepared by the Municipality based on an assessment roll prepared
by the Municipal Property Assessment Corporation ("MPAC"). The property tax receivables
and tax revenue of the Municipality are subject to measurement uncertainty as a significant
number of appeals submitted by ratepayers have yet to be heard. The Municipality has
established an allowance for doubtful accounts in the amount of $ 920,000 920,000 -
2006).
The Province of Ontario instituted a mandatory capping program through the provisions of
Bill 79, which limited assessment related increases to 10% in 1998, and an additional 5% in
each of 1999 and 2000. Multi-residential, commercial and industrial property owners
experiencing decreases were also capped at appropriate levels to fund the phasing-in of
increases. The Province has enacted Bill 140, which serves to extend the capping provisions
of Bill 79 indefinitely. The new legislation will limit assessment related increases in
property tax bills to 5%.
6. Interfund Receivables (Payables)
As a means of financing certain activities, funds are borrowed by the operating fund from
several reserve funds. Both financing and repayments are reflected as interfund transfers and
therefore are eliminated from the "Consolidated Statement of Financial Activities".
Likewise interfund receivable and payable balances are not reflected on the "Consolidated
Statement of Financial Position". The interfund receivable and payable balance as at
December 31, 2007 was 10,856,379) 2,494,793) - 2006).
7. Investment in Niagara Falls Hydro Holding Corporation
2607 2006
Statement of Financial Position
Current assets 35;051;247 34,585,384
Capital assets 62250095 60,620,017
1,466,256
Other assets _ -6,63,'51,71,466,256
Total Assets 97;964 859'96,671,657
Current liabilities 211855,320_ . 22,680,692
Other liabilities 4;862,555 4,696,768
Note payable 22;000;000 22,000,000
Long-term debt 5;023,774 5,761,392
Total Liabilities 53,741,650 55,138,852
Net Assets 44;223,209 41,532,805
8
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
7. Investment in Niagara Falls Hydro Holding Corporation - continued
2007 2006
Statement of Financial Activities
Revenues 87;017;712 82,377,968
Operating expenses 84;327,308 80,679,605
Net Income 2;690,404` 1,698,363
On January 1, 2008, Niagara Falls Hydro Inc. amalgamated with Peninsula West Utilities
Limited to become Niagara Peninsula Energy Inc. Niagara Falls Hydro Holding Corporation
received 74.50% of the issued and outstanding common shares of the new Company.
8. Investment in Niagara Convention & Civic Centre Inc.
2007 2006
Statement of Financial Position
Current assets 959;920
Current liabilities 63;344
Net Assets ~896;576~
2007, 2006
Statement of Financial Activities
Revenues 1;400;000
Operating expenses 503 424
Net Income 8969576
The Niagara Convention & Civic Centre Inc. (the "Centre") was incorporated in January,
2006 under the laws of the Province of Ontario. The Centre is owned 100% by the
Corporation of the City of Niagara Falls, Ontario Fallsview Business Improvement Area.
The Centre was organized to obtain financing for a convention and civic centre facility to be
owned by the Corporation of the City of Niagara Falls, Ontario. The Centre will operate the
facility on a non-profit basis with any potential operating shortfalls or future capital
requirements covered by a $ 17,000,000 fund established primarily by the Corporation of the
City of Niagara Falls, Ontario Fallsview Business Improvement Area, as well as the
Corporation of the City of Niagara Falls, Ontario Victoria/Centre Business Improvement
Area, the Niagara Parks Commission and the Niagara Falls Bridge Commission. To date,
the Centre has not earned significant operating revenues and is considered in the
development stage.
9
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
8. Investment in Niagara Convention & Civic Centre Inc. - continued
The Corporation of the City of Niagara Falls, Ontario Fallsview Business Improvement Area
is committed to funding the Centre $ 15,000,000, the Corporation of the City of Niagara
Falls, Ontario Victoria/Centre Business Itprovement Area is committed to funding the
Centre $1,500,000, the Niagara Parks Commission is committed to funding the Centre
$ 375,000 and the Niagara Falls Bridge Commission is committed to funding the Centre
$ 125,000. All amounts are payable over the next fifteen years.
The construction of the Centre is expected to cost approximately $ 84,600,000. This is to be
funded through grants to be received from various sources. $ 35,000,000 has been
committed by the Federal Government, of which NIL has been received as at December 31,
2007. $ 35,000,000 has been committed by the Provincial of Ontario, of which $17,500,000
has been received by the Municipality as at December 31, 2007 and $14,600,000 has been
received by the Municipality from Fallsview Management Corporation as at December 31,
2007.
9. Credit Facilities
The Municipality has an authorized operating loan due on demand of $ 15,000,000 bearing
interest at prime less 0.7% to assist with general operating requirements and to finance
current expenditures. An authorized revolving term loan due on demand of $ 6,000,000
bearing interest at prime less 0.25% to assist in financing capital expenditures. An authorized
revolving term loan due on demand of $ 6,000,000 bearing interest at prime less 0.25% to
assist in financing the Community Improvement Program. As at December 31, 2007, NIL
has been drawn upon for all three credit facilities. All credit facilities are secured by a
pledge of tax revenues and a general security agreement.
10. Deferred Revenue - Obligatory Reserve Funds
The following balances are reflected as deferred revenue - obligatory reserve funds as
provincial legislation restricts how these funds may be used and under certain circumstances
these funds may be refunded.
-2007- 2006
2% Parkland dedication 981,016 782,746
Public purpose 947•1194- 846,413
Federal gas tax rebate - transit 3711413 1,842,539
Provincial gas tax rebate - transit 1,436,879 785,769
Discounted development charges 3;081,606 2,436,488
Non-discounted development charges 8;873,818 15,447,906
15;691;926 22,141,861
10
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
11. Post-Employment Benefits
2007 2006
Post-employment benefits 12;940 034r 12,136,881
Accumulated sick leave 3,620;850' 3,313,324
WSIB - Schedule H future liability 2;06'9';2881 2,866,754
Vacation pay 10650 111,025,249
20;595;283 19,342,208
Post-Employment Benefits and Accumulated Sick Leave
The Municipality pays certain medical, dental and life insurance benefits on behalf of its
retired employees. The Municipality recognizes these post-retirement costs in the period in
which the employees rendered the services.
As a result of actuarial valuations on post-employment benefits, it was determined that
actuarial losses of $ 1,951,492 existed. These amounts are being amortized over the
expected average remaining service lives of several employee groups. The unamortized
value is $ 1,320,674. The actual obligation is $ 14,260,708.
Under the Municipality's sick leave benefit plan, unused sick leave can accumulate and
employees may become entitled to a cash payment when they leave the Municipality's
employment.
As a result of actuarial valuations on the accumulated sick leave liability, it was determined
that actuarial losses of $ 169,797 existed. These amounts are being amortized over the
expected average remaining service lives of several employee groups. The unamortized
value is $ 140,242. The actual obligation is $ 3,761,092.
A reserve fund has been established for the accumulated sick leave liability. The balance as
at December 31, 2007 is $ 1,073,533 1,033,828 - 2006).
The liabilities for post-employment benefits and accumulated sick leave as reflected in these
consolidated financial statements have been determined on an actuarial basis using a
discount rate of 5.25%.
Workplace Safety and Insurance Board - Schedule 11 Future Liability
The Municipality has elected to be treated as a Schedule If employer and as such, is required
to remit payments to the Workplace Safety and Insurance Board ("WSM") to fund disability
payments. The liability as reflected in these consolidated financial statements has been
determined on an actuarial basis using a discount rate of 5.25%.
As a result of an actuarial valuation on the WSIB - Schedule II liability, it was determined
that an actuarial loss of $ 1,031,000 existed. This amount is being amortized over the
expected average remaining service lives of several employee groups. The unamortized
value is $ 200,955. The actual obligation is $ 3,170,243.
A reserve fund has been established for this liability. The balance as at December 31, 2007
is $ 636,039 1,203,950 - 2006).
The next valuation for all benefit groups is for the year ending December 31, 2008.
11
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
11. Post-Employment Benefits - continued
Vacation Pay
As at December 31, 2007, employees of the Municipality have accumulated vacation pay
credits in the amount of $ 1,065,111 1,025,249 - 2006). Any unused credits may be
carried forward to future years.
Pension Agreements
The Municipality makes contributions to the Ontario Municipal Employees Retirement
System ("OMERS"), which is a multi-employer plan, on behalf of its staff. The plan is a
defined benefit plan which specifies the amount of the retirement benefit to be received by
the employees based on the length of service and rates of pay.
The amount contributed to OMERS for 2007 was $ 2,326,684 2,050,115 - 2006) for
current services.
12. Net Long-Term Liabilities
(a) The balance of net long-term liabilities reported on the "Consolidated Statement of
Financial Position" is made up as follows:
2007 2006
Total long-term liabilities incurred by the
Municipality including those incurred on behalf
of school boards, other municipalities and
municipal enterprises and outstanding during the
year is 32,906,852 32,557,650
Net long-term liabilities, end of year 32;906,852 32,557,650
(b) Of the net long-term liabilities reported in (a) of this note, $ 15,203,157 in principal
payments are payable from 2008 to 2012 and $ 17,703,695 from 2013 to 2026.
(c) The long-term liabilities in (a) issued in the name of the municipality have received
approval of the Ontario Municipal Board for those approved on or before December 31,
1992. Those approved after January 1, 1993 have been approved by by-law. The annual
principal and interest payments required to service these liabilities are within the annual
debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.
(d) Total charges for the year for net long-tern liabilities which are reported on the
"Consolidated Statement of Financial Activities" are as follows:
2007 2006
Principal 2,470,798 1,387,574
Interest 1,679,119 1,095,490
4;149;917 2,483,064
12
crawford smith (4 swallow
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
13. Municipal Fund Balances at the End of the Year
(a) Operating fund balance
2007 2006
$
For general reduction of taxation 531;127 748,081
For general reduction of user charges
respecting waterworks 838;910 838,330
For general reduction of user
charges respecting sewers 2,177;892 2,176,770
For general use by Library Board 73,453 83,837
For general use by the Business Improvement
Areas 1;329043 1,111,542
For general use by the Board of Museums 122,281 85,404
For general use by Airport Commission 143',543; 98,156
zs
5;216,849% 5,142,120
2001 2006
(b) Capital fund balance
Acquisition of capital assets to be
recovered through taxation or user
charges (8;024,027). (6,474,308)
Acquisition of capital assets to be financed
from the proceeds of long-term liabilities (4;°1321585) . (4,020,018)
Acquisition of capital assets to be
recovered from transfers from reserves
and reserve funds (5";876,045) (18,429,166)
Acquisition of capital assets to be financed
from proceeds of disposition of property and
billings to third parties (5;886 400) (7,867,318)
Funds available for the acquisition of capital
assets 31,201,156 28,650,262
7,288,099 (8,140,548)
13
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
13. Municipal Fund Balances at the End of the Year - continued
(c) Reserves and reserve fund balances
2007 2006
Reserves set aside by council for specific
purposes:
Special purposes 14,193;870 10,551,854
Working capital 265000 265,000
Sewage capital 1;266;763 821,763
Water capital 1;750;097:. 1,165,097
Total Reserves 17,475,730 12,803,714
14
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
13. Municipal Fund Balances at the End of the Year - continued
(c) Reserves and reserve fund balances - continued
2007 2006
Reserve Funds set aside by council for specific
purposes:
Licence agreements - 40 years 46;888 48,701
Sick leave liability 1;071,533 1,033,828
Lundy's Lane Battlefield debt retirement 56;892 64,364
WSIB - Schedule 11 636;039 1,203,950
Fire station #5 debt retirement 62352. 100,217
Niagara Falls Hydro Holding Corporation
debenture 82,649
Recreation trail development 531594 51,264
Capital/Operations 6;447,419 6,222,520
Tree planting - developers 161730 15,703
Park development 118;025 118,620
Sewer and water impost 1;205 164- 1,161,884
Expansion and renewal 209,151 207,437
Drainage "580,286 556,546
Prepaid works projects contributions 186,222 179,394
Sidewalk construction 272,222 261,003
Future municipal works 749;258 722,318
Lot drainage 150;61.9= 145,091
Library funds 793;467 720,016
Sanitary 359,630 346,622
Sports fund 4J 34 4,545
Projects - special needs children 14;881 14,307
Parking 924,371: 892,659
Collins/Toby debt retirement 39 045 43,364
Heritage Week Niagara 56;125 53,953
Coat of Arm's 2°,172 2,085
Lundy's Lane business improvement purposes 390;486 270,486
Board of Museum purposes 166;01-8 127,644
Niagara Tunnel Community Improvement 842,916 1,285,818
Ontario Power Generation Agreement 101489 208,574
Water patrol boat 28,490 25,000
Branscombe Family Grant 3,390 14,580
Convention Centre 18;028;258
Fire department radios debenture 64,381
Total Reserve Funds 33,696;244 16,185,142
Total Reserves and Reserve Funds 51;171;974 28,988,856
15
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
13. Municipal Fund Balances at the End of the Year - continued
(d) Niagara Falls Hydro Holding Corporation net equity
2007, 2006
$
Niagara Falls Hydro Holding Corporation net equity '66;223409= 63,532,805
(e) Niagara Convention and Civic Centre Inc.
2007 2006
Niagara Convention & Civic Centre Inc. net equity 896,536
14. Trust Funds
Trust funds administered by the Municipality amounting to $ 2,719,569 2,587,775 - 2006)
have not been included in the "Consolidated Statement of Financial Position" nor have their
operations been included in the "Consolidated Statement of Financial Activities".
15. Contractual Obligations and Commitments
Capital expenditures
The estimated future capital expenditures based on projects in progress at December 31,
2007 is approximately $ 74,999,000 16,173,000 - 2006) after deducting the expenditures
incurred as at December 31, 2007. These projects will be financed by grants, subsidies and
long-term liabilities in future years.
International Railway Bridge
The Municipality, as a condition of the purchase of the CN/CP Railway Corridor, has the
responsibility for the costs of demolition of the International Railway Bridge by May 2012.
This condition is subject to being waived if the bridge is subsequently sold to a third party or
if demolition procedures have not commenced by CN/CP prior to May 2012. The
Municipality has set aside a reserve fund (Capital/Operations) amount of $ 4,000,000
increasing each year by the amount of the Consumer Price Index for this purpose. In
addition, the Municipality is committed to reimburse CN/CP the lesser of the actual
maintenance costs incurred on the International Railway Bridge or $100,000 on an annual
basis until May 2012.
16
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
16. Financial Instruments
Credit Risk
The Municipality is exposed to credit risk on taxes receivable, user charges receivable,
accounts receivable and long-term receivables from its customers. Allowances are
maintained for the potential credit losses. However, because of the large number of
customers, credit risk concentration is minimal.
Cash Flow Risk
The Municipality is exposed to the risk that the interest earned on its investments will
fluctuate due to changes in market interest rates. The Municipality manages its investments
based on its cash flow needs and with a view to optimizing its interest income.
Interest Rate Risk
The Municipality is exposed to the risk that the value of investments will fluctuate due to
changes in market interest rates. The Municipality manages its investments based on its cash
flow needs and with a view to optimizing its interest income.
The balances for certain temporary loans and long-term debt bear interest at fixed rates.
Consequently, the risk exposure associated with these balances is minimal.
Market Risk
Certain investments held by the Municipality are subject to the risk that the value will
fluctuate as a result of changes in market prices, whether those changes are caused by factors
specific to the individual security, its issuer, or factors affecting all securities traded in the
market.
Fair Value
The fair value of the post-employment benefits, accumulated sick leave and WSIB -
Schedule 11 future liability were determined using actuarial valuations based on the
information presented in note 1 I to the financial statements.
Long-term debt is stated at face value. It is not practicable within the constraints of
timeliness or cost to determine the fair value of this financial liability with sufficient
reliability.
The note receivable and long-term investment are stated at cost. It is not practicable within
the constraints of timeliness or cost to determine the fair value of these financial assets with
sufficient reliability.
The fair values of the Municipality's other financial instruments corresponds to their carrying
values due to their short-term maturity.
17
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
17. Contributions to Joint Board
Further to note 1 (a)(ii) the following contributions were made by the Municipality to:
:;20072006
a $ti $
Niagara District Airport Commission 89,,6,96;, 87,679
The Municipality's share of the net assets of the Niagara District Airport Commission is
approximately 32%.
18. Budget Figures
The approved operating budget for 2007 is reflected on the "Consolidated Schedule of
Operating Fund Activities". These numbers have not been audited but are presented for
information purposes only. The budgets established for capital funds, reserves and reserve
funds are on a project-oriented basis, the costs of which may be carried out over one or more
years. As such, they are not directly comparable with current year actual amounts and have
not been reflected on their respective schedules.
19, Classification of Expenditures by Object
The "Consolidated Statement of Financial Activities" presents the expenditures by function;
the following classifies those same expenditures by object:
2007 2006
Salaries, wages and employee benefits 47;546;065 44,884,185
Operating materials and supplies 18;975 799- 17,721,789
Contracted services 4120'375 24,098,506
Rents and financial expenses 860 041 1,076,699
External transfers to others 4;254,74L 3,364,353
Tangible capital assets 35;163 400 43,700,461
Debt service 1;679,119 1,095,490
Total expenditures by object 133;599,540 135,941,483
18
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
for the year ended December 31, 2007
20. Contingent Liabilities
The Municipality has been named as one of several defendants in a legal action seeking
$ 20,000,000 for loss or damage to property and lost revenue. The Municipality's maximum
insurance coverage per claim at the time of the suit was $ 15,000,000. The Municipality is
also being sued for aggravated and punitive damages in the amount of $ 5,000,000. There is
no insurance coverage for punitive damages. The Municipality's legal counsel is unable to
assess the potential liability, if any, resulting from this action. Any settlement will be
reflected as a charge to operations in the year incurred.
The Municipality has been named as one of several defendants in a legal action seeking
$ 21,200,000 for general and special damages. The Municipality's maximum insurance
coverage per claim at the time of the suit was $ 20,000,000. The Municipality's legal
counsel is unable to assess the potential liability, if any, resulting from this action. Any
settlement will be reflected as a charge to operations in the year incurred.
No provision for possible loss has been included in these consolidated financial statements.
As at December 31, 2007, the Municipality has certain other legal claims outstanding. It is
management's assertion that adequate insurance coverages are in effect for the settlement of
these claims, if necessary.
21. Greater Niagara Transit Commission
Effective May 31, 2007, the Greater Niagara Transit Commission was dissolved. The
operations were then taken over by the Municipality.
22. Comparative Figures
Certain figures have been reclassified to conform with the current yew's presentation.
19
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED SCHEDULE OF OPERATING FUND ACTIVITIES
for the year ended December 31, 2007
Budget 2007 2006
Revenues
Taxation - note 5 53,799,552 57,;060,923-' 52,940,521
User fees and charges 37,555,601 44;378,605 43,671,562
Government of Canada grants 3,150 2 207 5,012
Province of Ontario grants 3,484,870 3;487,199 3,206,551
Provincial Offences Act 151,130 ~249;566 177,432
Interest and penalties 2,235,000 2,237,786 2,269,631
Investment income 2,334,000 2;136;511: 2,697,326
Casino and gaming revenues 2,600,000 2;600;000 2,600,000
Ontario Power Generation Community
Impact Agreement 300,000
Proceeds on disposal of property 396,611 5,795,083
Other 3,799,547 5;320,202= 2,551,791
105,962,850 117;869 544_ 116,214,909
Expenditures
General government 12,802,048 13!,172;655 16,084,151
Protection to persons and property 14,456,217 16;218,506 15,114,230
Transportation services 20,6315530 22;970;233 18,658,318
Environmental services 261287,695 257470,551 24,366,622
Health services 1,486,295 11920,397 1,860,889
Social and family services 430,848 456,479 398,853
Recreation and cultural services 14,001,534 13361,342 ; 11,739,598
Planning and development 4,876,653 4865-,977: 4,018,361
94,972,820 98;436,140 92,241,022
Net Revenues 10,990,030 1,9;433 4_ 23,973,887
Financing and Transfers
Debt principal repayments (2,470,810) (2;470,798) (1,387,574)
Post-employment benefits 1;251,075 1,523,830
Transfers from (to) reserves and reserve
funds 5,397,680 (3;7784837) (6,518,413)
Transfers to capital fund (13,916,900) (14,362,115)_ (17,367,870)
Net financing and transfers (10,990,030) (19;3581675) (23,750,027)
Change in Operating Fund 74;729 223,860
Operating Fund, Beginning of Year 55142,120 5;1`42120_ 4,918,260
Operating Fund, End of Year 5,142,120 5,216,849 5,142,120
See accompanying notes
20
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED SCHEDULE OF CAPITAL FUND ACTIVITIES
for the year ended December 31, 2007
2607 2006
Revenues
Province of Ontario 23`,263,81-9- 1,912,648
Other municipal grants 1-5;591,445 60,524
Other 82,5901 1,336,008
38,937,854 3,309,180
Expenditures
General government 1;053,566 677,905
Protection to persons and property 752;747 1,668,723
Transportation services 8;571,543 17,450,284
Environmental services 20;026,722 21,311,460
Health services 39,020- 27,447
Recreation and cultural services 4;645;459: 2,525,675
Planning and development 69;343: 38,967
35163,400 43,700,461
Net (Revenues) Expenditures 37'774 454 _ (40,391,281)
Financing and Transfers
Long-term debt issued 2;820;000 21,922,000
Transfers from operating fund 14;362,115 17,367,870
Transfers from (to) reserves and reserve
funds (5;522,922) 1,396,439
Net financing and transfers 1 l X654,193 ` 40,686,309
Change in Capital Fund 15,428,647 295,028
Capital Fund, Beginning of Year (8;140.548), (8,435,576)
Capital Fund, End of Year 7,2$8;099 (8,140,548)
See accompanying notes
21
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
CONSOLIDATED SCHEDULE OF RESERVES AND RESERVE FUNDS
for the year ended December 31, 2007
2001 2006
Revenues
Contributions from Obligatory Reserve
Funds 11,5531825 621,236
Investment income 1,147,534 413,622
Other _ 175,000 61,371
12;876,359 1,096,229
Financing and Transfers
Transfers from (to) capital fund $;527,922 (1,396,439)
Transfers from operating fund 3;778,837 6,518,413
Net financing and transfers 9,306,759 5,121,974
Change in Reserves and Reserve Funds 22,183,118 6,218,203
Reserves and Reserve Funds, Beginning
of Year 28;988 856 22,770,653
Reserves and Reserve Funds, End of Year 51;171;974: 28,988,856
See accompanying notes
22
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Crawford Accountants d and Swallow crai ford
Chartered rUP 4741 Ooeen Street SII21t12 / a[ )
Niagara Falls, Ontario swallow
ele
21,42
(905) 356 3410
Telephone
Telecopler (905) 356 3410
Offices in
Niagara Falls, Ontario
SI. Catharines, Ontario
Fort Erie, Ontario
Niagara-on-Ihe lake, Ontario
Port Colborne. Ontario
AUDITORS' REPORT - TRUST FUNDS
To the Members of Council, Inhabitants and Ratepayers
of Corporation of the City of Niagara Falls, Ontario
We have audited the statement of financial position of the trust funds of Corporation of the City of
Niagara Falls, Ontario as at December 31, 2007 and the statement of financial activities and
changes in fund balances for the year then ended. These financial statements are the responsibility
of the city's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial
position of the trust funds of the city as at December 31, 2007 and the continuity of trust funds for
the year then ended in accordance with Canadian generally accepted accounting principles.
Niagara Falls, Ontario
April 25, 2008 CRAWFORD, SMITH AND SWALLOW
CHARTERED ACCOUNTANTS LLP
LICENSED PUBLIC ACCOUNTANTS
23
CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
STATEMENT OF FINANCIAL POSITION - TRUST FUNDS
December 31, 2007
Ontario
Home Cemetery
Renewal Perpetual
Total Plan Care Other
Assets
Cash 410,659 16,566 284,786 109,307
Investments - note 2
Federal 373,093 373,093
Provincial 634,676 634,676
Corporate 1,218,590 1,217,389 1,201
2,226,359 2,225,158 1,201
GST receivable 97 97
Due from (to) operating fund 81,030 729 81,321 (1,020)
Loans receivable - note 3 1,424 1,424
82,551 2,153 81,418 (1,020)
2,719,569 18,719 2,591,362 109,488
Fund Balances 2,719,569 18,719 2,591,362 109,488
See accompanying notes
24
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
STATEMENT OF FINANCIAL ACTIVITIES AND CHANGES IN FUND
BALANCES - TRUST FUNDS
for the year ended December 31, 2007
Ontario
Home Cemetery
Renewal Perpetual
Total Plan Care Other
Balance, Beginning of Year 2,587,775 24,436 2,468,097 95,242
Receipts
Campaign Contributions 10,142 10,142
Cemetery lot receipts 126,979 126,979
Interest 104,794 1,518 98,381 4,895
Land sale deposits 17,500 17,500
259,415 1,518 225,360 32,537
Expenditures
Cemetery Care 102,643 102,095 548
Loan repayments to
Province of Ontario 7,235 7,235
Transfer to operating fund 17,743 17,743
127,621 7,235 102,095 18,291
Balance, End of Year 2,719,569 18,719 2,591,362 109,488
See accompanying notes
25
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CORPORATION OF THE CITY OF NIAGARA FALLS, ONTARIO
NOTES TO FINANCIAL STATEMENTS - TRUST FUNDS
for the year ended December 31, 2007
1. Basis of Accounting
Receipts and disbursements on the statement of continuity are reported on the cash basis of
accounting, with the exception of revenue derived from cemetery lot sales due to the
Cemetery Perpetual Care Fund which has been accrued at year end.
2. Investments
Trust fund investments of $ 2,226,359 2,143,232 - 2006) are recorded on the "Statement
of Financial Position" at the lower of cost or market. The market value as at December 31,
2007 is $ 2,234,611 2,177,114 - 2006).
3. Ontario Home Renewal Program
The Ontario Home Renewal Program was established by the Ontario Ministry of Housing in
1973 to provide grants for municipalities to make loans to assist owner occupants to repair,
rehabilitate and improve their homes to local property standards. Individual loans are
limited to $ 7,500 of which the maximum forgivable portion is $ 4,000.
On July 13, 1993, the Ontario Home Renewal Program was discontinued. The municipality
ceased issuing new loans as of this date and is required to remit the balance of the trust
account to the Ontario Ministry of Housing by March 1, 1994. Loan receivables collected in
each subsequent calendar year after 1993 must be remitted to the Province by March 1st of
each year.
In the event of the sale or lease of the home or in the event of the homeowner ceasing to
occupy the home, the balances of the repayable loans and the unearned forgivable loan
immediately become due and payable by the homeowner.
4. Financial Instruments
Interest Rate Risk
The City's trust funds are exposed to the risk that the value of investments will fluctuate due
to the changes in market interest rates. The City manages its trust fund investments based on
its cash flow needs and with a view to optimizing its interest income.
Market Risk
Certain investments within the City's trust funds are subject to the risk that the value will
fluctuate as a result of changes in market prices whether those changes are caused by factors
specific to the individual security or its issuer or factors affecting all securities traded in the
market.
26
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October 6, 2008 F-2008-39
Niagar°a,Falls
( \ N 1 D A
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2008-39
Investing in Ontario Act - Update
RECOMMENDATION:
Refer to 2009 Budget deliberations.
BACKGROUND:
The Province of Ontario announced on August 25, 2008 that the City of Niagara Falls
would receive $3,943,911 under a new funding program that was initiated by the province
for local governments throughout Ontario. The Investing in Ontario Act which was
approved in May 2008, allows the province to distribute a portion of the unanticipated year
end surplus to municipalities. The funding will provide each local government with an
additional source of funding for capital infrastructure projects. These funds represent new
funding and were not considered in the City's 2008 budget. It should be noted that this
funding program is an annual determination by the province, dependent upon the
province's fiscal results.
Council requested that options for the use of these funds be established for its
consideration. Two options exist for the use of the funds. Firstly, the funds could be used
on an existing project that will use debentures as a funding source. Examples of projects
that could utilize such funds include the Bob Gale Complex, the Kalar Road expansion,
Bridge Street Sewer project. Alternatively, these funds could be used to fund new capital
projects.
Staff are currently preparing the 2009 General Purposes, Utility and Capital Budgets. It is
recommended that the Investing in Ontario Act funding be put into the City's Reserve
Funds until Council approves the use that will maximize benefit to ratepayers during the
2009 Budget process.
Wort hig Together to Serve Our Con H111 ity Corporate services Department
Finance
. - e -
-2-
Recommended by: z
Todd Harrison,/`'rector Financial Services
Approved by: ` `
K. E. Burden, Executive Director of Corporate Services
Respectfully submitted: /12 R
J MacDonald, Chief Administrative Officer
October 6, 2008 F-2008-41
Niagara ails
FC A N A D A
Councillor Victor Pietrangelo, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2008-41
Lundy's Lane Battlefield Legacy Project
RECOMMENDATION:
That Council approve the funding request for the engagement of architects, to develop a
set of tender ready construction drawings forthe Niagara Falls Board of Museums Lundy's
Lane Battlefield Legacy Project (the "project").
That the final approval of the project be deferred until the financial commitment of the other
stakeholders is finalized.
BACKGROUND:
Council received a letterfrom the City's Museum Board at its September 22, 2008 meeting,
requesting funding assistance of up to $750,000. The requested funds are for the
tendering of construction drawings and specifications for the project. In orderto meet the
hoped for, project completion date of 2012, the bicentennial of the War of 1812, it is
necessary to have the construction specs for fall of 2009 to allow construction to
commence in early 2010.
The project was included in the 2008 Capital Budget, where it was classified a Category
3 project. This type of project is one where Council has committed to the project in
principal but final approval has not been made. Under normal circumstances, this project
would be considered in the 2009 Capital Budget review but the project has been
accelerated for Council's consideration due to the construction targets outlined above.
Working Together to Serve Our Community Corporate services Department
Finance
r.l
October 6, 2008 -2- F-2008-41
The importance of this project has been highlighted to Council before (cf. CPS-2008-02,
Niagara Falls Board of Museum Legacy Project) and is the subject of another report on this
evening's agenda, related to the Building Canada Fund. As outlined previously, the
Lundy's Lane Museum is a City-owned building and is in desperate need of significant
repairs for its continued use. With each passing year, the condition of the building
deteriorates. The opportunity, to not only restore the existing building, as well as expand
the facility, is fast becoming an unavoidable action of City Council and the Board of
Museums to preserve this historic asset. In addition, timing the project to coincide with the
bicentennial of the War of 1812 shows a recognition of the importance of local history and
culture and an enhancing of our historical and tourist assets.
The required tender, for construction drawings and specifications, is an important initial
milestone toward completion of this project. At present, the museum does not have
resources adequate to fund this phase of the work; however, without drawings from a
qualified practitioner, it is unlikelythatthe projectwould attract funding from the other levels
of government. Also, by Council agreeing to the request, it shows a continued commitment
by the municipality toward the project.
The City funding source was not identified at the time of the 2008 Budget for this future
project. Based on the current budget project sheets, the funds for the City's portion will
need to be financed from future years' capital allotment or future years' debentures. The
City can fund the initial drawings from its current cash position, with the understanding that
the complete funding of the project will need to be determined. It cannot be overstated,
that the approved funding arrangement from other stakeholders, is dependant upon
working specifications and, as a result, the City must move forward immediately to ensure
that both the project and the funding arrangements can be realized.
Recommended by:
Todd Har is~on, DDir ctor of Financial Services
Approved by:
K. E. Burden, Executive Director of Corporate Services
Respectfully submitted: t
John MacDonald /Chief Administrative Officer
Celebrate the Past Build the Future
Lundy's Lane Battlefield Legacy Project
n-,
a,
Q-
~JJ
Mayor Ted Salci and Members of Niagara Falls City Council
C/o City Hall Al-
P O Box 1023 a`r
4310 Queen Street
Niagara Falls, ON
L2E 6X5
September 12, 2008.
Your Worship Mayor Salci and Members of Council,
As promised, the Board of Museums would like to take this opportunity to provide you with an
update of the progress made towards reaching our goal of providing the City with a world class
heritage and cultural facility and bring visibility to the Lundy's Lane Battlefield National Historic
Site and our community's history in time to celebrate the War of 1812 Bicentennial.
The Board of Museum's major fundraising campaign continues and with City Council's
commitment of $2 million we have been able to begin, in earnest, approaching major donors for
support. To date, we have raised close to 20% of our goal in pledges and donations. We have
met with both our Provincial and Federal members of parliament and their staff and both have
met our proposals with enthusiasm and have committed to assisting our efforts to secure funding.
Through the good graces of the Mayor and several members of Council this project has been
presented to Deputy Premier and Minister of Energy and Infrastructure George Smithennan at
the Association of Canadian Municipalities Conference held in August.
The Business Plan for the Lundy's Lane Battlefield Legacy Project, which is necessary in order
to apply to Federal and Provincial funding programs, is well on its way to being completed and is
expected to be ready by early October. Much of this has been done using funds that have been
set aside by the Board, donated or raised through government funding programs. We now find
that we must request funds from Council in order to meet the deadlines set out in our Concept
Plan Review This includes tendering out the drawing-up of a complete set of tender ready
construction drawings and specifications. The cost of this portion, which will take
approximately 8-12 months, is roughly $750,000 and must be completed by the fall of 2009 in
order to begin construction in early 2010 and to have the project completed in time for the
anniversary of the War of 1812 in June 2012.
Niagara Falls Board of Museums
5S10 Ferry St., Niagara Falls, ON L2G 1S9 phone: 905-358.5082 O fax: 905.35&0920
www.niagarafallsmuseum.ca
---Celebrate the l Build • the Future
Lundy's Lane Battlefield Legacy Project
We are also aware of the recent Federal I Provincial Building Canada Framework Agreement
providing infrastructure investment, through the Building Canada Fund, to communities within
17 categories of infrastructure. The Lundy's Lane Battlefield Legacy Project falls within 3 of
these funding priorities: Culture, Tourism and Capacity Building. The Board of Museums
believes that the Legacy Project provides the City of Niagara Falls with an excellent opportunity
to put forward a project of National significance that builds the community's heritage tourism
capacity, increases community access and accessibility to City-owned cultural facilities, and will
help our community express, preserve, develop and promote oar culture and heritage within
Canada and Ontario.
With the above points in mind, the Board of Museums would like to respectfully request the
following:
1 That City Council consider providing the Board of Museums with immediate funding
from the $2 million committed in-principle to the project, in order for the Board to be
able to send out an UP for the construction-ready drawings and a full set of
specifications and to be able to tender out this portion of our project. This is required so
that the project can stay on track and meet on-going timelines.
2. That City Council consider appointing a City staff member as a coordinator to oversee the
project, especially considering the Legacy Project will affect City buildings and
properties.
3 That City Council consider endorsing the Lundy's Lane Battlefield Legacy Project as the
City of Niagara Falls' submission to the Building Canada Fund for funding during its
initial funding allocation expected in late September 2008.
Thank you very much for your consideration and I am available to answer any questions or
concerns that you may have relating to this request and look forward to hearing from you very
soon.
Sincerely,
J ~d
fiord est
Chaff erson,
Ni ara Fa)~ls Board of Museums
Niagara Falls Board of Museums
5810 Ferry St., Niagara Falls, ON L2G 1S9 -02 phone: 905.358.5082 O fax: 905.358.0920
www.niagar afa l lsmu s eu m. ca