HomeMy WebLinkAboutDSD-19-136 - WRSBC - Three-Party Agreement with City of Kitchener, Cambridge, WaterlooREPORT TO: Finance and Corporate Services Committee
DATE OF MEETING:June 10, 2019
SUBMITTED BY: Chris Farrell, Manager, Small Business Centre, 519 741 2200 ext. 7294
PREPARED BY: Chris Farrell, Manager, Small Business Centre, 519 741 2200 ext. 7294
WARD (S) INVOLVED:All
DATE OF REPORT:May 16, 2019
REPORT NO.:DSD-19-136
SUBJECT:Three-Party Agreementwith the City of Kitchener, Cambridge, and
Waterloo for Waterloo Region Small Business Centre
_________________________________________________________________________________________
RECOMMENDATION: That the General Manager, Development Services be authorized to
execute a three year funding agreement between the City of Kitchener, City of Cambridge and
Cityof Waterloo to collaborate on delivery of the Waterloo Region Small Business Centre services
and programs funded in part by the Province of Ontario; said agreement to be to the satisfaction
of the City Solicitor;and further,
That the General Manager, Development Services be authorized to execute on behalf of the City
of Kitchener any agreements or documentation pertaining to services and programs provided by
the Waterloo Region Small Business Centre provided said agreements or documentation is to the
satisfaction of the City Solicitor.
BACKGROUND:
The Waterloo Region Small Business Centre (WRSBC) has provided thousands of entrepreneurs
with the training and support necessary to start and grow successful businesses. From concept,
through start-up and early growth stages of business, the Centre(s) area one-stop source for
information, guidance and professional advice on starting and running a successfulbusiness.
Servicing individuals of all ages and educational backgroundsand businesses from all industry
sectors. WRSBC isone of a network of 54 centres in Ontario supportedby the province and
municipalities. The Waterloo Region Small Business Centre operates from three locationswith
Kitchener having4.5 employees and the Cambridge and Waterloosatellite officeseach having one
employee.The three municipalities have collaborated to deliver small business services since 1998 in
Kitchenerand Cambridge and in Waterloo since 2006.
The province provides annual funding to support core services,youth and grant programs. Other funding
sources includemunicipalities, Regionof Waterloo, special projects, private sector sponsors and fees for
services from workshops and events.
The City of Kitchener office acts as the WRSBC headquarters to:
oversee the implementation of a wide range of entrepreneurial servicesand the establishment
of initiatives and programs,
develop and implement marketing and digital media strategies,
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
1 - 1
liaison,communication, collaboration with funders, partners, sponsors, volunteers,
coordinateschedules for workshops, events, staffingin Kitchener, Cambridge, and Waterloo
locations,
ensure provincial programming is delivered along with collection and submission of statistical
data reporting to provincial government,and
responsiblefor fundingagreements, budgets and reports.
The three-party agreement between Kitchener, Cambridge and Waterloo alignswith WRSBC business
plan for the Provincial Agreement, Ministry of Economic Development Job Creation and Trade2019-
2022.The collaboration between the municipalities ensures our commitment to work together to help
entrepreneurs start and growa business.
REPORT:
WRSBC provides a rangeofentrepreneurial services and supports that benefit local traditional, main
street and lifestyle businessesoperated by self-employed individuals or companies with fewer than 10
employees. In Ontario, 76%of businesses havefewer than 10 employees. In Waterloo Region,this
would account for up to 11,850business not including self-employedindependent operators.Services
include:
one-on-one business consultations,
workshops and events,
access to business professionals, industry experts and mentors,
assistance with market research, business and marketing plans,
on-line business registrations, navigating government departments, agenciesand regulations,
delivery of provincial programs and grants for youth, start-ups and growth companies.
In 2018,the three locations responded to over 43,000 inquiries assisted 625 start-upsand 159 scale-
ups resulting in 1,009 jobs created:
Economic Impact
CambridgeKitchenerWaterlooTotal
Inquiries 1,081 38,9633,32343,367
Business Started 123 375127625
Business Expanded 4 12134159
Jobs 128 6402361,004
On-on-one Consultations 143 1,4164552,014
Workshops 37 30586428
Attended Workshops361 2,8233423,526
Events Hosted & Co-hosted 1 48453
Attended Events 100 2,7651373,002
1 - 2
The three-party funding agreement between Kitchener, CambridgeandWaterloo (2019-2022) outlines
amonetary contribution from the partners based on a per capita model, indexed annually at 1.5%,
based on most current StatisticsCanada Census Population Profile.In addition to thecash
contribution, the municipalities support the WRSBC by providing in-kind contributionssuch as a service
location, utilities, maintenance, marketing, training and administrative support services of HR,
accounting, legal as follows:
Municipal Contributions to WRSBC
20192019 2019
CambridgeKitchener Waterloo
Cash/Grant 13,585114,024 10,978
In-kind contributions
Wages and Benefits 102,50078,892
Facilities/utilities/maintenance 59,400168,000 18,500
Marketing6,500
ITC support 2,500 246
Training/travel2,3004,500
Accounting, Legal, HR, IT, Insurance 31,000
Total In-kind 170,700206,000 97,638
Total Cash and In-kind 184,300320,024 108,616
*Note: Cambridge and Waterloo satellite offices are responsible for employee wagesat their respective
locations. The Kitchener grant is the equivalent of the per capita contribution and one full-time wage.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Strategic Priority: Strong & Resilient Economy
Strategy: #2.2 Support the attraction, retention and development of existing and
new industries within the regional economy working in collaboration with the
economic development corporation for Waterloo Region.
Strategic Action: # 26Make It Start
# 27 Make It Grow
FINANCIAL IMPLICATIONS:
Over the three-year term,WRSBC projects abreak-even budget consistent with a good fiscal
managementover the past 10 years.
1 - 3
COMMUNITY ENGAGEMENT:
Entrepreneurship and innovation contribute to economic growth in the community. The Centre provides
programs and services that support and complement other community entrepreneurial initiatives
essential to the commercialization of small business within the Waterloo Region ecosystem.
CONSULT - TheWaterloo Region Small Business Centre facilitated four Community Engagement
sessions, “Small Business Matters”, in Cambridge, Kitchener/Waterloo, St Jacobs/Elmira and
Baden/New Hamburg, in 2015. Over 160 small businesses from all industry sector engaged discussion
around five questions.Over 2,000 ideas and opinions collected and analyzed resulting in WRSBC
identifying sevenkey areasof support for small business: Marketing, Mentoring, Education, Advocacy,
Small Business Hub, Collaboration and Funding.These themes inform the ongoing work, programs
and collaborative partnerships of the Small Business Centre.
Annually WRSBC conducts over 20 surveys with small business providing feedbackand suggestions
for small business servicesand programs.
COLLABORATE - Waterloo Region Small Business Centre communicates, consults and collaborates
with a broad range of community groups, organizations, agencies, secondary and post-secondary
institutes, municipal, regional and provincial governments to ensure the entrepreneurial services and
programs address the needs of small business in the community. The volunteers for the Waterloo
Region Small Business Centre and the Board of Advisors are representative of these community
groups.
ACKNOWLEDGED BY: Justin Readman, General Manager DSD
1 - 4
WATERLOO REGION SMALL BUSINESS CENTRE WRSBC WRSBC WRSBC Municipal
BUDGETProjected Projected Projected In-Kind
201920202021Contributions
OPERATING2019
REVENUES
ONTARIO - MEDJCT587,399456,552456,552
CITY OF CAMBRIDGE (2016 pop 129,913,58613,79013,997170,714
CITY OF KITCHENER (2016 pop 233,22114,024115,734117,470206,000
CITY OF WATERLOO (2016 pop 104,910,97811,14311,31097,638
REGION OF WATERLOO 50,00050,00050,000
OW-SEB REGION OF WATERLOO16,00016,00016,000
SPONSORSHIPS20,00020,00020,000
MEMBERSHIP FEES2,0002,5003,000
REGISTRATION FEES20,00018,00018,000
ROOM RENTALS300300300
Other15,000
Total Revenue #849,287704,019706,629474,352
OPERATING
EXPENSES
SALARIES AND WAGES 516,266423,529427,764
Administration47,70644,58044,580
Grants191,000191,000191,000
Professional Services56,0009,5957,970
Events and Publicity36,86533,86533,865
Insurance1,4501,4501,450
TOTAL EXPENSES849,287704,019706,629
SURPLUS /(DEFICIT)000
TOTAL EXPENSES849,287704,019706,629474,352
SURPLUS/(DEFICIT)000 0
EXCESS (DEFICIT) OF REVENUE OVER EXPENDITURES
OPENING SURPLUS/(DEFICIT)83,08783,08783,087 0
ENDING SURPLUS/(DEFICIT)83,08783,08783,0870
1 - 5
Waterloo Region Small Business Centre
Income Statement for the Year Ended December 31, 2018
(with comparatives for the year ended December 31, 2017)
20182017
REVENUES
Ministry of Economic Development, Trade
and Employment 476,624 723,203
Ministry of Research and Innovation 166,006 184,617
City of Cambridge 13,400 15,900
City of Kitchener 116,580 89,656
City of Waterloo 11,900 12,300
Region of Waterloo 50,000 50,000
Region of Waterloo - Self Employment
Program 10,500
Sponsorships 49,662 127,027
Memberships 1,700 1,995
Registration Fees 15,301 5,235
Room Rentals 339 565
Miscellaneous Revenue 530 375
912,5421,210,873
EXPENSES
Salaries and Wages 515,040 612,065
Administrative Expenses 51,138 129,985
Grants 285,050 118,779
Professional Services 45,865 260,742
Events and Publicity 27,118 78,632
Insurance 1,392 1,392
925,6031,201,595
Net Profit (Loss)(13,061)9,278
ACCUMULATED SURPLUS (DEFICIT)
Opening Balance93,11483,836
Net Profit (Loss)(13,061)9,278
Closing Balance80,05393,114
1 - 6