HomeMy WebLinkAboutFCS Agenda - 2020-03-09Finance & Corporate Services Committee
Agenda
Monday, March 9, 2020
2:30 p.m. –4:30 p.m.
Office of the City Clerk
Council Chamber
Kitchener City Hall
This is an approximate start time, as this meeting will commence immediately following
nd
200 King St.W. -2Floor
the Special Council meeting.
Kitchener ON N2G 4G7
Page 1Chair -Councillor S. DaveyVice-Chair -Councillor J. Gazzola
Consent Items
The following matters are considered not to require debate and should be approved by one motion in accordance
with the recommendation contained in each staff report. A majority vote is required to discuss any report listed
as under this section.
1.FIN-20-007-Uncollectable Miscellaneous Receivable Accounts Write-off
2.FIN-20-008-Uncollectable Utility Receivable Account Write-off
3.FIN-20-012-2020 DonationsMadeto City-Related Organizations
Delegations
Pursuant to Council’s Procedural By-law, delegations are permitted to address the Committee for a maximum of five
(5)minutes.
None
Discussion Items
4.COR-20-004-Wireless Telecommunication Provider Master Small Cell Agreements(30min)
(Staff with provide a 5-minute presentation on this matter)
5.DSD-20-040-Collaborative Municipal Funding for Key Cultural Institutions(30 min)
2019/2020 Summary
6.FIN-20-016-Implementation of LTFP Recommended Actions –Financial Policies(20min)
Information Items
None
Jeff Bunn
Manager, Council & Committee Services/Deputy City Clerk
** Accessible formats and communication supports are available upon request. If you require assistance to
take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994 **
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING:March 9, 2020
SUBMITTED BY: Saleh Saleh,Director,Revenue, 519-741-2200 extension 7346
PREPARED BY: Marcy Ignor, Supervisor of Customer Service and Collections, 519-741-
2200extension 7460
WARD (S) INVOLVED:ALL
DATE OF REPORT:January 22020
REPORT NO.: FIN-20-007
SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write-off
___________________________________________________________________________
RECOMMENDATION:
That uncollectable Miscellaneous Receivable Accounts amounting to $33,472be written
off against the Allowance for Doubtful Receivables.
BACKGROUND:
As per council policy FIN-FEE-517Utility and Miscellaneous Receivable policy, approval from
Council is required for accounts to be written-off and sent to an outside collection agency for
third party collection efforts.
This report represents Miscellaneous Receivables accounts that are deemed to be uncollectable
by collections staff. Miscellaneous Receivables represent services that are generally billed
through the City’s financial system (SAP). Examples of miscellaneous receivables include Direct
Detect for alarm monitoring, Parking and Cemetery sales. Property tax and utility accounts are
not included in miscellaneous receivables.
REPORT:
Staff are recommending that accounts totalling $33,472be written off and forwarded to a
collection agency. Staff have worked diligently in attempting to collect on these accounts but
have not been successful in the process.
The collection procedures staff have undertaken include:
Sending customers statements and demand letters.
Verbal request by telephone or in person.
Negotiating revised payment terms.
Applying any deposits held to the outstanding amounts.
*** This information is available in accessible formats upon request. ***
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1 - 1
Transferring uncollectable items to the customer’s property tax account where permitted
by the Municipal Act.
The current amount being recommended to be written off relates to 31customer accounts for
services provided in the following areas:
Community Services1,157
By-Law633
Cemeteries4,419
Fire166
Parking12,043
Operations9,361
Utilities (Cuts/Repairs)5,693
Total33,472
The cumulative amount of write-offs identified in this report equal $33,472and relate to the years
2018 and 2019. The cumulative write-offs are shown in the table below and the average is well
below the targeted upper limit for write-offs set at 0.3% previously approved by Council.
Miscellaneous Receivables Write-off
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
2019$22,134$26,057,7400.0849%
2018$54,464$23,132,4980.2354%
2017$31,638$19,990,2370.1583%
2016$32,255$17,350,4590.1859%
2015$50,673$18,483,5690.2742%
Total$191,164$105,014,5030.1820%
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic vision through
the delivery of core service.
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FINANCIAL IMPLICATIONS:
The uncollectable accounts will be written off against the Allowance for Doubtful Receivables
account.
COMMUNITY ENGAGEMENT:
This report has been posted to the City’s website with the agenda in advance of the council /
committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
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REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING:March 9, 2020
SUBMITTED BY: Saleh Saleh,Director, Revenue, 519-741-2200 extension 7346
PREPARED BY: Marcy Ignor,Supervisor of Customer Service and Collections,519-741-
2200extension 7460
WARD (S) INVOLVED:ALL
DATE OF REPORT:January 2 2020
REPORT NO.: FIN-20-008
SUBJECT: Uncollectable Utility Receivable Account Write-off
___________________________________________________________________________
RECOMMENDATION:
That uncollectable Utility Accounts amounting to $105,890be written off against the
Allowance for Doubtful Utility Receivables
BACKGROUND:
As per council policy FIN-FEE-517Utility and Miscellaneous Receivable policy, approval from
Council is required for accounts to be written-off and sent to an outside collection agency for
third party collection efforts.
Utilities receivable represent invoices generally billed through the City’s SAP CR&B billing
System. The majority of these invoices relate to usage for Gas and Water. The current report
represents write-off of utility accounts which have been deemed to be uncollectable up to the
end of December 31, 2019.
REPORT:
Staff are recommending that accounts totalling $105,890be written off and forwarded to the
collection agency. Staff have worked diligently in attempting to collect on these accounts but
have not been successful either due to the customer declaring bankruptcy or having no
forwarding address. Any tenant deposits previously received on theuncollectable accounts
have been applied to reduce the debt outstanding. A total of 184customer accounts are being
recommended to be written off and transferred to a third party collection agency.
The collection procedures staff have undertaken include:
Sending customers statements and demand letters.
Verbal request by telephone or in person.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
2 - 1
Negotiating revised payment terms.
Applying any deposits held to the outstanding amounts.
Transferring uncollectable items to the customer’s property tax account where permitted
by the Municipal Act.
The cumulative amount of utility write-offs identified in this report equal $105,890and relate to
the years 2017, 2018 and 2019. The cumulative write-offs are shown in the table below and the
average is well below the targeted upper limit for write-offs set at 0.3% previously approved by
Council.
A five year summary of write-offs is included in the table below.
Utility Accounts Write-off
CumulativeTotal $ InvoicedWrite-offs as a
Write-offs for the YearYear to Date% of Sales
2019$ 129,407$ 202,658,095 0.0639%
2018$ 241,367$ 211,483,209 0.1141%
2017$ 206,962$ 200,367,149 0.1033%
2016$ 282,841$ 177,421,159 0.1594%
2015$ 105,464$ 178,576,715 0.0591%
Total$966,041$970,506,3270.0995%
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic vision through
the delivery of core service.
FINANCIAL IMPLICATIONS:
The uncollectable accounts will be written off against the Allowance for Doubtful Utility
Receivables account.
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COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
CONCLUSION:
It has been determined that $105,890of utility accounts are uncollectable and staff are
recommending that the accounts be written off to the Allowance for Doubtful Utility Receivable
account. The uncollectable account listing will be forwarded to a collection agency, which will
use their best efforts to collect these accounts.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
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REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING:March 9, 2020
SUBMITTED BY: Brenda Johnson, Director of Accounting, 519-741-2200 Ext 7647
PREPARED BY: Brenda Johnson, Director of Accounting, 519-741-2200 Ext 7647
WARD (S) INVOLVED:All
DATE OF REPORT:January 13, 2020
REPORT NO.:FIN 20-012
SUBJECT:2020Donations Made to City-Related Organizations
___________________________________________________________________________
RECOMMENDATION: That for the fiscalyear2020, donations received by the City of Kitchener on
behalf of City-related organizations, namely Minor Sports Groups, Neighbourhood Associations, KW
Golf Committee, KW Chamber of Commerce Physicians Recruitment and Advocacy Group, and Tier
1 and Tier 2 grant recipients, be redistributed to those organizations as intended by the donor.
BACKGROUND:
The City of Kitchener is authorized as a qualified donee under the Income Tax Actto issue official tax receipts
when a donation that legally qualifies as a gift is made to amunicipality.
REPORT:
Canada Revenue Agency requires that for donations to be eligible for income tax receipts, all funds must
be made payable directly to the City of Kitchener and that funds re-distributed to City-related
organizations must be approved by Councilon an annual basis.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic vision through
the delivery of core service.
FINANCIAL IMPLICATIONS:
The City issued approximately 285 donation receipts in 2019, totalling just over $81,000. Of these, 19
per cent were made to the city in general and 81per centof donations were re-directed to city-related
organizations as requested by the donor. The costto process receipts is minimal and includes postage,
paper and staff processing time.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
3 - 1
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING:Mar 9, 2020
SUBMITTED BY: Dan Murray, Director, Technology Innovation and Services, 519-741-
2200 x7825
PREPARED BY:Dan Murray, Director, Technology Innovation and Services, 519-741-
2200 x7825
WARD (S) INVOLVED:All
DATE OF REPORT:Feb 20,2020
REPORT NO.:COR-20-004
SUBJECT:Wireless Telecommunication Provider Master Small Cell Agreements
___________________________________________________________________________
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute master license agreements
satisfactory to the City Solicitor with wireless telecommunications providers to permit
the use of appropriate city assets to host wirelesstelecommunications equipment.
B
ACKGROUND:
Cellular communication technologies have evolved since the first cellular network was deployed
in Canada in 1992. New evolutions in cellular technology have been referred to as “generations”
with acronyms such as 3G and 4G being used to signify a generation of technology.The fifth
generation of cellular technology, or 5G, promises significant performanceincreases over
previous generations. As with previous cellular generations, rollouts of 5G technology will occur
alongside existing 3G and 4G systemsand will co-exist for several years.In the preparation for
5Grollouts, wireless communication providers are looking to install “small cells” which are low
powered cellular antennaslocated in high demand areas.Forwireless telecommunication
providers to meet growing demand, they need to negotiate access to both public and private
assets in order to locate thesesmall cell antennas. All the wireless communication providers
have expressed interest in being able to access City assets such as building,streetlightpoles
andpropertysuch as parks and public spaces. In May 2017, Council authorized execution of
an agreementto allow Bell Mobility Inc. to install telecommunication equipment at the Kitchener
Market. Subsequently, another small cell system was installed at the Kitchener Memorial
Auditorium.
RE
PORT:
The growth in the number of mobile devices connecting to cellular networks coupled with the
continually growing appetite for increased data speeds have continue toput pressure on cellular
networks. Each new generation of cellular technologies improves on the previous capacity and
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4 - 1
speed. In order to meet these new demands, two significant changes will be required for
deployment of new generations of cellular technologies.
Fibreoptic network connectivity – next generation cellular networks need to connect
using fibre optic networkinginstead of the wireless technologies often used with
previoustechnologies.Significant fibre optic cable infrastructure will need to be
installed to serve cell towers, in-building systems and small cells at the street level.
Increased cellular antenna density – cellularantenna density will need to increase
significantly to serve the number of devices accessing the network. Many lower
powered cellular antennas (5to 10 Watts)known as small cells will be installed at street
level.
Traditional cellular communication towers will still be usedto provide wide coverage area of the
telecommunications serviceandsmall cells will be installed at street level on buildings or using
streetlight, traffic lightpoles or hydro poles at strategic locations throughout the city. Each of
these small cells requires its own fibre optic connectionand a powersource.
Municipal Master Small Cell Agreements
Across North America, wireless telecommunication providers are looking to entermaster
agreements for small cell installations which allow them to be able to request access to various
municipal assets under agreed uponterms and conditions.The wireless telecommunications
providers are looking to enter agreements withall local municipal asset owners such as the
cities, the Region of Waterloo and the local hydro utilities.
As the quantity of requestsfrom all wireless telecommunications providersis expected to rise
significantly in 2020 and beyond,it is in the City’sbest interest to enter master agreementswith
all wireless telecommunications operators at this timein order that future requests can be
managed effectively and to ensure that Kitchener is well equipped to deploy 5G wireless
services. The Kitchener-Waterloo area is of great interest to the wireless providers and they are
eager to invest in this area.There are currently three wireless telecommunication providers that
operate their own infrastructure in Kitchenerthat we expect to execute master small cell
agreements with. They are Bell Mobility Inc., Rogers Communications Inc. and Freedom Mobile.
Installationof SmallCells on City Assets
For each application to install telecommunication equipment on a City asset (streetlight pole,
building, etc.) the City will review the details of the application submitted and will need to approve
in writing before installation can proceed. For streetlight mounted telecommunication
equipment, the development of appropriate installation standards in collaboration with other
municipal partnerswho own similar assets will be requiredin order to maintain a consistent
aesthetic approach to the installationsacross the city. Examples of typical small cellinstallation
on municipal assets are shown below.
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Figure 2- Example of existing small cell antenna installed on
Figure 1 – Typical small cell installation on streetlight
Kitchener Market
Safety of Small Cells
As with all wireless telecommunication equipment deployed in Canada, small cells must operate
within the limits establish by Health Canada and Industry Canada defined by Safety Code 6.
Small cell wireless equipment operates at hundreds of times less than the defined limits for safe
exposure by Safety Code 6.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic vision through
the delivery of core service.
FINANCIAL IMPLICATIONS:
There are no direct financial implicationswith the approval of the recommendation in this report.
As wireless providers install small cell equipment, there will be negotiated fees for lease of the
asset used. Most municipal small cell master agreements outline feesfor various assetusage
(e.g. in-building systems, building façademounting,streetlight pole) for the following aspects
where applicable:
Application/Permit Fee – fee paid toCity for the reviewandprocessingof application
Annual License Fee – fee paid to City for license to attach equipment to city owned
asset (building, streetlight)
Hydro Consumption Surcharge Fee – fee paid to City to reimburse hydro
consumption if equipment isconnected to building electrical system
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For in-building systems, the fees vary depending on the type and size of facilityand whether
intended service is indoor or outdoor. City staff have been researching market rates for the
above feesand will negotiate fees with the providers.
Typical annual license fees for an in-building system are $3000/year. A typical streetlight pole
attachment license can range from $200-$1000/yeardepending on howelectrical sources are
provisioned.Asthe needs and plans for the wireless telecommunication providers are not fully
understood it is very difficult to estimatethe scope ofany future potential revenuefor the City at
this time.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Council previously authorized execution of an agreement with Bell Mobility Inc. to permit the
installation of a small cell systems atthe Kitchener Market and delegated authority to the Director
of Facilities Management for future telecommunications equipment at all city facilities. (FCS-
017-096)
ACKNOWLEDGED BY: Lesley MacDonald – Acting General Manager of Corporate Services
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REPORT TO: Finance and Corporate ServicesCommittee
DATE OF MEETING: March 9, 2020
SUBMITTED BY: Cory Bluhm, Executive Director, Economic Development,
519-741-2200 ext. 7065
PREPARED BY: Emily Robson, Manager, Arts/Creative Industries, Economic
Development 519-741-2200 ext. 7084
WARD (S) INVOLVED: All
DATE OF REPORT:February 21, 2020
REPORT NO.: DSD-20-040
SUBJECT: Collaborative Municipal Funding for Key Cultural Institutions 2019/2020
Summary
___________________________________________________________________
RECOMMENDATION:
That staffbe directed to undertake a comprehensive review of the Collaborative Municipal
Funding process, in partnership with Municipal Cultural Partners and Key Cultural
Institutions, to identify opportunities to continuously improve the process, with any
recommended changes being presented to Council for consideration in advance of the
2021 annual report.
BACKGROUND:
Brief History
In May 2016, staff initiated the collaborative funding and assessment process by the Cities of
Kitchener, Waterloo and the Region of Waterloo for the four Key Cultural Institutions (KCI). KCIs
are large organizations that contribute to the social and economic prosperity of Waterloo Region,
creating jobs and wealth, attracting visitors and stimulating creative thought and activity. There
are currently four organizations in the Region that fit the KCI criteria:Canadian Clay and Glass
Gallery(CCGG), Kitchener Waterloo Art Gallery(KWAG), Kitchener Waterloo Symphony
(KWS), and THEMUSEUM. While these institutions are each independent, with their own boards
of directors, executive directors, staff teams, and facilities, together they represent a significant
asset and exert considerable influence locally. Reliable municipal operational funding is
necessary to sustain the impact of these organizations and to leverage funding from other levels
of government and private sources.
The development of the collaborative fundingprocess was a recommendation of the Arts
Sustainability Fund Review report (CAO-15-030) approved by Council in the fall of 2015.This
initiative aims to consider the total funding for the KCIs and assess the equity of the fund
allocation and ensure accountability of public funds. This collaborative approach recognizes
that Cambridge, Kitchener, Waterloo and the Region are significant funders of the four
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5 - 1
organizations, and it is important for municipal staff to have an on-going understanding of their
strengths and challenges. This collaborative approach has a number of benefits:
Improved transparencyfor decision-making
Improved accountabilityfor public funds
Improved communicationbetween municipalities, KCIs and Councils
Improved efficiencyfor KCIs and municipalities
Overview of Collaborative Funding Process
As part of the collaborative process, municipal staff meets with members of the staff and Boards
of the individual KCIs to discuss their goals, accomplishments, challenges, and to plan for
specific actions and outcomes for the upcoming year. The purpose of this discussion is to
identify opportunities for further cooperation, possible measure to mitigate challenges, and a
deeper understanding of each KCI and their work.
Allocations for 2020 have been made to the KCIs through the annual budget process. The table
below summarizes municipal contributions for 2020:
Key Cultural Facility Facility KitchenerWaterloo Region CambridgeTotal
Institution (Kitchener) (Waterloo)
CCGG $96,459 $50,000 $146,459
KWAG$103,020 $225,170 $76,500 $404,690
KWS $253,003 $98,000 $385,662 $736,665
THEMUSEUM $125,483 $148,839 $45,000 $385,662 $704,984
TOTAL$125,483 $96,459 $730,032 $269,500 $771,324 $0 $1,992,798
THEMUSEUM Funding Requestand Operational Review
While funding is a persistent challenge for all KCIs, during the 2019 collaborative funding
process, THEMUSEUM requested a substantial increase to their operating grant.THEMUSEUM
anticipated that without an increase to its municipal funding, it would need to significantly alter
its operations. In response to this request, the Region of Waterloo and the City of Kitchener
undertook a strategic review of the operations of THEMUSEUM.The aim of the review wasto
provide a framework for THEMUSEUM and municipalities to understand the organization’s
operations and whether municipal support should be adjusted to ensure THEMUSEUM's
sustainability.
This report summarizes the findings from the 2019 collaborative funding process and the findings
from THEMUSEUM’s operational review.
Findings from 2019/2020 Collaborative Funding Discussions
In conversation with the Executive Directors and CEOs of the KCIs, a number of themes
emerged:
Maximizing space & facilities:KCIs explored how their physical spaces could be used
differently to maximize the use of their facilities. The Canadian Clay and Glass Gallery
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re-considered their main entrance and lobby, establishing a new exhibition space there.
An unused interior courtyard was reimagined as a location for site-specific installations
and the library was re-established as a centre for academic research. The Kitchener
Waterloo Art Gallery completed a renovation of the lobby area that enhanced the visitor
services experience, incorporated an education hub, and created accessible and
gender-neutral washrooms within the facility’s existing footprint. The Kitchener Waterloo
Symphony partnered with Green Light Arts to support increased use of the theatre.
THEMUSEUM is developing an operating model that will increase the size of the facility
and increase revenue.
Cultivating strong attendance:KCIs indicatethatattendance, ticket sales and
registrationcontinue to be strong, indicating that their programming offers relevance to
the community.
Balancingfinancial operational scarcity with high qualityprogramming:In order to
maintain current levels of provincial and federal funding, the KCIs receiving these funds
must demonstrate a high level of performance in organizational effectiveness and artistic
and community programming. It is a strategic endeavour to balance this commitment with
financial scarcity, especially reducing accumulated deficits. While maintaining their high
professional standing with the Ontario Arts Council peer jury by offering high quality
exhibition programming, KWAG, CCGG, and KWS have accommodated budget
restrictions, including the elimination of staff positions and/or the reduction of salaries,to
reduce deficits. These reductions have made it challenging for all three organizations to
offer competitive staff compensation, and have impacted theirability to retain top talent.
Developing strategies for effective communication with Councils: Many KCIs questioned
the best way for them to share their work, impact, opportunities and challenges with
municipal Councils.
Increasing stable funding: Reliable and sustainable operating funding is needed. For
most KCIs changes to funding at both the Federal and Provincial levels have created
significant challenges.For most KCIs the landscape of corporate sponsorship and
philanthropic giving has changed, resulting in the loss of many long-term sponsorship
investments. This has required KCIs to change their approach and develop new
philanthropic relationship—both of which are time and resource intensive. All KCIs
expressed the need for increased municipal funding and investment to maintain the
quality of programming, address staff resourcing needs, improve physical space and
assets, and diversify programming and exhibits.
Findings from THEMUSEUM Operational Review
During the collaborative fundingprocess, THEMUSEUM requested a substantial increase to
their operating grant. THEMUSEUM anticipated that without this increase, they would have to
make significant changes to the scale and scope of their operations. In response to this request,
the Region of Waterloo and the City of Kitchener undertook a strategic review of the operations
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of THEMUSEUM.After developing a terms of reference for the project and soliciting consultant
proposals, the partnersjointly appointedAngela Birdsellto conduct the review. The scope of
worked included:
A review of organization's purpose, mandate, programming and markets;
An analysis of the organization's financial model; and,
A review of THEMUSEUM’s capital expansion plan.
The review included interviews with a numberof THEMUSEUM and community stakeholders,
including staff, Board members, donors, partners, long time supporters, and other community
leaders. It relied on extensive review and analysis of documentation provided by
THEMUSEUM and funders, such as financial documentation, annual reports, grant
applications, statistical data, web content and Board documentation.THEMUSEUM Review—
Final Report Summarycan be found in Appendix A.
The final report offered several conclusions:
THEMUSEUM has a compelling Vision, Mission, and Mandate and a number of factors
working inits favour such as established programming, member support, private
foundation support, programming space in a building provided by the City of Kitchener,
and a committed Board.
THEMUSEUM has consistently incurred large operating deficits since 2009. Despite
financial control mechanisms, the Board has approved expenditures of unrestricted
reserves in the absence of plan to address ongoing sustainability.
THEMUSEUM’s staffing in numbers and cost is close to double that of most
comparative organizations.
THEMUSEUM’s contention that it is underfundedby municipal fundersis not supported
by research of comparative organizations.
Opportunities exist for THEMUSEUM to operate within its existing budgets.
The final report contained several recommendations for THEMUSEUM’s operations, including
suggestions on reducing expenditures, assessing the cost-benefit of various operational areas,
budgeting, and feasibility planning for the proposed capital expansion. THEMUSEUM has
already implemented many of these recommendations.
In partnership, THEMUSEUM and municipal funders have developed a conditional 3-year
funding agreement as recommended in the report. The conditional funding agreement
supports THEMUSEUM to achieve sustainability, ensures responsible stewardship of public
funds, and mirrors funding best practices in art funding jurisdictions (e.g. Ontario Arts Council
and Canada Council for the Arts), while maintaining the current funding envelope. Municipal
funders have offered in-kind services to further support THEMUSEUM’s operations.
During the annual collaborative funding process for 2021, THEMUSEUM will be assessed
against these funding conditions.
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Next Steps in Collaborative Funding Process Improvement
In addition to following the established cycle of the collaborative funding and assessment
process, the Municipal Cultural Initiatives Working Group will review and refine the process with
a view to rationalizing the municipal funding allocations, building equity, and increasing
transparency.
The planned cycle of the collaborative funding and assessment processis outlined in the table
below:
Annual CyclePlanned activities
Q1Municipal staff process KCI grants within each independent budget process
Q2Municipal staff submit joint summary report to the individual councils (this report)
Municipal and KCI staff meet to assess process and results
KCIs present annual overview to All Council Meeting
Q3KCIs submit individual reports onprevious fiscal year
KCIs request funding for upcoming year through Municipal Working Group
Municipal staff meet with each KCIto review reports and discuss needs
Q4Municipal staff summarize discussion in form of strengths, challenges and planned
actions for each KCI
Municipal staff collaboratively identify potential budget issues
Municipal staff recommend KCI funding allocation to council as part of each
municipal budget process (issue paper if needed)
2020 marks the fifth year in which the collaborative funding approach has been utilized. As such,
it represents an opportunity to assess the value and benefit of this process. Feedback on the
collaborative municipal funding and assessment process has been mixed.In particular, this
coordinated approach has given staff a clearer picture of the complete funding profile of each
KCI. In doing so, this has provided staff with more insight into the opportunities and challenges
unique to large cultural institutions. Likewise, the process has provided municipal funders with
more performance data, coordinated advocacy for the greater benefit of the sector, and
strengthened relationships between cultural organizations and municipal staff.
However, this process has not yet been able to address serious concerns about the sufficiency
and equity of funding for KCIs. This question was at the centre of the 2019 operational review of
THEMUSEUM. To this end, the Municipal Cultural Initiatives Working Group will consideroptions
and opportunities to address these concerns, among others, and share any findings and
recommendations with Council before the 2021 report.
CONCLUSION:
The KCI’s continue to provide a valued contribution to our community and economy. Given the
changing landscape under which the KCIs operate, it is important for municipalities to continually
explore opportunities to support each organization within their unique mandates and operating
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situations. As such, staff will consider opportunities to enhance the Collaborative Funding
approach, to better meet the needs of our KCIs while ensuring community benefits shared across
municipal boundaries are realized.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic vision
through the delivery of core service.
FINANCIAL IMPLICATIONS:
None. The actual funding amounts and any related decisions continue to be made by the City of
Kitchener as part of the annual budget process.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
COLLABORATE – Collaboration with regional partners has been extensive through the
Municipal Cultural Initiatives Working Group, community partners at the Key Cultural Institutions
and various stakeholders through previous meetings with partners and the Arts and Culture
Advisory Committee meetings.
PREVIOUS CONSIDERATION OF THIS MATTER:
CAO-18-012 Collaborative Municipal Funding for Key Cultural Institutions: Year 2 Summary
CAO-17-015 Key Cultural Institutions
CAO-15-030 Arts Sustainability Fund Review
ACKNOWLEDGED BY: Justin Readman, General Manager, Developments Services
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THEMUSEUM Review – Final ReportSummary
Angela Birdsell, M.M., MBA, Arts Management Consulting, Dec 16, 2019
Table of Contents
Introduction ........................................................................................................................................................ 1
Mission, Vision, Programming and Markets ....................................................................................................... 1
Finances ............................................................................................................................................................ 3
Expansion Plans .............................................................................................................................................. 11
Conclusions and Recommendations................................................................................................................ 14
Introduction
This organizational review of the THEMUSEUM includes a review of its vision, mandate, markets, operations,
finances and expansion plans.
The purpose is for the Region of Waterloo and City of Kitchener to consider options to maximize the
organization’s potential for short- and long-term sustainability and success and, for funders to recommend an
informed approach by Councils to address THEMUSEUM’s request for additional operating funding and
consideration with regards to a potential expansion strategy.
The review included interviews with a number of THEMUSEUM and community stakeholders, including staff,
Board members, donors, partners, long time supporters, and other community leaders. It relied on extensive
review and analysis of documentation provided by THEMUSEUM and funders, such as financial
documentation, annual reports, grant applications, statistical data, web content and Board documentation.
This report includes findings which should assist the funders and THEMUSEUM to engage constructively to
ensure THEMUSEUM is a sustainable, dynamic cultural institution in the cities and Region.
Mission, Vision, Programming and Markets
Beginning in 2003 as the Waterloo Region Children’s Museum, research conducted by the organization
indicated that there were an insufficient number of children in the geographic catchment area to support a
uniquely children’s museum and, that there was an excess of space to warrant programming exclusively for
children.
THEMUSEUM determined greater opportunity for revenue generation would be provided by a mixed
program offering. Since 2007, THEMUSEUM has hosted exhibits with multi-faceted and intersecting
themes, including art, technology, popular culture, science, health, wellness and the environment.
Its programming is developed around four pillars which help to understand the organization’s focal
points:
Exhibitions
Community State
Museum after Dark
Family Experiences
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Exhibits have entailed a mix of permanent, curated and sourced exhibitions including large-scale branded
shows targeted at families and adults and at times includes programming targeted to specific groups, such as
millennials. THEMUSEUM is placing growing emphasis on technology, digital arts and adult programming.
Stakeholders speak very positively of the past program achievements of THEMUSEUM. The range of
expectations and understanding of THEMUSEUM’s future programming and its target audiences is quite varied
among respondents. Significant divergence in understanding of the vision of THEMUSEUM was reflected in
interviews with donors, board members, community supporters, members, staff, and the public. It will be
important for THEMUSEUM to articulate a clear and honed strategic direction if it is going to gain support for
an expansion among donors and governments.
Visitor Attendance
THEMUSEUM has a loyal membership base for its multi-
themed programming. A review of attendance statistics indicate
that most of those who visit THEMUSEUM are families,
children and members.
This encompasses 80,000 – 90,000 visits per year. As of May
31, 2019:
63% of visitors are children and families
THEMUSEUM had 1,067 members which generated
15,342 member visits including children
45% of members say they visit monthly (Metroline)
Metroline Market Research
In 2018, THEMUSEUM undertook a survey through Metroline
Market Research to gain a clearer understanding of what a
“critical mass of arts and culture activity” in downtown Kitchener
meant for the community. The research objectives were to:
understand general awareness of THEMUSEUM
explore the current perceived strengths of the
organization
explore what changes could or should be made to enhance or make THEMUSEUM more relevant and
interesting
understand awareness of the potential change in the organization to take over more property and
expand
The research included 1027 survey responses and a focus groups. Key findings of the Metroline Research
included:
Awareness: generally, there is good awareness for THEMUSEUM’s programming. The highest areas of
awareness was of the Dinosaurs exhibition, the lowest areas of awareness were of Dance Mix 90s, Studio 54
and Interaction.
Areas for Improvement: Suggestions for improvement related to cost, variety, location and parking issues,
and increasing general awareness of THEMUSEUM.
Family Experience: 87% of respondents have a positive impression of THEMUSEUM stating that the space
is welcoming for whole family.
Collaboration: 74% of respondents said collaboration with other institutions like universities, museums, tech
companies, and arts and cultural organizations was “very important”.
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Respondent interest:
81% of respondents were interested in larger, well known exhibitions
69% wanted to see more special events
68% wanted more family programming
Non-members and those who attend less frequently are interested in live music, special events, adult
programming.
Regular attenders are more likely to find family experiences or events for the whole family more
important than those who are not regular attenders or members.
Conclusions: Mission, Vision, Programming and Markets
While there is wide support among stakeholders for THEMUSEUM’s past programming, its future plans are not
necessarily well-socialized or understood by stakeholders, many of whom have divergent viewpoints or
understandings of where the organization is heading or should be heading.
Stakeholder descriptors of the forward vision varies including; ‘more ROM-like exhibitions’ to ‘less ROM-line
exhibitions’, more curated digital arts, more STEAM programming, live music, more family programming / less
family programming. Multiple users have multiple priorities as evidenced in the Metroline Research and
stakeholder conversations.
Internally, THEMUSEUM may have a clear idea of its vision, however, when its stakeholders have dramatically
divergent expectations/priorities, an organization risks attempting to be all things to all people. This prevents
strategic and effective use of its finite resources.
A clear picture of the future is the only way an organization will be able to raise capital to achieve its vision.
Finances
In 2018, THEMUSEUM requested that municipal and regional funders increase support by 58% to bridge the
operating deficit and to set it up for a capital campaign. As a result, an analysis of THEMUSEUM’s finances is
a key component of the operational review.
Current Position
At Year End 2018 THEMUSEUM held $2,037,883 in reserves, $1 million of which is donor-restricted. At Year
End 2019, at the time of the report it was estimated that approximately $300,000 will remain in Board-restricted
1
reserves. At the current rate of expenditure it is estimated that THEMUSEUM would draw down all reserves
by December 31, 2019.
A line of credit of $350,000 is available to THEMUSEUM. If the organization continues to operate at current
spending levels, it would have $62,000 in available cash through its line of credit at its fiscal year-end of June
30, 2020.
The Board has not articulated a plan for sustainability beyond December 2019, other than to request that
municipal and regional governments cover the annual shortfall in an amount of approximately $400,000 in
increased operating support. The review demonstrates that increased support in the past from municipalities
has been followed by higher deficits, roughly in the same amount of the funding increase. There is no evidence
that funders have provided assurance of an increase to THEMUSEUM since the Region’s Per Capita / Arts
Sustainability Fund increase in 2011 (to $300,000 per year from $75,000).
THEMUSEUM currently has no debt. If it draws on the line of credit, THEMUSEUM would be in a position of
2
liability. It is the opinion of this review2that expense reductions could be implemented, potentially avoiding the
need to access credit in early 2020. Over 2019-20, cost reductions could potentially result in a balanced
budget at year end.
1
As determined in Sep 2019.
2
As above.
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Revenues and Expenditures 2011-2018
The review examined the last eight years of financial performance presented by THEMUSEUM to identify
trends and potential issues that fall outside of industry norms.
3
THEMUSEUM Financial Performance from 2011-2018
Revenues
Earned revenues have seen little variance over the past six years (2013-2018).
Fundraising and sponsorship show a general decline since 2011-2013, with lowest years in 2015-16.
4
.
Municipal funding has remained relatively stable
Federal and Provincial grants are variable because they are project rather than operating grants. The
highest year was in 2012, as are Foundation grants.
Expenses
Salaries and Benefits were significantly increased in2017 and 2018
Exhibit & marketing costs are variable, year over year.
Program costs were increased by 50% in 2018.
Facilities costs are stable. The building is provided by the City of Kitchener.
Revenue over Expenditure
Operating deficits have been consistently incurred in amounts ranging from $260,000 - $550,000 every
year between 2011 and 2018. These have been offset by drawing down reserves
3
This information was provided by THEMUSEUM to the reviewer.
4
Funding from The Region increased in 2011 from $75,000 to $300,000.
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As a note: Deferred capital contribution/amortization should be netted as an expense for more accurate
operating results. In doing so, it becomes clear that THEMUSEUM operated with slightly over $2million in
revenues and $2.6 million in expenditures in 2018, a deficit of approximately 30% of actual revenues.
Budgeting and Financial Stewardship
Annually, management of THEMUSEUM undergoes a budget planning process. The budget is then presented
to the Board for approval each year. Approved budgets include revenue assumptions that would provide break-
even results if achieved.
Annual financial audits are also approved by the Board each year. Since 2011, no financial audit has reported
break-even results, rather, operating losses have ranged from 10% - 30% of revenues.
THEMUSEUM’s Board Executive reports that it regularly reviews its financial performance through a number of
means including bi-monthly monitoring of budget vs actuals, monitoring project costing and profit margin
scenarios. Stop Light reports are generated for various program areas.
Despite these standard financial practices, this operational review brings to light some issues:
While progress against targets appears to be carefully monitored, it is unclear what mitigation strategies
are taken to address revenue shortfalls/expenses when they are incurred.
The rationale for the Board to annually approve balanced budgets in the face of consistent operating
losses is not clear.
The rationale for submission of the approved balanced budgets to municipal funders – given historical
precedence of THEMUSEUM’s financial results – is also not clear.
Conclusions
THEMUSEUM Board annually runs operating deficits without a plan for sustainability following depletion of
reserves.
In the case of budget submissions by THEMUSEUM which have no basis in historical achievement, funders
may consider withholding grant disbursements pending the submission of achievable budgets.
This is common practice in provincial and federal funding agencies and is discussed later in the review under
the recommendation for a 3-year conditional funding agreement.
Financial Performance in a Broader Context
Comparative Organizations: To help contextualize operational choices and financial performance of
THEMUSEUM, this review identified a number of organizations for comparison. This is intended to assist in
learning about, and gaining a broad perspective of non-profit exhibition organizations such as museums,
galleries, discovery centres and digital arts centres. The comparators were chosen based on a number of
criteria:
Operating Model: THEMUSEUM follows a gallery/interpretation centre operating model with opening
hours when people can choose to come or not, with changing exhibitions and supplemented by group
visits, educational programs, special events and rentals.
Programming themes: founded on its roots as a Children’s Museum, THEMUSEUM’s programming
also explores the intersection between science, technology and art.
5
Revenues: THEMUSEUM has average revenues of slightly over $2 million
Funding Model: THEMUSEUM is a registered not-for-profit organization and receives funding from
municipalities.
Location: It is noted that community has a unique ecology for revenue generation.
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with amortization netted as an expense.
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Population size: THEMUSEUM primarily serves the Region of Waterloo, with a population of
approximately 600,000. The population in a catchment area of a cultural organization will potentially
impact revenues (gate, memberships, rentals, donations etc.) and programming choices.
A detailed analysis of the programming, operating hours, school and education programs, ticketed and special
events is not part of this review.
Comparators are used primarily to understand THEMUSEUM’s revenues, staff levels and compensation within
the broader context.
THEMUSEUM has stated through feedback on this review, that it does not accept comparison with other non-
profit cultural organizations. This report takes that view into consideration, but maintains that comparisons are
useful in terms of understanding the cultural sector and industry norms.
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Selected Comparator Organizations
REVENUE STREAMS
Comparison of Revenue Streams (public, private, earned)
The review compares THEMUSEUM’s three funding streams (earned, government/public and
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contributed/private). Comparisons with the four Regional Key Cultural Institutions (KCIs) as a cohort are
provided separately.
6
THEMUSEUM revenues include amortization. Y/E 2019 revenues are approximately $2 million before amortization of deferred capital
contribution. The Discovery Centre revenues include capital campaign revenues and campaign-related staffing. The number above
excludes capital funds.
7
KCIs include Canadian Clay and Glass Gallery, Kitchener-Waterloo Art Gallery, Kitchener-Waterloo Symphony and
THEMUSEUM.
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8
Revenues of Comparison Organizations (2018)
Government funding
Government revenue is 3% points below
average of comparative organizations
Earned revenue
THEMUSEUM is relatively strong in
earned revenue (57%).
Earned revenue of THEMUSEUM is within
the top half of comparators. The average
is 43%.
8
*KWAG and The Power P lant do not charge admission. The Discovery Centre revenue includes @ $4.8 m in revenue related to capital campaign.
This will logically result in higher than usual private and government revenues. Normal operating revenues sit at approximately $3.3 M. The Phi
Centre in Montreal is not included in revenue analysis because it does not have government funding, but is rather solely supported by private
contributions and earned revenue. The Ottawa Art Gallery is not included because it is a line item in the City of Ottawa budget; therefore
its public revenue streams are not appropriate as a basis for comparison.
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Private funding(fundraising,
sponsorships and non-government
grants)
THEMUSEUM is on par with children’s
museums in this revenue category.
At 16%, private revenue is below the
average of 27% of comparison
organizations.
2018 Revenue comparisons with the Region’s Key Cultural
Institutions (KCI)s
In comparing the three revenue streams of Region’s KCIs:
THEMUSEUM is supported by the area municipalities and the
Region at strong levels comparable to other KCIs, including in-
kind infrastructure support.
THEMUSEUM has the highest proportion of earned revenue of
the KCIs. KWAG and CCGG do not charge admission.
CCGG’s earned revenue is largely attributable to gift shop.
THEMUSEUM receives less than other KCIs from federal and
provincial sources.
Fundraising and sponsorship is low relative to KCIs.
EXPENDITURES
Staffing
THEMUSEUM’s total staffing costs are 57% of revenues (or 74% if amortization is netted out as an expense
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bringing THEMUSEUM’s operating revenues in 2018 to $2,038,931). Staffing costs were significantly
increased in the past two years (see p 4). THEMUSEUM has close to double, by number and/or %, the FT staff
contingent as institutions with comparable or lower revenues. As staffing expenditures arguably account for
THEMUSEUM’s operating deficits, this area is a key focus of the review.
9
Based on 2018 revenues of $2,515,939 in the chart on p 4, and staffing costs of $1,513,223. With deferred capital
contribution $477,008 and amortization $531,245 netted out as an expense, this provides a truer picture of operating
revenues which are $2,038,931. As such, staffing costs are 74% of revenues in 2018. Of the comparator organizations
indicated above, The Power Plant’s revenues do represent the net amortization amount, the remainder, drawn from CRA
data, do not.
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Staff are well-regarded by those interviewed during this review for commitment and professionalism. In its
employee manual, THEMUSEUM demonstrates robust staff policies including employer/employee
responsibilities, workplace health and safety policies, code of conduct, human resources policies and job
descriptions exist for each position. This review has not explored THEMUSEUM’s approach to performance
evaluations.
The table below compares staffing levels and compensation of comparator organizations relative to revenues.
Data is from CRA Charities listing returns 2018.
10
Full Time (FT) and Part Time (PT) staff relative to revenues, 2018
Cultural Human Resources Council of Canada (CHRC)
11
The review also draws on the 2017 CHRC report on compensation published on May 2, 2018. It surveyed
over 400 cultural non-profit organizations across Canada on compensation, benefits, staffing contingents and
other workforce trends. Results are grouped into five categories of organization by annual revenues from less
than $100,000 to over $5,000,000.
Ninety-nine (99) organizations reported in the $1 m - $5 m annual revenues category. The average number of
Full Time staff in this reporting category is 10.
10
While Ottawa Art Gallery, a municipal gallery, has a relatively large F/T staff contingent, its staffing costs are 32% of
revenues.
11
The Full CHRC Report can be found here:https://www.culturalhrc.ca/research/cross-sectoral
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Cultural Human Resources Council of Canada (CHRC). 2017 workforce data, p 9.
12
Percentage of Full Time and Part Time staff
Most cultural organizations opt for a smaller core full-time staff supplemented by a larger number of part time
staff. Part time and casual labour provides flexibility to be responsive to programming ebbs and flows typical of
programming by small-to mid-sized not-for-profit cultural organizations.
12
While Ottawa Art Gallery has a similar proportion of F/T staff, total staffing costs relative to revenues of OAG (32%) are significantly
lower than THEMUSEUM (57%).
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Finally, compensation as a percentage of revenues for the comparator organizations is provided below.
Expansion Plans
Rationale
THEMUSEUM has stated that its future viability is pinned to expansion, in order to mitigate current space
limitations, accommodate expanded programming aspirations, and ensure financial sustainability.
THEMUSEUM’s expanded programming over the past 9 years reflects its move away from being solely a
Children’s Museum. However, for expanded programming, THEMUSEUM has determined that the current
space configuration is problematic. Some key challenges include:
Children’s activities are front and centre on entry
Upper level galleries are not suitable for large groups of children
Noise presents a barrier to differentiated activity
Open space hinders bumping in exhibitions and concurrent rental activity
There is a lack of contiguous space for large exhibitions
With the assistance of a consultant (approximately 10 years ago) THEMUSEUM articulated a need for:
Theatre Space
Swing Space
Loading Dock
14,000 square feet of Contiguous Exhibition Space
Permanent Family Experience
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Café /hospitality
13
Café space has been achieved at street level.
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Expansion Campaign Study – Ketchum Canada Inc. (KCI) 2018
In October 2018 THEMUSEUM secured KCI, a reputable campaign feasibility research firm, to explore the
feasibility of a capital campaign. The study found that:
There is strong support for cultural block in downtown Kitchener
THEMUSEUM has done groundwork to begin socializing the concept
Fundraising capacity was validated $10 million in potential funds, not the original target of $25 million
Few donors self-identified as transformative level donors
Major gift capacity is not evidenced
The organization lacks an established, ongoing donor base to draw on for a campaign
Strategic considerations were identified by the Ketchum study. These included:
THEMUSEUM’s case needs to be more fully developed including well-constructed business and
operational plans
THEMUSEUM must build trust and relationships with other organizations.
Major gift relationships need time to build (up to 5 years from initial engagement)
THEMUSEUM has a fledgling donor base, and must develop long-term ongoing supporters
THEMUSEUM will need fully developed business and operating plans before approaching prospective
donors
THEMUSEUM must address the operating deficit, as qualified donors will see this as a concern.
Expansion Planning
As part of this review, THEMUSEUM shared drawings of the potential expansion. Drawings of the Queen &
King Street proposal include a number of exterior renderings such as the sample below.
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Exterior renderings lack the specificity that investors are likely to expect, including and especially government
funders. A full feasibility study would include, but not be limited to:
business analysis that demonstrates the impact of current space deficiencies on operating revenue and
an outline of increased revenue potential against operating costs in an expansion
business analysis outlining the impact expanded space or phased in added components (loading dock,
theatre) would have on programs, operations and services to the community;
cost-benefit analysis of the expansion
a comprehensive plan, description and rendering of planned interior programming areas, service areas,
back of house, public spaces, retail and hospitality, and allocation of community-based spaces
detailed operating costs during and following on the expansion
detailed programming types and offerings in an expanded facility and expected audiences
expansion budget: expected revenues and development expense, including a cash flow analysis over
the life of a project that is green-lighted
timeline for the expansion and a focused strategic plan with specific goals, objectives and key
performance indicators
THEMUSEUM has a number of challenges to address prior to embarking on an expansion. These include
THEMUSEUM’s chronic operating deficit; the lack of a clear, the lack of the detailed expansion plan; and an
underdeveloped donor base, including both high net worth individuals and especially broad-based and regular
individual donors, the latter of whom will be critical for THEMUSEUM to develop prior to embarking on a
campaign.
The impact of expansion on operations would need to a key part of the planning process, including
alignment with re-building of reserves
ring-fencing campaign revenues and expenses from operations
ensuring transparency and CRA compliance with all campaign revenues
Conclusions - Expansion
Following its consistent operating deficits, THEMUSEUM has expended its reserves and has made an appeal
to funders for an operating increase. Capital expansion is not currently advisable, nor likely to be successful
when an organization’s financial position is under this level of duress.
The operating deficit must be addressed by THEMUSEUM prior to embarking on a capital project.
THEMUSEUM likely will need to make strategic decisions on programming and operations to function
within its current revenues.
Large scale programming projects (e.g. major exhibitions) should not be committed going forward
without confirmed sponsorship and realistic revenue projections. This will enhance the liability risk for
THEMUSEUM.
Comprehensive work developing expansion plans including programming remains to be done.
THEMUSEUM will need to be clear and specific on what an expansion will achieve in programming and
results. This will be critical to demonstrate the potential for success to donors and governments.
THEMUSEUM still needs to develop and steward a consistent donor base that both pre-dates and
would extend beyond the campaign. This will be critical for the success of any capital campaign going
forward.
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If developed, an expansion plan should be based on a $10 m goal at this time, potentially with phased-
14
in developments (such as a loading dock)
.
A high degree of rigour must be applied to all levels of planning & operations.
o Trillium Foundation and Canadian Cultural Spaces offer feasibility study support (matching
$75k) to successful applicants, which could be donor-matched.
Once an organization is campaign-ready, generally upfront investment is required, given that
organizations must budget and pay for campaign and project expenses for up to 10 years as a
campaign and construction project unfold.
A campaign is highly visible: Stakeholders are vigilant on key milestones, the delivery on campaign
promises
Conclusions and Recommendations
THEMUSEUM has a compelling Vision, Mission, and Mandate and a number of factors working in its favour
such as:
Visibility
Established programming
Member support
Programming space in a building provided by City of Kitchener
Reliable municipal and Regional government funding, and project-based federal and provincial funding
Private foundation support
No debt (until early 2020 if status quo is maintained)
A committed Board
THEMUSEUM has consistently incurred large operating deficits since 2009. Despite financial control
mechanisms, the Board has approved expenditures of unrestricted reserves in the absence of plan to address
ongoing sustainability.
15
Under the status quo THEMUSEUM’s unrestricted reserves will be depleted as of 31 December 2019, and
THEMUSEUM will likely have a $300,000 line of credit liability as of June 2020.
THEMUSEUM’s staffing in numbers and cost is close to double that of most comparative organizations.
Immediate action to address costs may enable THEMUSEUM to break even at Y/E 2020 and enable it to begin
to stabilize over three years.
THEMUSEUM’s contention that it is underfunded is not supported by research of comparative organizations.
Options for THEMUSEUM
Like all organizations, THEMUSEUM can only act on areas within its control, such as:
Realistic budgeting
Expenditure management to balance the operating budget
Financial stewardship
14
THEMUSEUM could triage and prioritize identified needs. For example, what might options for a loading dock be on the existing
premises and how would it benefit / hinder programs and services? All modeling should include a detailed cost-benefit analysis.
15
Based on data available in August 2019.
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Strategic program decisions which are focussed, affordable, and efficiently delivered
Programming business cases that include staff resourcing implications.
Areas not within THEMUSEUM’s control can be anticipated and strategically mitigated.
Unforeseen circumstances impacting costs
Public funding outcomes
THEMUSEUM has a number of options to consider
Option 1: Maintain the status quo and pursue expansion
The case for this is not strong. As of Jan 2020 THEMUSEUM will begin to incur liability. Campaign donors
may view their potential contributions as at risk of plugging operational deficits representing a major liability for
a capital campaign. Failure to address operating deficits may put public funding at risk.
Option 2: Wind down operations
THEMUSEUM has good support in the community, including consistent municipal and Regional support, is
provided a building in which to operate by the City of Kitchener, and most importantly, currently has no debt.
The public supports its programs, and THEMUSEUM has had significant levels of government and
philanthropic investment since 2007.
Re-starting an organization in the space currently occupied by THEMUSEUM would require re-building
relationships and trust in the community, and starting at ground zero with government funders.
THEMUSEUM has stated that it may have no option but to close if municipal and regional funders do not
increase funding support. This review has sought to demonstrate that THEMUSEUM is under no obligation
to shut down operations. Rather, through any number of financial, operational or programming mitigation
strategies, it may continue to operate, arguably without sizable loss of programming service. It is the opinion of
this review that THEMUSEUM’s contention that it cannot address its deficit in order to continue operations is
rather, indicative of its lack of willingness to do so.
Option 3: Transition to a balanced and sustainable operating model
3.1) Address Expenses
16
THEMUSEUM has five (5) monthsto reduce expenses to achieve a more favourable
December 31, 2019 result.
THEMUSEUM could consider capturing self-generated streams in a format that would enable it
to analyze revenues by program area.
17
THEMUSEUM should undertake cost-benefit analysis of revenues and expenditures. This
should include an analysis of revenue streams and return on investment in full-time staffing and
an analysis of self-generated revenues by program area to assist it with strategic decisions to
balance its budget.
THEMUSEUM should carefully consider any major financial commitments until business cases
are fully developed and sponsorships are secured.
Any decision that risks the need to incur debt should be carefully considered.
Establish an independent finance committee of THEMUSEUM Board, which could draw on
external expertise, to help with:
16
As at Aug 2019, time of the agreed review parameters.
17
It could be an interesting exercise for THEMUSEUM to examine Phi program outcomes as privately supported
organization.
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o Realistic budget planning, cash flow planning, analytical review to identify revenue and
expense trends.
o Monitoring against budget for all funders and monthly monitoring and mitigation
strategies.
o Ensuring financial targets remain on track.
o Board evaluation and senior leadership performance evaluation should include
performance against financial objectives.
3.2) Develop operational (annual) fundraising capacity.
This will help set the stage for a capital campaign.
3.3) Undertake feasibility research and, pending outcomes, lay out a detailed business case for
a phased expansion plan.
Detailed planning should include:
o Detailed program, including focus and markets
o Prioritized list of requirements
o Timeline
o Operational Implications
o Operating Program costs
o Revenue Streams
Options for Funders
In cases where an organization has put itself at financial risk, it is common for funders to implement a
conditional funding agreement at current funding levels. This normally includes periodic funding disbursements
conditional on regular reporting requirements that may include financial targets, and the provision to withhold
disbursements if agreements are not met. In the majority of cases this is an effective tool in assisting a
company to re-organize, stabilize and transition over a period of time.
To protect public investment, to ensure public transparency of funding and to mitigate negative precedent-
setting in the wider community through funding decisions, government funders do not generally reward
organizations which chronically spend more than they bring in.
The conclusion of this review is for the cities and the Region. In the experience of this reviewer, increasing
support to an organization that does not undertake the difficult work of focussing on its own mitigation
strategies, rarely provides the desired results of organizational health and sustainability. Municipal and
Regional funders may wish to require that all Board members sign the approved budget submission of
THEMUSEUM as a condition of funding as well as quarterly projections and actuals.
Option 1: Status Quo (Not recommended)
There is potential for THEMUSEUM to incur liability by mid-2020 in the event that it is not compelled to mitigate
operating costs. It is problematic to continue to provide support to an organization which is not stewarding
public funding responsibly, while this remains a requirement of other KCIs.
Option 2: Increase Support to THEMUSEUM (Not recommended)
While this may alleviate in THEMUSEUM’s revenue gap in the short term, the lack of an operational plan does
not provide confidence that additional support will address THEMUSEUM’s issues.
It is the opinion of this review that THEMUSEUM’s cost structure should be addressed by THEMUSEUM.
Increasing support could result in negative fallout within the broader arts community;
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given the expressed funding needs of KCIs and other arts organizations;
rewarding deficit operations may set a concerning precedent;
THEMUSEUM has a record of deficit spending that increased in tandem with regional funding
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increases.
Option 3: Find alternative use for THEMUSEUM venue (Modelling has not been undertaken)
Option 4: A Conditional 3-year Funding Agreement (Recommended)
This would be predicated on achievement of operational surpluses by THEMUSEUM within the current funding
envelope. This approach:
prompts THEMUSEUM to continue to operate and achieve sustainability;
ensures responsible stewardship of public funds;
mirrors funding best practice in developed arts funding jurisdictions, especially at federal and provincial
levels, and also in many municipalities;
includes potential funding reductions if funding conditions are not met.
Municipal and Regional Funders may also consider appointing a staff controller or controllers to sit on
THEMUSEUM Finance committee.
Option 5: Decrease or suspend funding to THEMUSEUM
Should THEMUSEUM fail to address the operating deficit through a conditional program of support, or
should it suspend, or largely scale back operations, funders may wish to consider immediate or phased
withdrawal of support.
18
In 2010 THEMUSEUM received an increase in support from The Region to $300,000 from $75,000. In 2011, the first full year of
reporting the $300,000, THEMUSEUM incurred a deficit of $274,000.
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REPORT TO: Finance & Corporate Services Committee
DATE OF MEETING: March 9, 2020
SUBMITTED BY: Jonathan Lautenbach, Chief Financial Officer, 519-741-2200 x 7334
PREPARED BY: Jonathan Lautenbach, Chief Financial Officer, 519-741-2200 x 7334
WARD (S) INVOLVED: All
DATE OF REPORT:February 15, 2020
REPORT NO.: FIN-20-016
SUBJECT: Implementation of LTFP Recommended Actions – Financial Policies
_________________________________________________________________________________________
RECOMMENDATION:
That financial policyFIN-PLA-2021 “Budget ControlPolicy” be approved.
BACKGROUND:
In September Council endorsed the 2020-2029 Long-Term Financial Plan(LTFP). The plan
included 22 recommended actionsthat are intended to be implemented / investigated further
over thecurrentterm of Council. Fourof the22 recommended actionsincluded in the LTFP
focused on the development of new financial policiesfor City including:
Recommended Action
1.2Adopt aBudget Control Policy, identifying key financial accountabilities for General
Managers, Directors, Managers, and Project Managers
4.1Adopt a Capital Financing and Debt Policy to clarify when debt, short-term financing, and
internal borrowing should be consideredto finance capital works
5.1Adopt a User Fee and Revenue Diversification Policy to document the City’s philosophy
related to user fees, grants, sponsorships, and alternative revenue
5.2Develop a Dividend Policy for the Gas Utility, Golf, and Parking Enterprise
Recommended Action 1.2 is being brought forward at this time for Council’sconsideration.
The City has always had strong controls in place related to the reporting ofvariances and
overall budget control. As part of the development of the LTFP, staff had undertaken initial
work to develop aBudget Control Policyintended toformalize the City’s current process while
suggestingimprovements based on a review of municipal comparatorsand industry best
practices. Thisdraftpolicy waspresented to Council at the August 27, 2019Strategic Session.
Staff have made someminormodifications to the proposed policy based on feedback provided
at that sessionand are now seeking Council approval.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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REPORT:
At the August 27, 2019Council Strategic Sessionrelated to LTFP, Council was provided with a
summary of a draft Budget Control Policy.The policy documentscurrent practices related to
operating budget controlsandalso proposesa new process related to the reporting for capital
projects. A summary of the maincomponents included in the policy are highlighted below:
FIN-PLA-2021–Budget Control Policy (New)
PurposeSummary of Key Considerations, Additions, Changes
The purpose of this policy is to
Responsibilities and key accountabilities related to
budgeting have been outlined in this policy
establish guidelines and provide
clarity regarding roles,
Approval authority limits for Directors, GMs, andCFO are
responsibilities, and key
outlined in policy for both Operating and Capital accounts
accountabilities, related to the
financial management and
Reportable operating account variances that require an
budget control for operating and
explanation increased from $50kto $100k
capital accounts. This policy
documents the process for the
Operating Budget Variances to be reported based on
June, September, and December results
reporting of financial performance
and results, including the
New “Capital Status Report” will provide for regular
variance reporting process for the
reporting related to open capital projectsbased on June
annual operating budget, and the
and December results
reporting of the status of capital
projects.
Many of the elements included in the policy reflect the City’s current practices related to budget
control. Authority limitshave always existed internally related to approval of budgetary items
and responsibilities/accountabilities reflect current expectations. Variance reporting for
operating accounts are alreadyreported to Council three times a year and the proposed policy
suggests a minor change in the overall timing toalign betterwith the City’s budgeting process.
The new capital reporting process will provide additional transparency related to approved
capital projects, supporting good project management and building on the City’s strong track
record of delivering projects for the community.
One change made to the originaldraft policyis revisedauthority limit related to potential
project over-expenditures. Based on feedback received during the August Strategic Session,
this has been revised in the policy to include a percentage related to the original project
budget. The policy would provide authority for staff to approve over-expenditures provided that
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they do not exceed 10% of the original project budget or $250,000. This threshold is consistent
withauthority provided in other municipalities.
The Budget Control policy is attached to this report (FIN-PLA-2021) and a summary of
approval authority has been provided asappendix A.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city's strategic vision
through the delivery of core service.
FINANCIAL IMPLICATIONS:
The LTFP included anumber of financial strategies aimed at strengthening the City’s overall
financial position, ensuringthat the City can continue to deliver expected programsand
services for the communityboth now and in the future.The recommended financial policy
supportsgood financial governance.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
ACKNOWLEDGED BY: Dan Chapman, Chief Administrative Officer, Office of the CAO
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POLICY Policy No: FIN-PLA-2021
Approval Date: Click here to enter a
Policy Title: BUDGET CONTROL POLICY
date.
Policy Type: COUNCIL
Reviewed Date: Click here to enter text.
Category: Finance
Next Review Date: Click here to enter
text.
Sub-Category:Financial Planning
Reviewed Date: Click here to enter text.
Author: Chief Financial Officer
Last Amended: Click here to enter a
Dept/Div:Financial Services/Financial
date.
Planning
Replaces:Click here to enter text.
Repealed: Click here to enter a date.
Replacedby: Click here to enter text.
Related Policies, Procedures and/or Guidelines:
N/A
1.POLICY PURPOSE:
The City of Kitchener recognizes the importance of having proper budget controls in
place to support accountability and transparency, and to assure the public that the
financial affairs of the municipality are being managed diligently. Effective budget control
of operating and capital accounts promotes fiscal responsibility and is an essential
aspect of the delivery of programs, services, and projects for the community.
The purpose of this policy is to establish guidelines and provide clarity regarding roles,
responsibilities, and key accountabilities, related to the financial management and
budget control for operating and capital accounts. This policy documents the process for
the reporting of financial performance and results including the variance reporting
process for the annual operating budget and the reporting of the status of capital
projects.
2.DEFINITIONS:
Account – an individual line item that has been provided with a budget allocation
Capital Budget – means the annual Council approved plan for expenditures and
financing sources to complete Capital Projects or one-time expenditures
Capital Budget Transfer – means the transfer of an unexpended budget amount from
one Capital Project to another
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
Capital Project – means an undertaking for which expenditures are incurred to acquire,
improve, demolish or maintain land, buildings, structures, infrastructure, machinery and
equipment, including installation of computer software, and any other project as defined
from time to time to be capital and is the level at which Council approves funding in the
capital budget
Department – Means any department of the City as reflected in the current
organizational structure
Operating Budget – means the annual Council approved plan for expenditures,
revenues, staffing levels and service levels for operations of the City taking place from
stst
January 1to December 31in a given year
Operating Budget Transfer – means the transfer of an unexpended budget amount
from one current budget program to another
Program – means an organizational unit as defined in the Operating Budget that may
encompass one or more related municipal services, usually a division of a department
that is mandate driven and is the level at which Council approves funding in the
operating budget
3.SCOPE:
POLICY APPLIES TO THE FOLLOWING:
All Employees
All Full-Time EmployeesAllUnion
ManagementC.U.P.E. 68 Civic
Non UnionC.U.P.E. 68 Mechanics
TemporaryC.U.P.E. 791
StudentI.B.E.W. 636
Part-Time EmployeesK.P.F.F.A.
Specified Positions only: Other:
CouncilLocal Boards & Advisory Committees
Responsibilities
Council
Under section 224(d) and (d.1)of the Municipal Act 2001, Council is responsible for
“ensuring that controllership policies, practices and procedures are in place to implement
the decisions of Council” and “to ensure the accountability and transparency of the
operations of the municipality, including the activities of the senior management of the
municipality.” Council approves the spending plans as outlined in annual operating and
capital budgets and is responsible for monitoring the performance against those plans
throughout the year.
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
Chief Administrative Officer
Under section 229(a) of the Municipal Act 2001, the Chief Administrative Officer is
responsiblefor “exercising general control and management of the affairs of the
municipality for the purpose of ensuring the efficient and effective operation of the
municipality.” This includes monitoring financial performance of the organization
throughout the year, holding those that have been delegated financial responsibility
accountable for the development, monitoring, and management of their budgets, and
advising Council at the appropriate time of any significant financial matters arising.
Chief Financial Officer(Treasurer)
Under section 286(1) of the Municipal Act 2001, the treasurer is responsible for
“handling all of the financial affairs of the municipality on behalf of and in the manner
directed by the council.” For the purpose of this policy this includes:
Directing the development, maintenance and communication of all financial
policies, procedures, or practices to support fiscal responsibility
Ensuring departments have access to timely financial information to enable
responsible decision making for the effective and efficient delivery of programs,
services, and implementation of projects or initiatives
Monitoring financial performance of the organization throughout the year,
ensuring compliance with the reporting requirements as outlined in this policy
Advising the CAO and Council in a timely manner of any significant financial
matters arising.
General Managers
General Managers (department heads) are responsible for the efficient and effective
delivery of programs, services, projects, and initiatives within their respective portfolios
and operational areas of responsibility. For the purpose of this policy they are
responsible to:
Develop an annual operating andcapital budget for their area of responsibility in
accordance with budget guidelines
Ensure budgets established related to the delivery of service are accurate,
realistic to be able to meet service levels identified to Council
Make decisions regarding howservices are delivered within the limits of Council
approved service levels and approved budgets
Where appropriate, delegate responsibility for the departmental budgets (e.g.
Directors, Managers, Supervisors)
Hold those who have been delegated financial responsibility accountable for the
development, monitoring and management of their budgets
Monitor financial performance of department throughout the year and take
appropriate corrective action to ensure the department remains in a balanced
budget position
Advise the CFO of any significant financial matters arising that may impact their
ability to remain in a balanced budget position by fiscal year end
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
Directors
Management staff within departments are responsible for the efficient and effective
delivery of programs, services, projects, and initiatives within their respective portfolios
and operational areas of responsibility. General Managers are ultimately responsible for
the overall financial performance of their department, but Directors are responsible for
the financial performance for their respective divisions and projects under their portfolio.
Responsibilities related to this particular policy include:
Developing an annual operating or capital budget for their respective area of
responsibility
Monitoring financial performance throughout the year
Advising the Department Head in a timely manner of any significant financial
matters that will impact their ability to deliver an expected program, service,
project, or initiative
Carry out all transactions in accordance with municipal policies and procedures
(e.g. hiring, purchasing, contracts)
Managers and Project Managers
Management staff within departments are responsible for the efficient and effective
delivery of programs, services, projects, and initiatives within their respective portfolios
and operational areas of responsibility. Managers are responsible for the financial
performance for their respective sections. This is also applicable to those staff that have
been assigned, or as part of their role, or have responsibility for managing capital
projects or initiatives. Responsibilities related to this particular policy include:
Developing an annual operating or capital budget for their respective area of
responsibility
Monitoring financial performance throughout the year
Advising the Director in a timely manner of any significant financial matters that
will impact their ability to deliver an expected program, service, project, or
initiative
Carry out all transactions in accordance with municipal policiesand procedures
(e.g. hiring, purchasing, contracts)
4.POLICY CONTENT:
The controls outlined in this policy apply only to budgeted operating and capital accounts
where over-expenditures may occur from time to time. Unbudgeted items related to new
projects or initiatives require CouncilorCAO approval, based on the authorityprovided
undermunicipal code 115.5.4 related to unbudgeted expenditures.
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
Operating Budget Financial Controls
The approved budget represents the approved spending authorityfor a particular
program or service and overall for the department.The following guidelines are intended
to provide departments with some flexibility to ensure the efficient and effective delivery
of services while providing proper level financial control and oversight related to the
operating budget accounts:
1.A General Manager, together with their staff, has the responsibility to deliver
programs or services based on the budgeted level of service approved by
Council as part of the annual budget process. This includes working within the
net total budget allocation that has been provided for their respective
departments.
2.A Director may approve overspending of any particular account or budget line by
making the necessary balancing decisionswithin a program or between
programs within their portfolio/or area of responsibility, provided that:
a.Total expenditures for the department do not exceed the net operating
budget approved by Council
b.Over-expenditures for a particular program do not exceed $100,000
c. Any transfers that are done to remain in a balanced budget position are
not between tax supported, enterprise, or utility programs
3.A General Manager may approve overspending of any particular account or
budget line by making the necessary balancing decisions between programs
within their department, provided that:
a.Total expenditures for the department do not exceed the net operating
budget approved by Council
b.Over-expenditures for a particular program do not exceed $100,000
c. Any transfers that are done to remain in a balanced budget position are
not between tax supported, enterprise, or utility programs
4.A General Manager shall report to the CFO any anticipated over-expenditure in a
Program that will result in them exceeding their net total budget for their
department as soon as such over-expenditure is reasonably known. The CFO is
authorized to approve in-year department budget adjustments provided that:
a.The amount of over-expenditure is less than $100,000
b.It’s been determined that funding fromother programs are not available to
offset the over-expenditure
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
c. The over-expenditure is reported to Council as part of the next operating
budget variance report
5.Any expenditures that would result in total expenditures exceeding the funding
available in aProgram by an amount greater than $100,000 requires Council
approval. Council approval is deemed to have been provided for:
a.Purchases that are made in accordance with the emergency provisions of
the Purchasing By-law
b.Costs to be incurred that in the opinion of the General Manager and CFO
are unavoidable and required in order to ensure approved service levels
are met (e.g. winter maintenance)
Any costs incurred under the above provisions will be reported to Council as part
of the next operating budget variance report. A separate report to Council is
required for any other over-expenditures that fall outside of this process.
6.Operating Budget variances will be identified and reported to Council three times
a year based on June, September, and December financial results. An
explanation will be provided for variances of $100,000 or greater.
Capital Budget Financial Controls
The approved capital budget represents the approved spending authorityfor a particular
capital project or initiative. The following guidelines are intended to provide some
flexibility for the execution of projects while at the same time establish an appropriate
level of financial controls for capital budget accounts:
1.A General Manager, together with their staff, has the responsibility to effectively
implement and manage projects based on the approved scope, timeline, and
budget as approved by Council as part of the annual budget process.
2.General Managersmay approve additional over-expenditures in a Capital Project
that exceed the original project budgetwhere:
a.The original scope of the project has not changed
b.The amount of the over-expenditure does not exceed 10% of the original
budget or $250,000
c.Funding is available to fund the over-expenditure through the reallocation
of funding from other project(s) within the same program area
d.The over-expenditure is reported to Council as part of the next Capital
Status Report
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
3.A General Manager shall notify the CFO of any anticipated over-expenditure in a
Capital Project where it is determined that funding is not available through the
reallocation from other projects(s) within the same program area. The CFO will
work with the General Manager to determine other potential sources of funding.
The CFO is authorized to approve additional funding for a Capital Project where:
a.The original scope of the project has not changed
b.The amount of the over-expenditure does not exceed 10% of the original
budget or $250,000
c.Funding is available to be transferred from other department projects or
there is sufficient funding available in anappropriate Capital Reserve
Fund to fund the over-expenditure
d.The over-expenditure is reported to Council as part of the next Capital
Status Report
4.Any Capital Project for which anticipated expenditures will exceed the funding
available by an amount greater than 10% of the original budget or $250,000
requires Council approval. Council approval will be requested through:
a.A separate report to Council outlining the amount and reason for the
anticipated over-expenditure or;
b.A tender report that identifies the over-expenditure, justification for
proceeding with the award, and identifies an appropriate source of
funding to cover the anticipated budget shortfall or;
c.The next regular Capital Status Report
An exception to the above provisions is any purchase that is made in accordance
with the emergency provisions of the purchasing by-law.
5.Project Closures
a.A project is to be closed and any surplus funds returned to the original
source of funding if any of the following criteria are met:
Project completed at or under budget as determined by the
General Manager
Project completed over budget and recommended funding source
for over-expenditure has been identified
Project deleted or deferred in order to finance new project or to
fund over expenditures in other projectsand reported to Council
The project has not commenced within two years after budget
approval and cannot be completed within a three year timeframe
after commencement (no signed contractual agreement or POs
issued)
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
There has been no account activity on the project for the last 18
months
b.Exceptions to the above conditions:
There is a need for funding to be rolled to future years, to be
utilized in projects that have a similar scope and require additional
funding (e.g. phase 1, phase 2)
Project has not commenced within two years but an extension has
been requested by the General Manager and approved by the
CFO or their designate
6.Capital Status Updates to Council
To accurately administer and report on the capital budget, Departments will be
required to forward to Financial Planning, twice a year, an accurate status of
each project owned or managed by their department. The status must include a
description of the work in progress, the percentage of work complete, and a
projected forecast for completion. A semi-annual Capital Status Report (based
on June and December), will be prepared in each year to provide Council with an
update on the status of Capital Projects. This report would:
a.Provide the statusof each Capital Project
b.Report any anticipated over expenditures in accordance with the
provisions of this policy and related financing adjustment
recommendations
c.Report any anticipated over expenditures for which there is insufficient
funding in the appropriate project and related financing adjustment
recommendations
d.Report any additional expenditures incurred after the project has been
closed and related financing recommendations
e.Report any proposed deletion or deferral of projects to either finance new
projects or to fund over-expenditures in other projects
f.Address material changes in scope or nature of capital projects, material
changes in timing with related financing adjustment recommendations
g.Report on any closures of capital projects
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Policy No: FIN-PLA-2021
Policy Title: BUDGET CONTROL POLICY
5. HISTORY OF POLICY CHANGES
Administrative Updates
Formal Amendments
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