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DSD-2025-082 - THEMUSEUM Models for Consideration
Staff Report J IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: April 7, 2025 SUBMITTED BY: Cory Bluhm, Executive Director, Economic Development, 519-783- 8262 PREPARED BY: Andrea Hallam, Manager, Arts & Creative Industries, 519-783-8269 WARD(S) INVOLVED: Ward 10 DATE OF REPORT: April 2, 2025 REPORT NO.: DSD -2025-082 SUBJECT: THEMUSEUM Models for Consideration RECOMMENDATION: That the Chief Administrative Officer be authorized to execute a conditional 3 -year funding agreement to provide up to $300,000 of additional annual funding to THEMUSEUM, to align with THEMUSEUM's next three fiscal years commencing July 1, 2025 and ending June 30, 2028, including financial and operational expectations in accordance with report DSD -2025-082, to the satisfaction of the City Solicitor; and, That, subject to THEMUSEUM Board and the City executing a 3 -year funding agreement, that be appointed to THEMUSEUM board, and that a member of the City's Economic Development Division be appointed as a non-voting member of THEMUSEUM board with said appointment determined by the City's Executive Director of Economic Development, effective on the date of the signing of the 3 -year funding agreement, as outlined in report DSD -2025-082; and, That the City extends the timeframe within which THEMUSEUM could renovate and expand into 2 King Street West by one year to December 31, 2031; and further, That the City's Chief Administrative Officer be authorized to permit future extensions to the timeframe for 2 King Street West, in accordance with report DSD -2025-082. REPORT HIGHLIGHTS: • The purpose of this report is to provide conditional funding support for THEMUSEUM, a Key Cultural Institution within the City of Kitchener, following the review of their organizational model. • The keyfinding of this report is thatTHEMUSEUM is continuing to experience significant financial challenges, which requires an increase in financial support. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 20 of 88 • The financial implications are that THEMUSEUM is requesting that the City would enter into a conditional funding agreement to provide up to an additional $300,000 in funding annually for 3 years. A portion of this commitment would be funded through unallocated budget within Economic Development Grants, with any balance of funding representing a budget over -expenditure which will form part of the City's overall year-end budget variance. • Community engagement included posting this report on the City's website. • This report supports Creating an Economically -Thriving City Together: Focuses on growing an agile, diverse local economy powered by talented entrepreneurs, workers & artists; creating opportunities for everyone and a resilient future that propels our city forward. BACKGROUND: THEMUSEUM was established in 2003 and offers innovative experiential exhibitions, partners with local school boards to offer educational visits for elementary students, hosts a wide range of events, provides summer camps to youth and operates a maker studio. THEMUSEUM attracts approximately 75,000 visits to Downtown Kitchener each year. Approximately one-third of visitors come from out of town, generating $2.2 million to $3.2 million in tourism -based economic impact. THEMUSEUM makes a significant cultural and economic contribution to the Kitchener community. In 2010, the City identified THEMUSEUM as one of three Key Cultural Institutions (KCIs) in Kitchener. Each KCI was provided with an annual operating grant. In 2023, THEMUSEUM received a total of $728,573 in combined funding (cash and in-kind) from the City of Kitchener, the City of Waterloo, and the Region of Waterloo. THEMUSEUM currently operates out of the City -owned facility at 10 King Street West. In 2024, THEMUSEUM received $306,240 from the City of Kitchener ($166,156 in cash, $109,857 budgeted for facility repairs, and $30,777 for parking). In 2019, THEMUSEUM indicated that it was experiencing financial challenges. The City of Kitchener supported an organizational review, which provided a series of recommendations for THEMUSEUM to improve their financial position. In the early years of the pandemic, THEMUSEUM was able to improve its financial position through government assistance tied to the pandemic. However, post -pandemic, THEMUSEUM is again experiencing financial strain. In May 2024, THEMUSEUM presented to Council on the financial challenges they are facing and requested emergency funding. As a condition of the provision of funding, Council directed staff to work with THEMUSEUM to develop business model options, with the goal of achieving sustainability. REPORT: Since May 27, 2024, staff have been meeting biweekly with THEMUSEUM working group to discuss and evaluate potential models for achieving sustainability. These discussions were complemented by monthly check -ins involving both the Mayor and the Chief Page 21 of 88 Administrative Officer. During these meetings, staff consistently guided THEMUSEUM working group to explore as many avenues for sustainability as possible. Through this process, 5 preliminary models were identified. 3 of these models were short- listed for a more comprehensive evaluation. 1 model was selected for a more detailed financial analysis. STAGE 1 - Preliminary Models Based on key themes communicated during initial meetings, City staff and THEMUSEUM working group collaboratively identified five models to consider: 1. Sustainable Funding by Municipalities 2. Expansion into 2 King West 3. Change Programming / Different Use of Space 4. Reducing Costs to the Greatest Extent Possible 5. Closure Model #1 — Sustainable funding from municipalities and the Region Under this model, THEMUSEUM would leverage additional municipal funding to increase revenue in the following ways: a) additional staff resources to secure corporate sponsorship, philanthropy and non-governmental revenues; and b) increased marketing to improve gate revenues. Based on financials provided by THEMUSEUM, an investment of $300,000 per year could enable an increase in non-governmental funding of $500,000 over 3 years and increased gate revenue of $250,000+ over 3 years as well. While THEMUSEUM may prefer increased funding in perpetuity, staff recommend an investment approach. Historically, THEMUSEUM's average annual deficit is approximately $300,000. Under this model, staff would recommend directing THEMUSEUM Board to focus on utilizing medium-term funding (3 years) to grow sustained revenues by $600,000. In concept, once this level is achieved, THEMUSEUM would have sufficient funding to cover the additional staffing and marketing costs — as supported by the medium-term funding — plus funding to cover their annual deficit. This financial model would allow the organization to maintain a positive social and economic impact, make optimal use of its assets, and increase public hours, resulting in more people downtown. It ensures continued high-quality exhibitions and events, while also providing access for low-income guests and schools. Key Finding: This model would create the most stability for the organization. It allows forward planning and the ability to fully execute the mission and work towards the vision, while continuing to deliver programs and services to the community. If treated as a medium-term investment, it would limit the municipal contribution to a 3 -year period. Model #2 — Expansion into 2 King West Currently, when THEMUSEUM transitions between exhibitions, they often need to close the entire facility to facilitate the transition. This results in a loss of gate revenue and an inability to provide their members with continuous access to their services. Additional floor space Page 22 of 88 would allow THEMUSEUM to maintain a continuity of programming by utilizing the additional space to support their static exhibits. The expansion could also allow for multiple revenue - generating events to take place simultaneously and increase partnerships. This growth creates opportunities for a broader range of industry partners and donors, as well as expanded opportunities for digital content creators. The project could add animation and new visual interest to a key downtown intersection, providing students with both familiar and new learning activities. Such an expansion would require significant capital investment, necessitating the need for a capital fundraising campaign and/or securing Provincial or Federal funding. A comprehensive business case would need to be completed to Council's satisfaction. Key Finding: Given the capital investment required and THEMUSEUM's current financial situation, it would not be financially prudent to explore this option as an immediate solution at this time. Model #3 — Changing the Program/Rental or Lease of 4th Floor This model would involve eliminating the 4th floor from THEMUSEUM's operation, with said space to be leased to a third -party organization. THEMUSEUM would experience a reduction in operating costs and the potential for the City or THEMUSEUM to increase revenues through a new lease. THEMUSEUM would shift solely to family-oriented experiences throughout the remainder of the facility and utilize the atrium primarily for event rentals. In reviewing the financial implications of this model, the following challenges were observed: • The operational savings would be incremental only and not substantially decrease overall costs; • The reduction in educational and artistic content would limit grant opportunities; • Support from individuals and foundations may decline due to the change in the organization's scope and mandate; and, • Eligibility for provincial tourism grants, such as OCAF and Celebrate Ontario, may be reduced. In addition, the remaining family -focused space will result in fewer evening events, and there would be logistical challenges with tenants related to insurance, security, and access. THEMUSEUM's focus would also shift toward outbound education for schools, rather than offering an exploration -based experience. Most notably, the reduction in offerings would likely lead to dramatically reduced memberships and gate revenue. Such a model would only prove beneficial if the user of the 4th floor also attracted an audience that aligned with the offerings of THEMUSEUM. Key Finding: The operational cost savings of this model would be outweighed by a potential significant loss in revenues across multiple sources. This model could be considered in the future if opportunity arises to co -locate an organization with a similar offering type. Model #4 — Reducing costs to the greatest extent possible Page 23 of 88 This model would involve a series of budget reductions to create as lean an operation as possible while making critical programming changes to reduce costs. For example, this could include extending the exhibitions on the 3rd and 4th levels for multiple years. Other cost cutting examples could include: • Eliminating non -revenue -generating activities, such as At First Light; • Eliminating the free accessibility pass program with KPL; • Reduced opening times; and, • Scale back on evening and weekday programming. THEMUSEUM noted that these changes would shift the organization's focus from a cultural destination to an attraction -based experience. Programming that results in a net overall financial loss would be reconsidered or eliminated. THEMUSEUM predicts these changes would result in a loss of revenue from gate fees, memberships, retail, and rentals because of static exhibitions and reduced hours. To eliminate the current average annual deficit of $300,000, THEMUSEUM would need to reduce expenses by $300,000 plus any forecasted revenue reductions. It is THEMUSEUM's position that this level of cost-cutting cannot be achieved. This model partially aligns with the strategy currently being deployed by THEMUSEUM for both the 2023/2024 and 2024/2025 budget years. Those budgets still result in a deficit position for the organization. Note: As part of the evaluation of this model, staff reviewed THEMUSEUM's budget and profit -and -loss statements. While staff have suggested areas of reductions, it is difficult for staff to properly assess cost savings without full understanding of the daily and annual operations of THEMUSEUM. As such, staff are relying on the recommendations of THEMUSEUM staff and board. Key Finding: It is THEMUSEUM's position that cost reductions will lead to a reduction in service offerings which will, in -turn, result in lost revenue. Additional municipal funding would still likely be required, yet the community would receive a reduced level of service. Model #5 — Closure This plan would involve THEMUSEUM winding down operations by June 30, 2025. This would include paying off any outstanding debts and providing severance for staff. Key Finding: This option was not fully explored. Staff would revisit the implications for the building should closure become an outcome. STAGE 2 - Short-listed Models Following initial evaluation, THEMUSEUM focused on the three most viable concepts: • Model #1 — Sustainable funding from municipalities and the Region • Model #3 — Changing programming or utilizing the space in different ways • Model #4 — Reducing costs to the greatest extent possible Page 24 of 88 Staff reviewed the details and financials for the three selected models and, in turn, sent a list of questions to THEMUSEUM regarding each model. To assist in the decision-making process, THEMUSEUM staff provided the City with a financial summary chart that layered the 2023 and 2024 income statements against the projected financials for the three models being considered. This process reflected the ongoing efforts to assess and ensure the long- term sustainability of the organization, with a focus on financial viability and strategic planning. Summary of Financial Models One factor to consider when analyzing the sustainable funding models is the timing of THEMUSEUM's fiscal budget cycle. Specifically, THEMUSEUM's fiscal budget year starts on July 1St and ends on June 30th of the following year. In terms of cash flow, payments from government grants typically occur at the start of the City or Region's fiscal cycle (e.g., January or February), whereby THEMUSEUM can start a fiscal period without any guarantee of receiving government grants. The risk of not knowing government grant funding at the start of a fiscal period is impactful due to budgetary planning and financial prudence. The following 1 -year overview chart below summarizes the difference between the three financial models in the 2025/2026 budget year. 1 -Year Overview (Models #1, #3, and #4)* 2025/2026 In Dollars $ Model #1 Munici al Funding Model #3 Vacate 4th Foor Model #4 Cost Reduction Revenues 3,373,668 2,366,842*** 2,078,824 Expenses 3,424,528 2,460,689 2,429,883 Estimated Surplus (Deficit)** (4,860) (93,847)*** (313,059) *Financial forecasts developed and provided by THEMUSEUM. **Accounts for investment income. ***Assumes $100,000 in revenue for rental of the 4r" floor Financial projections were developed by THEMUSEUM working group for the three models as contained in Appendix A. Given the forecasted deficit positions after year 1, it was decided to only explore Model #1 further. THEMUSEUM's board has also supported pursuing Model #1. STAGE 3 — Further Analysis of Model #1 As noted previously, the focus of this model is to utilize additional City funding to increase non-governmental funding and gate revenues, with the goal of reducing the overall annual deficit. The chart below illustrates a 5 -year financial forecast for Model #1 as provided by THEMUSEUM. It is important to note the shift in conditional funding from $200,000 to $300,000. The $200,000 in 2024/25 comes from the timing of payment of emergency funding granted by Council in May 2024. The $300,000 of conditional funding in 2025/26 represents the requested amount in the new sustainable funding model. KCI funding is Page 25 of 88 separate from conditional funding, and the assumption acted on by THEMUSEUM working group is that KCI funding would only be impacted by inflationary increases. On the revenue side, for example, THEMUSEUM'S forecast shows a revenue increase in non-government funding of $500,000 from 2023/24 to 2028/29. On the expense side, this forecast includes annual increases to overall expenses ranging from 2.9 to 6.8%. Based on these projections, THEMUSEUM would continue to experience a $300,000 annual deficit. Financial Forecast of Model #1 (July 1 to June 30) Revenues ($) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Earned 1,934,445 1,705,729 1,773,229 1,842,761 1,917,466 1,994,494 Non -Gov't 114,830 427,554 513,065 564,371 592,590 622,219 KCI (All) 659,709 603,133 607,481 611,917 616,441 621,055 Conditional 100,000* 200,000* 300,000** 300,000** 300,000** 0 Fed 150,414 86,084 86,084 86,084 86,084 86,084 Prov 44,411 93,809 93,809 93,809 93,809 93,809 Investment 75,312 60,000 46,000 33,000 20,000 20,000 Total 3,079,121 3,176,309 3,419,668 3,532,942 3,626,389 3,437,662 Expenses S 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 HR 1,811,111 1,982,818 2,027,544 2,073,452 2,120,580 2,168,968 Programmi n 204,821 266,019 279,320 293,286 307,950 323,348 Exhibitions 502,945 171,538 235,115 246,871 259,214 272,175 Marketing 149,782 272,950 357,590 372,402 387,955 404,285 General 362,888 512,767 524,960 546,510 559,391 572,631 Total 3,031,547 3,206,092 3,424,528 3,532,521 3,635,089 3,741,407 % Increase of 6.81% 3.15% 2.9% 2.92% Expenses Surplus(Defic 47,574 (29,784) (4,860) 421 (8,700) (303,745) it) Note: The above financial projections were developed and provided by THEMUSEUM. *As per DSD -2024-229, $200, 000 of the total $300, 000 in emergency funding was allocated to THEMUSEUM's 2024/2025 fiscal year. ($100,000 was applied to 2023/24 fiscal.) **New Conditional funding request of $300,000 per year. The chart below illustrates two alternate rates of increases to expenses. For each scenario, revenue growth remains consistent with the above chart. Expenses are shown using inflation rates of 2% and 3% applied to all expenses with the exception of Marketing, which would see a significant initial increase in 2025/26 with said increase retracting in 2028/29: Expenses ($) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 Page 26 of 88 Resultant 47,574 (29,784) (4,860) 421 (8,700) (303,745) Surplus/Deficit @ 2.9% to 6.8% Resultant Surplus/ 40,942 52,854 41,898 (126,349) Deficit 3% Resultant Surplus/ 70,273 116,559 141,679 0 Deficit 2% Based on the above, if THEMUSEUM could achieve the forecasted revenues while maintaining lower annual operating expenses, it is possible that a sustainable budget could be achieved. THEMUSEUM has provided the following comments: • THEMUSEUM'S board is committed to achieving a breakeven budget for fiscal 2028/29 and beyond (without the need for an additional $300,000 in 2028/29); • The Revenue amounts set out in Model #1 are conservative and THEMUSEUM believes that with the deployment of the additional $300,000 in funding that revenues may exceed the model's projections; • THEMUSEUM does not believe that a hard cap with respect to expense growth should be a condition of funding as the ultimate goal of a breakeven budget can be achieved by increased revenues, expense reductions or a combination thereof; and, • The impact of the additional $300,000 of funding on revenue line items will take some time to achieve. As such, while reviewing financial performance constantly is important, THEMUSEUM believes that it is likely that the true impact of such funding on financial performance may not be visible until 12 — 18 months after the funding is provided. This anticipated delay in impact should be taken into account in reviewing annual financial performance. Fundinq Option Risks The following are the potential risks and constraints of a reduced investment level. While the requested conditional funding amount from THEMUSEUM is $300,000 annually, THEMUSEUM working group wanted to present a more fulsome overview of what a lower level of funding would mean to the organization. THEMUSEUM working group suggested that any funding less than $300,000 annually could potentially impact operations in the following ways: • Loss of staff; • Loss of Board members; • Change in vision of THEMUSEUM; • Static exhibitions; • Loss of innovative and creative programming; • Reduced educational program delivery; • Reduced support from third party rentals; and, • Reduced membership. Implications for Downtown Kitchener Page 27 of 88 Historically, many businesses in Downtown Kitchener have been dependent on 16,000 residents who would come to work in the core each day. As a result of the pandemic and the shift of office workers to hybrid work arrangements, Downtown has experienced a significant drop in daytime foot traffic. In Q4 of 2024, CBRE reported a 40% vacancy rate in Downtown Kitchener office space. While residential development has offset some of this loss, businesses are still challenged to replace this scale of customer loss. THEMUSEUM attracts approximately 72,000 visitors per year. Prior to the pandemic, THEMUSEUM attracted 95,000+ visitors in 2018/19. As such, THEMUSEUM is a key major attractor of foot traffic, alongside places like Centre In The Square, the KW Art Gallery, the Kitchener Market, and annual festivals and events. Loss of THEMUSEUM would only further decrease downtown foot traffic. As a result of the decrease in office users, perceptions of the downtown have been negatively impacted. Given the City's goal of building a vibrant downtown, the closure of THEMUSEUM would negatively impact the perception of the core to residents, investors and prospective retail/office businesses. Recommendation - Conditional Funding Agreement Staff recommend creating a Conditional Funding Agreement that is separate from THEMUSEUM's annual operating grant and outside of the Key Cultural Institutions process. The Conditional Funding Agreement would outline the terms under which THEMUSEUM will receive financial support from the City for up to a three-year period, with phased funding allocations from July 1, 2025, to June 30, 2028. This agreement would be separate from existing funding mechanisms and would come with specific financial and operational conditions. The overall purpose of the agreement aims to ensure financial sustainability and operational accountability for THEMUSEUM while securing stable funding from the City under strict conditions. Key Components of the agreement would include: 1. Funding Structure — a 3 -year term. 2. Financial Target — THEMUSEUM would be required to achieve a breakeven or surplus budget by 2028/29. 3. Reporting Requirements — THEMUSEUM would be required to provide regular financial statements (i.e., quarterly variance reports) and report on key performance indicators, such as gate attendance. 4. Financial Conditions — THEMUSEUM board would be required to actively work to achieve a year-end annual surplus, with a portion of the surplus returned to the City depending on the amount of surplus achieved. Certain spending limitations may be included. A goal would be set for the board to achieve a $600,000 net increase of revenue over expenses by the end of the 3 -year term to eliminate the need for the City to provide funding beyond the term of the agreement. THEMUSEUM would not be permitted to request any additional funding from the City during this time. Page 28 of 88 5. Governance & Oversight — the City would be granted two seats on THEMUSEUM board, including 1 voting member of Council and 1 ex -officio staff member, to ensure adherence to the terms of the agreement and continued focus on sustainability. 6. Key Performance Targets — THEMUSEUM would be expected to achieve specific performance targets, such as increased walk-up gate attendance, maintaining or growing school visits, summer camps, etc. 7. Operational Review & Sustainability Measures — ongoing review by the board of THEMUSEUM's operations, staffing levels, key performance indicators and expenses to identify ongoing opportunities to achieve sustainability. Rationale for Supporting a 3 -year Funding Agreement While it would have been staff's preference to see THEMUSEUM achieve sustainability without the need for increased funding (i.e., through cost cutting measures), based on the work completed by THEMUSEUM's working group, additional funding appears to be the most viable option. Staff support providing funding over a 3 -year term for the following reasons: 1. Loss of a Key Cultural Institution — Closure of one of the community's largest cultural institutions would significantly impact the cultural landscape in the region. In particular, the inability for elementary students and young children to participate in educational visits, summer camps, etc., would be a significant loss. 2. Impact to Downtown Kitchener — As noted in this report, as a result of the pandemic and the shift of office workers to hybrid work arrangements, Downtown has experienced a significant drop in daytime foot traffic. Loss of THEMUSEUM would only further decrease downtown foot traffic and may impact confidence levels of prospective businesses and real estate investors. 3. Economic Impact to the region — Based on the Province's `Tourism Regional Economic Impact Model', THEMUSEUM visitors spend an estimated $2.3 million to $3.2 million each year as part of their trips. With an estimated 24% to 37% of total attendees coming from out of town, this spending would include hotel stays, spinoff restaurant spending, spinoff shopping, etc. Based on the foregoing, staff concur that short-term funding is needed to ensure the ongoing operations of THEMUSEUM. However, given that the total annual funding provided to THEMUSEUM would be almost double that given to other Key Cultural Institutions, staff recommend the funding be limited in time, and meant to enable THEMUSEUM board to increase revenues to a sustainable level, in order to return to current funding levels in 3 years time. Should there be a need for modest additional funding beyond year 3, such requests would be considered as part of the City's Key Cultural Institutions annual granting process. 2 King Street West Page 29 of 88 In 2020, the City acquired 2 King Street West and agreed to provide THEMUSEUM with a 10 -year window to undertake the necessary business case development and fundraising to support expansion of their footprint. In 2022, the City launched the SDG Idea Factory, and THEMUSEUM agreed not to proceed with an expansion until at least August 2025. Given the success of the SDG Idea Factor and the current challenges of THEMUSEUM, THEMUSEUM has agreed to extend this window to August 2026, but has requested that their timeframe for renovation also be extended by one year until 2031. In subsequent years, should THEMUSEUM still not be in position to expand, both timeframes could continue to be extended accordingly, subject to the approval of the City's Chief Administrative Officer. By doing so, this maintains THEMUSEUM's ability to contemplate expansion while providing the City with the ability to provide greater certainty and longevity to the tenants of the SDG Idea Factory. STRATEGIC PLAN ALIGNMENT: This report supports Creating an Economically -Thriving City Together: Focuses on growing an agile, diverse local economy powered by talented entrepreneurs, workers & artists; creating opportunities for everyone and a resilient future that propels our city forward. FINANCIAL IMPLICATIONS: Capital Budget — The recommendation has no impact on the Capital Budget. Operating Budget — The recommendation would require an increase to the City of Kitchener's annual operating grant to THEMUSEUM by up to $300,000 annually for a three- year period covering the following three fiscal years for THEMUSEM: 2025/2026, 2026/2027 and 2027/2028). As THEMUSEUM operates on a fiscal budget that begins July 1, the City's contributions may be spread over the City's budget years between 2025 and 2028, with exact timing of contributions to be determined as part of the 3 -year funding agreement. For 2025, the funding can be accommodated through unallocated grant funding within Economic Development Grants of the City's operating budget. For the 2026 to 2028 budgets, staff would allocate the specific grant amount within Economic Development Grants. This would reduce the amount of unallocated funding available for other new granting opportunities. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: • DSD -24-229 Interim Support for THEMUSEUM • DSD -22-058 Proposed Use of 2 King Street West • DSD -20-041 Acquisition of 2-8 King Street W, Kitchener • DSD -20-040 Collaborative Municipal Funding for Key Cultural Institutions 2019/2020 Summary Page 30 of 88 APPROVED BY: Dan Chapman, Chief Administrative Officer ATTACHMENTS: Attachment A — Budget Projections Attachment B — Economic Impact Information Page 31 of 88 AttachmentA- Budget Projections Contents: Budget projections for 3 financial models Model #1: Sustainable funding from municipalities and the Region Model #3: Changing programming or utilizing the space indifferent ways Model #4: Reducing costs to the greatest extent possible Page 32 of 88 THEMUSEUM of Ideas Transcending Objects Model 1 Summary- 5 YR Model # 1 - Sustainable funding from municipalities and the Region Over Five Years 2025 2026 2027 2028 2029 Revenue: Earned Revenue: Admissions $423,720 $444,906 $467,151 $490,509 $515,034 Photo Booth $24,200 $25,410 $26,681 $28,015 $29,415 Programming $503,036 $528,187 $554,597 $582,326 $611,443 Memberships $114,400 $117,260 $120,192 $123,196 $126,276 Merchandise $93,500 $98,175 $103,084 $108,238 $113,650 Museums Canada $80,150 $80,150 $80,150 $80,150 $80,150 Rentals $333,320 $341,653 $350,194 $358,949 $367,923 Group sales $30,000 $31,500 $33,075 $34,729 $36,465 The Lounge $103,403 $105,988 $108,638 $111,354 $114,138 Non -Govt Development $427,554 $513,065 $564,371 $592,590 $622,219 $2,133,283 $2,286,294 $2,408,132 $2,510,056 $2,616,713 Government Funding: Municipalities: Region of Waterloo $385,716 $385,716 $385,716 $385,716 $385,716 City of Kitchener: Annual $166,152 $169,475 $172,865 $176,322 $179,848 Top -up $200,000 $0 $0 $0 $0 City of Waterloo $51,265 $52,290 $53,336 $54,403 $55,491 $803,133 $607,481 $611,917 $616,441 $621,055 Federal Government $86,084 $86,084 $86,084 $86,084 $86,084 Provincial Government $93,809 $93,809 $93,809 $93,809 $93,809 $983,026 $787,374 $791,810 $796,334 $800,948 .... ,,,, Expenses: Human Resources $ 1,982,818 $2,027,544 $ 2,073,452 $2,120,580 $ 2,168,968 Cost of goods sold $ 155,360 $ 159,244 $ 163,225 $ 167,306 $ 171,488 Programming $ 266,019 $ 279,320 $ 293,286 $ 307,950 $ 323,348 Exhibitions $ 171,538 $ 235,115 $ 246,871 $ 259,214 $ 272,175 Marketing $ 272,950 $ 357,590 $ 372,402 $ 387,955 $ 404,285 General +Administration$ 357,407 $ 365,716 $ 383,285 $ 392,085 $ 401,143 3,7;x'1;;4©7``' Investment income $ 60,000 $ 46,000 $ 33,000 $ 20,000 $ 20,000 Page 33 of 88 THEMUSEUM of Ideas Transcending Objects Model # 1 - Sustainable funding from municipalities and the Region Over Five Years Assumptions for Model #1 1. Percentage increase in direct (exhibition related) revenues 2. Percentage increase in indirect revenues (Memberships, camps, schools) 3. Percentage increase in non-gov't development 4. Additional spend on exhibits to attract visitors (rebuild from previous years' low levels) 5. Increased marketing spend to support development & sales 6. Annual rate of inflation - applied to City of Kitchener & City of Waterloo funding, Human Resource Expense, G&A exp Other assumptions -Fiscal 2025 Includes $200,000 of $300,000 City of Kitchener funding rec'd in Calendar 2024 - No other City of Kitchener funding requests not included - investment income and bank interest expense - assume operating line increase, restricted funds decrease to cover operating deficit, resulting in increased interest expense and reduced interest income Result - with additional development resources, there is still a need for additional funding to sustain Revenue: Earned Revenue: Admissions Photo Booth Programming Memberships Merchandise Museums Canada Rentals Group sales The Lounge Non -Govt Development Government Funding: Municipalities: Region of Waterloo City of Kitchener: Annual Model 1 Assumptions Year Year3 Year Year 5% 5% 5% 5% 2.5% 2.5% 2.5% 2.5% 20% 10% 5% 5% 60% 10% 10% 10% 40% 5% 5% 5% 2025 2026 2% 2027 2% 2% 2028 2029 2% $423,720 $444,906 $467,151 $490,509 $515,034 $24,200 $25,410 $26,681 $28,015 $29,415 $503,036 $528,187 $554,597 $582,326 $611,443 $114,400 $117,260 $120,192 $123,196 $126,276 $93,500 $98,175 $103,084 $108,238 $113,650 $80,150 $80,150 $80,150 $80,150 $80,150 $333,320 $341,653 $350,194 $358,949 $367,923 $30,000 $31,500 $33,075 $34,729 $36,465 $103,403 $105,988 $108,638 $111,354 $114,138 $427,554 $513,065 $564,371 $592,590 $622,219 $2,133,283 $2,286,294 $2,408,132 $2,510,056 $2,616,713 $385,716 $385,716 $385,716 $385,716 $385,716 $166,152 $169,475 $172,865 $176,322 $179,848 Page 34 of 88 Top -up $200,000 $165,198 $173,457 $182,130 $191,237 City of Waterloo $51,265 $52,290 $53,336 $54,403 $55,491 Compensation - Full-time $803,133 $607,481 $611,917 $616,441 $621,055 Federal Government $86,084 $86,084 $86,084 $86,084 $86,084 Provincial Government $93,809 $93,809 $93,809 $93,809 $93,809 Family Part Time $179,893 $179,893 $179,893 $179,893 $179,893 Adult Part Time $983,026 $787,374 $791,810 $796,334 $800,948 Expenses: $157,331 $165,198 $173,457 $182,130 $191,237 Human Resources: $21,850 $22,943 $24,090 $25,294 $26,559 Compensation - Full-time $1,650,000 $1,683,000 $1,716,660 $1,750,993 $1,786,013 Compensation - Part-time $12,510 $13,136 $13,792 $14,482 $15,206 Interpreters $77,570 $81,449 $85,521 $89,797 $94,287 Family Part Time $62,436 $65,558 $68,836 $72,277 $75,891 Adult Part Time $7,886 $8,280 $8,694 $9,129 $9,585 Education - Part Time $31,456 $33,029 $34,680 $36,414 $38,235 UGS Part Time $34,320 $34,320 $34,320 $34,320 $34,320 Benefits $60,640 $61,853 $63,090 $64,352 $65,639 Purchase of Services - H2R $40,000 $40,800 $41,616 $42,448 $43,297 Purchase of Services -Accounting $6,000 $6,120 $6,242 $6,367 $6,495 $1,982,818 $2,027,544 $2,073,452 $2,120,580 $2,168,968 Cost of goods sold: Merchandise $30,000 $30,750 $31,519 $32,307 $33,114 The Lounge $78,560 $80,524 $82,537 $84,601 $86,716 Event labour $39,200 $40,180 $41,185 $42,214 $43,269 Rentals and Group Sales $7,600 $7,790 $7,985 $8,184 $8,389 General + Administration: $155,360 $159,244 $163,225 $167,306 $171,488 Programming: Adult $157,331 $165,198 $173,457 $182,130 $191,237 Family $21,850 $22,943 $24,090 $25,294 $26,559 Underground Studio UGS $14,988 $15,737 $16,524 $17,350 $18,218 Education $16,850 $17,693 $18,577 $19,506 $20,481 TriCon $55,000 $57,750 $60,638 $63,669 $66,853 $266,019 $279,320 $293,286 $307,950 $323,348 Exhibitions: 3rd Floor $55,792 $58,582 $61,511 $64,586 $67,816 4th Floor $100,000 $160,000 $168,000 $176,400 $185,220 Atrium Galley $3,750 $3,938 $4,134 $4,341 $4,558 Permanent exhibits $9,996 $10,496 $11,021 $11,572 $12,150 Exhibition openings $2,000 $2,100 $2,205 $2,315 $2,431 $171,538 $235,115 $246,871 $259,214 $272,175 Marketing: Promotion + Marketing $211,600 $296,240 $311,052 $326,605 $342,935 Museum Conference $59,350 $59,350 $59,350 $59,350 $59,350 Donations to Other Charities $2,000 $2,000 $2,000 $2,000 $2,000 $272,950 $357,590 $372,402 $387,955 $404,285 General + Administration: Utilities $109,200 $111,384 $113,612 $115,884 $118,202 Insurance $31,351 $31,978 $32,618 $33,270 $33,935 Technology Services: Purchased services - IT support $20,000 $20,400 $20,808 $21,224 $21,649 Software subscriptions $37,476 $38,226 $38,990 $39,770 $40,565 Office technology $17,200 $17,544 $17,895 $18,253 $18,618 Page 35 of 88 Legal+Audit services $30,000 $30,600 $31,212 $31,836 $32,473 Office supplies $13,000 $13,260 $13,525 $13,796 $14,072 Board expenses $12,000 $12,240 $12,485 $12,734 $12,989 Building maintenance + supplies $16,000 $16,320 $16,646 $16,979 $17,319 Bank service charges - Moneris $50,000 $52,500 $55,125 $57,881 $60,775 Bank interest expense $16,980 $16,980 $26,000 $26,000 $26,000 Dues and fees $4,200 $4,284 $4,370 $4,457 $4,546 Investment income $357,407 $365,716 $383,285 $392,085 $401,143 n $60,000 $46,000 $33,000 $20,000 $20,000 Page 36 of 88 THEMUSEUM of Ideas Transcending Objects Model # 3 - Utilizing the space in different ways Year End June 30, 2025 Revenue: Earned Revenue: Admissions $269,640 Photo Booth $15,400 Programming $320,114 Memberships $72,800 Merchandise $59,500 Museums Canada $80,150 Rentals $383,322 Group sales $25,500 The Lounge $72,382 Non -Govt Development $88,777 Government Funding: Municipalities: $21,000 Region of Waterloo $385,716 City of Kitchener: $27,440 Annual $366,152 One -Time Grant $0 In Kind Funding $0 City of Waterloo $47,496 Federal Government $86,084 Provincial Government $93,809 Expenses: Human Resources: Compensation - Full-time $1,330,000 Compensation - Part-time $9,383 Interpreters $58,178 Family Part Time $46,827 Adult Part Time $5,915 Education - Part Time $23,592 UGS Part Time $25,740 Benefits $60,640 Purchase of Services - H2R $40,000 Purchase of Services - Accounting $6,000 Cost of goods sold: Merchandise $21,000 The Lounge $54,992 Event labour $27,440 Rentals and Group Sales $5,320 Programming: Adult $52,373 Family $16,388 Underground Studio UGS $11,241 Model 3 Summary 2025 $1,387,585 58.6% $799,364 33.8% $179,893 7.6% $979,257 41.4% $1,606,274 $108,752 67.9% 4.6% Page 37 of 88 Education $12,638 TriCon $41,250 $133,889 5.7% Exhibitions: Giraffe $5,792 SPECTRUM $50,000 Atrium Galley $3,750 Permanent exhibits $9,996 Exhibition openings $2,000 $71,538 3.0% Marketing: Promotion + Marketing $161,600 Museum Conference $59,350 Donations to Other Charities $2,000 $222,950 9.4% General + Administration: Utilities $81,900 Insurance $28,216 Technology Services: $0 Purchased services - IT support $18,000 Software subscriptions $33,728 Office technology $15,480 Legal + Audit services $27,000 Office supplies $11,700 Board expenses $10,800 Building maintenance + supplies $26,400 Bank service charges - Moneris $45,000 Bank interest expense $15,282 Dues and fees $3,780 $317,286 13.4% Investment income earned in Capital and Restricted Funds Page 38 of 88 THEMUSEUM of Ideas Transcending Objects Model 3 Assumptions Model # 3 — Utilizing the space in different ways Year End June 30, 2025 Assumptions for Model #3 1. City of Kitchener - $200K, no changes to other government funding 2. Decreased revenue- admissions, photo booth, memberships, merch, programming & lounge with loss of floor -30% Decreased revenue - rentals, group sales, lounge -15% 3. Decreased non -govt development with loss of exhibit space -50% 4. Lease income - rental of 4th floor 100,000 Reduction in utilities - rental of 4th floor -25% 5. Decreased part-time staffing for reduction in exhibit space -25% 6. Increased costs to renting out 4th Floor- ie security. Mtce 12,000 7. Programming expenses reduced with decreased revenues -25% S. Full time staff reduction with reduced exhibition space $ (50,000) 9. reduced exhibition costs with loss of floor $ (50,000) 10. reduction of general & admin costs with loss of floor -10% Notes — Model #3 — Lease out 4th Floor 1. Assumes City of Kitchener funding increases by $200,000 to $366,152 annually. No changes in Region of Waterloo and City of Waterloo funding. (Agrees to bare bones budget) and no additional staffing from bare bones budget 2. Assumes fourth floor would be leased out — other floors would not be ideal or would have logistical issues operationally. This floor is climate controlled which is needed to attract quality exhibitions. Loss of this floor would have a significant impact on earned revenues. Assume a 30% decrease in admissions, photo booth, memberships, merchandise, programming & lounge revenues. Assumes 15% reduction in rentals & group sales as exhibitions in place at time of rentals often are attractions 3. Non -Gov't development monies are often dependent on attractions/exhibitions held. With the loss of the marquis floor for exhibitions, it is expected that it will be challenging to maintain current levels of funding, rather, there would be a significant decline— assume reduction of 50% 4. The fourth floor would be leased for $100,000— net of utilities (tenant would assume share of utilities — assume 25% savings to THEMUSEUM of utility costs) 5. No longer having fourth floor for exhibitions, there would be a reduction in part-time staffing costs 6. Assume additional maintenance costs — i.e. security to secure/protect TM from traffic to leased space — assume $12,000 7. Assume 25% reduction in programming expenses with loss of fourth floor 8. Assume reduction of full-time staffing costs of $50,000 from loss of fourth floor 9. Assume reduction of exhibition costs with loss of fourth floor space 10. Assume a 10% reduction in general & admin (other than insurance) with loss of floor. Assume no changes in marketing as efforts will be needed to attract visitors to reduced space 11. Leasing the fourth floor will create a downward trend in revenue and challenging to reverse. Impact on community with loss of space, vacancies of office space downtown, etc. Page 39 of 88 THEMUSEUM of Ideas Transcending Objects Model # 4 - Reducing costs to the greatest extent possible Over Five Years 2025 Model 4 Summary - 5 YR 2026 2027 2028 2029 Revenue: $ 1,534,641 $ 1,395,523 $1,412,271 $ 1,430,402 Earned Revenue: $ 124,288 $ 105,645 $ Admissions $385,200 $250,380 $175,266 $157,739 $141,965 Photo Booth $22,000 $14,300 $10,010 $9,009 $8,108 Programming $457,305 $297,248 $208,074 $187,266 $168,540 Memberships $104,000 $83,200 $70,720 $63,648 $57,283 Merchandise $85,000 $55,250 $38,675 $34,808 $31,327 Museums Canada $80,150 $80,150 $80,150 $80,150 $80,150 Rentals $333,320 $266,656 $226,658 $203,992 $183,593 Group sales $30,000 $19,500 $13,650 $12,285 $11,057 The Lounge $103,403 $82,722 $70,314 $63,283 $56,954 Non -Govt Development $177,554 $142,043 $113,635 $90,908 $72,726 $1,777,932 $1,291,450 $1,007,151 $903,087 $811,703 Government Funding: Municipalities: Region of Waterloo $385,716 $385,716 $385,716 $385,716 $385,716 City of Kitchener: Annual $166,152 $169,475 $172,865 $176,322 $179,848 Top -up $200,000 - - - - City of Waterloo $51,265 $52,290 $53,336 $54,403 $55,491 $803,133 $607,481 $611,917 $616,441 $621,055 Federal Government $86,084 $86,084 $86,084 $86,084 $86,084 Provincial Government $93,809 $93,809 $93,809 $93,809 $93,809 Expenses: Human Resources Cost of goods sold Programming Exhibitions Marketing General + Administration Investment income $983,026 $787,374 $791,810 $796,334 $800,948 $ 1,712,818 $ 1,534,641 $ 1,395,523 $1,412,271 $ 1,430,402 $ 155,360 $ 124,288 $ 105,645 $ 95,080 $ 85,572 $ 178,519 $ 116,037 $ 81,226 $ 73,104 $ 65,793 $ 121,538 $ 79,000 $ 55,300 $ 49,770 $ 44,793 $ 222,950 $ 226,182 $ 229,479 $ 232,841 $ 236,271 $ 357,407 $ 349,736 $ 354,910 $ 365,678 $ 377,795 $ 53,000 $ 38,000 $ 22,000 $ 2,000 $ Page 40 of 88 THEMUSEUM of Ideas Transcending Objects Model # 4 - Reducing costs to the greatest extent possible Over Five Years Assumptions for Model #4 1. Percentage decrease in direct (exhibition related) revenues 2. Percentage decrease in indirect revenues (Memberships, camps, schools) 3. Percentage decrease in non-gov't development 4. Decrease in Full-time staff 5. Annual rate of inflation - applied to City of Kitchener & City of Waterloo funding, Human Resource Expense, G&A exp and marketing Other assumptions -Fiscal 2025 Includes $200,000 of $300,000 City of Kitchener funding rec'd in Calendar 2024 - No other City of Kitchener funding requests not included - investment income and bank interest expense - assume operating line increase, restricted funds decrease to cover operating deficit, resulting in increased interest expense and reduced interest income - no additional amounts for major exhibits to attract visitors Result - steady decline, no ability to sustain Revenue: Earned Revenue: Admissions Photo Booth Programming Memberships Merchandise Museums Canada Rentals Group sales The Lounge Non -Govt Development Government Funding: Municipalities: Region of Waterloo City of Kitchener: Annual Top -up Citv of Waterloo 2025 Model 4 Assumptions Year Year3 Year Year 35% 30% 10% 10% 20% 15% 10% 10% 20% 20% 20% 20% 10% 10% 2% 2% 2% 2% 2026 2027 2028 2029 $385,200 $250,380 $175,266 $157,739 $141,965 $22,000 $14,300 $10,010 $9,009 $8,108 $457,305 $297,248 $208,074 $187,266 $168,540 $104,000 $83,200 $70,720 $63,648 $57,283 $85,000 $55,250 $38,675 $34,808 $31,327 $80,150 $80,150 $80,150 $80,150 $80,150 $333,320 $30,000 $103,403 $177,554 $1,777,932 $385,716 $166,152 $200,000 $51,265 $266,656 $226,658 $19,500 $13,650 $82,722 $70,314 $142,043 $113,635 $1,291,450 $1,007,151 $203,992 $12,285 $63,283 $90,908 $903,087 $183,593 $11,057 $56,954 $72,726 $811,703 $385,716 $385,716 $385,716 $385,716 $169,475 $172,865 $176,322 $179,848 $52,290 $53,336 $54,403 $55,491 Page 41 of 88 $803,133 $607,481 $611,917 $616,441 $621,055 Federal Government $86,084 $86,084 $86,084 $86,084 $86,084 Provincial Government $93,809 $93,809 $93,809 $93,809 $93,809 $179,893 $179,893 $179,893 $179,893 $179,893 $983,026 $787,374 $791,810 $796,334 $800,948 Expenses: Human Resources: Compensation - Full-time Compensation - Part-time Interpreters Family Part Time Adult Part Time Education - Part Time UGS Part Time Benefits Purchase of Services - H2R Purchase of Services - Accountin Cost of goods sold: Merchandise The Lounge Event labour Rentals and Group Sales Programming: $1,380,000 $1,266,840 $1,162,959 $1,186,218 $1,209,943 $12,510 $8,132 $5,692 $5,123 $4,611 $77,570 $50,421 $35,294 $31,765 $28,588 $62,436 $40,583 $28,408 $25,568 $23,011 $7,886 $5,126 $3,588 $3,229 $2,906 $31,456 $20,446 $14,312 $12,881 $11,593 $34,320 $34,320 $34,320 $34,320 $34,320 $60,640 $61,853 $63,090 $64,352 $65,639 $40,000 $40,800 $41,616 $42,448 $43,297 $6,000 $6,120 $6,242 $6,367 $6,495 $1,712,818 $1,534,641 $1,395,523 $1,412,271 $1,430,402 $30,000 $24,000 $20,400 $18,360 $16,524 $78,560 $62,848 $53,421 $48,079 $43,271 $39,200 $31,360 $26,656 $23,990 $21,591 $7,600 $6,080 $5,168 $4,651 $4,186 $155,360 $124,288 $105,645 $95,080 $85,572 Adult $69,831 $45,390 $31,773 $28,596 $25,736 Family $21,850 $14,203 $9,942 $8,948 $8,053 Underground Studio UGS $14,988 $9,742 $6,820 $6,138 $5,524 Education $16,850 $10,953 $7,667 $6,900 $6,210 TriCon $55,000 $35,750 $25,025 $22,523 $20,270 $178,519 $116,037 $81,226 $73,104 $65,793 Exhibitions: 3rd Floor $55,792 $36,265 $25,385 $22,847 $20,562 4th Floor $50,000 $32,500 $22,750 $20,475 $18,428 Atrium Galley $3,750 $2,438 $1,706 $1,536 $1,382 Permanent exhibits $9,996 $6,497 $4,548 $4,093 $3,684 Exhibition openings $2,000 $1,300 $910 $819 $737 $121,538 $79,000 $55,300 $49,770 $44,793 Marketing: Promotion + Marketing $161,600 $164,832 $168,129 $171,491 $174,921 Museum Conference $59,350 $59,350 $59,350 $59,350 $59,350 Donations to Other Charities $2,000 $2,000 $2,000 $2,000 $2,000 $222,950 $226,182 $229,479 $232,841 $236,271 General + Administration: Utilities $109,200 $111,384 $113,612 $115,884 $118,202 Insurance $31,351 $31,978 $32,618 $33,270 $33,935 Technology Services: $0 $0 $0 $0 Purchased services - IT support $20,000 $20,400 $20,808 $21,224 $21,649 Software subscriptions $37,476 $38,226 $38,990 $39,770 $40,565 Office technology $17,200 $17,544 $17,895 $18,253 $18,618 Legal +Audit services $30,000 $30,600 $31,212 $31,836 $32,473 Office supplies $13,000 $13,260 $13,525 $13,796 $14,072 Page 42 of 88 Board expenses Building maintenance + supplies Bank service charges - Moneris Bank interest expense Dues and fees $12,000 $12,240 $12,485 $12,734 $12,989 $16,000 $16,320 $16,646 $16,979 $17,319 $50,000 $32,500 $22,750 $20,475 $18,428 $16,980 $21,000 $30,000 $37,000 $45,000 $4,200 $4,284 $4,370 $4,457 $4,546 $357,407 $349,736 $354,910 r 678 $377,795 a Investment income $53,000 $38,000 $22,000 $2,000 Page 43 of 88 Attachment 6 - Economic Impact Information Contents: THEMUSEUM Tourism Regional Economic Impact Model THEMUSEUM Annual Financial Information THEMUSEUM Research Summaries Page 44 of 88 THEMUSEUM Tourism Regional Economic Impact Model (TREIM) Explainer - TREIM is a data analysis tool provided by the Province of Ontario to simulate the economic impacts of tourism in Ontario for a tourism facility. The following is an assessment of THEMUSEUM's economic impact including projected spending by visitors. TREIM Summary 2021-2022 Local Tourist Total 63% 37% 72,840 Distribution ON CAN International 97% 2% 1% Tourist Spending $3,210,453 2022-2023 Local Tourist Total 71% 29% 72,244 Distribution ON CAN International 94% 2.80% 2.60% Tourist Spending $2,646,335 2023-2024 Local Tourist Total 76% 24% 72,840 Distribution ON CAN International 94% 2.60% 3.40% Tourist Spending $2,235,182 Current Months Local Tourist Total 72% 28% 28,840 Distribution ON CAN International 93% 2% 5% Tourist Spending $1,105,455 Source: Government of Ontario Tourism Regional Economic Impact Model (TREIM) Note: 2021- 2022 Year of Rolling Stones had higher % (80%) of postal codes collected as timed tickets were purchased online. 2022 - Current Year collection is at 31% Page 45 of 88 TREIM Annual Detail 2021-2022 Actual PC 76.18% Visitor Spending - Confirmed Numbers Local Visitors 14189 63.87% $ 933,930 Total Tourists 8025 36.13% Tourist Breakdown Tourists ON 7753 Canada Other 196 International 76 96.61% 2.44% 0.95% Confirmed PCs Tota l 22214 **Most bookings were timed tickets purchased online; high % of postal codes provided 2022 -2023 Confirmed PC 76.18% Estimated Visitor Spending- Confirmed Numbers Visitor Spending - Estimated (%-based) Local Visitors 16894 71.64% 51755 $ 863,857 $ 2,646,335 Total Tourists 6688 28.36% 20489 Tourism Breakdown Tourists ON 6319 Canada Other 191 International 178 94.48% 2.86% 2.66% 19358 585 545 Confirmed PC Total Attendance Tota l 23582 72244 ** 57% of visitors did not provide Postal Codes Visitor Spending- Visitor Spending - 2023 -2024 Confirmed PC % Estimated Confirmed Numbers Estimated (%-based) Local Visitors 15708 76.18% 55491 $ 667,062 $ 2,235,182 Total Tourists 4911 23.82% 17349 Tourism Breakdown Tourists ON 4611 Canada Other 129 International 171 93.89% 2.63% 3.48% 16289 456 604 Confirmed PC Total Attendance Tota l 20619 72840 **66% of visitors did not provide postal codes Page 46 of 88 Visitor Spending - Visitor Spending - 2024 Confirmed PC % Estimated Confirmed Numbers Estimated (%-based) Local Visitors 6083 72.530/, 20917 $ 321,521 $ 1,105,455 Total Tourists 2304 27.470/, 7923 Tourism Breakdown Tourists ON 2130 Canada Other 49 International 125 92.45% 2.13% 5.43% 7324 168 430 Confirmed PC Total Attendance Tota l 8387 28840 **69% of visitors did not provide postal codes Source: Government of Ontario Tourism Regional Economic Impact Model (TREIM) Page 47 of 88 THEMUSEUM Annual Financial Information Explainer—the following chart summarizes the breakdown of THEMUSEUM's full-time (FTE) and part-time (PTE) salary allocations and the number of full-time positions. Salaries Breakdown FY FTE PTE FTE Positions $1,348,999 $278,809 21 2023-2024 2022-2023 $1,422,091 $37,588 24 2021-20223 $1,082,350 $54,829 30 2020-2021 $888,745 $25,566 23 2019-2020 $897,622 $247,143 21 2018-2019 $987,413 $261,838 29 2017-2018 $1,062,086 $228,046 24 Table 2—Annual Marketing Expenses Explainer—the following chart summarizes THEMUSEUM's annual operating expenses specific to marketing. Annual Marketing Spend FY ($) ($) 2023-2024 $ 133,066 2022-2023 $ 282,953 2021-2022 $ 570,054 2020-2021 $ 223,175 2019-2020 $ 170,861 2018-2019 $ 217,941 2017-2018 $ 186,227 Table 3—Annual Non -Municipal Government Fundraising Explainer — the following identifies the total revenues raised byTHEMUSEUM excluding regular annual municipal funding, such as corporate fundraising, federal grants, provincial grants, etc. Non -Municipal Government Fundraising FY ($) 2023-2024 $ 661,804 * Auditor Policy Change RE BMO 2022-2023* $ 485,279 2021-2022 $ 920,117 * Rolling Stones Exhibition 2020-2021* $ 285,342 2019-2020 $ 374,545 2018-2019 $ 409,935 2017-2018 $ 417,225 Table 4 -Annual Membership Revenue Explainer -the following table summarizes THEMUSEUM's annual revenue generated through memberships. Membership Revenue FY FY Gate ($) 2023-2024 $ 78,245 2022-2023 $ 55,432 2021-2022 $ 16,170 2020-2021 $ 4,430 2019-2020 $ 70,854 2018-2019 $ 91,890 2017-2018 $ 65,671 Tables 5 & 6 -Annual Attendance Explainer -the following tables summarize THEMUSEUM's annual attendance/visits including gate (general admission), visits by members, school groups, attendees to events/rental and camp registrants (ex: summer camps). Annual Attendance FY Total Gate Members Events & Rentals 2023-2024 72,840 51,335 5,625 15,880 2022-2023* 72,245 51,610 2,758 17,877 2021-2022* 68,767 61,217 418 7,132 2020-2021* 78,221 78,221 0 0 2019-2020 95,016 65,273 14,621 15,122 2018-2019 89,009 51,336 16,517 21,156 2017-2018 70,842 38,496 12,439 19,907 Dino Drive-Thru Dino Drive-Thru and Virtual Events Dino Drive-Thru and Virtual Events Detailed Annual Attendance 2023/24 2022/23 2021/22 2020/21 2019/20 2018/19 2017/18 2016/17 2015/16 Gate Admission 18,743 33,169 25,873 2,647 23,574 34,423 24,343 30,422 32,839 Members 5,625 2,758 418 671 14,621 16,517 12,439 13,961 15,709 Schools 9,505 8,219 2709 1077 2,581 6,799 7,465 8,573 9,036 Special Events/Rentals/Groups 19,475 17,876 7,132 0 15,122 21,156 19,907 22,275 21,115 Complimentary/OtherNirtual 13,241 3,332 3,247 24,995 35,993 4,183 3,039 2,597 6,465 Off -Site Programs 3,524 6,336 29,338 48,828 0 0 0 0 0 Camps/Underground Studio 2,727 554 50 43 3,125 5,931 3,649 4,638 4,912 Total Attendance: 72,840 72,244 68,767 78,221 95,016 89,009 70,842 82,466 90,076 2021/22 School Groups 679 + 2030 Virtual 2020/2021 1007 Virtual Comps include 3 and under, Teachers, promotions, etc. Page 49 of 88 THEMUSEUM Research Summaries The following summarizes various consumer research efforts THEMUSEUM has completed and the areas of focus for each. 1. Focus Groups Research Report—September 2017 a. Where residents are experiencing arts & culture these days b. What types of activities they consider to be arts & culture c. Awareness & perceptions of THEMUSEUM d. Aware & experiences with exhibitions/events held at THEMUSEUM e. Communications activity and strategies for the future. 2. Expansion Survey— October 2018 a. Understand general awareness of THEMUSEUM b. Understand awareness of the potential change in the organization to take over more property and expand c. Explore the current perceived strengths of the organization d. Explore what changes could or should be made to enhance or make THEMUSEUM more relevant and interesting. e. What collaborations should THEMUSEUM pursue in expansion. 3. Planning Survey (April 2022) a. Understand general awareness and perceptions of THEMUSEUM b. Explore the current perceived strengths of the organization c. Explore what changes could or should be made to enhance or make THEMUSEUM more relevant and interesting. d. Determine reactions to three options for what direction THEMUSEUM could take to build the organization in the future 4. Exploratory Program Research (November 2023—January 2024) —focus group & survey a. Determine perspectives of the arts and culture opportunities available to the Waterloo Region. b. Understand awareness and perspectives of THEMUSEUM c. Explore strengths and opportunities for THEMUSEUM d. Understand how interested residents of Waterloo Region would be in the future exhibition options. Page 50 of 88