HomeMy WebLinkAboutCAO-05-045 - 2006 Grant Request - Communitech
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KcTCHENER
Chief Administrator's
Office
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Finance and Corporate Services
November 28, 2005
Rod Regier
Kathy Weiss
All Wards
November 21, 2005
CAO-05-045
2006 GRANT REQUEST - COMMUNITECH
RECOMMENDATION:
That the City of Kitchener support funding the annual membership fee of $5,000.
BACKGROUND:
Communitech is a member-based association driving the dynamic growth and success of
Waterloo Region technology companies. Established in 1997 to represent a handful of tech
companies, Communitech now has over 300 member organizations representing more than
25,000 employees. They are dedicated to developing the tech community in Waterloo Region
into a Tier One tech cluster.
In January 2003, Communitech approached Kitchener City Council with a funding request of
$35,000 in which $5,000 would cover the membership fee and the $30,000 would be used to
finance their "Business Accelerator" program, their website and help them pursue funding from
Senior Governments.
In 2004, Communitech approached Kitchener City Council to seek continued funding in the
amount of $35,000, however re-directing the spending to a broader scope including support for
tech start-up, talent recruitment initiative, government funding pursuit and the annual
membership fee.
REPORT:
Staff has reviewed Communitech's 2005 financial statements (see attached) and has observed
that Communitech currently has an unrestricted fund surplus, a healthy cash balance and
balances in deferred revenue to be taken in a future period.
In support of the local IT sector, staff support on the annual $5,000 membership fee, however in
light of the positive 2005 financial statements staff feel that if an organization is able to sustain
it's operations and generate a surplus, there is reduced need for the City to provide a grant to
the organization, thereby not supporting the additional $30,000.
FINANCIAL IMPLICATIONS:
Decreased expense of $30,000
COMMUNICATIONS:
N/A
Kathy Weiss
Manager Business Development
Rod Regier
Executive Director, Economic
Development