HomeMy WebLinkAboutCAO-07-005 - Waterloo Region Small Business Centre - 2007 Funding Request4~"
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Report To: Finance and Corporate Services
Date of Meeting: February 5, 2007
Submitted By: Rod Regier, Executive Director, Economic Development
Prepared By: Kathy Weiss, Director, Business Development
Ward(s) Involved: All Wards
Date of Report: January 22, 2007
Report No.: CAO-07-005
Subject: Waterloo Region Small Business Center 2007 Funding
request
RECOMMENDATION:
That the City of Kitchener support the increased funding request in the amount of $12,500 for
the 2006 fiscal year.
BACKGROUND:
The Waterloo Region Small Business Centre (WRSBC) is part of the Province of Ontario's
Small Business Enterprise Centre Network and serves small business clients from pre-start up
through five years of business. The WRSBC provides information, advice and consultation on a
variety of issues to small business owners and individuals wishing to start a business. The
WRSBC core funding is provided by the Province of Ontario, the Region of Waterloo and the
cities of Kitchener, Cambridge and Waterloo.
In 2004, the WRSBC developed athree-year strategic plan that outlined six main objectives to
ensure the future success of the organization. They are as follows:
1. Stable baseline funding provided by the public sector partners
2. Increased Private Sector funding
3. Professional marketing plan to increase client visits
4. Enhance Client Services
5. Better tracking and measurement of services
6. Fiscal Accountability and eliminate deficit by 2006
A funding model was developed as part of this three-year strategic plan and was presented to the
public sector funding partners. The funding levels for the three municipalities are based on a 2
(Kitchener) to 1 (Cambridge, Waterloo) per capita funding ratio formula. In 2005, Kitchener council
approved an increase in cash contribution to $50,000 in accordance with the three year strategic plan
ending in 2007 at $75,000. Diligent fiscal and operations management reduced the deficit
substantially by that year end and as a result the request for funding in 2006 remained at 2005 levels
(see chart below). Using a reasonable approach in terms of the 2007 funding request, the Board of
Advisors are proposing the additional $25,000 be staged over 2 years at $12,5000 each year.
Many of the objectives in the 2004-2006 Strategic Plan have been met and/or are ready to be
implemented. These include:
1. Projection to eliminate the accumulated and annual operating deficits by year end 2006
2. Increased private sector in-kind and direct financial support.
3. Re-branded the Small Business Centre and aggressively implementing our new
marketing strategy to ensure we increase our client base and client visits.
4. Opening of new satellite office in Waterloo
5. Increased and extended outreach programs and partnerships to ensure that we are
providing our services throughout Waterloo Region.
2004 2005 2006 2007
( ro osed)
Kitchener $113,000 $137,500 $137,500 $157,000
Cash $25,000 $50,000 $50,000 $62,000
In-kind $87,800 $87,800 $87,800 $95,000
Waterloo $35,000 $60,000 $75,000 $85,000
Cash $35,000 $60,000 $52,362 $17,000
In-kind $22,638 $68,000
Cambridg
e $64,000 $77, 500 $77,500 $85,000
Cash $11,750 $17,000 $17,000
In-kind $64,000 $65,750 $65,750 $68,000
Region of
Waterloo $50,000 $47,000 $45,000 $50,000
Province
of Ontario $60,000 $65,000 $70,000 $85,000
Private
Sector
Sponsors
hip $6,500 $12,500 $14,000 $21,000
REPORT:
In order to continue on this journey and truly reach the objectives of increasing the client base,
services and programs we now require the final installation of the additional funding to get to the
funding ratio and levels originally outlined in our 2004-2006 Strategic Plan.
The revenue used to pay down the deficit will now be absorbed into up to date marketing
materials and the implementation of an ongoing marketing strategy as well as the hiring of an
additional FTE whose role is to increase awareness, generate private sector sponsorship both
for events and general revenue as well as a back-up resource for the satellite offices so those
respective locations do not have to close in the absence of the Small Business Advisors.
We have sufficient flexibility within the budget, both on the revenue and expense side, to make
adjustments throughout the course of the year to ensure we do not go into a deficit position
again. However, it will be very difficult to provide the service levels that are required and
expected from all stakeholders without final increase. Securing this baseline funding from public
sector partners will continue to provide stability in the operations of the WRSBC and allow for
improved services offered to entrepreneurs and small business throughout the Waterloo
Region.
FINANCIAL IMPLICATIONS:
2007 $12,500 expense
2008 $12,500 expense
COMMUNICATIONS:
N/A
Rod Regier, Executive Director Kathy Weiss, Director
Economic Development Business Development
