Q3 Financial Update (2016) Economic Development - Statement of Operations
(in thousands of dollars)

Agency, Boards and Commissions Table of Contents Public Works - Levy

The Economic Development supports the Niagara Region and business communities to compete successfully in Niagara, Ontario and on a global scale. To work in partnership with the region's 12 municipalities, post-secondary institutions, business community and associates and nonprofit organizations to provide effective, innovative services that encourage investment, in the region, along with business support services to attract, maintain and increase jobs in Niagara. The department supports the retention, growth, increased entrepreneurship, and expanding innovation of existing companies and encourages new companies to relocate to Niagara.

	Year to Date				Annual
	Budget	Actual	Variance		Budget	Forecast	Variance
Expenses
Compensation	$575	$561	$14	2.5%	$761	$720	$41	5.3%
Administrative	953	668	285	29.9%	1,215	1,023	192	15.8%
Operational & Supply	-	1	(1)	0.0%	-	1	(1)	0.0%
Occupancy & Infrastructure	-	(9)	9	0.0%	-	12	(12)	0.0%
Equipment, Vehicles, Technology	-	34	(34)	0.0%	-	14	(14)	0.0%
Partnership, Rebate, Expansion	626	479	147	23.5%	835	1,029	(194)	(23.2%)
Financial Expenditures	-	1	(1)	0.0%	-	1	(1)	0.0%
Total Expenses	2,154	1,734	420	19.5%	2,811	2,800	11	0.4%
Intercompany Charges
Intercompany Charges	3	1	2	70.4%	4	2	2	52.8%
Total Intercompany Charges	3	1	2	70.4%	4	2	2	52.8%
Net Expenditure (Revenue) Before Transfers & Indirect Allocations	2,157	1,735	422	19.6%	2,815	2,802	13	0.4%
Transfers
Transfers from Funds	(189)	(189)	-	0.0%	(211)	(211)	-	0.0%
Total Transfers	(189)	(189)	-	0.0%	(211)	(211)	-	0.0%
Indirect Allocations & Debt
Indirect Allocations & Debt	456	410	45	11.0%	602	584	17	2.9%
Capital Financing Allocation	121	79	42	52.9%	144	100	44	30.7%
Total Indirect Allocations & Debt	577	490	87	15.1%	745	684	62	8.3%
Net Expenditure (Revenue) After Transfers & Indirect Allocation	$2,545	$2,035	$509	20.0%	$3,350	$3,275	$74	2.2%

Variance Analysis (in thousands of dollars)

Compensation

The favourable forecasted variance of $41 is primarily a result of a vacancy in the Innovation and Partnership manager position.

Administrative

The favourable year-to-date and forecasted variances of $285 and $192 are due to the timing of consulting contracts related to the Team Niagara action plan and Foreign Trade Zone implementation plan, as well as a departmental spending review by the new Director who began in April.

Equipment, Vehicles, Technology

The unfavourable year-to-date variance of $34 is the result of an unbudgeted purchase of a Geographic Information System (GIS) software license used for site selection.

Partnership, Rebate, Exemption

The favourable year-to-date variance of $147 is primarily due to the timing of the Southwestern Integrated Fibre Technology (SWIFT) broadband expansion. The unfavourable forecasted variance of $194 is a result of more grant payments than anticipated resulting from the departmental spending review and the reprioritization of the favourable variance in Administrative.

Community Impacts & Achievements

2016 Project Updates/Accomplishments

On April 15th the Government of Canada designated the Niagara Region as a Foreign Trade Zone, promoting Niagara as a hub for international trade.
The City of Welland was selected by General Electric as the site for their new 468,000 square foot Brilliant Factory.
Contracts with Innovate Niagara, BioLinc (Brock) and Niagara College were renewed resulting in the creation of 66 new jobs, 20 high-growth firms assisted, four new products and 25 prototypes/problems solved.
Ten Niagara Gateway Economic Zone Community Improvement Plan applications have been approved to date supporting the creation and retention of 498 jobs and $23.4 million in new development.
Working with real estate brokers from outside the Niagara region to promote the relocation of commercial industrial businesses to Niagara. Planning and administration is underway with the Society of Industrial Office Realtors and Greater Toronto Hamilton Area brokers for the Industrial-Commercial Brokers market tour initiative on September 8 & 9, 2016.
Canada Summer Games project has been shortlisted for a final bud submission in January 2017.
Niagara Region was confirmed to be the host of the 2017 Economic Developers Association of Canada Conference.

Regional Studies/Analysis and Advocacy Projects:

Competitiveness Study (completed)
Tourism Strategy Business Case (Study/Outreach) (completed)
Electricity Cost Analysis (completed)
Comprehensive Cost of Living Study (underway)
Re-vamp/Optimization of Niagara Site Finder site selection support tool (underway)
Council Strategic Priority Project - Expedited Process for Development (ongoing)
Agri-Food Strategy (ongoing)
Bank of China (ongoing)
Cross-Border Relationships (ongoing)
Welland Canal 2018 (ongoing)
Canada Summer Games bid process (ongoing)
Czech Delegation Event (June 2016)
The Americas Competitiveness Exchange (ACE) - On Innovation & Entrepreneurship (September 2016)