December 2 1998
To:Budget Committee
From:George Waters, Acting Managing Director
Heritage Toronto
Subject:Heritage Toronto 1998 Cash Flow
Purpose:
To request a cash flow advance against a projected deficit in the Heritage Toronto operating
budget.
Funding Sources, Financial Implications and Impact Statement
$354,00 to be advanced against a projected deficit in Heritage Toronto's 1998 operating
budget.
Recommendation:
That, as a result of delays in the implementation of a new city-wide structure for heritage, and
cash-flow issues related to an additional pay period, payable within the calendar year 1998,
the Budget Committee authorize a cash advance against a projected deficit in Heritage
Toronto's 1998 Operating Budget of $354,400.
Council Reference / Background / History
City Council, in anticipation of an early decision with respect to the governance and
management of its heritage programmes on a City-wide basis, approved a reduction in wages
and benefits of $354,400 as a part of the Board's 1998 Operating Budget. Assumptions
existed that a range of services would be consolidated within the City, and the reduction was
understood to be achievable for a half-year beginning July 1st. . The corporate environment,
and the practice within the arts, heritage and culture sector, supported no service cuts, nor
release of staff prior to Council's decision on how services were to be managed, in order to
facilitate staff's ability to apply for positions within the new structure.
Discussion:
Over the year the Board has made a conscious effort to control and minimize all expenses,
particularly human resource costs in circumstances where there remained flexibility and little
public service impact; and to maximize revenue opportunities, particularly in the areas of
facilities rentals and film-shoots. Other specific steps included ongoing review and fine-tuning
of site hours, staffing approaches, and programming / marketing to maximize revenue; and a
strategy to manage revenue shortfalls at The Pier in light of the required reallocation of
exhibitions / programme development funds to correcting structural building code
deficiencies. An expenditure-control system was also put in place.
A further issue which increases the year-end cash flow is the fact that, because January 1st is a
Friday in 1999, an additional pay occurs (on the Thursday), within the 1998 calendar year.
Conclusion:
It is recommended that, as a result of delays in the implementation of a new city-wide
structure for heritage, and cash-flow issues related to an additional pay period, payable in the
1998 calendar year, the Budget Committee authorize a cash advance against a projected deficit
in Heritage Toronto's 1998 Operating Budget of $354,400.
Contact:
George Waters
Acting Managing Director, Heritage Toronto
392-6827 x 260, fax 392-6834
cc: Josie La Vita, Budget Manager, Finance
Jane Thomas-Thorne, Budget Analyst, Finance
Joe Halstead, Commissioner, Economic Development , Culture and Tourism
Beth Hannah, Manager, North York Culture Office
