Chelsea Fondation Chelsea 2017 AGM

Members of the board 2016-2017 Current: Laurent Viot. Todd Kuiack, Fiona Duguid, Municipal board members: Kay Kermin, Pierre Guenard Secretary: Nicole DesRoches Vice President: Jim Washbrook President: Peter Sudermann Outgoing members: Mathieu Frigon Treasurer Martti Lahtinen Barb Martin Yves Béthencourt

Changes in reporting For 2017 , two sets of financials required to close off the year as we move to a calendar year end of December 31. to coincide with the municipality year end. Received Approval for the change to the year end in September. Oct 2016 – Sept 2017 fiscal year end. October 2017-December 2017 Stub year. New management agreement (Entente) negotiated with the Municipality for another 5 year mandate to operate the MC. Council approved to accept contribution by the foundation to the start up of the center as compensation against the $600,000. Assets transfer to Muni Agreement /entente will see a graduated method of shifting expense responsibility from the Muni to the Meredith Center as surpluses grow. Primarily Hydro, starting at a contribution of 15% or $30,000 in 2018 and will be adjusted annual based on approved budget.

Financial Performance Sept 30, 2017 2016 Revenues $835,000 2017 Revenue $903,000 8% increase over 2016. 2017 Budget $959,000, Missed revenue budget target by 6% Ice remains s key revenue driver as over 60% of revenue is from Arena. Arena contribution to surplus $138k

Performance Facility Rentals up over 250% from $19,000 to $53,000 Net Surplus $61K, down from $131K in 2016 Budgeted surplus $200k missed target by $139K (invested $80,000 in facility equipment and outdoor spaces) Increased revenue from F&B and Camp/fitness Programs

2016-2017 Revenue distribution

Financials (Expenses) 2016 total expenses $720,000 2017 Total Expenses $873,000 21% increase in expense over a 6% increase in revenue Areas of concern Food and Beverage We were cognizant of costs in this department but were committed to offer a service when customers required it, the operational model of “fresh” was difficult to adhere to when demand is inconsistent for services. F&B payroll was running at 61% of revenue, overall expense at 121% of revenue. Pro-shop expenses over double revenue. Some revenue departments running a deficit but required to introduce and grow programs and revenue.

Oct-Dec 2017 Stub Year Revenues for the three month period to December 31, 2017, $217,065 Expense $195,000 Net Surplus $22,000 Changes to operations: F&B now at 75% COGS compared to 121% for the year ended Sept.30. 2017 F&B lost $18,000. For Oct-Dec F&B shows $3,500 contribution to surplus. Pro-shop items now sold through Customer service and space is now leased out. Lease will add $5,400 to surplus compared to $12,000 loss in 2017 Both fitness and CC programs are running at a slight loss, but required to build reliable and consistent programs.

Statement of Cashflows Not to be alarmed as it shows we used up close t $140,000 in cash and have a negative cash flow. Three key items: Adjustment to working capital of $75,983 is due to timing of reciept of payment from the muni for the monthly transfer of funds. $79,666 purchase of fixed assets for the betterment of the center. Deferred funding, money received for items such as the Field 5 improvement of which money was received a few years ago but is recognized over time.

Budget Highlights Revenue $1million (7.5% increase over 2017 revenue) Surplus $158,000 Expense $865,000, 2.2% higher than 2017. Most of the increase driven by better ice management and reservations. Maintain growth in programs. Working on improvements to Gym space and enhanced change rooms. Need to expand on community engagement Focus on physical activities and sport, provide support in arts and cultural initiatives provided by other community groups in Chelsea, La Fab and Mill Road Center.

Questions?