Item - 2021.EP19.3

The Board of Governors of Exhibition Place:

1.  Approved the 2022 Operating Budget attached as Appendix to the report (September 14, 2021) from the Chief Executive Officer, Exhibition Place.

2.  Directed the Chief Executive Officer, Exhibition Place to submit the 2022 Budget to Financial Planning as part of the 2022 Budget Process.

On June 30, 2021, the Executive Director of City Financial Planning Division provided the preliminary 2022 Budget Process, Directions, and Guidelines for all City Divisions and Agencies for 2022, which is still subject to change.

Throughout the budget process, staff have worked closely with industry insiders, followed industry and trade magazines, as well watched closely the re-opening of the trade, consumer show and conference centre business in the United States of America, and the continuing impact of COVID-19. Our 2022 budget considers all these factors as it relates to COVID-19. Staff are cautiously optimistic, but given the year-end 2021 forecasted results, understand that there is still volatility in our economy.

City Financial Planning directed Agencies Boards and Corporations to prepare a more realistic 2022 Operating Budget using a budget lens, taking into consideration both 2020 actual and 2021 projected operating results as a guide. As shown in Schedule A, the 2021 year-end forecasted impact of COVID-19 on the Boards 2021 budget is a deficit of ($7.577) million which is unfavourable variance of ($5.088) million for a net deficit of ($12.664) million.

Exhibition Place worked with the City Financial Planning staff and have developed an operating budget that meets the City directive. As reported in Schedule A, the operating budget for 2022 is a net deficit of ($3.400) million. The main assumption used in preparing the Operating Budget, is that although there will be volatility and additional costs due to health and safety precautions, our event booking will be back to normal, although there will be anticipated lower attendance impacting ancillary revenue. 

With respect to the Exhibition Place Conference Centre Reserve Fund, the balance at the end of 2021 is forecasted to be $3.916 million. This reserve is a source of funding for both state of good repair, as well as, for the loan repayment of the Beanfield Centre. In 2021, the draw from the CCRF for City loan payments was $3.600 million; but given its forecasted balance staff will work towards funding these loan payments from operations.