ITU World Cup Triathlon

Recommendation:
  1. That a payment of $24,215 be made to ITU World Cup Triathlon Edmonton and that the source of funding come from the 2004 Community Services Department, Parks, RiverValley and Natural Areas 2004 Budget.
  2. That Administration report to Council, through Community Services Committee, on any surplus funding associated with the ITU World Cup Triathlon Edmonton 2005 event.

Report Summary

This report is in response to the ITU World Cup Triathlon organization’s request for cash funding equivalent to the unspent in-kind funding remaining in the 2004 Community Services Department budget associated with this event.

Previous Council/Committee Action

At the June 15, 2004, City Council meeting, the following motion was passed:

  1. That $41,947 from 2004 Council Contingency, which was the City surplus associated with the 2003 ITU World Cup Triathlon event, be allocated to the ITU World Cup Triathlon Organizing Committee.
  2. That Administration provide a report to Council, through the Community Services Committee, after the 2004 ITU World Cup, outlining the costs for in-kind services provided by the City and Edmonton Police Services, and providing recommendations if there is a surplus in the related 2004 Community Services Department budget associated with this event.

Report

  • Positive economic impacts from ITU World Cup Triathlon events are estimated at three million to five million dollars. These events build upon the City’s image gained after hosting a very successful ITU Triathlon World Championship in 2001 (estimated economic impact of $17 million). The elite athletes drawn to World Cup events enhance the image of the sport of triathlon and promote the recreation, sport and fitness interests of an active Edmonton.
  • The triathlon organizing committee is seeking City Council’s support for the full value of the approved in-kind services budget from the 2004 World Cup event. Funds not required to provide in-kind civic services would be paid in cash to the full value of the approved in-kind services budget. The difference in 2004 is $24,215.
  • From the triathlon organizing committee’s perspective, the 2004 event is forecasted to have a slight positive balance of $1,744 (Attachment 2). Surplus funds from 2004 ($24,215) if received, would be used to support the 2005 event which combines a World Cup Triathlon with the World Masters Games Triathlon. The organizing committee has not receiveda 2004 federal grant ($75,000 requested) which has prompted this request to the City. The group is committed to delivering world-class triathlon events, showcasing Edmonton. In addition to the request for cash support from the City, the Committee has also incorporated a new sponsorship campaign, “Pillars of Triathlon”, to solicit new funding sources.

Budget/Financial Implications

  • In 2004, the difference between budgeted and actual expenditures was $24,215. As part of normal practice under-expenditures become part of the year-end surplus and are transferred to the Financial Stabilization Reserve.
  • The 2004 budget for the 2004 Triathlon is $115,000 and is included in the Parks, RiverValley and Natural Areas program.

Justification of Recommendation

  1. With comparable year-end projections, a like decision supporting World Cup Triathlon Edmonton was made on June 15, 2004. Cash support equivalent to the unspent in-kind budget will enable the organizing committee to prepare for a successful combined ITU World Cup Triathlon and World Masters Games event.
  2. Uncertainty with respect to future ITU World Cup Triathlon events beyond 2005 suggests that pre-dedicating unspent in-kind support for a 2006 event would be premature.

Background Information Attached

  1. ITU World Cup Triathlon – Edmonton Budget
  2. City of Edmonton ITU World Triathlon - Edmonton Budget/Actual Costs by Department 2001-2004
  3. Letter dated October 25, 2004 to Mayor Stephen Mandel and City Councillors from J. D. Hole, Chairman, World Cup Triathlon Edmonton

Others Approving this Report

  • J.Tustian, General Manager, Corporate Services
  • J.Acheson, Edmonton Police Commission

(Page 1 of 2)

Attachment 1

ITU World Cup Triathlon – Edmonton Budget

SUMMARY / FORECAST 2004 / FORECAST 2004 / FORECAST 2004 / BUDGET 2004 / BUDGET 2005 / BUDGET 2005 / BUDGET 2005 / BUDGET VARIANCE
Cash / In-Kind / Total / Total / Cash / In-Kind / Total / Comments
REVENUE
Cash Reserves (Prior Year Surplus) / 86,982 / 86,982 / 86,982 / 1,744 / 1,744 / -85,238 / 2005 decrease in surplus
Grants / 214,634 / 214,634 / 258,900 / 254,215 / 254,215 / -4,685 / 2005 $80K Federal funding uncertainty (budget includes $24,215 city cash funding)
Sponsorship / 86,853 / 86,853 / 50,000 / 75,000 / 75,000 / 25,000 / 2005 increase to better reflect 2004 actual funding
Athletes Entry Fees / 33,784 / 33,784 / 37,500 / 150,000 / 150,000 / 112,500 / 2005 City Masters Games (Entry fees)
Other (Solidarity Camp, Race Admission, Olympic Donations etc.) / 50,396 / 50,396 / 15,500 / 60,000 / 60,000 / 44,500 / 2005 Casino revenue
In-Kind Donations (Includes City) / 399,785 / 399,785 / 447,615 / 475,000 / 475,000 / 27,385
472,649 / 399,785 / 872,434 / 896,497 / 540,959 / 475,000 / 1,015,959 / 119,462
EXPENSES
Promotions & Media / 46,175 / 159,000 / 205,175 / 259,000 / 55,400 / 256,000 / 311,400 / 52,400 / 2005 TV Production costs increase (ITU driven); increase in-kind TV/radio advertising
Special Events / 81,715 / 16,000 / 97,715 / 45,250 / 44,500 / 44,500 / -750
Office / 140,238 / 30,000 / 170,238 / 182,700 / 152,500 / 24,500 / 177,000 / -5,700
Sponsorship / 1,224 / 2,500 / 3,724 / 13,500 / 14,000 / 14,000 / 500
Course Set Up & Race Operations(includes city) / 73,012 / 157,785 / 230,797 / 313,715 / 111,720 / 194,500 / 306,220 / -7,495
Administration / 11,503 / 34,500 / 46,003 / 29,950 / 25,700 / 25,700 / -4,250
Prize Money/Santion fees / 117,038 / 117,038 / 115,900 / 135,000 / 135,000 / 19,100 / 2005 prize money increase (ITU driven)
470,905 / 399,785 / 870,690 / 960,015 / 538,820 / 475,000 / 1,013,820 / 53,805
SURPLUS OF REVENUE OVER EXPENSES / 1,744 / (63,518) / 2,139 / 65,657

Attachment 1 - Page 1 of 1