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HomeMy WebLinkAboutCOD-053-07 CI![-!llgton REPORT CORPORATE SERVICES DEPARTMENT Meeting: General Purpose and Administration Committee Date: October 1, 2007 Resolution#:b';PA -5'61- 07 Report #: COD-053-07 File#: By-law #: Subject: UPDATE ON 2007 CORPORATE (NEWSPAPER) ADVERTISING PROGRAM Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-053-07 be received for information. Attachment: CAO-05-07 with amending resolution So""'''''' "'~ - arie Marano, H.B.Sc., C.M.O. Director of Corporate Services Reviewed bY:O ~~ Franklin Wu Chief Administrative Officer MM/JC/gj CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)62H506 REPORT NO.: COD-053-07 PAGE 2 BACKGROUND 1.0 ADVERTISING BUDGET The Communications & Marketing Division is responsible for passing on important and timely information to community stakeholders. One method used to accomplish this is the corporate newspaper advertising program which involves the two publications - Canadian Statesman and the Orono Weekly Times. It should be noted that, although newspaper advertising is a significant part of the corporate advertising program, it is not the only corporate advertising venue that is implemented and drawn from the Corporate Advertising account under the supervision of the Communications & Marketing Division. During the 2007 budget deliberations, the advertising budget was adjusted by report CAO-05-07 (Attachment #1). The purpose of this report is to provide an update on the budget to actual values associated with the amended program. 2.0 AS OF MARCH 2007 During the 2007 budget deliberations in March the allocation of funds related to the total corporate advertising budget was reduced to a total of $ 174,000. As previously stated the newspaper advertising program is not the only marketing program that is drawn from the total budget account for advertising. Tourism promotion - such as the Tourism Directional Signage (TO OS) program on Highways 401 (east and west) and 115/35 (southbound only); Clarington's participation in the Durham Tourism's visitors guide; Total Hockey promotions; job postings (external publications/websites); and Tenders/RFPs (Daily Commercial) - are also funded out of this total budgeted account. The newspaper advertising component of the total budget allocation was approved as amended at a total of $102,153. At budget approval date $26,178 of the available funds were spent under the prior full page program, leaving a remaining balance of $75,975 for the balance of the year. There was a timing element between the budget deliberations and ratification of the budget which approved the changes to the advertising program, during which the charges continued at the full page cost. As of July 31,2007, the amount spent on the Canadian Statesman and the Orono Weekly Times is indicated in the table below. Also presented in this table, is a projection as to where both expenditures will finish up at as of December 31,2007. It should be noted that the basic assumption of this projection is that spending habits will not change from August 1 - December 31,2007. REPORT NO.: COD-053-07 PAGE 3 3.0 EXPENDITURE SUMMARY & PROJECTED YEAR END BALANCE Budget - Total Total Actual to Actual Estimated Expected Advertising PUBLICATION Mar 1 Mar 1-Aun 31 Sen 1-Dec 31 Expenditure Proaram Canadian Statesman $25,710 $49,598 33,065 $108,373 Newspaper Ads $102,153 Orono Weeklv Times 4,680 12,300 8,200 25,180 Tourism/other 71,847 30,390 61,898 41,265 133,553 Total Budaet $174,000 Reallocation ofTotal Hockey Ads Budgeted by Community Services (15,430) Tourism Joint Ads revenue offset to expense" (12,700) Tourism & other advertising expense to year end 68,723 TOTAL ESTIMATED NET ADVERTISING PROGRAM 174.146 "The offset revenue is generated from the Tourism partnerships undertaken by the Marketing & Communications Division and is recorded in the revenue accounts. 4.0 THE CHANGED PROGRAM There have been some lost advantages incurred with the change to the reduced Ad program. For example, the Municipality does not receive the 20% discount in the per line cost in the Canadian Statesman. As there is no set page size reserved each week, there is a shorter time frame in which municipal departments must submit their material for publication since Metroland and the Orono Times require time to resell the space that is not being used. As per Council resolution, the newspaper corporate advertising program does not include any event, program or activity that is not directly operated by the Municipality of Clarington. Cost savings have been achieved by reducing the amount of space used in both publications, however there have been a number of occasions since the reduced program was initiated where public notices etc., have required full page purchases, thereby causing some additional expenditure over and above the expected weekly charge. It is anticipated that the overall budget inclusive of revenues generated under the tourism portion of the budget, from joint ads in the Tourism Guides etc., may help offset the final expenditure for the Advertisement Program, bringing the balance into line with budget. As such the total program has been identified in this report. REPORT NO.: COD-053-07 PAGE 4 5.0 UPCOMING 2008 BUDGET In anticipation of the upcoming 2008 budget, it should be noted that the 2008 Advertising budget maybe impacted by proposed Corporate Business Plan objectives, should Council endorse strategies and actions outlined in the plan. Further discussion of the applicable activities may be undertaken as part of the 2008 budget process. 6.0 Conclusion This report is presented for Council's information. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-6506 BEPORT #4 (J. U ~~ REPORT CHIEF ADMINISTRATIVE OFFICER Meeting: : COUNCIL Date: March 19,2007 Report #: CAO-05-07 File: By-law #: Subject: ADVERTISING POLICIES RECOMMENDATIONS: It is respectfully recommended to Council the following: 1. THAT Report CAO-05-07 be received; and 2. THAT Council approve the Newspaper Advertising Policies contained in Report CAO- 05-07 and the Chief Administrative Officer to amend the Corporate Advertising Policies accordingly. SUbmittedby:6~~~ Franklin Wu Chief Administrative Officer Monday, March 12,2007 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-5717 REPORT NO.: CAO.Q5.Q7 PAGE 2 1. BACKGROUND 1.1 As a result of Committee's deliberation ofthe 2007 Budget on March 2, 2007, the following resolution was passed: "THA T the proposed corporate advertising budget be reduced by a maximum of $86,000.00; and "THAT the Director of Corporate Services report back to Council recommending a revised Corporate Advertising Policy to reflect the reduction in the budget allocation. >> 1.2 Since the recommended budget reduction in corporate advertising impacts various departments, it is necessary for the CAD to review the matter and to report back to Council particularly with respect to what and how various municipal newspaper advertising needs can be accomplished within the context of the GPA recommendation. 2. STATUS OF NEWSPAPER ADVERTISING EXPENDITURE 2.1 The following is an account of newspaper advertising expenditure of as March 19,2007. Proposed Newspaper Advertising Budget in Communication Division GPA recommended reduction Available Newspaper Advertising monies Monies spent/committed to March 19/07 Monies available for Balance of 2007 for Newspaper Advertising $168,153. $ 86.000. S 82,153. $ 26.178. $55,975. 2.2 The $55,975. available for the balance of 2007 for newspaper advertisement will be sufficient for approximately 20 weeks out of 41 weeks remaining for 2007 assuming the Page 2 advertisement format is maintained. As a result, the full page weekly advertisement will no longer be feasible. Future ads will be placed on an as needed basis. REPORT NO.: CAO~5~7 PAGE 3 In addition to the foregoing change, we will need to eliminate advertisement and notices from external agencies. Essentially, only municipal advertising should be accommodated. 3. FEEDBACK FROM DEPARTMENTS The Director of Community Services has stated that the reduction in the. publication of advertisements to support and promote recreation and leisure programs - pre-teen dances, special events, day camps, ongoing fitness programs, etc. - will have a significant and negative impact on the revenue figures that have been projected and approved in the specific program revenue accounts. These programs are promoted in the seasonal Recreation & Leisure Services Guides but reminders to register/participate have been advertised to encourage residents to participate. The Director of Emergency & Fire Services has also raised concerns relative to potentially insufficient budget fund to place public safety announcements that deal with smoke detectors, candle safety, fire safety, and other topics that come up as the result of incidents that occur in the community that reinforces the need for public awareness. Comments have also been received from the Planning Department regarding the advertisement of various planning initiatives such as commercial and economic development projects (Science and Technology Park) that are not necessarily legislated but are needed to ensure that the public is informed and that their input is considered in the process of making policy recommendations. 4. COMMENTS Given the limited monies available for newspaper advertising, it would be prudent for the Municipality to establish priorities. In this regard, all municipal notices, both statutory and non-statutory are considered an absolute necessity. REPORT NO.: CAO.QS.Q7 PAGE 4 Furthermore, the types of municipal advertisements cited by the various department heads should also be included. Due to the unpredictable volume of the number of municipal advertisements, it is not possible to predict if the available balance of newspaper advertisement of $55,975. will be sufficient for the foregoing purposes. In this regard, it is prudent that Council allows some leeway in the event over expenditure occurs. 5. PROPOSED NEWSPAPER ADVERTISEMENT POLICIES Staff is cognizant of Council's desire to reduce the 2007 budget impact and therefore propose the following newspaper advertisement policies in order to accomplish this goal. 5.1 All newspaper advertisements be limited to those generated by the municipal corporation. 5.2 Only municipal notices and program advertisements be allowed. With the exception of statutory notices, all other notices and advertisements are to be reduced in size and scope and the citizens will be directed to the municipal website for details. 5.3 The Municipality is not responsible for the placement of advertisement by any extemal agencies including the Library Board and the Museum Board. 5.4 Placement of newspaper advertisements will be administered on an as needed basis. 5.5 Staff will monitor the newspaper advertisement expenditure and provide a status report to Council early in 2008. 5.6 Existing corporate advertisement policies are to be amended to reflect the above. Council Meeting Minutes - 21 - March 19, 2007 Resolution #C-144-07 Moved by Councillor Robinson, seconded by Councillor Foster THAT the foregoing Resolution #C-135-07 be amended by adding the following paragraph: "Uj) THAT the budget for Corporate Services miscellaneous revenues be increased to $5,000." "CARRIED" Resolution #C-145-07 Moved by Councillor Foster, seconded by Councillor Robinson THAT the foregoing Resolution #C-135-07 be amended by adding the following paragraph: "(kk) THAT the growth estimate for 2007 be revised from 2.12% to 2.28% resulting in increased revenue of $40,600." "CARRIED" Resolution #C-146-07 Moved by Councillor Robinson, seconded by Councillor Foster THAT the foregoing Resolution #C-135-07 be amended by adding the following paragraph: "(II) THAT the advertising budget be increased by $20,000 specifically to accommodate Community Services programming in order that the effect of reduced programming revenues resulting from reduced advertising of programs be mitigated." "CARRIED" The foregoing Resolution #C-135-07 was then put to a vote and CARRIED AS AMENDED. Council Meeting Minutes - 23- March 19, 2007 Report # 4 - Report CAO-05-07 - Advertising Policies Resolution #C-150-07 Moved by Councillor Novak, seconded by Councillor Trim THAT Report CAO-05-07 be received; and THAT Council approve the Newspaper Advertising Policies contained in Report CAO-05-07 and the Chief Administrative Officer amend the Corporate Advertising Policies accordingly. "CARRIED" UNFINISHED BUSINESS Resolution #C-151 -07 Moved by Councillor Novak, seconded by Councillor Foster THAT the delegation of Eva Martin Blythe, Executive Director, YWCA Durham be received for information and that she be thanked for bringing the information forward. "CARRIED" Resolution #C-152 -07 Moved by Councillor Novak, seconded by Councillor Robinson THAT Rob Gerber be advised of Council's decisions regarding the 2007 Current and Capital Budget. "CARRIED" Resolution #C-153-07 Moved by Councillor Robinson, seconded by Councillor Foster THAT the delegations of Gerry Johnston, Dr. Ed Osborne, Dave Clark, Ernest Burnie, Brian Purdy, Dan Carter, Richard Olsen, Norma Lewis, Don Terry, Brad Hill, and Donna Metcalf-Woo be received for information; and THAT they be advised that the request for funding from the Memorial Hospital Foundation Bowmanville has been tabled for two weeks. "CARRIED"