2021 Operating Budget Financial Impact Update Due to COVID-19

Exhibition Place staff have been in constant communications with the City Manager's Office and the City Financial Planning Department regarding financing opportunities to cover the Board's cash shortfall requirements. The Board's operations are highly dependent on the cash flow and net income from our trade and consumer shows, conferences, conventions, socials, galas, meetings and tenants operations. Since early in 2021, given the rise in concern over COVID-19, staff has been monitoring its cash flow from operations on a daily basis and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc. The Board approved 2021 operating budget is a Budget Loss of ($7.577) million. The estimated impact from COVID-19 to the Boards operating budget as at August 31, 2021 is an additional pressure of ($5.087) million for an overall forecasted net loss of ($12.664) million before City funding. The Board's approved 2021 Budget prepared in August 2020 included the assumption that events, as well as, tenants operations would become normal starting to reopen in April 2021, which did not occur. The continued pressure from lost business on the Board's operations and resultant cash flow is a continued concern not only to Exhibition Place, but also to the City of Toronto as the Board operates, manages and maintains Exhibition Place on behalf of the City, and the City is entitled to any surplus resulting from the Board's activities, and is responsible for any deficit the Board incurs.