2018 annual report

c o n n e c t i v i t y

1 Mission Statement and Association Legal Profile2 Message from the Chair3 Message from the Executive Director4 Board of Directors5 Executive Committee6 Business Recruitment Committee8 Marketing Committee14 Operations Committee16 Financials28 Board of Directors Photos

Table of Contents

Ian O’DonnellExecutive Director

Mary DaviesOffice Manager and Executive Assistant

Tracy HyattManager of Marketing & Communications

Kayla ShapkaMarketing Coordinator

Downtown Business Association Staff

Mission Statement Through its leadership in advocacy and promotion, the intent of the Downtown Business Association is to support, connect, and enrich Edmonton’s Downtown community.

GoalsAs a non-profit organization funded by its members, the goals of the Downtown Business Association are to:

• PromoteDowntownEdmonton’simageandidentitythroughevents,promotionsandmarketing. • Communicatetheon-goingtransformationofDowntown,whilemaintainingthehistoricalesthetic

throughpreservationandrevitalization. • Encouragethehigheststandardsfornewdevelopmentsandpromotebeautification,safety,

mobility,andinclusivity. • Provideleadershipandcommunicatemattersofconcerntomembers,governmentofficials,and

thepublic. • Partnerwithlike-mindedorganizationstoworkonstrategicinitiativesaffectingtheDowntowncore.

Association Legal ProfileThe Downtown Business Association of Edmonton Business Improvement Area (BIA) was established by a City ofEdmontonbylawonNovember26,1985.

The Association represents and services for-profit businesses located within the geographical boundaries of 95 Streetto111Street,and95Avenueto105Avenue.TheCity’sofficialDowntownBIAisBylaw#7968(asamended).

The members of the Board of Directors are elected by DBA members, and subsequently approved by City Council.BoardmembersrepresentlargeandsmallbusinessesandotherimportantinstitutionswithintheBIA.TheCityCouncillorwhorepresentsDowntownisanex-officiomemberoftheBoard.

TheBoardofDirectorsoverseesallAssociationaffairs,includingthepreparationoftheannualbudget.Uponbudget approval by the members and City Council, a uniform rate is established for the levy to all businesses withintheBIA.Subjecttominimumandmaximumcharge,thelevyappearsonthetaxnotice.

Introduction

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Message From the ChairIt’snosurprisethat2018provedonceagainthatDowntownEdmontondrivesgrowthinthiscity.In2018,the$5-billiontransformationofDowntown hit its midway mark with the completion of Royal Alberta Museum.WewelcomedStantec’s1,500employeesintothedowntowncore with the completion of Stantec Tower; their presence Downtown is awelcomedboostofenergy.

Withmanyofthesedevelopmentprojectsfinishing,ourfocusin2018wastoensurethatthemomentuminDowntowncontinues.Thiswasachievedbyworkingcollaborativelywithourmembers,stakeholdersandresidentsofthiscommunity.WhiletheDowntownBusinessAssociationhasfacedseveralchallengesoverthepast few years, the remarkable strength and resiliency of the staff, Board of Directors and committee members hasbeeninstrumentalinovercomingthem.AswecontinuetomakegreatprogressinengagingwithourmembersweremaincommittedtoadvocatingandpromotingDowntownasagreatplacetolive,workandplay.

In2018wedeliveredonourstrategicplanandhaveincreasedawarenessaboutwhattheDBAdoes.InNovember,weheldasecurityforumtodiscussperceivedsecuritychallengesDowntown.Theforumwasattendedbybusiness owners, support agencies, the City of Edmonton, politicians and Downtown residents and identified waysforustocollaboratewiththecommunityandstayinformedaboutwhatishappeningonourstreets.

WeworkedtoraisetheprofileofDowntownEdmonton’srestaurantswithtwonewdiningprograms.Fifteenrestaurants competed in our inaugural patio contest which invited the public to dine at Downtown patios summer-longandthenvotefortheirfavouriteones.BuildingonthesuccessofDowntownDiningWeek,welaunchedthefour-dayHarvestFestinOctober,whichsawaboostinsalesforparticipatingrestaurants.

As the Downtown community continues to grow, our commitment to helping businesses prosper is even stronger.Thejourneyisongoing,buttheknowledgeandhardworkofourstaff,boardandcommitteememberswillcontinuetodeliverontheprogresswemadein2018.

Robert BothwellChairDowntown Business Association

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Message From the Executive DirectorThe transformation of Downtown is now transitioning towards one of connectivityandcommunitybuilding.

In 2018, we saw millions of dollars invested in Downtown from both the privateandpublicsectors.Wecelebratedtheopeningofthetallesttower outside of Toronto with the completion of the 66-storey Stantec

Tower,whilewelcomingthecompany’s1500-plusstaffmembersintothecore.Wesaw182newbusinesslicences issued for Downtown and continue to see optimism on the horizon, as we make Downtown even more desirableasaplacetodobusinessorrelocateto.

ArtsandculturalorganizationsarealsobreathingnewlifeintoDowntown.WesawtheopeningoftheRoyalAlbertaMuseum,bookendingourculturalcore,andtheannouncementoftheWinspearCentreforMusic’s$55-millionexpansionplans.TheStanleyA.MilnerLibrarycontinuesitsrenovationandexpansionwithanopeningexpectedinQ1of2020.TheCitadelcelebratedtheinauguralDickensFestinDecember,awinterevent that we plan to grow in future years to attract thousands to our Downtown to shop and be entertained in anewandcreativeway.OurstunningArtGalleryofAlbertahostedanincrediblearrayofcollections,openingsandevents.Collectively,theseamazinginstitutionsshowcaseourDowntowninwaysinvaluabletousallandwecontinuetoworkcloselytosupportanddevelopnewwaystopartnerandshareamazingexperiences.

Our Executive, Board, Committees and staff continue to work diligently on key issues for our members including,economicdevelopment,safety,beautification,residentialinfillandcleanliness.Ourvalueproposition toourmemberbusinessesisattheheartofwhatwedoandhowwedeliverourservices.

The DBA will continue to work towards increased connectivity with our key stakeholders and find ways to connectwithnewandemergingpartners.

Wecouldnotbemoreexcitedaboutwhat’sonthehorizonforDowntown.Let’scontinuethemomentum!

Sincerely,

IanO’DonnellExecutive DirectorDowntown Business Association

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TheBoardofDirectorsplaysapivotalroleingoverningtheDowntownBusinessAssociation’soperations, including management, economic development and finance, planning, marketing and events,andmemberservicefunctions.ThemembersoftheBoardareelectedattheAnnualGeneralMeetingandconfirmedbyCityCouncil.TheyrepresentthediverseneedsandinterestsoftheAssociation’sconstitutionandDowntownEdmonton.TheBoardofDirectorsmeetsmonthlytoreview committee actions and approve the priorities for future Association endeavours, as well as approveandimplementstrategiesandtacticswithregardtotheStrategicPlan.

Robert Bothwell, ChairBennett Jones LLP

Alyson Hodson, Co-ChairZag Creative

Gord Rajewski, Past ChairPinchinLtd.

Zarina Bhambani, TreasurerKPMGLLP

Patrick Saurette, Executive

Bob Black KatzGroup

Casey McClelland Colliers International

Chris Graham Shoppers Drug Mart

Deborah SaucierMacEwanUniversity

Ian LargeLeger

Garrett Turta Fairmont Hotel Macdonald

2018 DBA Board of Directors

Linda Wedman TheWorksSociety

Martin Kennedy EPCOR

Sheldon Magnes Imperial Parking

Wayne Kryzalka ATB

Ex Officio:Scott McKeen

Paul Ross/Jeff Chase

Members

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Robert Bothwell, ChairBennett Jones LLP

Alyson Hodson, Co-ChairZag Creative

Gord Rajewski, Past ChairPinchinLtd.

Zarina Bhambani, TreasurerKPMGLLP

Patrick Saurette, Executive

The Executive Committee governs the managementfunctionoftheAssociation.Itspurpose is to recommend policy, monitor the implementation of the Strategic Plan, review committee reports, make recommendations to the Board of Directors and provide input on overallstaffoperations.TheExecutiveCommitteeis also responsible for the finances and financial proceduresoftheAssociation.

Executive Committee

Members

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The Business Recruitment Committee (BRC) focuses on ways to improve the business environment intheDowntowncore.AdditionalprojectsinthesummerandthroughouttheyearareaimedatbuildinganincreasinglylivableandwalkableDowntowncorewithabusiness-friendlyenvironment.

BRC Members are experienced real estate and property management executives who have an interestinmakingDowntownEdmontonthebestplacetodobusiness.

Business Recruitment Committee

Casey McClelland, ChairColliers International

Mark AndersonCBRE

Dustin BateykoCushman&Wakefield

Jonathan FraserDLA Piper (Canada) LLP

Lance FrazierCushman&Wakefield

Kevin GlassColliers International

Cameron HaldaneKrahnGroup

Jeremy HaywardSOLUT

Nick Lilley UniversityofAlberta

Camille LoreauQualico Developments

Denes NemethAIMCO

David Olson Lizottte Real Estate

Members

Scott RidellATB

Glen ScheuermanMorguard Investments

Jimmy ShewchukEEDC

Brad SmithTheCanapenGroup

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2018 BRC Highlights

The DBA 2018 business report The Future of Retail in Downtown Edmonton wasdeliveredinAugust,inpartnershipwiththeAlbertaSchoolofBusiness.The report highlighted the need for more experiential retail and clothing options.

Parking continued to be the number one complaint of businesses and visitors, highlighting the need for a parking strategy to be developed in 2019 in conjunctionwiththeMarketingCommittee.

Improving business permit times and reducing red tape continued to be a focusoftheCommittee.

The impact of cannabis legalization was a continued topic of discussion, asitrelatedtoretailbays/strategiesandstrategicpartnerships.

On the topic of office retention and attraction, tech expansion and a “flight-to-quality” for international firms drove most of the Downtown transactionsin2018.

Concerns around cleanliness levels and specific safety issues persisted from landlordsandtenantsalike.

72%ofDowntownbusinessesreportedthattheyweregrowingorstable.

182newbusinesslicenseswereissuedin2018.

Buildingpermitstotalled496withaconstructionvalueof$416M.

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AkeypriorityoftheDowntownBusinessAssociation’sMarketingCommitteeistoprovideinputonhowtodrawvisitorstoDowntownandshowcaseallDowntownhastooffer.TheMarketingCommitteehelpsidentifytargetaudiences,marketingchannelsandeventsthathelpmeettheobjectivesidentifiedintheDBA’sMarketingandCommunicationsPlan.

Ian Large, ChairLeger Marketing

Marvin BabiukEdmonton Transit Service

Jessica ChanCBC

Krystina SilvaCBC

Moirae ChoquetteEEDC

Jon Hall104 Street Committee

Anastasia LimUniversityofAlberta

Lorne MillerATB Financial

Marlene TasseEPCOR

Lisa HeerenspergerGrantThorntonLLP

Gillian ThomsonDIALOG

Nykala ShoneEEDC

Melanie StrohTheWestin

Marketing Committee

Members

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2018 Highlights

In March, hundreds of food lovers participated in Downtown DiningWeekenjoyingmulti-coursemealsat37participatingrestaurants.DowntownDiningWeekistheDBA’slargestannual event and one with the greatest economic impact for businesses.DowntownDiningWeekdinerssurveyedreportedthat they shopped at Downtown retailers, attended events, visited attractions and spent money on parking during the 10-dayevent.

OurannualluncheonsprofileissuesofimportancetotheDowntowncommunity.AtourSpringLuncheon,wepresented“TheWayWeMove,”highlightingtheValleyLineLRTproject.AtourFallLuncheon,wespotlightedthe106thGreyCupFestival,Canada’slargestsportingevent.

Morethan700participantsjoinedCoreCrewduringthesummermonthsforfreedailywalkingtoursoftheDowntownarea.TheCoreCrewalsoprovidehelpfulvisitorinformationandassistinkeepingDowntownstreetslitter-free.

FollowingthesuccessofDowntownDiningWeek,October2018sawthepilotofHarvestFest,asmallerversionofDowntownDiningWeek.Eighteenrestaurantsparticipatedinthefour-dayfallevent.

To coincide with the holidays, the Park in the Heart campaign informed visitors to Downtown of the ease andabundanceofDowntownparkinganddispelledmyths.

TheDBAcontinueditsworkwiththeCityofEdmontonontheWinterLightsprogram.FromOctobertoMarch,50DBAmulti-colouredbulbsilluminatedChurchillSquare.

Afteraone-yearhiatus,theDBAChristmasTreewasbackinChurchillSquare.DuetoLRTconstruction,theNovembereventwasscaledbacksignificantly.ThekickoffeventinNovemberincludedtheofficiallightingofthegiantChristmastree,carollersandfreehotchocolateforattendees.

InDecember,theHolidayWindowDecoratingContestencouragedbusinesstodressuptheirwindowstoaddtothefestivefeelofDowntown.InDecember,morethan800shoppersvotedonlinefortheirfavouriteDowntownwindows.

In December, we partnered with City Market to present Santa at the Market, the only public Santa event heldDowntown.

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Festival Grants

EventsareacriticalpartoftheDBA’smarketingmixandakeywaytosupportvibrancyacrossDowntown.DBA-hostedevents,suchasDowntownDiningWeek,HarvestFest,CoreCrewWalkingToursandTheChristmas Tree, attracted thousands of visitors to the area and provided positive, authentic and engaging Downtownexperiences.

Aside from our own hosted events, the DBA also provides$80,000ingrantstofestivalstakingplace intheDowntowncore.Festivalsthatdemonstrateexciting and innovative programming, a positive economic impact on the Downtown community and businessesareeligibleforupto$10,000infinancialsupport.In2018,10festivalsreceivedfinancialsupportfromtheDBA.

AnimethonCariwestEdmonton International Film Festival Edmonton International Jazz FestivalJewish Film FestivalLitFestEdmonton Poetry FestivalTaste of EdmontonUp + Downtown The Works Art & Design Festival

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Non-Grant Event & Sponsorships

Throughouttheyear,theDBAalsoprovides$15,000infinancialsupporttosmallereventsthatdonotmeetfestivalgrantcriteria.TheseeventsmustalsoincreasethevibrancydowntownandprovideeconomicbenefitsforDowntownbusinesses.SomeoftheeventsthattheDBAfundedincludedthefollowing.

Servus Edmonton MarathonFruit Loop Block PartyMacEwan University Block PartyChinese Lantern FestivalQuarters Pop-Up PartyBOMA Awards Gala

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The Year in Review

Feb 12 2018

A successful, vibrant #Downtown is one that is inviting to all. Please consider helping us reach our 150K goal

Mar 12, 2018

Downtown Dining Week is a great

excuse to get together with friends and family over some delicious food. #yegfood #DTDWyeg

Jun 6, 2018

2018 DBA Retail Survey Tell us what you think about shopping in the Downtown #Edmonton & let us know how we can make it great! #yegdt

June 15 2018

Round up your friends or colleagues for a FREE guided tour! Book

your tour at the link below! #yegdt #ExploreEdmonton

Jan 31 2018

Need help finding a convenient parking option Downtown? Let us help #yegdt #yegparking

March 5, 2018

Our popular Boomin’ Boulevards program is back for another year. Brighten up the front of your business or street by planning your order before March 12.

March 27, 2018

The Downtown Business Association is proud to announce its charity of choice for 2018 & 2019 is @iHumanYouth. Learn more, donate, volunteer.

Apr 16, 2018

Do your part to help make our #yegdt cleaner this spring. Let’s all get a broom out and sweep that first 2” of snowbank/gravel/debris back into the gutter before the street-sweepers arrive.

July 19 2018

Is there a more delicious festival? The @TasteofEdm runs July 18-29th at the Capital Plaza on the Legislature Grounds. Come and explore your #Downtown.

May 17, 2018

Congrats to @danielscosta (+team) for being the 2018 recipient of our Business Recognition Awards. You continue to put #yegdt #Edmonton on the #culinary map

June 9 2018

Our beautiful Bloomin’ Blvd barrels and baskets are being delivered as we speak to over 120 locations in and around the #Downtown. Learn more about the program.

June 25 2018

Looking forward to the opening of The Quarters #Skatepark pilot project this Wednesday June 27th. Come out and see what all the excitement is about.

July 16 2018

Don’t forget that this Friday is the annual @Northlands #KdaysYEG parade on Japser Avenue.

With more than 5,000 active followers and an average of 70,000 monthly impression, the @DBAYEG Twitter account has been an increasingly important tool to communicate and engage with our members, public and stakeholders. A look at some of our top tweets of the year.

Feb 5 2018

Are you non-profit with a multi-day festival in #yegdt? Learn more about how you can receive up to $10,000 in grants.

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10 Oct 2018

Which restaurants are you going to try? #yegdt #DBAHarvestFest #yeg #yegevents #yegfood #ExploreEdmonton

9 Nov 2018

Thank you to all our amazing partners! We could not be happier to bring a tree back to Churchill Square for the entire city to enjoy this holiday season. #YEG #Edmonton #YEGDT

18 Nov 2018

Excitement is building in Downtown #Edmonton #BringTheHeat #GreyCup #CFL #YEG #Alberta #Canada #ExploreEdmonton #TravelAlberta #yegdt #yegevets #yegbiz

9 Aug 2018

Did you know that the DBA is a founding (& very proud) partner of #DowntownProud? This is but one of the @BoyleStreet @Boyle_Venture; not only does it help make our #yegdt clean, but it provides employment/skills to wonderful people like Denise. Be sure to say hi to her!

4 Sep 2018

How #yegdt is becoming a #techhub: @Bioware @DeepMindAI part of a surge in #Downtown #Edmonton’s office market.

30 Sep 2018

Thank you to @NuitBlanceEd, its

partners, sponsors, and volunteers for transforming #yegdt last night. It was great to see many taking in the wonder and beauty. #NBE2018 #nuitblanche2018 #NuitBlancheYEG #Edmonton #YEG #yegarts

24 Sept 2018The DBA is incredibly proud to

support the #RustMagic festival, along with our newest & largest mural. They still need your support! Consider donating. #YEGDT #YEG #Edmonton #Alberta #yegbiz

20 Nov 2018

Welcome to the neighbourhood @Stantec! Our team dropped 1,200 Downtown Guides and about 1,000 maps off today to ensure that everyone can find their way and explore our transforming Downtown. If your organization would like to do the same, just us know. #YEG #yegbiz #yegdt

edmontondowntown.com

The Downtown Business Associa�on Presents

Harvest FestOctober 11-14, 2018

Downtown’s finest restaurants serve seasonally inspired dishes

Allegro Italian KitchenBlack Pearl Seafood BarBlue Plate DinerBo�ega 104District Café and BakeryHardware GrillThe Harvest RoomLa RondeMadison's Grill

The Marc RestaurantPampa Brazilian SteakhouseRiver City Revival HouseRocky Mountain IcehouseRuth's Chris Steak HouseSelect RestaurantShareSorren�no's DowntownTZiN Wine & Tapas

Join us at the City Market on Saturday, October 13th for vendor specials, draw prizes, free face painting & balloon art (from 9am - 1pm), and free Market Bucks to the first 200 people!

12 December 2018

Our ED @IanOyeg sat down with @BoyleStreet’s ED Julian Daly earlier this week to discuss new strategies to engage, educate and find a better way forward for all.

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Operations Committee

The Operations Committee works extensively with various departments of the City of Edmonton and membersofthebusinesscommunityregardinginfrastructure,safetyandsecurityissues.Theobjectives oftheCommitteeincludeproactiveprojectsandmonitoringintheareasofDowntownbeautification,maintenance,safety,securityandoperationalmattersinbothpublicandprivatesectors.

The Committee is supported by a wide range of security personnel, civic employees, parking and property management executives who are responsible for the planning and development, daily operations, and managementofvariousDowntownbuildings,businesses,transportation,andsecurity.

Gord Rajewski, ChairWilliamsEngineering

Langford BawnEdmonton Transit Service

Grant BlaineCity of Edmonton,Security Coordinator

Candis BohnCapital Power Corporation

Paul BuckBorougCity of Edmonton,City Community Standards & Neighbourhoods

Tammy FrancisCity of Edmonton, City Services

Sandy GosselinCapital Power Corporation

David HoldsworthCity of Edmonton, Sustainable Development

Flemming KristensenEPCOR

Sheldon MagnesImpark

Stacey MitchellCity of Edmonton,Horticulture/Infrastructure Operations

Shannon MurrayCity of Edmonton,Community Services

Darrell NordellCity of Edmonton,Citizen Services

Nicole NunesCity of Edmonton,Neighhourhood Empowerment

Jenna PilotCity of Edmonton,Citizen Services

Superintendent Terry RocchioEdmonton Police Service

Karey SteilCity of Edmonton,Community Standards

Stacey SwitzerCity of Edmonton,Parks & Roads Services

Lonny VanderheideOxfordPropertiesGroup

Sergeant Becky WrightEdmonton Police Service

Members

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2018 Highlights

Our annual Security Seminar took place in June, where wehadpresentationsonsupervisedinjectionsitesfromtheYEGAmbassadorprogramandtheEdmontonPoliceService.

Weinvitedmorethan60stakeholderstoasafetyforumin November to share stories and discuss the top issues facingDowntown.

The DBA and the Operations Committee thanked outgoing Edmonton Police Service Chief Rod Knecht for hiscommitmenttotheDowntown.

OursponsorshipofDowntownProudandpartnershipwiththeCityofEdmonton’sCapitalCityCleanUpcontinuedtoworktowardsacleanerandmorebeautifulDowntowncore.

Memberbusinessesandorganizationsfunded123beautifulbarrelsandhangingflowerbasketsavailablethroughtheBloomin’Boulevardprogram.

Continued valuable work with various City of Edmonton departments ensured that streets were being cleaned, cleared of snow and that infrastructure was well kept and maintained, as we work towards a higher standardofcareforthekeyareasofourcapitalcity.

Initiated by Detective Nicole Davie of Edmonton Police Service, the DBA and various partners raised more than$150,000towardsanewplaygroundforMcKayAvenuetoensurethatourDowntownisinviting,inclusiveandimprovestheamountofnormalizedactivitiesinstrategicareas.

WorkingwithCityAdministration,EPCOR,MillarWesternandtheEdmontonPoliceService,webroughtourbeloved giant Christmas tree to Churchill Square, along with 50 glowing balls to the east garden of the squaretocreateabeautifulholidaydisplay.

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December 31, 2018Independent Auditors’ ReportTo the Board of Directors

OpinionWehaveauditedthefinancialstatementsofDowntownBusinessAssociationofEdmonton(theAssociation),whichcomprisethestatementoffinancialpositionasatDecember31,2018,andthestatementsofchanges in net assets, revenue and expenses, and cash flows for the years then ended, and notes to the financialstatements,includingasummaryofsignificantaccountingpolicies.

In our opinion, the accompanying financial statements present fairly, in all material respects the financial positionoftheassociationasatDecember31,2018,anditsfinancialperformanceanditscashflowsfortheyearsthenendedinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizations.

Basis for OpinionWeconductedourauditinaccordancewithCanadiangenerallyacceptedauditingstandards.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Weareindependentoftheassociationinaccordancewiththe ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilledourethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are freefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,managementisresponsibleforassessingtheassociation’sabilitytocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the association or to cease operations,orhasnorealisticalternativebuttodoso.

Thosechargedwithgovernanceareresponsibleforoverseeingtheassociation’sfinancialreportingprocess.

Auditor’s Responsibilities for the Audit of the Financial StatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconducted in accordance with Canadian generally accepted auditing standards will always detect a material

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December 31, 2018

Chartered Professional Accountants

misstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individually or in the aggregate, they could reasonably be expected to influence the economic decisions of userstakenonthebasisofthesefinancialstatements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessoftheassociation’sinternalcontrol.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditionsthatmaycastsignificantdoubtontheassociation’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttothe related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However, future events or conditions may cause the association to cease to continue as a going concern.

• Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatements,includingthedisclosures, and whether the financial statements represent the underlying transactions and events in a mannerthatachievesfairpresentation.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeand timing of the audit and significant audit findings, including any significant deficiencies in internal control thatweidentifyduringouraudit.

Edmonton, CanadaMarch 21, 2019

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December 31, 2018Statement of Financial Position

On behalf of the Board:

As at December 31

2018 2017

$ $

ASSeTS

Current

Cash and cash equivalents 439,198 281,574

Short-term investments 205,787 205,345

Accounts receivable 7,217 10,353

Prepaid expenses and deposits 7,739 15,727

659,941 512,999

Capital assets [note 3] 52,986 37,991

712,927 550,990

LIAbILITIeS AnD neT ASSeTS

Current

Accounts payable and accrued liabilities 209,853 38,280

Provision for redemption of parking tokens [note 4] — 127,539

Current portion of deferred lease inducement 4,575 4,575

214,428 170,394

Deferred lease inducement 9,149 13,724

223,577 184,118

Commitments [note 5]

net assets

Internally funded capital assets 52,986 37,991

Internally restricted for specific initiatives 436,364 308,881

Unrestricted — 20,000

489,350 366,872

712,927 550,990

See accompanying notes

Chair Executive Director

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December 31, 2018Statement of Changes in Net Assets

Year ended December 31 Internally restricted Internally funded Specific capital assets initiatives Unrestricted Total2018 $ $ $ $

balance, beginning of the year 37,991 308,881 20,000 366,872

Excess of revenue over expenses — — 122,478 122,478

Purchases of capital assets 32,440 (32,440) —

Amortization of capital assets (17,445) — 17,445 —

Transfers from specific initiatives [note 6] — (39,784) 39,784

Transfers to specific initiatives [note 6] — 167,267 (167,267) —

balance, end of the year 52,986 436,364 — 489,350

Internally restricted Internally funded Specific capital assets initiatives Unrestricted Total2017 $ $ $ $

balance, beginning of the year 32,905 280,458 20,000 333,363

Excess of revenue over expenses — — 33,509 33,509

Purchases of capital assets 13,885 — (13,885) —

Amortization of capital assets (8,799) — 8,799 —

Transfers from specific initiatives [note 6] — (27,819) 27,819 —

Transfers to specific initiatives [note 6] — 56,242 (56,242) —

balance, end of the year 37,991 308,881 20,000 366,872

See accompanying notes

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December 31, 2018Statement of Revenue and Expenses

Year ended December 31

2018 2017

$ $

Revenue

Business Improvement Area levy 1,224,586 1,224,586

Sponsorships [note 7] 334,275 347,184

Downtown Dollar program closed [note 4] 125,777 5,325

Advertising and other 18,930 16,650

Interest 3,501 2,154

1,707,069 1,595,899

expenses [note 7]

Special events and programs 522,583 548,176

Public relations and marketing communications 273,457 279,271

Winter Lights program 162,990 169,207

Downtown Dollar program 670 4,793

Administration

Wages and employee benefits 427,036 365,469

Rent and occupancy costs 106,217 101,927

Office 29,362 32,130

Professional fees 20,976 18,676

Travel, training and recruitment 2,361 9,668

Amortization of capital assets 17,445 8,799

Meetings 5,792 8,508

Postage and courier 5,375 5,491

Telephone and utilities 4,168 3,697

Insurance 3,408 3,526

Bank charges 2,751 3,052

1,584,591 1,562,390

excess of revenue over expenses 122,478 33,509

See accompanying notes

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December 31, 2018Statement of Cash Flows

Year ended December 31

2018 2017 $ $

Operating activities

Received from Business Improvement Area levy 1,224,586 1,224,586

Received from sales, special events and programs 45,333 53,140

Gain from write-off of redemption balance 125,190 —

Amounts paid to vendors and employees (1,208,104) (1,363,366)

Interest received 3,059 2,245

Cash provided by (used in) operating activities 190,064 (83,395)

Investing activities

Purchases of capital assets (32,440) (13,885)

Cash used in investing activities (32,440) (13,885)

Increase (decrease) in cash and cash equivalents 157,624 (97,280)

Cash and cash equivalents, beginning of the year 281,574 378,854

Cash and cash equivalents, end of the year 439,198 281,574

See accompanying notes

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December 31, 2018

1. Nature of the Organization

On November 26, 1985, the City of Edmonton Municipal Council passed a Bylaw establishing the Downtown Edmonton Business Revitalization Zone (renamed Business Improvement Area effective January 1, 2017) and incorporating the Downtown Business Association of Edmonton [the “Association”] under the Municipal Government Act.

The mandate of the Association is “support, connect, and enrich Edmonton’s Downtown Community.” Its goals are to promote Downtown Edmonton’s image and identity through events, attractions and marketing; to encourage planning and environmental standards for new developments and to promote beautification, safety and mobility; to provide leadership and to communicate matters of concern to members, government officials and the public.

The Association is a not-for-profit organization within the meaning of the Income Tax Act (Canada) and is

exempt from income taxes.

2. Summary of Significant Accounting Policies

Basis of Presentation These financial statements were prepared in accordance with Part III of the Chartered Professional

Accountants of Canada Handbook – Accounting Standards for Not-for-Profit Organizations, which sets out generally accepted accounting principles for not-for-profit organizations in Canada, and include the significant accounting policies described hereafter.

Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and term deposits with initial maturity dates of less

than 90 days. Short-Term Investments Short-term investments consist of term deposits with initial maturity dates of between 90 and 365 days.

Notes to Financial Statements

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December 31, 2018

Capital AssetsPurchased tangible and intangible capital assets are recorded at acquisition cost. Contributed tangible and intangible capital assets are recorded at fair value at the date of contribution. Amortization is determined using the straight-line method over the estimated useful lives of the assets as follows:

Tangible Tokens 3 years Office equipment and furniture 5 years Computer equipment 3 years Tenant improvements Over the lease term

Intangible Website 3 years

Revenue RecognitionThe Association follows the deferral method of accounting for contributions, which include grants and donations. Externally restricted contributions are deferred when initially recorded in the accounts and recognized as revenue in the year in which the related expenses are recognized. Grants are recognized in the accounts when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Other donations are recorded when received, since pledges are not legally enforceable claims. Unrestricted contributions are recognized as revenue when initially recorded in the accounts.

Contributions for the acquisition of capital assets are presented as “deferred contributions – capital” and are amortized to revenue on the same basis as the acquired capital assets are amortized.

Sponsorships and sales are recognized when the services have been provided.

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December 31, 2018

2. Summary of Significant Accounting Policies (continued)

Contributed Materials, Services and FacilitiesThe Association records contributed materials, services and facilities in those cases where:

[a] the Association controls the way they are used; [b] there is a measurable basis for determining fair value; and [c] the services are essential services which would normally be purchased and paid for if not contributed.

Otherwise, contributed materials and services are not recorded in the financial statements.

Financial instruments Short-term investments are recorded at fair value. Other financial instruments, including accounts

receivable and accounts payable and accrued liabilities, are initially recorded at fair value and subsequently measured at amortized cost.

Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities, related amounts of revenue and expenses, and the disclosure of contingent assets and liabilities. Significant items subject to such estimates and assumptions include the carrying amount of capital assets. Actual results could differ from those estimates.

Notes to Financial Statements (continued)

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December 31, 2018

3. Capital Assets

Year ended December 31

2018 2017

Accumulated Accumulated Cost amortization Cost amortization $ $ $ $TangibleTokens 16,150 16,150 16,150 16,150Office equipment and furniture 114,181 96,282 113,367 90,634Computer equipment 31,343 25,056 24,816 21,927Tenant improvements 91,754 72,464 80,504 68,135 253,428 209,952 234,837 196,846IntangibleWebsite 33,500 23,989 19,650 19,650 286,928 233,941 254,487 216,496net book value 52,986 37,991

4. Provision for Redemption of Parking Tokens

The provision for redemption of parking tokens represents the redeemable amount of Downtown Dollar parking tokens sold but not redeemed at year end.

Due to changes in parking technology throughout the City of Edmonton, the parking tokens have become obsolete. Sales of the tokens ended on June 30, 2017 and the redemption of tokens in circulation ended December 31, 2018.

The number of tokens returned during 2018 was minimal and future returns are not expected. As a result, the redemption liability was reduced to nil. If any tokens are returned for redemption or refund in the future, the Association will record these expenses in the future periods.

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December 31, 2018

5. Commitments

The Association is committed to future minimum annual lease payments required under operating leases for office equipment and premises as follows:

$

2019 237,0142020 237,0142021 235,8212022 125,0002023 125,000 959,849

The annual commitments include estimated operating costs and property taxes based on current year amounts.

In 2009, the Association entered into an agreement with the City of Edmonton to fund the replacement of old Christmas lights with a new Winter Lights program, designed to enhance the look of Downtown Edmonton throughout the winter months. The Association is committed to paying the City of Edmonton approximately $175,000 per year until 2018 and approximately $125,000 per year thereafter for an indeterminate period.

6. Internally Restricted Net Assets

The Board of Directors has formally imposed restrictions on certain of the Association’s net assets. Internally restricted net assets used to fund specific spending initiatives in support of the Association’s mandate are approved by the Board of Directors from time to time.

For the year ended December 31, 2018, $39,784 [2017 – $27,819] was approved by the Board of Directors to be used for specific initiatives. For the year ended December 31, 2018, $167,267 [2017 – $56,242] was transferred to internally restricted net assets to fund future initiatives.

Notes to Financial Statements (continued)

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December 31, 2018

7. Contributed Materials, Services and Facilities

Sponsorships revenue includes contributed materials, services and facilities of $311,595 [2017 – $317,484], which are equally offset by amounts recorded in a number of expense categories.

8. Financial Instruments

The Association is exposed to various financial risks through transactions in financial instruments.

Credit RiskThe Association is exposed to credit risk in connection with its short-term investments and accounts receivable because of the risk that one party to the financial instrument may cause a financial loss for the other party by failing to discharge an obligation. The Association monitors outstanding accounts receivable balances regularly and allows for uncollectible amounts when determined. Short-term investments are invested with a large financial institution. There has been no change to credit risk from the prior year.

Interest Rate RiskThe Association is exposed to interest rate risk with respect to its fixed rate investments because the fair value will fluctuate due to changes in market interest rates. There has been no change to interest rate risk from the prior year.

Liquidity RiskThe Association is exposed to the risk that it will encounter difficulty in meeting obligations associated with its financial liabilities. The Association manages liquidity risk by monitoring its operating requirements, and prepares a budget and cash forecasts to ensure it has sufficient funds to fulfill its obligations. There has been no change to liquidity risk from the prior year.

9. Related Parties

Certain entities who employ members of the Board of Directors provide services to the Association. These legal and banking services are provided in the regular course of business and are recorded at their exchange amounts, being the amounts agreed to by both parties. During the year, the Association incurred $2,300 of legal and $1,331 of banking fees with these entities.

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Robert bothwellChairBennett Jones LLP

Deborah SaucierMacEwan University

Alyson HodsonCo-ChairZag Creative

Gord RajewskiPast ChairPinchin Ltd.

Ian Large Leger

bob black Katz Group

Martin Kennedy EPCOR

Wayne Kryzalka ATB

Patrick SauretteExecutive

Zarina bhambani TreasurerKPMG LLP

Casey McClellandColliers International

Chris GrahamShoppers Drug Mart

Garrett TurtaThe Fairmont Hotel Edmonton

Sheldon MagnesImperial Parking

Linda Wedman The Works Society

2018 Executive Committee

2018 Board of Directors

Ian O’Donnell Executive Director

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Photo (op

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hylead.ca

10121 Jasper Ave Edmonton, AB, Canada T5J 4X6phone: 780.424.4085

fax: 780.425.7805

edmontondowntown.com