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200220 BIA AGD 1 Tillsonburg Business Improvement Area Meeting Agenda Board Meeting of Thursday, February 20th, 2020 Carriage Hall 7:30 am – 9:30 am Breakfast at 7:00 am 1. CALL TO ORDER: Time: _______ QUORUM: Count members present Guests present: __________________________________________________ 2. ADOPTION OF THE AGENDA: a. moved by: ______________ seconded by: _____________ And resolved that the agenda as prepared for the BIA Board of Management meeting for Thursday, February 20th, 2020 be adopted. 3. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF: 4. ADOPTION OF THE MINUTES from the board meeting of January 23rd, 2020 a. moved by: _______________ seconded by: _______________ “And resolved that the minutes, as prepared for the meeting of January 23rd, 2020 be adopted”. 5. DELEGATIONS: None 6. EVENTS AND MARKETING CO-ORDINATOR’S REPORT: a. Website follow-up - discussion b. Update on events – completed and proposed. c. Sponsorships: finalizing plan details for the banner program, working on Sponsor Levels/Benefits and Truck Mock-ups – update. d. Media releases issued this month – discussion. e. Social Media – discuss metrics for the month to date and feedback. f. BIA Associate Member Program – staff recommends a $500 fee for small business owners outside of the BIA zone to be able to participate with BIA promotional activities subject to board approval. 2 g. Electronic Bulletin Board (EBB) status update: software and help-desk issues, verbal report: the issue has been escalated and the vendor will be on-site the week of February 17, 2020. This is priority one for completion. 7. FINANCIAL REPORT: Funds on deposit at CIBC: as at 01/31/2020: $86,922.00; Funds on deposit at FirstOntario: as at 01/31/2020: $66,378.49; Total funds on hand as of 01/31/2020: $153,300.49. Remaining funds due to the BIA from the Town: includes the HST rebate of $20,063 +/-; damaged items from AODA construction & snow removal, also the missing credit from Rona (town public works account issue): $8,200. The ED will be relentless with the follow-up. The ED will be following up with town Finance Dept. about various matters relating to the payment issues in 2019. The ED strongly recommends that Councillor D. Gilvesy, the Board Chair and new Town CAO Kyle Pratt should meet to discuss all outstanding financial issues from years’ prior. The ED and bookkeeper met with the Millard’s last week and the review was enlightening. D. Latta intimated that the town-initiated invoicing from 2018 will require a prior-period adjustment. This is an issue that should not occur under any circumstances. Millard’s also indicated that the Town of Tillsonburg should not be deducting any items from the levy payments other than normal tax adjustments. All items that the town believes should be paid; must be invoiced and accompanied with the requisite back-up documentation. The ED has proposed changes to the MOUD to reflect this requirement. It makes a mockery of board fiduciary responsibility with payments being deducted without Board approval. Particularly with reference to unbudgeted items. 8. FIP RENDERING AGREEMENT AND COST: The ED has received an updated costing proposal from David Frei. Mr. Frei has provided work at an exemplary level and BIA staff are supportive of the new fee proposal. The quality of Mr. Frei’s work has elevated the image and respect for the FIP and BIA. 9. EXECUTIVE DIRECTOR’S REPORT: The ED and EMC have made numerous visits with BIA members during the past month. The vast majority of feedback has been positive. Concerns raised include: homeless people sleeping in heated ATM enclosures/vestibules; benches providing comfort for homeless people (FirstOntario); needles found in TTC parking garage and other social issues rearing their ugly heads. BIA staff will be communicating 3 these concerns with town representatives including the Chair of the Police Services Board. Kurt Hill from McFarland-Rowlands has presented a retirement plan for the BIA with 5% contributions from 2020 budget as per direction of the Treasurer. Pending board approval; this will commence on or about March 1st, 2020. The plan only applies for the two full-time employees and the cost is $3,854.17 for 2020 which is included in the 2020 budget. The plan description is attached. This plan allows the full-time BIA employees to contribute above and beyond to maximize retirement savings with no additional cost to the BIA approved budget. There will be a nominal increase in our office rental costs for 2020 as the landlord, (Chamber of Commerce) has received notice that their rent is increasing in addition to the fact that we are now occupying more space in the premises. I do not yet have the proposal from Suzanne Renken; however this impact will be nominal and BIA staff will be adjusting spending to cover any such increase beyond the $3,600 approved budget for 2020. The ED will provide a copy of the new lease for Board approval upon receipt. Medical/dental benefits: the original proposal through the Chamber of Commerce quotation of $260.13 for Option A for both full time employees is the most cost- effective at $2,601.30 for the 10 remaining months of 2020 and is included in budget account #7610 of $7,965. Adding the retirement plan cost & benefits costs as outlined herein; would total $6,455.47 which would be favourable against the approved budget lines by $1,509.53. ADP has confirmed an upset limit for payroll processing to safeguard against any potential manipulation of payroll processing. Further to this; the reports are instantaneous and verifiable from/with the bookkeeper; independently of the payroll system itself. There is no financial risk to the BIA with said control systems. The bi-weekly reports will be attached to all monthly BIA agendas as evidence of compliance. The annual pay for full-time staff are locked in on an annual basis and can only be adjusted each January after board review. Other revenues, year-to-date to January 31st, are at $17,550 vs the full-year budget of $55,220 – this represents 32% of the budgeted amount. This also includes full cost recovery of the proposed work truck leasing costs. BIA staff recommends leasing the work truck vs. outright purchase. Report is attached in memo form. The purchase of the iMAC computer for the EMC – workstation that was discussed in the 2020 approved budget; was on sale at the local Staples 4 location. The purchase price of $2,150 was $149 less than the cost at apple.ca for the exact same item. The budgeted cost for this capital asset was $4,000 inclusive of the required printer. The EMC and ED have yet to purchase a printer; we expect this cost to be approximately $400. This would result in savings vs. the approved budget of $1,450 for the 2020 fiscal year. There has been a number of requests for non-BIA members to participate in BIA activities and also for possible adjustments to the BIA zone boundaries. The ED and EMC are compiling a list of interested parties which will form evidenciary components when the Town Clerk works with us on the boundary adjustment protocols for effect on January 1st, 2021. 10. MOUD with the Town of Tillsonburg: The Board Chair and ED met with town staff and CAO on Monday, February 10th for 1.5 hours. We presented the attached MOUD which provides for annual payments from the Town to the BIA of $41,185. The MOUD draft document is attached. The ED recommends holding firm on our requests given the number of issues that have resulted from past experience. This also has positive financial implications for the BIA and if executed; would result in additional positive cost synergies for the BIA in 2020. 11. Façade Improvement Program project update: a. J. Goosen’s project was completed and they have been paid $30.000. b. Willaert Appliance – has confirmed they will proceed with 2020 construction. c. Shane Curtis – old Royal Hotel site. In process of gathering data. D. Frei has already met on-site with the property owner. d. Joseph’s Furniture – renderings complete – awaiting next steps. e. MIT building at Ridout/Broadway (FirstOntario, Salvation Army). On-site meeting has been completed. Awaiting renderings from D. Frei. f. 21 Ridout Street West – Jennifer McLaughlin-Barr – former barbershop/restaurant i. ED, D. Frei and client to meet on site this week. 12. ROUNDTABLE: open discussion. 13. NEXT MEETING: a. Thursday, March 19th, 2020 at Carriage Hall – 7:00 am breakfast, 7:30 am meeting 14. MOTION TO ADJOURN: Time of adjournment: __________ a.m. 5 a. moved by: _______________ b. seconded by: ________________ 1 Tillsonburg Business Improvement Area MINUTES Board Meeting of Thursday, January 23rd, 2020 Carriage Hall 7:30 am – 9:30 am Breakfast at 7:00 am 1. CALL TO ORDER: Time: 7:32 am QUORUM: Yes 7/9 members present – C. Tomico, C. Pepper, J. Tilson, M. Van Geer Truyde, D. Rasokas, D. Gilvesy, M. Tedesco, M. Renaud, K. Slattery, D. Gilvesy Absent: C. Heutinck, A. Hicks 2. ADOPTION OF THE AGENDA: a. moved by: M. Van Geer Truyde seconded by: D. Gilvesy And resolved that the agenda as prepared for the BIA Board of Management meeting for Thursday, January 23rd, 2020 be adopted. 3. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF: none declared at this meeting. 4. ADOPTION OF THE MINUTES from the board meeting of December 19th, 2019 a. moved by: M. Tedesco seconded by: M. Van Geer Truyde “And resolved that the minutes, as prepared for the meeting of December 19th, 2019 be adopted”. 5. DELEGATIONS: none. 6. EVENTS AND MARKETING CO-ORDINATOR’S REPORT: The EMC delivered a report including a visual slide presentation. There were some questions about the four major projects between January and Turtlefest. The general feedback was very positive from the group. The EMC presented various mock-ups and graphics for upcoming initiatives including the work truck, banners, post cards, 2 etc. There were no concerns raised and the Board felt very positive about the direction of the marketing efforts. It was agreed to have the EMC provide this type of detailed presentation at each board meeting. The Board was very, very pleased and impressed the K. Slattery’s efforts. 7. FINANCIAL REPORT: Funds on deposit at CIBC: as at 12/31/2019: $98,064.29; Funds on deposit at First Ontario: as at 12/31/2019: $65,853.73; Total funds on hand as of 12/31/2019: $163,918.02. Remaining funds due to the BIA from the Town: Sobey’s: $2,500 + HST rebate of $20,063 +/- . There were no questions or concerns expressed by board members present. The ED will continue to follow-up with the Town’s Finance Dept. on all outstanding matters. 8. 2020 BUDGET: There were no comments or questions by the board members. The ED committed to revising the financial forecasts to reflect the issues with town payments and to follow-up with said concerns with the new Town CAO Kyle Pratt. 9. TURTLEFEST BUDGET & COMMITTEE UPDATE: Councillor Gilvesy and other board members discussed that there was no need for the Co-ordinator position to be approved by the BIA board. There was no discussion about passing the Turtlefest budget and a resolution was not put on the floor. 10. EXECUTIVE DIRECTOR’S REPORT: The ED presented the report and there were several questions. The ED will bring back detailed information and recommendation with respect to the payroll service provider; medical/dental/life insurance benefits; the retirement plan option and follow-ups to the financial concerns, MOUD, FIP, town staff interactions and follow-up to progress against the approved BIA budget and business plans. 11. MOUD with the Town of Tillsonburg. D. Rasokas, C. Tomico, M. Renaud and D. Gilvesy agreed to meet immediately following the BIA meeting. These discussions would be the basis for the document to be presented to the Town of Tillsonburg at an upcoming joint MOUD meeting between the parties. 12. Turtlefest MOUD – awaiting final submissions from the BIA board members and ratification by Turtlefest Committee. 13. Façade Improvement Program update: There was no feedback on the report. 3 14. NEXT MEETING: Thursday, February 20th, 2020 at Carriage Hall - 7:00 am breakfast, 7:30 am meeting 15. MOTION TO ADJOURN: Time of adjournment: 9:34 a.m. a. moved by: M. Tedesco b. seconded by: J. Tilson Mark Renaud Executive Director Tillsonburg BIA 20 Oxford St Tillsonburg, Ontario N4G 3P3 Dear Mr Renaud and Members of the BIA Last year SouthRidge Concept Rendering was happy to have been asked to assist with the Tillsonburg BIA Façade Program. An initial costing per project of $500 was decided upon. This was in line with what the previous design company was charging for their services. SouthRidge Concept Rendering strives to provide the best quality service and images possible. This has been shown in the work completed so far. Being local offers the ability to meet conveniently with business owners. Being a CG design company SouthRidge Concept Rendering can provide high quality photo realistic images, far superior to the 2-dimensional hand drawn versions previously utilized. Business owners are given the ability to make changes to design elements and see them in a timely fashion, sometimes even immediately firsthand. This is another advantage to being a local business. This is something that was not easily possible before with the previous designer. Façade designs once completed are presented in a professional pdf presentation that outlines the existing building as well as each proposed change. SouthRidge Concept Rendering continues to learn and develop new techniques to meet the needs of clients. This is done through purchasing the best programs available as well as by partaking in e- learning seminars and courses. As such SouthRidge Concept Rendering needs to ensure that pricing is in line with the service being provided. Moving forward pricing will be as follows: $1000 per project with a 10% discount per group of 3 or more (from the same business owner) Example 1 Business Owner A has a downtown building with 3 addresses amounting to 3 projects. $1000 x 3 minus 10% = $2700 Example 2 Business Owner B has a building with 5 addresses amounting to 5 projects. $1000 x 5 minus 10% = $4500 As before this pricing includes: - Preliminary CAD images as work progresses - Design changes as required - Finalized 2D CAD images - Finalized rendered image overlaid onto a photo using post image processing techniques or where required an entirely CG generated scene - Completed façade design outlined in a PDF presentation This new pricing better reflects the high-quality images provided by SouthRidge Concept Rendering. Consultation was made with other industry designers and SouthRidge Concept Rendering is confident that this pricing remains to be fair for the service provided. Sincerely David Frei Owner/Operator SouthRidge Concept Rendering Tillsonburg Business Improvement Area BIA Board of Management Report – Feb20-WT01 To: BIA Board of Management From: ED & EMC Date: February 14, 2020 Subject: BIA work truck ___________________________________________________________________ In the 2020 business plan, there was allocation for a work-truck/events vehicle to be used for BIA activities. DeGroote-Hill signed on as the first & primary sponsor at $1,000 per month and we have leveraged this commitment to get an excellent price quote for the truck. Discussion: The truck will be used as both a daily maintenance vehicle in addition to being used for promotional activities such as special events, parades, Turtlefest, etc. In reviewing the needs with Tammy Watts at DeGroote-Hill – they have suggested that a 2020 model is financially favourable particularly with respect the residual value of 74% on a 24-month lease. Upon enquiring as to a 2019 model; there are no incentives for a lower lease rate and fleet discounts only apply to “cash-only” transactions which makes the 2019 model more expensive. The original intent was to debenture the capital cost over a 5-year term to match the annual sponsorship income. This would add debt to the BIA which is already at a higher than acceptable level. The details below highlight the two primary options available. It is also necessary to mitigate risk into the longer term if the Town of Tillsonburg and BIA cannot agree on an equitable long term MOUD which could expose the BIA financially if the town does not agree to the BIA operations and capacity vis a vis Downtown cleanliness and organization. Staff are recommending the 4-door crew cab model as it allows for more space for marketing and advertising OPTION #1 – LEASE 24-month lease with bi-weekly net payments of $234.56 with a net retail price: $44,075 includes 4x4, spray-in bed liner, trailer hitch and towing package, crew cab – all fully offset by sponsorships. This option only encumbers the BIA for two years. If the Board decides that after 2 years it does not wish to continue with a vehicle; it limits the exposure to a shorter time frame. The payment structure also reduces the HST exposure to $30.49 per month which is recoverable with the bi-annual Public Body HST rebate of 92%. This option if fully cost-recovered as the annual payment is $6,098.56 vs annual truck sponsorships totalling approximately $7,750. DeGroote-Hill suggested renewing the truck every 2 years as it supports their main sponsorship motivation(s) which is showcasing their product line. Pros: The cost is more favourable and there is no debenture required, nor Town permission. Cons: We do not own the truck at the end of the lease term. OPTION #2 – PURCHASE Net retail price: $44,075 includes 4x4, spray-in bed liner, trailer hitch and towing package, crew cab. Monthly payments of $808.39 (annualized = $9700.68) for a 5-year term. Truck is owned outright after 5 years. Pros: The vehicle is fully owned after 5 years with no more annual payments. Cons: Increases an already high level of BIA debt. The appearance and feel of the truck becomes dated over time and perhaps harder to sell as an advertising opportunity in later years. The cost of payments exceeds annual sponsorship revenues significantly. Recommendation: BIA staff recommends Option #1: The 2-year option also keeps the truck fresh and we are able to market a new vehicle to sponsors every 2 years. This would also eliminate a $44,000 +/- debenture while reducing vehicle maintenance vs the purchase option. DeGroote-Hill also supports refreshing the vehicle every 2 years as a way of helping them to market their new products and generating goodwill and potential sales. Leasing also allows us to control the payments through our own bank account vs. the debenture payments which needs to gain Town of Tillsonburg and County of Oxford approvals and would be automatically deducted from our levy installment payments. This option yields a net annual savings/cash outlay for the BIA vs. Option #2 of $3,602.12. Note and Summary: I have made enquiries as to the insurance payments through the Town of Tillsonburg insurance program and I’m awaiting a reply from new Town CAO Kyle Pratt. This would be the most cost effective The Board Chair has offered to make a proposal to Voth Truck Bodies to perhaps donate the LED yellow cab mount light bar which will assist with safety and the promotional capabilities of the truck. The cost of graphics has been incorporated into the Marketing & Advertising budget for 2020. Actual YTD 2020 Budget Income 4000 Donations - GRK 54,720.00 4050 Other Revenue 500.00 4440 Transfer from Reserves REVENUE 4100 Taxes - regular 139,450.00 4150 AGM 500.00 4200 Donations - Sobeys 2,500.00 4350 HST Rebate 14,336.00 4450 Interest Income 40.46 1,010.00 4750 Urban Design - FIP Program 31,000.00 31,000.00 Total REVENUE $ 31,040.46 $ 243,516.00 Total Income $ 31,040.46 $ 243,516.00 Expenses SPECIAL PROJECTS 8300 Capital Projects 11,500.00 8350 Special Projects Contingency 11,500.00 Total 8000 SPECIAL PROJECTS $ 0.00 $ 23,000.00 BEAUTIFICATIONS 5000 Christmas Lights & Decorations 2,500.00 5100 Trees 2,500.00 5200 Street Furniture 2,500.00 5250 Banners/Flags 1,650.00 5300 EBB Restoration 250.00 5550 Keep Downtown Beautiful 1,600.00 5750 FIP 31,477.50 62,000.00 Total BEAUTIFICATIONS $ 31,477.50 $ 73,000.00 MARKETING/PROMOTION 6100 Office/Meeting exp/Sundry/Phone 31.06 6200 General Advertising 225.27 4,000.00 6300 Christmas Promotions/Crawl 2,000.00 6318 Marketing Promotion 4,000.00 6320 Marketing Miscellaneous 5,460.00 6350 Seasonal Promotions 5,000.00 6500 Santa Claus Parade 1,250.00 6600 Block Party Turtlefest 2,000.00 6700 Communications 290.00 Total MARKETING/PROMOTION $ 256.33 $ 24,000.00 Total 2020 Tillsonburg BIA Budget vs. Actuals: 2019 Budget Jan-20 January 2020 Budget vs Actual 1 Actual YTD 2020 Budget OPERATIONS 7000 Bank Service Charges 82.32 339.00 7050 Debt Interest 3,356.00 7110 Vehicle Operating Costs 575.00 7130 Vehicle Insurance 1,225.00 7150 Executive Director 4,038.46 52,500.00 7160 Events and Marketing Co-ordinator 3,636.92 40,000.00 7170 Hourly Part Time Staff 277.48 8,500.00 7200 Accounting - Professional Fees 3,325.00 7210 Bookkeeping 170.00 1,440.00 7220 Employer Payroll Taxes 515.33 6,761.00 7230 Wages & Benefits 7,965.00 7300 Debt Principal 15,909.00 7350 HST Expense 15,583.00 7450 Office Expense 384.22 600.00 7455 ADP Payroll Service 1,170.00 7460 Telephone Expense 271.54 515.00 7500 Computer and Internet Expenses 240.00 7600 Quickbooks Software 175.00 7650 Rent 3,600.00 Total OPERATIONS $ 9,376.27 $ 163,778.00 Total Expenses $ 41,110.10 $ 283,778.00 Net Income -$ 10,069.64 -$ 40,262.00 January 2020 Budget vs Actual 2 Tillsonburg BIA Quote 1 E39.D32 Quote 2 E50.D13 Quote 3 E17.D24 Life & AD&D Schedule $25,000 $25,000 $25,000 Reduction Schedule to 25% at age 65 50% at age 65 50% at age 65 Term Age 75 75 75 Critical Illness$30,000 guaranteed issue not included not included included EHC - DrugsDrugs Coinsurance 70%80%80%Deductible No Deductible No Deductible No DeductibleDefinitionGenericGenericGenericAnnual Maximum $1,000 per fam mem / year $2,500 per fam mem / year $50,000 per fam mem / yearEHC - ParamedicalsParamedical Coverage 70%100%100% Maximum Practitioner Max: $800 per certificate combined per year Practitioner Max: $2,500 per certificate combined per year Practitioner Max: $2,500 per certificate combined per year Acupunturist $250 per year $300 $500Chiropractor$25 per visit - max 10 visits $300 $500Massage Therapist $25 per visit - max 10 visits $300 $500Naturopath$250 per year $300 $500Osteopath$250 per year $300 $500Physiotherapist$25 per visit - max 10 visits $300 $500Podiatrist$250 per year $300 $500 Psychologist / Social Worker $250 per year $500 $500 Speech Therapist $250 per year $500 $500 Hearing Aids $500 x 4 yrs $500 x 4 yrs $700 x 5 yrs Orthotics $200 per year $200 per year $200 per year Orthopedic Shoes not included $225 per year Custom Designed Private Duty Nursing $5,000/ person/ 24 mths $25,000 $25,000 Hospital not included Semi-Private Semi-Private Best Doctors Yes Yes Yes Vision - 100% coverageGlasses $200 x 24 mths not included not included Eye Exams $75 x 24 mths $75 x 24 mths $75 x 24 mthsOut of Country CoverageTrip Max.unlimited unlimited unlimitedServices & Supplies Coinsurance 100%100%100%Trip Duration up to 6 mths per trip up to 6 mths per trip up to 6 mths per tripDentalAnnual Max per family member $700 $1,500 $2,000Annual Max per family (combined)$2,500 $2,500 $2,500 Deductable $25 single / $50 family $25 single / $50 family $25 single / $50 family Coinsurance: - Basic Services 80%80%80% - Supplementary Services (including endo & perio)not included 80%80% - Major Services not included not included not included Frequency 6 mths 6 mths 6 mths Fee Guide Current Current Current Term Age 80 80 80 TOTAL (+ PST)$260.13 $323.53 $558.60 2019-10-01 1 CIBC Account Statement TILLSONBURG BUSINESS IMPROVEMENT AREA The names shown are based on our current records, as of February 17, 2020. This statement does not reflect any changes in account holders and account holder names that may have occurred prior to this date. For Jan 1 to Jan 31, 2020 Account number 66-36217 Branch transit number 03072 Account summary Contact information Opening balance on Jan 1, 2020 $27,729.98 Withdrawals -46,473.76 Deposits +65,300.00 Closing balance on Jan 31, 2020 =$46,556.22 1 800 465 CIBC (2422) Contact us by phone for questions on this update, change of personal information, and general inquiries, 24 hours a day, 7 days a week. TTY hearing impaired 1 800 465 7401 Outside Canada and the U.S. 1 902 420 CIBC (2422) www.cibc.com Transaction details Date Description Withdrawals ($)Deposits ($)Balance ($) Jan 1 Opening balance $27,729.98 Jan 6 CHEQUE 78449342 63 22.09 27,707.89 Jan 14 CHEQUE 34367496 68 735.84 26,972.05 CHEQUE 34367508 69 1,233.41 25,738.64 CHEQUE 34379829 70 480.05 25,258.59 CHEQUE 72815636 67 1,565.11 23,693.48 Jan 15 CHEQUE 34614411 71 143.30 23,550.18 Jan 16 MISC PAYMENT 000000796682868 CORP TOWN OF TILLSONBURG 280.00 23,830.18 Jan 17 CHEQUE 75447179 78 136.12 23,694.06 Jan 20 CHEQUE 34821027 65 331.00 23,363.06 Jan 21 DEPOSIT 3,520.00 26,883.06 CHEQUE 34145154 64 886.21 25,996.85 CHEQUE 78062309 79 7,006.00 18,990.85 Jan 22 CHEQUE 34407030 75 170.00 18,820.85 Jan 24 DEPOSIT 500.00 19,320.85 CHEQUE 72809972 80 431.11 18,889.74 (continued on next page) 10774E BUS-2018/09 Page 1 of 2 Transaction details (continued) Date Description Withdrawals ($)Deposits ($)Balance ($) Jan 24 Balance forward $18,889.74 CHEQUE 75285188 76 500.00 18,389.74 Jan 28 CHEQUE 34712649 73 1,565.11 16,824.63 Jan 30 TRANSFER FROM: 03072/66-36616 30,000.00 46,824.63 CHEQUE 78720245 83 30,000.00 16,824.63 Jan 31 MISC PAYMENT 000000800667234 CORP TOWN OF TILLSONBURG 31,000.00 47,824.63 CHEQUE 34647840 74 1,233.41 46,591.22 ACCOUNT FEE 35.00 46,556.22 Closing balance $46,556.22 Important: This statement will be considered correct if you do not report errors, omissions or irregularities in entries and balances to CIBC in writing within 30 days from last date of the statement period covered by a previously issued regular statement where such period included the date the entry was, or should have been, posted. This rule does not apply to improper credits to your account. Your rights under your business account operation agreement to verify and notify CIBC of account errors, omissions or irregularities do not apply to this statement which is for information or replacement purposes only. *Foreign Currency Conversion Fee: If you withdraw foreign currency from a bank machine located outside Canada, you are charged the same conversion rate CIBC is required to pay plus an administration fee, which is disclosed in the CIBC's current Business Account Service Fees brochure, a copy of which is available at any CIBC branch in Canada (this is in addition to any transaction fee applicable to the withdrawal and the network fee). TM Trademark of CIBC ® Registered trademark of CIBC ® Interac is a registered trademark of Interac Inc./CIBC Licensee CIBC Account Statement Jan 1 to Jan 31, 2020 Account number: 66-36217 Branch transit number: 03072 10774E BUS-2018/09 Page 2 of 2 CIBC Account Statement TILLSONBURG BUSINESS IMPROVEMENT AREA The names shown are based on our current records, as of February 17, 2020. This statement does not reflect any changes in account holders and account holder names that may have occurred prior to this date. For Jan 1 to Jan 31, 2020 Account number 66-36616 Branch transit number 03072 Account summary Contact information Opening balance on Jan 1, 2020 $70,334.31 Withdrawals -30,010.00 Deposits +41.47 Closing balance on Jan 31, 2020 =$40,365.78 1 800 465 CIBC (2422) Contact us by phone for questions on this update, change of personal information, and general inquiries, 24 hours a day, 7 days a week. TTY hearing impaired 1 800 465 7401 Outside Canada and the U.S. 1 902 420 CIBC (2422) www.cibc.com Transaction details Date Description Withdrawals ($)Deposits ($)Balance ($) Jan 1 Opening balance $70,334.31 Jan 29 SERVICE CHARGE FULL-SERVICE TRANSFER FEE 5.00 70,329.31 Jan 30 TRANSFER TO: 03072/66-36217 30,000.00 40,329.31 Jan 31 SERVICE CHARGE FULL-SERVICE 5.00 40,324.31 INTEREST BIGA DAILY CREDIT INTEREST JANUARY 2020 41.47 40,365.78 Closing balance $40,365.78 10774E BUS-2018/09 Page 1 of 2 Important: This statement will be considered correct if you do not report errors, omissions or irregularities in entries and balances to CIBC in writing within 30 days from last date of the statement period covered by a previously issued regular statement where such period included the date the entry was, or should have been, posted. This rule does not apply to improper credits to your account. Your rights under your business account operation agreement to verify and notify CIBC of account errors, omissions or irregularities do not apply to this statement which is for information or replacement purposes only. *Foreign Currency Conversion Fee: If you withdraw foreign currency from a bank machine located outside Canada, you are charged the same conversion rate CIBC is required to pay plus an administration fee, which is disclosed in the CIBC's current Business Account Service Fees brochure, a copy of which is available at any CIBC branch in Canada (this is in addition to any transaction fee applicable to the withdrawal and the network fee). TM Trademark of CIBC ® Registered trademark of CIBC ® Interac is a registered trademark of Interac Inc./CIBC Licensee CIBC Account Statement Jan 1 to Jan 31, 2020 Account number: 66-36616 Branch transit number: 03072 10774E BUS-2018/09 Page 2 of 2 PLAN OVERVIEW Plan Details Plan Contributions Guarantees OPTION PLUS GROUP RSP ® Option Plus Group RSP Plan Overview Table of Contents Introduction ................................................................................................2 Overview of Member Benefits ................................................................2 Plan Details .................................................................................................4 Plan Costs Investment Options Treasury Interest Option (TIO) Guaranteed Interest Options (GIOs) Guaranteed Investment Terms Available Current Interest Rates Bonus Interest Rates Interest Rate Guarantees on Guaranteed Interest Options (GIOs) Segregated Funds Plan Contributions .....................................................................................7 Acquisition Fees and Deferred Sales Charges ......................................7 Interest Rate Guarantees on GIOs..........................................................7 Guarantees ..................................................................................................8 Segregated Funds Guaranteed Death Benefit Segregated Funds Guaranteed Maturity Benefit Maturity Date Maturity and Death Benefit Guarantee Resets Additional Features ....................................................................................9 Enhanced Annuities Creditor Protection Freedom from Probate Investment Selection and Transfer Options .........................................9 Your Investment Needs and Strategy Transfers Withdrawal Provisions .............................................................................11 Partial Withdrawals Full Withdrawals What is a Segregated Fund? ..................................................................12 How Segregated Funds Work Benefits of Segregated Funds Investing in Segregated Funds Diversification and Investment Risk Frequently asked questions ...................................................................14 Glossary .....................................................................................................16 For more information visit our website at www.empire.ca This booklet has been designed for Option Plus plan members as a summary of the terms and conditions of the Contract. If there are any discrepancies between this booklet and the Contract, which is kept by your plan administrator, the Contract shall prevail. A description of the key features of Empire Life Option Plus Group RSP is contained in the Option Plus Administration Manual and the Option Plus Group RSP Contract. Subject to any applicable death and maturity benefit guarantee, any part of the premium(s) or other amount that is allocated to a Segregrated Fund is invested at the risk of the plan member and may increase or decrease in value. INTRODUCTION Today, Canadians realize that without adequate financial planning they may not be financially secure in their retirement years. Unfortunately many Canadians feel very uninformed when it comes to the issue of retirement planning. Option Plus Group RSP is a lifetime investment program designed to assist you in achieving your retirement objectives. As a result of your current employment status, or your association membership, you now have the opportunity to join this retirement savings plan. Upon becoming an Option Plus member you will automatically enjoy the many benefits discussed throughout the remainder of this booklet. To become an Option Plus member simply contact your employer or association administrator. OVERVIEW OF MEMBER BENEFITS A Group RSP is a collection of individual RRSPs for a group of employees or association members. Within an Option Plus Group RSP, all member contributions are voluntary. There are no set-up fees or annual administration fees. Option Plus offers an investment portfolio of no-load Segregated Funds in addition to a variety of Interest Options. Option Plus members have access to a financial advisor who can provide information on a wide variety of topics ranging from investment portfolio design to retirement planning. Some of the benefits you will receive as a result of becoming an Option Plus member are as follows: 2 Option Plus Group RSP Plan Overview Tax Deductibility and Tax Sheltering Your contributions are tax-deductible in accordance with the contribution rules for RRSPs as set out in the Income Tax Act (Canada), and the investment income you earn grows on a tax-sheltered basis while remaining in the plan. Flexible Contributions Your contributions are voluntary and, provided you are acting within the parameters outlined in the plan contributions section, you can choose the amount and frequency of your contributions. You may change the amount of your contributions at any time by simply notifying your employer or association. You can direct your contributions into any of the investment options available in the plan provided the minimum deposit amount is met for the option(s) you have selected. Convenient payroll deduction makes saving effortless on your part. Contributions may also be made by way of lump sum deposits. Contributions are based on Pre-Tax Dollars Traditionally, many people make their RRSP contribution with after-tax dollars. This means that their employer has already deducted income tax from the employee’s paycheque and sent it to the government. As an Option Plus member, you can make your RRSP contributions on a pre-tax basis and instantly reduce the income tax deducted from your paycheque. Powerful Guarantees Option Plus provides valuable Guaranteed Maturity and Death Benefits on all Segregated Fund investments. For further details regarding these guarantees please refer to the section entitled ‘Guarantees’. Reset Option Providing you have at least 10 years remaining to maturity, you can reset your Segregated Funds Guaranteed Death Benefit and Maturity Benefit to take advantage of any increase in the value of units to the credit of your certificate twice per policy year. Long Segregated Fund History Empire Life has been managing Segregated Funds for more than 40 years. Enhanced Interest Rates As a plan member you automatically receive an enhanced interest rate on any Guaranteed Interest Option investment term(s) you select. Spousal Contribution Option Spousal contributions allow members to designate plan contributions to be made in the name of their spouse or common-law partner. However, these contributions are still considered tax-deductible from the plan member’s income. 3 PLAN DETAILS Plan Costs There are no set-up fees and no annual administrative fees. Investment Options Your Option Plus investment choices include a Treasury Interest Option, a variety of Guaranteed Interest Option investment terms and 21 Segregated Funds. Treasury Interest Option (TIO) The TIO is an interest investment option that is comparable to a high-yielding daily interest account. It pays a variable rate of interest that is calculated daily and paid annually on the anniversary of the effective date of your certificate or when the total value is withdrawn or transferred. Contributions to the TIO are fully guaranteed. Guaranteed Interest Options (GIOs) GIOs pay a fixed rate of interest over a specific period of time. Contributions to the GIO are fully guaranteed. GIO Investment Terms Currently Available Full-Year Terms Half-Year Terms 1 Year 1.5 Years 2 Years 2.5 Years 3 Years 3.5 Years 4 Years 4.5 Years 5 Years 6 Years 10 Years Current Interest Rates • Check out www.empire.ca for our current interest rates • Compound rates and simple interest rates are the same for each investment term 4 Option Plus Group RSP Plan Overview Bonus Interest Rates • As a plan member you automatically receive an interest rate enhancement based on the total value of your certificate including the value of any Segregated Fund investments: $0 to $49,999 Basic Rate + .125% $50,000 to $99,999 Basic Rate + .250% $100,000 and up Basic Rate + .375% Interest Rate Guarantees on Guaranteed Interest Options (GIOs) • Minimum transfer-in amount: $1,000 • Guarantee period: 45 days from when the rate guarantee is signed • The rate guarantee form must be received at the Head Office of Empire Life within 48 hours of signing • You will receive the higher of either the guaranteed rate or the rate in effect the day the transferred money actually arrives at the Head Office of Empire Life. 5 Segregated Funds The following Segregated Funds are currently available within the Option Plus Group RSP: Each of the Segregated Funds within Option Plus has a different investment objective. A Fund’s portfolio may include a variety of investments, including bonds, stocks, debentures and money market instruments, the proportion depending on the investment objective of the Fund. Canadian Funds Canadian Equity Fund – Class A Elite Equity Fund – Class A Dividend Growth Fund – Class A Small Cap Equity Fund – Class A U.S. & International Funds American Value Fund – Class A US Equity Index Fund – Class A International Equity Fund – Class A Global Funds Global Equity Fund – Class A Global Dividend Growth Fund – Class A Global Smaller Companies Fund – Class A Income Funds Bond Fund – Class A Income Fund – Class A Money Market Fund – Class A Balanced Funds Asset Allocation Fund – Class A Balanced Fund – Class A Global Balanced Fund – Class A Portfolio Funds Conservative Portfolio Fund – Class A Balanced Portfolio Fund – Class A Moderate Growth Portfolio Fund – Class A Growth Portfolio Fund – Class A Aggressive Growth Portfolio Fund – Class A 6 Option Plus Group RSP Plan Overview The portfolio of each Fund is carefully selected and continuously monitored by professional investment managers in an effort to obtain the greatest returns for a reasonable level of risk. Contributions are used to purchase units in the Fund(s) selected. The number of units purchased depends on the unit value of the Fund on the date of purchase. A Fund’s unit value fluctuates daily with the market value of the assets held in the Fund. Unit values are updated daily and are available on our website www.empire.ca and in the mutual fund section of major financial newspapers. For more information regarding Empire Life Segregated Funds, including investment objectives of each Fund, please refer to the following materials: i) Investment Funds Annual Report (INP-0020-ENG) ii) Option Plus Group RSP Segregated Fund Highlights (GP-0039-ENG) PLAN CONTRIBUTIONS Contributions are optional on behalf of both the employer and the employee. Employer contributions are considered to be salary to a plan member and will be applied towards the plan member’s RRSP contribution limit. Contributions made must meet the following minimums: Regular Monthly Deposits $30 per member Minimum Lump Sum Deposits $500 per member (Members making regular monthly contributions may make lump sum deposits of $30 or more) Note: GIOs have a $500 minimum. Deposits of less than $500 to be credited to GIOs will be deposited to the TIO and upon reaching $500 will be automatically transferred to the GIO investment term you have selected. The interest rate applied will be the rate in effect on the date of transfer to the GIO. ACQUISITION FEES AND DEFERRED SALES CHARGES Option Plus Segregated Funds are not subject to either front-end or back-end loads. INTEREST RATE GUARANTEES ON GUARANTEED INTEREST OPTIONS (GIOS) If you transfer RRSP proceeds from another financial institution into a GIO within your Option Plus Group RSP, you can apply for an interest rate guarantee. This interest rate guarantee ensures that you will receive the higher of either the guaranteed rate or the rate in effect the day the proceeds actually arrive at the Head Office of Empire Life. 7 GUARANTEES Investing in the markets means accepting an element of risk. Markets can go up or down, which means investments in Segregated Funds will fluctuate as well. The key to successful investing is managing risk within your comfort level. Option Plus offers you important guarantees and protection. These include: Segregated Funds Guaranteed Death Benefit The greater of: a) the total Book Value of the units at the credit of your certificate; or b) the Segregated Funds Guaranteed Death Benefit. The Segregated Funds Guaranteed Death Benefit shall consist of 100% of all contributions prior to the Anniversary Date nearest your 65th birthday plus 75% of all contributions made on or after such Anniversary Date. The Segregated Funds Guaranteed Death Benefit shall, if applicable, be reduced in the same proportion that the units at the credit of your certificate have been reduced as a result of any partial surrender or transfer to another investment option. Segregated Funds Guaranteed Maturity Benefit The greater of: a) the total Book Value of the units at the credit of your certificate; or b) the Segregated Funds Guaranteed Maturity Benefit. The Segregated Funds Guaranteed Maturity Benefit shall consist of 75% of all contributions. The Segregated Funds Guaranteed Maturity Benefit shall, if applicable, be reduced in the same proportion that the units at the credit of your certificate have been reduced as a result of any partial surrender or transfer to another investment option. Maturity Date The Maturity Date of your certificate will be one year prior to the maximum age for maturity of an RRSP as prescribed by the Income Tax Act (Canada). You may choose a different Maturity Date provided it is at least 10 years after the effective date of your certificate and prior to the maximum age for maturity of an RRSP as prescribed by the Income Tax Act (Canada). Maturity and Death Benefit Guarantee Resets Providing there are at least 10 years remaining to the Maturity Date, the Maturity and Death Benefit Guarantees on the Segregated Funds may be reset, on request, to capture any growth that may have been earned on contributions. If less than 10 years remain to maturity, the Maturity Date may be extended to a full 10 years from the date of reset providing the terms of the plan allow for such an extension. The reset guarantee values will be calculated based on the current market value of the units of the Segregated Funds at the credit of your certificate when we receive your request. Two resets are permitted in any policy year. 8 Option Plus Group RSP Plan Overview ADDITIONAL FEATURES Enhanced Annuities Any deposits which have been in the plan for two or more years qualify for enhanced annuity rates should you use these proceeds to purchase an Empire Life Annuity. Creditor Protection The Option Plus Group RSP plan is an insurance contract and, under provincial insurance laws, may be protected from creditors under certain circumstances if the named beneficiary is the spouse, child, grandchild or parent of the Annuitant (except in Quebec where the named beneficiary is the spouse, parent, child or grandchild of the owner) or if the beneficiary is named irrevocably. Note that there are certain circumstances where protection from creditors will not exist. If the possible protection from creditors is an important consideration you should consult with your legal advisor before deciding to purchase the plan. Freedom from Probate By naming a beneficiary other than your estate, the death benefit value of your certificate is not subject to probate upon your death. INVESTMENT SELECTION AND TRANSFER OPTIONS Your Investment Needs and Strategy Every investor has unique investment needs. The main determinants of these needs are personal financial goals, the time available for reaching them and individual tolerance for risk. More specifically, factors such as your stage of life, family situation, income expectations, other financial resources, debt, ongoing expenses and aspirations must 9 be taken into account in order to arrive at realistic goals, reasonable deadlines for reaching them and a level of investment risk that is appropriate for you. You can then set a personal strategy that covers how much you should invest on an ongoing basis, suitable kinds of investments and the right asset mix. If you would like help developing your investment strategy, your Option Plus Group RSP advisor can help analyze your needs and develop an appropriate strategy. The following Empire Life planning tools are available to help you plan your investment strategy. i) Investor Profile Questionnaire (INP-0092-ENG) ii) Option Plus Group RSP Segregated Fund Highlights (GP-0039-ENG) iii) Financial Calculators (Web-based) The Investment Profile Questionnaire and Financial Calculators are available on our website at www.empire.ca Note: The Investor Profile Questionnaire (INP-0092-ENG) and the Option Plus Group RSP Segregated Fund Highlights (GP-0039-ENG) are available in brochure format. Your initial selection of investment options is made on your Application For Membership (GP-0607-ENG). Any deposits received by Empire Life, for which no investment instructions are on file, will be credited to the Treasury Interest Option within the member’s certificate. For a description of the investment objectives and risks associated with each Segregated Fund visit the Investment Products section of our website www.empire.ca and review the information contained within our Option Plus Group RSP Segregated Fund Highlights (GP-0039-ENG). You may change your selection of investment options for future contributions or for contributions already invested by completing the Change of Investment 10 Option Plus Group RSP Plan Overview Options form (GP-0613-ENG) available from your employer/association or your advisor. For further details concerning your Option Plus Group RSP investment options please contact your employer/association or visit www.empire.ca. Transfers • Four free transfers are permitted between investment options during any consecutive 12-month period. Additional transfers are subject to a $50 transfer fee. • Transfer fees will not apply where at least $250 is being transferred from the TIO to a Segregated Fund for the purpose of Dollar Cost Averaging. • A possible interest rate adjustment may apply for unmatured GIOs. • Monies will be transferred upon your written request, or with a Change of Investment Options form (GP-0613-ENG) signed by you, provided the following minimums are met: i) monies transferred into a Segregated Fund or the Treasury Interest Option are subject to a $250 minimum ii) monies transferred from a Segregated Fund, a Guaranteed Interest Option investment term or the Treasury Interest Option are subject to a $250 minimum or the total value of the investment option iii) monies remaining in a Segregated Fund or the Treasury Interest Option after a transfer are subject to a $250 minimum iv) monies transferred into a Guaranteed Interest Option investment term are subject to a $500 minimum and v) monies remaining in a Guaranteed Interest Option investment term after a transfer are subject to a $500 minimum. Unless notified otherwise, amounts to be transferred from the Guaranteed Interest Option investment terms will be withdrawn on a first-in, first-out basis. WITHDRAWAL PROVISIONS Please consult with your employer for details regarding the withdrawal provisions associated with your plan. Partial Withdrawals For partial withdrawals, the following rules apply: • The first four partial withdrawals in any consecutive 12-month period are not subject to any transfer fee. Each additional withdrawal has a $50 fee. • If the withdrawal is from a GIO investment term prior to the reinvestment date, a Market Value Adjustment may apply. • Minimum withdrawal: The lesser of $250 or the total value of the investment option. Funds remaining in a Guaranteed Interest Option investment term after the withdrawal of funds are subject to a $500 minimum. • All withdrawals payable to you are subject to withholding tax. 11 Full Withdrawals For full withdrawals, the following rules apply: • There is no charge if a Death or Maturity Benefit is payable, or if an annuity or RRIF is purchased from Empire Life. • There is no charge for withdrawals under the Homebuyer’s Plan. • A Market Value Adjustment may apply for a withdrawal from a GIO investment prior to the end of the investment term. • All withdrawals payable to you are subject to withholding tax. WHAT IS A SEGREGATED FUND? A Segregated Fund is a type of investment fund available as an investment option offered through a deferred annuity policy issued by a life insurance company. It is a pool of assets that are segregated from the other assets of the company. How Segregated Funds Work A Segregated Fund allows many individuals to pool their money for the purpose of investing in stocks, bonds and other kinds of securities that are determined based on the investment objectives and policies of the respective Fund. A professional investment manager sets an investment strategy and selects the assets the Fund will hold, in accordance with the investment objectives of the Fund. A Segregated Fund is typically divided into shares or units. These units are used to determine the amount of benefits payable under the plan. The value of units at the credit of your certificate in a Segregated Fund at any time is not guaranteed but will fluctuate with the market value of the assets of the Fund(s) supporting it. All earnings of the Fund are retained in the Fund to increase the value of the units. When you surrender units, the value you receive depends on the number of units surrendered, the unit value at the time of surrender and any applicable fees. Unit values fluctuate daily with the market value of the assets held in the Fund. Unit values for Empire Life Segregated Funds are updated daily and are available on our website www.empire.ca and in the mutual fund section of major financial newspapers. 12 Option Plus Group RSP Plan Overview Investing In Segregated Funds Based on a Fund’s investment objectives, its portfolio may consist of a variety of investment instruments, including stocks, bonds, debentures and/or money market instruments. Funds tend to fall into the following broad categories: • Money market funds invest primarily in high quality short-term securities such as treasury bills and short-term government and/or corporate securities. • Fixed income funds will invest mainly in government and/or corporate bonds and other debt instruments. • Equity funds invest mainly in shares of corporations although other equity securities may be held. • Balanced funds invest in a blend of corporate shares along with government and/or corporate bonds and other debt instruments. Note: To learn more about the various Segregated Funds available within the Option Plus Group RSP please refer to the Option Plus Group RSP Segregated Fund Highlights (GP-0039-ENG), or visit the Empire Life website at www.empire.ca. Diversification and Investment Risk As a general rule of thumb the more diversified a Fund is, the less potential there is for it to suffer large losses. The reverse also holds true: the more specialized a Fund is in terms of the kinds of assets it holds, or the industry or part of the world it invests in, the greater the potential for significant gains and losses. For a description of the investment objectives and risks associated with each Segregated Fund visit the Investment Products section of our website www.empire.ca and review the information contained within the Option Plus Group RSP Segregated Fund Highlights (GP-0039-ENG). 13 FREQUENTLY ASKED QUESTIONS Will I receive a statement? Yes, you will receive a statement that details the value of your contributions as at June 30th and December 31st of each year. What happens if I become disabled or I am laid-off? Your Group RSP contributions can be stopped until you are able to resume further contributions. You may be able to make withdrawals from your plan to help tide you over while you are not working; however, these withdrawals will be treated as taxable income and are subject to withholding tax. What happens when I retire? At retirement, or at the end of the year that you attain the maximum age allowable to own an RRSP, you must convert your plan to a Registered Retirement Income Fund (RRIF) or an Annuity to provide regular retirement income. You will be free to shop the market for the best plan available at that time. If you decide to convert to an Empire Life Annuity, you will receive an enhanced annuity. Alternatively, you may also withdraw the value of your certificate however the withdrawal will be treated as taxable income and is subject to withholding tax. What happens if I die before I retire? In the event of death, your beneficiary or estate will receive the Death Benefit in one lump sum. If your designated beneficiary is your spouse, he or she will have the option of transferring the proceeds to his or her RRSP with no taxes having to be paid at that time. For details regarding the potential income tax implications which would result in the event of your death please consult with your financial advisor. What happens to my plan if I change employers? If your employment terminates, your membership in the Option Plus Group RSP ceases. The following options are available to you: 1) You can transfer the value of your certificate to an Empire Life RRSP and continue making contributions. No fees or charges will be applied to the transfer. 2) You can withdraw the value of your certificate in cash, however the value will be taxable income in the year withdrawn and withholding tax will be deducted. 3) You can transfer the value of your certificate to another financial institution. No fees or charges will be applied. A Market Value Adjustment may apply for a surrender from a GIO investment prior to the end of the investment term. Can I transfer my savings to another financial institution? Yes, you can transfer the value of your certificate to another financial institution. Surrenders from a GIO investment prior to the end of the investment term may be subject to a Market Value Adjustment. Structured Option Plus Group RSP members should consult with their employer to see if any conditions apply. Other questions? For additional questions regarding your Option Plus Group RSP please consult your employer or your financial advisor. 14 Option Plus Group RSP Plan Overview GLOSSARY Anniversary Date Anniversary Date shall mean the 1st day of January and every anniversary thereafter. Annuitant Annuitant shall mean a person who has been issued a certificate under the terms of this agreement and who is the Contributor or the Contributor’s spouse or common-law partner. Any benefits payable under the terms of the contract will be based on the Annuitant’s life. Annuity An annuity is a series of regular payments that provide the owner with a reliable, secure income, similar to a pension. Back-end loads Back-end loads, also known as deferred sales charges, are charges that may apply to investments that reduce the amount received by a client should that client surrender any value from the investments. Note: Contributions to the Option Plus Group RSP are not subject to Back-end loads. Book Value The Book Value of the Annuitant’s Account at any time is equal to: a) the sum of the Book Values of the contributions made to the Guaranteed Interest Option investment term(s), and the Treasury Interest Option, plus, b) the value of the units in the Segregated Funds at the credit of the Annuitant’s Account. Death Benefit Upon the death of the Annuitant prior to the Maturity Date, the Company will terminate the Annuitant’s certificate and pay to the beneficiary a Death Benefit. The amount of the Death Benefit will be equal to the Book Value of the Annuitant’s Account. The Book Value shall be determined within seven days following receipt of the notification of the death of the Annuitant, by the Company, at its Head Office. Dollar Cost Averaging Dollar Cost Averaging is an investment strategy designed to reduce the risk of market timing when investing in Segregated Funds. It involves investing a fixed dollar amount at regular intervals. The result is that more units are purchased when the unit price is low and fewer units are purchased when the unit price is high. Front-end Loads Front-end loads are charges that may be applied to investments at the time of deposit. Front-end loads are calculated as a percentage of each new deposit and are deducted when each new deposit is processed. Front-end loads reduce the amount of each new deposit that is actually invested. Note: Contributions to the Option Plus Group RSP are not subject to Front-end loads. 16 Option Plus Group RSP Plan Overview Group RSP A Group RSP is a collection of individual RRSPs offered by the employer or association allowing payroll deductions for employee/member contributions. Guaranteed Interest Option Book Value The Book Value, at any time, of a contribution to a Guaranteed Interest Option investment term(s) shall be equal to the contribution together with compound interest earned from the date of deposit to the date in question. In the event that a partial surrender or transfer has been made, the Book Value shall be reduced at the time of and by the amount of such partial surrender or transfer. The Book Value of the contribution at any time thereafter shall be equal to the Book Value remaining at the credit of the contribution together with compound interest earned thereon from the date of such partial surrender or transfer to the date in question. Guaranteed Interest Option Early Withdrawal Charge An early withdrawal charge shall be deducted from the Book Value of a Guaranteed Interest Option investment term if the withdrawal is for the purchase of a retirement income, or transfer to another investment option within the plan prior to the end of the investment term. The early withdrawal charge will be equal to the Book Value multiplied by the difference, if positive, of the current rate of interest applicable to new contributions for the same investment term over the interest currently being earned on the contribution multiplied by the number of complete months from the date of withdrawal to the end of the investment term, divided by twelve. Guaranteed Interest Option Market Value The Market Value, at any time, of a contribution to a Guaranteed Interest Option investment term shall be equal to: • the Book Value of the contribution, less • the sum of 0.5% and the difference, if positive, of the current rate of interest applicable to new contributions for the same investment term over the interest currently being earned on the contributions, multiplied by the number of complete months from the date of withdrawal to the end of the investment term, divided by twelve, multiplied by the Book Value. Guaranteed Interest Option Market Value Adjustment (MVA) A Market Value Adjustment shall be deducted from the Book Value of a Guaranteed Interest Option investment term if a withdrawal, or transfer to another financial institution, is made prior to the end of the investment term. The amount of the Market Value Adjustment shall be equal to the Book Value multiplied by the sum of 0.5% and the difference, if positive, of the current rate of interest applicable to new contributions for the same investment term over the interest currently being earned on the contribution multiplied by the number of complete months from the date of withdrawal to the end of the investment term, divided by twelve. Maturity Date The Maturity Date of the Annuitant’s certificate shall be one year prior to the latest date allowed for the maturity of an RRSP as prescribed by the Income Tax Act (Canada). The Annuitant may choose another date provided the request is in a form satisfactory to the 17 Company. The new date must be at least 10 years after the effective date of the Annuitant’s certificate and prior to the end of the year in which the Annuitant attains the maximum age for owning an RRSP. Maturity Options The Annuitant may choose a retirement income providing: a) an equal monthly income payable for the lifetime of the Annuitant; b) an equal monthly income payable for 120 months and for as long thereafter as the Annuitant is alive; c) an equal monthly income payable for as long as the Annuitant or the Annuitant’s spouse or common-law partner may live; or d) any other kind of income payable for the lifetime of the Annuitant to which the Company may agree pursuant to section 146(3) of the Income Tax Act (Canada). If no election has been made on or before the last day of the year in which the Annuitant attains the maximum age allowed for owing an RRSP, the Company shall apply option b) above. The amount of any such equal monthly income will be determined by the Company in accordance with its rates on the day the annuity commences. If the retirement income payable from the value of an Annuitant’s certificate is less than $50 per month, it will not be paid. The Company will instead pay the purchase price of the retirement income to the Annuitant and the Annuitant’s certificate will then terminate. No-load The term No-load means that deposits to an investment are not subject to any Front-end loads. 100% of the deposit is applied towards the investment option(s) the Annuitant has chosen. Note: Contributions to the Option Plus Group RSP are processed on a No-load basis. Registered Retirement Income Fund (RRIF) A RRIF is used to provide an ongoing minimum level of income. Minimum withdrawal amounts are in accordance with the Income Tax Act (Canada). Registered Retirement Savings Plan (RRSP) A vehicle used for saving for retirement. Within prescribed limits, contributions to an RRSP are tax deductible. Contributions and income earned within an RRSP are tax-sheltered until they are withdrawn. Withdrawals from an RRSP are treated as taxable income and are subject to withholding tax. RRSPs must be collapsed by the end of the year in which the Annuitant attains the maximum age for owning an RRSP and can be converted to an annuity or a RRIF. Reset of Segregated Fund Guarantees Providing there are at least 10 years remaining to the Maturity Date, the Segregated Funds Maturity and Death Benefit Guarantees may be reset, on request, to capture any growth that may have been earned on contributions. If less than 10 years remain to maturity, the Maturity Date may be extended to a full 10 years from the date of reset provided the terms of the plan allow for such an extension. The reset guarantee values will be calculated based on the current market value of all the units of the Funds at the credit of the Annuitant’s certificate when Empire Life receives the request. Two resets are permitted each policy year. 18 Option Plus Group RSP Plan Overview Segregated Funds Guaranteed Death Benefit Notwithstanding the Book Value Provision, in the event of the death of the Annuitant prior to the Maturity Date, the Death Benefit for contributions to the Segregated Funds shall be the greater of the total Book Value of the units at the credit of the Annuitant’s certificate, or the Guaranteed Death Benefit attributable to these Funds. The Segregated Funds Guaranteed Death Benefit shall consist of 100% of all contributions to the Annuitant’s certificate prior to the Anniversary Date nearest the Annuitant’s 65th birthday plus 75% of all contributions made on or after that date. The excess, if any, of this guaranteed benefit over the total Book Value of the Segregated Fund units at the credit of the Annuitant’s certificate shall be provided from the general funds of the Company. The Segregated Funds Guaranteed Death Benefit shall, if applicable, be reduced in the same proportion that the units at the credit of the Annuitant’s certificate have been reduced as a result of any partial surrender or transfer to another investment option. Segregated Funds Guaranteed Maturity Benefit Notwithstanding the Book Value Provision, at the Maturity Date, the Maturity Benefit for contributions to the Segregated Funds shall be the greater of the total Book Value of the units at the credit of the Annuitant’s certificate, or the Segregated Funds Guaranteed Maturity Benefit. The Segregated Funds Guaranteed Maturity Benefit shall consist of 75% of all contributions to the Annuitant’s certificate. The excess, if any, of the Segregated Funds Guaranteed Maturity Benefit over the total Book Value of the units at the credit of the Annuitant’s certificate shall be provided from the general funds of the Company. The Segregated Funds Guaranteed Maturity Benefit shall, if applicable, be reduced in the same proportion that the units at the credit of the Annuitant’s certificate have been reduced as a result of any partial surrender or transfer to another investment option. Segregated Fund Units Each Segregated Fund is divided into equal parts called “units”. The units in each Fund shall serve as an index of value and shall provide the basis for determining the amount in dollars of any benefit due under the terms of this contract where such benefit is expressed in terms of units of the Fund. Segregated Fund Unit Valuation We will determine the value of a unit of each Fund on each valuation date of that Fund by dividing the net market value (total market value of the assets in which the monies in the respective Fund are invested plus any cash holdings of that Fund, less expenses) of the assets of that Fund by the total number of units in the Fund on that date. This unit value is effective for all transactions involving the acquisition or surrender of units of the Fund since the last valuation date of the respective Fund. Each Fund pays fees and expenses related to the operation of that Fund. These fees and expenses include but are not limited to management fees and operational expenses. The management fee covers the charges related to professional investment management and the administration of a Fund. The management fee is subject to applicable taxes (e.g. the Goods and Services Tax (“GST”) or in some jurisdictions, the Harmonized Sales Tax (“HST”)). 19 The management fee for each Fund is calculated as a percentage of the Fund’s net asset value which in turn reduces the Fund’s unit value. The market value of the assets constituting each Fund will be determined in accordance with the practice of the Company as established from time to time. All income and accretions of a Fund will be used to increase the assets of the respective Fund. There will be no participation in any surplus or profits of the Company. Segregated Fund Unit Valuation Date We determine the market value of the assets of each Segregated Fund at the close of each day that our Head Office is open for business and values are available for the underlying assets of the Funds. This is the “valuation date”. We reserve the right to schedule valuation dates for any Fund on a less frequent basis than stated above, however, valuation dates will occur at least monthly on the last business day of each month. Segregated Fund Units Credited to the Annuitant’s Certificate Each contribution made to the Annuitant’s certificate will be converted into units of the applicable Fund and such units will be credited to the Annuitant’s certificate. The unit value of each Segregated Fund fluctuates with the market value of the assets constituting that Fund and as a result the value of the units credited to the Annuitant’s certificate is not guaranteed. Spousal Registered Retirement Savings Plan (Spousal RRSP) An RRSP where the Annuitant is the spouse or common law partner of the contributor. The contributor receives the tax deduction and the Annuitant is taxed when the monies are withdrawn, subject to the attribution rules. Withholding Tax A deduction levied at source of income as advance payment of income tax. For registered plans, such as the Option Plus Group RSP, the withholding tax for Canadian residents is currently as follows: All Provinces Except Quebec Quebec Only Federal Provincial Up to $5,000 10%5%16% $5,001 to $15,000 20%10%16% Over $15,000 30%15%16% 20 Investments • Insurance • Group solutions www.empire.ca info@empire.ca GP-0001-EN-11/15 The Empire Life Insurance Company (Empire Life) is a proud Canadian company that has been in business since 1923. We offer competitive individual  and group life and health insurance, investment and retirement products, including mutual funds through our wholly-owned subsidiary Empire Life Investments Inc. Empire Life is among the top 10 life insurance companies in Canada1 and is rated A (Excellent) by A.M. Best Company2. Our mission is to make it simple, fast and easy for Canadians to build wealth, generate income, and get the insurance and group benefits coverage they need. Follow Empire Life on Twitter @EmpireLife or visit our website, www.empire.ca for more information. 1 Source: The Globe and Mail Report on Business Magazine, June 2015, based on revenue 2 As at May 19, 2015 The information in this document is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. The Empire Life Insurance Company assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this document. Please seek professional advice before making any decision. ® Registered trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company. January 2020 January 2019 INCOME REVENUE 4050 Other Revenue 500.00 4100 Taxes - regular 4110 Taxes - other 4120 Taxes - write-off 4450 Interest Income 40.46 6.54 4750 Urban Design - FIP Program 31,000.00 Total REVENUE $ 31,040.46 $ 6.54 Total Income $ 31,040.46 $ 6.54 GROSS PROFIT $ 31,040.46 $ 6.54 EXPENSES 8000 SPECIAL PROJECTS 8100 Electronic Bulletin Board - Maintenance 69.95 Total 8000 SPECIAL PROJECTS $ 0.00 $ 69.95 BEAUTIFICATIONS 5550 Keep Downtown Beautiful 5750 FIP 31,477.50 Total BEAUTIFICATIONS $ 31,477.50 $ 0.00 MARKETING/PROMOTION 6100 Office/Meeting Expenses 31.06 6200 General Advertising 225.27 26.00 Total MARKETING/PROMOTION $ 256.33 $ 26.00 OPERATIONS 7000 Bank Service Charges 82.32 25.00 7100 Mileage 7110 Vehicle Operating Costs 7150 Executive Director 4,038.46 3,333.33 7160 Events & Marketing Co-ordinator 3,636.92 7170 Hourly Part Time Staff 277.48 7210 Bookkeeping 170.00 120.00 7220 Employer Payroll Taxes 515.33 7300 Debt Principle 0.00 7450 Office Expense 384.22 7460 Telephone Expense 271.54 Total OPERATIONS $ 9,376.27 $ 3,478.33 Total Expenses $ 41,110.10 $ 3,574.28 PROFIT -$ 10,069.64 -$ 3,567.74 Total Tillsonburg BIA Profit and Loss Jan-20