ADMINISTRATIVE REPORT

Date: February 1, 2000
Author/Local: J. Beresford/7789

RTS No.01267

CC File No. 2201

CS&B: February 17, 2000

TO:	Standing Committee on City Services and Budgets
FROM:	General Manager of Corporate Services
SUBJECT:	2000 Funding Ceiling - `Other' Grants

RECOMMENDATION

THAT Council approve a 2000 funding ceiling for `Other' Grants of $3,782,900 subject to final Council approval of the 2000 Operating Budget.

Major Facilities $3,332,900
`Other' Grants $ 450,000
Total $3,782,900

CITY MANGER'S COMMENTS:

The City Manager recommends approval but notes that the final budget ceiling funding may need to be adjusted in the context of the Council decision on tax increases, and overall operating budget approval.

COUNCIL POLICY

Council has approved annual operating grants to the major exhibiting institutions to support their ongoing operations since their formation as independent non-profit societies.

Council established the "Other" Grants category to provide funding for grant requests which do not meet the criteria for Community Services, Cultural, Day-care or Environmental grants.

PURPOSE

The purpose of this report is to submit the 2000 funding ceiling of the `Other' Grantsbudget for Council's approval.

BACKGROUND

City Council, on June 22, 1989, approved the recommendation of the Director of Finance to restructure the `Other' Grant funding into three separate categories: Major Facilities, Annual Recurring and Miscellaneous.

DISCUSSION

1. Major Facilities

The Major Facilities category provides funding to the four organizations which operate the Vancouver Art Gallery, the Vancouver Museum, the Vancouver Maritime Museum and the Pacific Space Centre. The ceiling also includes grant funding for Science World which was transferred from the Cultural Grant category in 1997.

Consistent with the Council policy regarding the development of Civic Grant Ceilings, the proposed grant ceiling includes funding of $3,332,900 for these organizations. Funding in the Major Facilities category is based on specific and on-going arrangements as stipulated in the operating/lease agreements with the City. In turn, annual adjustments to these agreements are based on CUPE wage settlements, or a composite of wage settlements and inflation. Contracts for all employee groups including CUPE, expired at the end of 1999. Staff are recommending that 1999 funding levels remain in place until a wage settlement is reached. Any additional funding required to adjust for a subsequent settlement is unbudgeted, and would need be provided from either contingency reserve or from any unused portion of the "Other" grants budget discussed below.

The Major Facilities Grants category also includes $82,000 of supplemental funding for the Vancouver Maritime Museum - St. Roch, which was provided from contingency reserve in previous years. Council approved the 2000 supplemental grant for the St. Roch on January 20, 2000.

The reports on the allocations of the 2000 grants will be submitted to Council at a later date following review of the Major Facilities operating results and year 2000 budget.

1999 Ceiling 2000 Recommended

Major Facilities $3,250,900 $3,332,900

2. Other Grants

The Other Grant category provides funding for the Annual Recurring and Miscellaneous categories as well as for several specific programs including the Community Policing Offices.

Based on recent approvals and requests anticipated in 2000, it is proposed to establish a budget of $450,000 to provide for these grants in 2000. Staff are not recommending an increase to the 1999 funding level of $450,000. Reports on the allocation of these funds will be submitted to Council at a later date following review of the organizations' 1999 operating results and year 2000 budget.

1999 Ceiling 2000 Recommended

`Other' Grants $450,000 $450,000

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(c) 1998 City of Vancouver