ADMINISTRATIVE REPORT
Date: May 2, 2003
Author: K. Hasselfelt
Phone: 604-871-6045
RTS No. 03353
CC File No.2201
Meeting Date: June 12, 2003
TO: |
Standing Committee on City Services & Budgets |
FROM: |
Directors, Office of Cultural Affairs and Finance |
SUBJECT: |
A.S.T.C. Science World
|
RECOMMENDATION
THAT Council approve an Operating Grant of $84,071 to the A.S.T.C. Science World Society; source of funds to be the 2003 `Other' Grants budget.
GENERAL MANAGERS' COMMENTS
The General Managers of Community and Corporate Services RECOMMEND approval of the above recommendation.
COUNCIL POLICY
Council has approved annual grants to A.S.T.C. Science World to support their operations since 1982 through either the "Other Grants" or "Cultural Grants" budgets. In 1997, Council directed that this grant be considered in the context of the "Other Grants" budget category. Approval of grants requires eight affirmative votes of Council.
PURPOSE
This report provides a review of Science World's 2002 activities and presents for Council's consideration their 2003 operating grant request.
BACKGROUND
The A.S.T.C. Science World Society ("Science World") has received civic support since its inception in 1982. In 1989, the Society moved into the renovated EXPO Centre. The land is owned by the City and leased to the Province. The Province subleases the land and building to the Society for the purposes of operating a science centre.
Science World is a hands-on science and technology centre that provides in-house and travelling exhibitions, public and outreach programs, as well as events and films founded in arts, science and technology in many different areas of the facility including permanent exhibition galleries such as Kidspace, Our World, and Eureka!, Weyerhauser Science and the Alcan OMNIMAX theatres and Centre Stage.
One of two science and technology centres in BC and one of five located in Western Canada, Science World is a non-profit organization with a volunteer Board of Directors, employs 66 full time staff and 78 seasonal staff, with 150 volunteers providing over 28,500 hours of service to visitors and the organization.
Science World generates 84% of its annual operating budget through earned revenues from admissions, memberships, retail sales, etc. The balance of funds is raised through grants, donations and fund raising. While Science World receives some funding from senior government for projects, the City's grant is the only operating grant available to Science World and represents 1% of their operating budget. The City provides occupancy of the facility at a nominal rent and property tax exemption, but not utilities, janitorial services, or grounds and building maintenance. The breakdown of revenues can be seen in the chart provided in Table 1.
2002 Year In Review
As part of a multi-year revitalization program of the facility, Science World began its ReGeneration plans in 1998 on a phased-in basis that has seen several major capital improvements over the last few years: the Kidspace Gallery opened in May 2001, followed by the Weyerhauser Science Theatre and Our World Gallery in 2002. Also the main permanent exhibition space was redesigned and transformed into an environment focused on basic principles of the physical sciences. With $2.5 million donated by individuals from the high-tech community, the first phase of this new Eureka! Gallery opened in June 2002.
Temporary exhibits in 2002 included:
· Scream Machines, The Science of Roller Coasters - an interactive exhibit that explored the physics, physiology and psychology of roller coasters;
· Flight - a celebration of aviation that provided hands-on experiences for understanding a wide range of science, math and physics principles; and
· Arithmetrics - developed in-house, an exhibition which focused on games using math, toured in the USA and Toronto before returning to Science World in September.
As well as films, a wide range of events, school and public programs complement the exhibits. In addition to the Scientists & Innovators in the Schools and the Engaging Science programs, Science World continued to offer The Wonderbus Program which provides subsidized transportation to designated inner city school groups, the Hands-On Science After-School Program and Opening the Door, designed for students pursuing a career in science, technology, engineering or math to meet professionals working in the field.
2003 Plans
Science World has been successful in maintaining the momentum of its fund raising for its ReGeneration plans, raising a total of $5.2 million to date. The second phase of the Eureka! gallery is scheduled to open in June 2003 and will include new exhibits that encourage visitors to explore the physical properties of light and sound. Fund raising and plans are already underway for the next phases of the ReGeneration program which will include a permanent exhibit area with a focus on the human body, and an outdoor science experience area, which is currently in the visioning stages. In addition to the new permanent exhibit galleries, temporary exhibits planned for 2003 feature:
· Communication - a touring exhibition from a science centre in Finland which explores new inventions for communication through interactive exhibits;
· Gee! In Genome - which takes a step-by-step exploration into genomics (the study of genes) using a musical analogy; and
·BusyTown - a three-dimensional world of interactive adventure created by children's author Richard Scarry, which explores structures and materials in six themed areas including a factory, shipyard and a power plant.
The Vancouver Moving Theatre has been invited to perform live shows this spring that are a tribute to the phenomenon of sound and the impact it has on our lives. Storytelling and science demonstrations have been combined with physical theatre, live music and techno-tools to give audience participants a whirlwind tour of the audible world. This type of programming is compatible with Science World's arts, science and technology mandate.
DISCUSSION
The organization has developed a new five year Strategic Plan that focuses upon financial sustainability and community impact. One of the Strategic Objectives targets attendance, with the goal of achieving 575,000 public and school visits by 2007. Staff note however that the plan does not indicate specifics of how these targets will be achieved and that while attendance increased by 5.5% over the previous fiscal year, paid attendance is down 20% over the same period. Over the longer term, visitor attendance is 13% lower than in 1997/98. The recent drop in admission revenues is in part explained by the fact that as memberships increase, there is an adverse affect on admissions revenue due to more free visitations by members and their families. It is also due to the high attendance and revenues achieved for the blockbuster China! exhibition held the year previous that both revenues and expenditures decreased accordingly, so that total revenues were down 13% and total expenditures were 11% less over last year. Like other institutions, Science World is highly vulnerable to external factors such as teacher labour disputes and world events.
Science World concluded the year with an annual operating surplus of $25l,000 on a total operating budget of $7.3 million. Staff note that this surplus contributed to the elimination of Science World's accumulated deficit which was ($118,000) last year, and further, to Science World concluding the year with an accumulated surplus of $133,000. The audited financial statements for the year ending February 28, 2003 are attached to this report as Appendix "A". Science World's 2002 Annual Report will be circulated to Council under separate cover and is available through the City Clerk's office.
Due to its historic reliance on earned revenues, Science World's challenge continues to be in diversifying its revenue sources. A committee has been established to raise funds for the organization's operating endowment and Science World is currently investigating other fund raising strategies which will require some up front costs for a feasibility study. Instead of attributing the cost of this study to future income, Science World has built these costs into the operating budget, which will show a net loss of $105,000 in 2003/04. Despite projecting a loss in 2003/04, Science World has projected that it will maintain an accumulated surplus of $28,000.
FINANCIAL IMPLICATIONS
Staff support Science World's efforts to establish long-term funding relationships with senior governments, increase their endowment fund and build up their working capital reserves to provide a more balanced and stable financial base. Staff are recommending a 2003 operating grant of $84,071 based on a 1.75% increase over their 2002 approved grant level to cover inflation based on Council policy. Source of funds for the operating grant is the "Other" Grants category in the 2003 Budget.
CONCLUSION
Staff recommend continued operating support for A.S.T.C. Science World Society in the amount of $84,071.
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