|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
November 19, 2003 | |
Author: |
Rick Gates | |
Phone No.: |
604-871-6036 | |
RTS No.: |
3801 | |
CC File No.: |
2151/2401 | |
Meeting Date: |
December 11, 2003 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
Director of Social Planning |
SUBJECT: |
Increased Rent Subsidy Grant for End Legislated Poverty |
CONSIDERATION
THAT Council approve an increase of $4,128 in the 2003 rent subsidy grant to End Legislated Poverty (in addition to the $7,872 already approved); source of funding is Contingency Reserve.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services submits the foregoing for CONSIDERATION.
COUNCIL POLICY
On June 8, 1993, City Council decided that rent subsidies to social service organizations occupying City-owned properties, held in the PEF, will be funded from the Community Services budget, and that this budget will be adjusted to accommodate the subsidies approved by Council. Applications for rent subsidy grants are to be assessed for eligibility on the same basis as applications for Community Services Grants.
On February 27, 2003 City Council approved a Community Services Grants budget of $3,029,700
Approval of grants requires eight affirmative votes.
PURPOSE
This report provides the information needed for Council to decide whether or not to approve an increased rent subsidy grant to End Legislated Poverty.
BACKGROUND
On October 23, 2003, Ms. Lesley Moore, on behalf of End Legislated Poverty (ELP), wrote to City Council requesting an additional rent subsidy grant for ELP. This additional funding would help to ensure the continued viability of the organization until the end of its fiscal year (March 31, 2004).
ELP has received Community Services Grants (and rent subsidy grants) each year since 1994. On April 24, 2003, City Council approved a Community Services Grant of $33,996 and a rent subsidy grant of $7,872 to ELP.
On November 30, 2002, the Province terminated its funding to ELP. The cancelled Provincial grant of $186,000 represented almost three quarters of the organization's entire budget.
End Legislated Poverty is a coalition of more than 35 non-profit organizations from across the province. These groups have a shared desire to end poverty, eliminate attitudinal barriers to low-income people, and to ensure the creation of decent jobs that provide a living wage. Until the Provincial Government cancelled its funding, they coordinated activities and campaigns in many communities across the province. The City grant was always intended to contribute towards the work that was being done in Vancouver, with Vancouver residents.
With the cancellation of the Provincial funding, the City became the primary funder for ELP with the combined Community Services and Rent Subsidy Grants totalling $41,868. The Law Foundation has contributed $19,500 annually to assist with the production of the ELP newsletter, and ELP raises $10-20,000 each year from a number of sources. Although it was obvious that the cut in Provincial funding would make it impossible for ELP to carry on at the same activity level, Social Planning staff recommended continuation of City funding to ELP for at least a year to develop a work plan that would specifically address poverty issues in Vancouver. It was understood that ELP would be concurrently developing plans for continuing their work throughout the rest of the province.
DISCUSSION
The approved rent subsidy grant of $7,872 represents a subsidy of 64% on the rent being charged for office space in a City owned facility. The is the same subsidy level as is provided to the B.C. Coalition of People with Disabilities, which is located next door to ELP.
ELP is requesting an additional rent subsidy grant of $4,128, which would bring the subsidy up to $12,000, or 100% of the rent for this space. The organization has insufficient funding from other sources to pay rent to the City for the remainder of their fiscal year. If the additional rent subsidy is not approved, they will have to vacate the City premises. No alternative accommodation has yet been identified, and ELP's inability to pay rent would make such an alternative very unlikely.
Over the past six months or so, ELP has been working very hard at restructuring and re-defining what they do and how they do it. All of the staff, except the one funded through the City's grant, have been laid off and the small surplus that they had at the beginning of the year has been used to pay for day-to-day operating expenses - that surplus is now gone. They recently held a fund-raising event which provided enough funding to pay for operating expenses (but not the rent) for another three to four months.
They are transferring much of the work that was done by paid staff to volunteers, and are trying to develop methods of coordinating these volunteer activities using minimal staff. They anticipate they will know within the next few months whether or not such a radical shift in operations is workable. An additional rent subsidy grant would give them some breathing room to try out this new approach.
One aspect of the new approach that is receiving considerable attention is fund-raising. ELP recognizes that they will have a very difficult time surviving, particularly at a provincial level, with only City funding. If sufficient other funds can be garnered, then they may be able to pay a portion of the rent to the City, thus reducing the required rent subsidy next year.
ELP is in a fragile condition at this point. It could fold within weeks. On the other hand, they are experiencing some success at fund-raising and in organizing volunteers to carry on with their work. There is no concern that an additional rent subsidy grant might go to a failing organization, because with these grants, money is not given to the organization; rather, it is transferred into their City rental account and reduced each month by the rent amount.
FINANCIAL IMPLICATIONS
Rent subsidy grants are usually funded out of the Other Grants category. However, there is no money remaining in this grant budget, so the source of funding will be Contingency Reserve.
CONCLUSION
The requested additional rent subsidy grant would allow ELP to continue using the City-owned facility that they have been located in for almost ten years, while they continue with their efforts to restructure and reorganize. Staff are concerned about setting a precedent of providing 100% rent subsidies to organizations that have provincial mandates. Therefore, if the additional rent subsidy grant is approved, it should be on the understanding that this is a one-time, unique situation.
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