Vancouver City Council |
ADMINISTRATIVE REPORT
Date:
March 12, 2004
Author:
David Sherwood
Phone No.:
604.873 7571
RTS No.:
04072
CC File No.:
1605
Meeting Date:
April 22, 2004
TO:
Standing Committee on City Services and Budgets
FROM:
General Manager of Corporate Services in Consultation with General Manager of Community Services and General Manager of Parks and Recreation
SUBJECT:
Collingwood Neighbourhood House Society Gymnasium Operating Funding 2004
RECOMMENDATION
THAT Council approve 2004 funding in the amount of $212, 900 (an increase of 2% from the 2003 approved funding of $208,727) to the Collingwood Neighbourhood House Society for the operation of the Collingwood Gymnasium for the period January 1, 2004 to December 31, 2004; source of funds to be the 2004 Operating Budget.
GENERAL MANAGER OF CORPORATE SERVICES COMMENTS
The General Manager of Corporate Services recommends approval of the foregoing.
COUNCIL POLICY
· On February 19, 2002 Council approved a five year lease, commencing May 1, 2002, with the Collingwood Neighbourhood House Society. The lease agreement includes arrangements related to the operation of the Collingwood Gymnasium.
· On November 7, 2002, Council instructed the Director of Legal Services to prepare and execute an operating agreement, regarding the funding for the gymnasium, between the City and the Collingwood Neighbourhood House Society, to the satisfaction of the General Manager of Corporate Services, General Manager of Community Services and Director of Legal Services.
PURPOSE
The purpose of this report is to seek Council approval for 2004 operating funds for the Gymnasium.
BACKGROUND
The Society has been operating at the Joyce-Vaness site since late 1995. A five year lease renewal agreement between the City and the Society covering the period November 25, 2000 to November 24, 2005 was approved by resolution of City Council on February 19, 2002. Section 1.7 of the lease states that the Society agrees to provide, to the satisfaction of City Council, administration of the premises, operation of the Gymnasium for the benefit of the Collingwood neighbourhood, a licensed daycare centre area and outdoor play area and provide other programs and activities which promote the educational, social, economic, cultural, health and recreational interests of the residents of the Collingwood area.
The operation of the Gymnasium is considered to be a unique arrangement. Although owned by the City, the Society leases and operates the Gymnasium. It was determined that the independent operation of the Gymnasium would be less expensive than if it were City managed and would allow for more community input into the operation. The foundation for the recreation and gym programs was established by a gym committee that included City and resident representation.
In order to clarify roles and responsibilities, staff recommended in a report to Council on November 7, 2002 that the agreement between the City and the Society regarding the funding for the Gymnasium be formalized. City staff worked with Legal Services and the Society to draft and enter into a specific operating agreement. The result was a modification to the lease agreement dated November 26, 2003 that provides details of the responsibilities of the City and the Society for the operation of a Gymnasium at the premises.
The lease modification establishes that the City staff advisory committee, referred to in the lease, be three staff members with representatives from Corporate Services Group, Community Services Group and Parks and Recreation. The lease modification requires the Society to provide a business plan detailing the programs and services to be delivered in the up coming fiscal year along with financial and performance information for the current fiscal year ending March 31. Within 60 days of each calendar year end the Advisory Committee is to meet with management and at least 2 board members of the Society to review current performance and plans for the future. The Society is required to summarize the information in an annual report to Council.
In 2003 funding of $208,727 was approved by Council for the operation of the Gymnasium. This provided for approximately 60 programs by funding 13 casual staff and 15 instructors for the delivery and administration of these programs.
DISCUSSION
A. Operating Results
The Society continue to reflect the needs of a diverse community by providing a broad range of programs. Society staff continued to work with local residents to improve cultural development and participation in the community by encouraging the intermingling of different age groups and cultures.The projected financial operating results for the year ended March 2004 can be summarized as follows:
Year ended March 2004
Budget
2003/4Projected
Actual
2003/4Budget
2004/5Variance 2003/4
Actual to Budget
Favourable/
(unfavourable)Revenue
272,941
287,770
300,172
14,829
Accessibility Expenses
3,240
2,765
3,240
475
Human Resources Expenses
210,921
230,419
242,923
(19,498)
Administration Expenses
43,738
44,870
44,400
(1,132)
Capital and Facilities Expenses
8,600
8,604
8,004
(4)
Program Expenses
6,442
5,827
6,120
615
TOTAL EXPENSES
272,941
292,485
304,867
(19,544)
NET SURPLUS/(DEFICIT)
0
(4,715)
(4,515)
(4,715)
In 2003/4, the Gymnasium anticipates a deficit of ($4,715) against a breakeven budget. The deficit is to be covered by the Society's House undesignated surplus. For the year 2002/3 the consolidated statement of operations for the Society showed a net surplus of $167k against total revenues of $3.7 million.
The primary reason for the variances to budget was caused by the expansion of programs. This expansion resulted in increased fees while incurring increased staffing costs to run those programs.B. Annual Review Meeting
On February 25, 2004 the annual review meeting took place as described in the lease modification. The following participants were present
City staff Advisory Committee
Greg Eng - Parks and Recreation, Recreational Manager for Vancouver East District
Mario Lee - Community Services Group, Social Planner
David Sherwood - Corporate Services Group, Business ConsultantCollingwood Neighbourhood House Society
Oscar Allueva - Director of Community Services
Michael McLenaghen - Recreation Coordinator
Bill McMichael - Vice President of the Board
Rania Hazioannou - Board memberJoyce Street Area Planning Committee
Chris TauluThe relationship between the City and the Society continued to develop in 2003. City Community Centres close by, in particular Renfrew Community Centre, continue to work with the Society in developing and providing recreational programs for the community. The City's partnering with the Society is further enhanced by the Community Services Group who performs an annual review of the Society's operations each year in support of their application for a Community Grant. For 2004 this review took place in January of 2004 by Mario Lee, Advisory Committee member.
The Annual Review meeting provided a good exchange of ideas and meaningful discussion focusing largely on the common goals of the City and the Society. The Advisory Committee concluded that Collingwood Neighbourhood House Society had continued to provide excellent service throughout 2003 and that their business plan for 2004 would continue to deliver good value for the City's investment. The Advisory Committee requested that the Society develop some performance measures during 2004 and this has been incorporated into their business plan.
C. Funding Request for 2004
The current funding arrangement with the Society for the Gymnasium expired in December 2003. This is the first year that the staff Advisory Committee had been established and a formal annual review meeting took place.The Society is anticipating increased costs in 2004 to support the recreational programs they currently deliver, caused primarily by an outstanding wage contract settlement. Some of these costs will be offset by some increases to fees but the projected shortfall for 2004/5 is $8,688 based upon no changes to the City's funding.
Consistent with the general inflation factor used in preparing the City's 2004 operating budget the Advisory Committee supports an increase of 2% over 2003 funding. With this increase in funding, the Society's projected shortfall for the operation of the gymnasium will be $4,515.
As required by the Lease Modification the Society provides by way of attachment to this Council Report its annual report for Councils review.
FINANCIAL IMPLICATIONS
The Advisory Committee support the extension of the funding arrangement for the Gymnasium and the proposed City funding of $212,900 for 2004, based upon a general inflation rate of 2% over 2003 funding; source of funds to be the 2004 Operating Budget.
CONCLUSION
The Society provides an important service to a demographically diverse community in the Collingwood area. The unique arrangement of a local organization responsible in the development and operation of a City-owned gymnasium has been mutually beneficial in this community. Continued financial support for the Gymnasium operation will ensure that the service can continue to be provided to members of the community.
* * * * *
Attachment to the Council Administrative Report "Collingwood Neighbourhood House Society Gymnasium Operating Funding 2004". Provided by Collingwood Neighbourhood House as per the terms of the Lease Modification.
Collingwood Neighbourhood House
Recreation/Gym ProgramPURPOSE
The purpose of this report is to provide the City of Vancouver with an update of program activities to date (January 2004) and provide a plan for the upcoming year. Collingwood Neighbourhood House (CNH) is seeking approval for 2004 operating funds to support continued and expanded delivery of recreation programs in Collingwood. CNH is requesting a cost of living increase on its current funding as Council policy permits. This increase is necessary to cover existing costs and address budget pressures.
BACKGROUND
City funding for CNH recreation has been stable and consistent since 1994 and most recently, in September 2003, Council approved funding to CNH in the amount of $208,727. In November 2002, in order to clarify roles and responsibilities, staff recommended in a report to Council that the agreement between the City and the Society regarding the funding for the gymnasium/recreation be formalized. City staff worked with the Society to draft and enter into a specific operating agreement. This agreement, completed and executed in November 2003, set out the requirement for this review. One of the principle elements of this agreement is the recognition that Corporate Services, Community Services, and Parks and Recreation require representation in performing an annual review of gymnasium and recreation operations. Management of the services contract is therefore seen as a joint responsibility.
Collingwood Neighbourhood House Gymnasium and Recreation Program
BackgroundThe Collingwood Neighbourhood House gymnasium was part of the 1995 Collingwood Village Amenities, a comprehensive city plan to support the establishment of city funded services as part of the approved Collingwood Village development. The development of a gymnasium was a community priority identified by the Joyce Street Area Planning Committee.
Under this plan, the Collingwood Neighbourhood House assumed responsibility for managing the gymnasium on the understanding that the society would receive City funding to support these operations at a comparable level to that provided to similar operations. The gym is one component within a multi-service facility that included other community amenities, purpose built licensed childcare facilities, park space, and an elementary school that opened in January 2002.
As noted in the 1995 City report, this approach was less costly than having the gym operated by the Parks Board. It also ensured that services on the Collingwood site could be better coordinated and that there was maximum potential for community input into the operation. Under this agreement, the Collingwood Neighbourhood House agreed to fund services beyond the basic level through fundraising and program revenues.
A steering committee was established in 1995 to start-up operations, establish operating budgets, and guide programming direction. This committee was made up of representatives from the Joyce Street Area Planning Committee, the Collingwood Neighbourhood House, the City, Parks and Recreation, and the School Board. Working within the mission of Collingwood Neighbourhood House to serve the needs of the community, this committee established the principles and vision that continue to guide Collingwood's recreation program operations, as described in the goals below:
Main goals of the Recreation program
1. To provide a broad range of recreation and leisure services and opportunities to Collingwood residents of all ages and ability levels.
2. To provide a good balance of social, cultural, physical and arts related activities and work with residents to ensure programs are relevant and responsive to community needs.
3. To provide programs and services that are accessible to all people in the Collingwood community, responsive to disadvantaged residents, and designed to reduce or eliminate any barriers to participation.
4. To create community development opportunities through recreation and leisure including activities for people from different generations to engage in recreation together.Overview of Activities
The Collingwood Neighbourhood House Recreation program is comprised of over 60 programs with most of these operating year round. We also run four to six summer camp recreation programs for children including drama, gymnastics, visual arts, jazzercise and soccer. The nature and number of programs offered reflect the continuing growth and change of the Collingwood community itself. There are a wide range of ongoing activities offered including arts, drama, music, outdoors, reading and language, cooking, social, fitness, and many physical activities and sports.An Overview of the Collingwood Community
Collingwood has been undergoing unprecedented development since 1995 resulting in rapid population growth in the last decade, and this is expected to continue as current and new developments are realized over the next few years. School enrollment figures and demand for services also confirm this continuing growth. The Collingwood Village growth projections alone correctly predicted an additional 10,000 new residents when all phases are built out in a few years.
Collingwood is also one of the most economically and culturally diverse communities in East Vancouver. The proportion of residents with English as a Second Language is over 60% and government statistics confirm that there are large pockets within the community of very low income families. Collingwood also has one of the highest proportion of newborns, as well as the highest number of youth per capita as confirmed by Health and Census statistics. Lastly, Collingwood has a disproportionately high number of seniors and special needs residences. This community diversity continues to shape the overall content of recreation programs and their accessibility.
Future Challenges for Collingwood/Renfrew Community and Impacts on Recreation and Leisure services
We have experienced rapid population growth in our community during the past decade resulting in a steady increase in the number of people participating in our programs and activities. Our membership numbers grow steadily each year and more people seem to discover our neighborhood house each month. We expect steady growth in population to continue for the next few years however the increase in the population will not be as dramatic as in the past decade. Along with more people comes a need for more and greater variety of services. In addition, the cultural diversity of the community continues to present unique challenges and opportunities in planning recreation programs, as over 60% of residents are English as a Second Language.
Until now we have been able to provide a high level of service and respond well to the changing needs of our growing population. This will become more difficult in the future due to the limit of available community space for recreation programs at the main neighborhood house. At present, we operate several programs in local elementary schools, however, the availability of other community spaces to operate recreation programs is limited and is usually short term with no guarantee of future availability. These arrangements are achieved through community relationship building and require ongoing attention.
We will also need to find ways to fund expansion of services that community residents demand. This will be a significant challenge as many of the people living or moving into the Collingwood community are in the lower to middle socio-economic class and therefore, affordability and accessibility of recreation programs is a major issue.Another future challenge will be our ability to provide ongoing training and retention for our recreation staff. This includes part-time unionized employees as well as contract staff. A new collective bargaining agreement is likely to be completed in the near future and this will likely result in an increase in wages and benefits for recreation staff. As a consequence, the rate for contract staff (instructing e;g; Pilates, Yoga) will need to be reviewed and increased from the current $20 per hour in order to retain. Currently we have limited funds for training of staff and rely on the ability of new part-time paid employees to learn on the job under the direction of the recreation coordinator. This is becoming more challenging as the number of recreation programs and services we offer continues to rise.
Meeting the Challenges
As our main facility is getting close to full capacity (currently nearing 90% use) we are exploring other facilities in the community that can be used for the provision of recreation and leisure services. We are optimistic about maximizing available community space through (e.g.) continuing to use elementary and secondary school gym space after school, (and increase this use). However this will depend on continued local support from Principals, and the ability to avoid paying School Board rental fees that may apply.
We need to maximize our efforts to promote existing programs so that community members are aware of what is offered and so that these programs have full participation. This will ensure that recreation needs of a larger proportion of community members is met, as well as increasing revenue that can be earmarked for new recreation opportunities.
We believe that residents must be involved in the planning and design of services, and are working toward fully implementing a community development approach to providing recreation and leisure opportunities for the community. By having a high level of community input and involvement in the planning and development of our recreation program, people are encouraged and motivated to take more responsibility for how recreation and leisure fits in their lives. Through education and building the capacity of people to provide recreation opportunities for themselves and their families, we will be achieving our goal of creating an active and healthy community. This community development model will work in concert with our recreation program service delivery model that is used to provide many recreation programs for community members.
Another way we meet the challenges identified in providing quality recreation services to our community is to develop and maintain strong partnerships with other local community groups and with some groups outside of our community. The following groups are examples of partnerships we have established that help us with our recreation program in various ways.
· Renfrew Park Community Centre - our main partner in the planning of recreation, youth, and community development programs and activities in Renfrew Collingwood. We have a strong working partnership and we coordinate activities to minimize duplication and maximize resources and efforts.
· Vancouver School Board - We have a standing agreement for use of the Collingwood Neighbourhood School Gymnasium after hours.
· Joyce Street Area Planning Committee - This resident group has been actively involved in the development of Collingwood since the 1980s.
· Collingwood Community Policing Centre - Have been involved in the development and planning of recreation in the community and with special events. They support our recreation initiatives as a key preventative tool in reducing crime in the community.
· Windermere Family of Schools - Providing space for recreation activities in the high school (Windermere) and the seven elementary feeder schools, and we help to facilitate leadership opportunities and training for students. We have also provided training and workshops for teaching staff.
· Evergreen Health Centre - They help to promote active living by providing space for us to display various recreation activities at their center. Our Visual arts program has worked with Evergreen on several projects.
· Langara College - We have offered workshops and assisted with the teaching of classes in Langara's Recreation diploma program. In addition to this we have mentored recreation students during their practicum for 6 of the past 8 years.
· Some other groups we have established partnerships with include: Vancouver Coastal Health authority, Genesis and Eagle High Alternate schools, Night-hoops Basketball, B.C. Parks and Recreation Association, Club Elite Rhythmic Gymnastics, Pinnacle Pursuits Outdoor Adventures, Gym-Sense Gymnastics Education, Active Holistic Health, Jazzercise Inc., Latin Canadian Soccer group, Luk Tung exercise group, and Canadian Maple Leaf Ballroom Dance.
2003 Work Plan - Update on Accomplishments To Date
· Maintain existing complement of basic recreation programs at high level of quality.
We have maintained our existing complement of recreation programs and evaluation responses from all of our programs this year have been very positive. The number of programs being offered continues to increase each year. During the past year we have offered approximately 10 new programs and we have discontinued 3.
· Increase gym and recreation activities on weekends.
We have developed several new programs to operate on weekends including Jazzercise, Spanish with fun, Children's basketball, Children's gymnastics and "Girls only sport". We are currently planning a children and youth softball program to begin in the spring of 2004.
· Increase services for children and families.The new programs being offered on weekends reflect some of the increased services for children and families. Another program that is planned for the spring of 2004 is the Canoe Club. We will be offering a program that offers children and their caregivers learning about canoeing and water safety. Other children and family programs that have been started in the past year include Music, Movement and More and several new Visual arts workshops.
· Hold a community planning session involving the public and key community organizations.
We are currently organizing a community planning session for recreation that will take place in the spring of 2004. This session was delayed until 2004, as the recreation coordinator was on leave from May 24 to December 31, 2003.
· Develop new or expanded programs in the following areas:
Advanced Seniors Fitness - We have created a Seniors T'ai Chi program and this is going quite well.
Seniors Outdoor Activities - A seniors out-trip/outdoor program has been operating and is moderately successful.
Recreation Activities Geared to a Female Population - We have had up to three girls only sport and social recreation programs going during the year. We have plans to expand this to four ongoing programs for girls. Also, we started a Pilates program which was very successful. Other activities geared more to a female population include jazzercise, aerobics, and gymnastics. (although we encourage males to participate in these activities as well)
Outdoor Recreation for Youth and Children - Canoe Club
Social Activity Programs for Single Adults - To date, we have not implemented any new programs geared to single adults. During our recreation planning session we will evaluate this and determine how to address this need.
Performing Arts and Music - We currently have three drama programs that operate at various times of the year and several music programs. All of these programs are for children and youth. We would like to expand and offer programs for adults in this area during 2004.
· Expand community education and promotion of health benefits of recreation and leisure.
This is an ongoing goal and we have continued to collaborate and work with the various community health organizations in our community to educate the public and promote the benefits of an active, healthy lifestyle. We are planning to expand our web-site so that it cab become a tool to help educate community residents on the benefits and importance of an active, healthy lifestyle. Currently we have developed programs with the Vancouver Coastal Health authority and the Windermere Family of schools that encourage community residents to be active on a regular basis and help them to learn the value of recreation and leisure. The recreation coordinator has developed a values-based approach to sport and recreation that encourages young people to get involved and stay involved in physical activity. This approach emphasizes having fun, socializing, learning and developing skills, play, character development and creating community through participation in sport and recreation. This approach is used in many of our programs and it will continue to grow in the upcoming years. We believe this approach will be effective in dealing with the current problems of inactivity and obesity among young people.
· Work with the adjacent elementary school to expand after school gym and recreation activities for children.
Currently we have activities scheduled for children after school from Monday to Thursday. (A total of one-to-three activities per day being offered at this time) There is room to expand activities to included Fridays and we are currently exploring this expansion. We are limited to what we can offer at this time as the school has access to half the gym, Mon. to Fri. from 8 am to 5 pm.
· Work with community residents to develop Gardening Programs -
We have not implemented any programs in this area however we are working with the "Food Security Institute" and the "Green-Up, Clean-Up" Committee to determine how to proceed. This will involve seeking community input towards starting a community roof-top gardening program to be located on our second floor patio.
· Work with community partners to re-establish youth basketball programs. Youth basketball continues to be in high demand. We worked with Renfrew Community Centre to determine if the Nighthoops Program should be re-instated, however, there was a lack of space available. However, we have worked with Parks Board and the community to ensure that available basketball courts at Gaston Park are managed to the satisfaction of residents and serve youth needs. Also, our youth basketball programming has increased. We are continuing to offer our highly successful fast-break basketball program in partnership with local schools and have expanded regular gym times for youth to play basketball. These initiatives have resulted in more opportunities for young people to play basketball beyond what the Nighthoops program could accommodate.
Collingwood Neighbourhood House Recreation Financial Report
Actual
Projected
Budget
2002/03
2003/04
2004/05
Revenue
Earned Income and Fundraising
68,874
67,915
76,144
City of Vancouver
209,620
208,716
208,716
Federal Government
2,847
2,663
2,663
Vancouver School Board
0
8,476
8,476
Total Revenue
281,341
287,770
295,999
Expenses
Van Operations
56
420
420
Transportation/Travel
375
189
0
Publicity and Promotion
2,896
2,156
2,820
Accessibility Expenses
3327
2765
3240
Salaries and Wages
157,208
151,553
150,028
Benefits
29,316
17,946
16,503
Contract Services
61,238
58,970
58,678
Honoraria
3,430
1,700
1,200
Staff Development
240
250
600
Human Resources Expenses
251,432
230,419
227,009
Administration Fee
40,068
41,208
43,163
Membership Dues
215
254
252
Office Supplies
287
240
240
Photocopies
3,046
3,168
2,304
Administration Expenses
43,616
44,870
44,400
Equipment Purchases
1,777
3,600
3,000
Facility Charges
5,796
5004
5,004
Capital and Facilities Expenses
7,573
8,604
8,004
Food suplies
1,526
1,258
384
Program Supplies
9,416
4,524
5,236
Miscellaneous
50
45
500
Program Expenses
10,992
5,827
6120
Total Expenses
316,940
292,485
288,773
Net Surplus/Deficit
-35,599
-4,715
7,226
Wage/Contract Estimate
15,914
-8,688
Budget Notes for Recreation
April 2004 to March 2005
General Comments:
· Earned income (program fees) is projected to increase by about $8000 in 2004/2005. This is largely due to an increase in fees being charged for programs and increased revenue in several programs such as Jazzercise and Visual arts.
· We are planning to increase most drop-fees from $3.00 to $3.25 starting April 1, 2004. Most pre-registered programs will increase by an average of $5. For example T'ai Chi will increase from $45 to $50.
· Salaries are projected to increase once union negotiations have been completed.
· Equipment purchases have been budgeted at $250 per month.
· $2820 has been budgeted under CS16 (Coordination) for costs associated with publicity and promotion. The reason for this increase is to cover the costs associated with Recreation programs being advertised in the Collingwood News three times per year.
· Additional programs in this budget include Girls only Sport, Pilates, T'ai Chi, Music Movement and More and Saturday Jazzercise.
Comparison of Projected Expenses 2003/04 with Budgeted 2004/05 By Department
Coordination Budget
· Minor changes in expenses for coordination positions
· Equipment expenses have been reduced from $300 to $250 per monthChildren and Family Recreation Programs
· Fees are lower by approximately $1600
· Salaries and benefits are reduced by about $4500
· Program supplies are up by about $900
· New programs include Girls sport, Music Movement and more and Canoe Club
· New areas to develop will include Tiny tots gymnastics, Children's basketballYouth Recreation Programs
· Salaries and benefits are $2000 lower than current years figures
· New programs include Girls only sportSeniors and Special Needs Recreation Programs
· Program fees increased by approximately $800
· Salaries are increased by $1,900 due to Seniors' Tai Chi (hours not accounted for in last years budget)
· Contract costs are about the same.
· New programs include Seniors T'ai Chi and Seniors OutripsAdult Instruction Recreation Programs
· Increased fee revenue by approx. $5,000 due to success of jazzercise classes and other adult instruction programs.
· Salaries are increased by approximately $1800
· Contract costs have decreased by $3500.
· New programs include Pilates and Saturday JazzerciseAdult Drop-In Recreation Programs
· Increased fee revenue by approx. $4400
Important Budget Observations From this Year:
¬ Residents in the Collingwood/Renfrew area have a limited ability to pay for recreation and leisure services. Consequently, we need to keep fees at a low level compared to other communities in Vancouver and the Lower Mainland. This limits our ability to create and run programs on a break- even basis. We currently subsidize many of our recreation programs.
¬ There are some program areas such as family and children and youth, where community residents have a high need for services. These program areas tend to have participants with a limited ability to pay for services.
¬ We are currently using most of the available space at CNH for recreation. (over 50% of total use of facility) There is a high cost associated with using this space. (heat, light, repairs etc.) This also puts limits on other groups such as community rentals to use CNH.
¬ Staff salaries are at or below average. We are anticipating wage increases for recreation staff as a result of a new collective bargaining agreement. At some time in the future we will need to increase contract wages to remain competitive with other centers.
Anticipated Budget Pressures
Collingwood Neighbourhood House is experiencing significant financial pressures that will have an impact on the complexion of recreation programs and services over the next year. These are as follows:
1. Salary and Benefit Costs:
CNH is a unionized workplace and is operating on an expired collective agreement that will be re-negotiated in the next few months. The prior collective agreement was concluded with a mandatory wage rollback for all unionized staff due to loss of significant provincial funding. This wage rollback was unavoidable and lowered some salaries as much as 30% as well as increased employee premiums for health and welfare benefits. It is recognized that many of our salaries are far below market and must be increased to ensure stability and competitiveness. An increase in staff and benefit costs is inevitable in this coming budget year.
2. Contract Services
CNH is exploring possible increases to contract staff in the next year to remain within market rates. Increases in contract rates have not been implemented for a few years and are up for review. It is estimated that contract rates are in some cases below average by 30%
3. Rising Overhead and Facility Maintenance Costs
After 9 years of operation in our facility, we are detecting a noticeable increase in the cost of maintaining, repairing, and updating our facilities and equipment. It is estimated that CNH recreation activities utilize 54% of CNH facility space, including the gymnasium and other appropriate and multi-purpose spaces.
Funding Request for 2004
CNH is requesting continued City funding at the current level with an increase for cost of living as per Council policy. This increase will enable CNH to cover its estimated costs in operating a quality program including addressing immediate budget pressures due to pending wage and benefit increases.