CITY OF VANCOUVER

ADMINISTRATIVE REPORT

 

Date:

May 26, 2004

 

Author:

Karen Hasselfelt

 

Phone No.:

604-871-6045

 

RTS No.:

04139

 

CC File No.:

2201

 

Meeting Date:

June 24, 2004

TO:

Standing Committee on City Services and Budgets

FROM:

Directors, Office of Cultural Affairs and Finance

SUBJECT:

A.S.T.C. Science World - Annual Review & 2004 Operating Grant Request

RECOMMENDATION

GENERAL MANAGER'S 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 2003 activities and presents for Council's consideration their 2004 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 building is owned by the Province and leased to the City. The City subleases the building and leases the land to the Society for nominal rent 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. Science World is in the midst of a five-year $20 million restoration program called ReGeneration which began in 2001. This phased capital program has been funded largely through private sector support to date, and infrastructure improvements include lobby renovations, new permanent exhibition galleries such as Kidspace, Our World, and Eureka!, as well as the Weyerhaeuser Science Theatre.

One of two science and technology centres in BC (the other is located in Prince George), and one of five located in Western Canada, Science World is a non-profit organization with a volunteer Board of Directors, employs 65 full time staff and 78 part-time staff, with 145 volunteers providing over 27,420 hours of service to visitors and the organization.

Science World generates a significant portion (76%) 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 specific projects and programs, the City's grant is the only operating grant available to Science World. Table 1 reflects Science World's sources of revenue, including its operating support from the City.

2003 Year in Review

As part of Science World's revitalization program, the second phase of the permanent gallery Eureka! opened in 2003 featuring new exhibits that encourage visitors to explore the physical properties of light and sound. In addition to the new Eureka! exhibit, three new temporary exhibitions opened in 2003:

Based on input from the public and its members, Science World is in the preliminary stages of developing its next new permanent gallery BodyWorks which will examine the human life sciences, and in particular, the human body. In the spring, a public campaign was launched with a goal of raising $2.5 million and to date the BodyWorks campaign team has raised $1.2 million.

Exhibitions were complemented with a series of public programs, forums and workshops in an interactive, investigative environment. School programs attracted a total of 50,585 students and group visits another 14,400 participants. The Sounds of Science featured the Vancouver Moving Theatre who performed live shows for a month over the Spring break. Storytelling and science demonstrations were combined with physical theatre, live music and techno-tools to give audience participants a whirlwind tour of the audible world. Summer science camps were introduced for the first time and a pilot project, Community Science Celebration, held road shows in Prince Rupert and Dawson Creek.

2004 Plans

Science World celebrates its 15th anniversary in its current facility in 2004. As part of its ReGeneration plans, the organization will undertake improvements to the aging building, as the Expo dome was originally built as a temporary building. Science World was awarded more than $1.6 million in Canada/BC Infrastructure funding last year to assist them with this base building revitalization. Plans this year include gift shop and lobby improvements, structural repairs to the roof and pier pylons, and upgrades to building systems using environmentally sustainable practices and materials.

ReGeneration activity also continues on the development of new permanent exhibits. The first phase of the BodyWorks Gallery "What Can I Do?" is scheduled to open this summer. Interactive exhibits will investigate the science behind human performance and test individual strength, endurance, reaction time, dexterity, memory and more. In addition to Busytown which continues in 2004, temporary exhibitions will include:

Science World is also featuring four large clay sculptures that were originally created for the Canadian Pavilion at Expo'86. These sculptures celebrate four Canadians who revolutionized communication and transportation history: Sir Sanford Flemming (railway through the Rockies), Alexander Graham Bell (inventor of the telephone and other communication technologies), Reginald Fressenden (pioneer of radio broadcasting) and Wallace R. Turnbull (Canada's first aeronautical engineer).

Featured performances will include the author of Grossology and the Guinness World Record Painting Challenge, which will invite 26,000 artists to participate in painting one work to break the world record for the Most Painters of One Picture. The successful science summer camps will be offered again this year, and outreach activities will include road shows to other parts of the province, as well as Lower Mainland communities such as Richmond.

DISCUSSION

Science World had a stable and productive year in 2003. The Society exceeded budget targets and posted an operating surplus again this year. Science World concluded the year with an annual operating surplus of $103,000 on a total operating budget of $7.9 million. At the same time, Science World's ReGeneration program has been progressing well, with notable improvements to public exhibits and visitor amenities. The Society has sustained momentum for its capital program, raising a total of $8.4 million to date in cash and pledges. The audited financial statements for the year ending February 28, 2004 are attached to this report as Appendix "A".

As indicated in Table 2, total paid attendance increased slightly over the previous year, despite a seasonal drop over the summer months due to a decline in tourism. Science World was able to make up the difference with increased public program attendance and new initiatives such as the summer science camps. Several of Science World's strategic objectives focus upon increasing attendance and outreach.

One of the strategies targets increasing the number of school visits every year over the next five years. Science World has set a goal of achieving 474,000 total visits in 2004 (a 5.6% increase over last year) and a 12% increase in admissions and membership revenues.

Science World continues to manage its operations with a tight control on expenditures, but at the same time, the organization is also focusing on its long-term financial sustainability. Historically, Science World has relied significantly on earned revenues, which has made the organization vulnerable to external factors that affect attendance. One of the key challenges has been in diversifying the society's revenue sources. Entrepreneurial efforts have resulted in a shift in sources of operating revenue, with earned revenues comprising 8-10% less than previous years. Earned income was replaced by other sources of revenue, including government funding, contracts and fees for services for specific projects and programs.

While operational fund raising has remained at approximately 11% of total revenue sources over the past two years, it is anticipated that this will increase to 18% in 2004/05. A committee was established in 2003 to raise funds for the organization's operating endowment. Last year an equity program was initiated to enable the society to receive gifts of shares and options, as well as cash donations.

OCA and Finance staff have reviewed the 2004 operating budget and assumptions and support the financial projections as reasonable in relation to Science World's previous performance.

FINANCIAL IMPLICATIONS

Staff are recommending a 2004 operating grant of $85,800 based on a general inflationary increase of 2.0% over the 2003 grant as approved by Council in the 2004 Operating Budget. The source of funds is the "Other" Grants allocation in the 2004 Operating Budget.

CONCLUSION

Science World is effectively managing its operational expenses and using an entrepreneurial approach to generating revenues. The Society is continuing its efforts to establish long-term funding relationships with senior governments, increase their endowment fund and build up their operating reserves to provide a more balanced and stable financial base. Staff recommend continued operating support for A.S.T.C. Science World Society in the amount of $85,800.

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