|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
June 17, 2004 | |
Author: |
Carol Ann Young | |
Phone No.: |
871-6042 | |
RTS No.: |
3984 | |
CC File No.: |
2402 | |
Meeting Date: |
July 6, 2004 |
TO: |
Vancouver City Council |
FROM: |
Director of Social Planning |
SUBJECT: |
Childcare Endowment Reserve Report |
RECOMMENDATION
A. THAT Council authorize payment of an operating subsidy of up to a total of $99,000 to the Vancouver Society for Children's Centres for the 60 infant/toddler spaces at Dorothy Lam Children's Centre, Quayside and Library Square for the period January 1 - December 31, 2004. Source of funds: City Childcare Endowment Reserve;
B. THAT Council authorize payment of an operating subsidy of up to a total of $39,600 to the Vancouver YWCA for the 24 infant/toddler spaces at the Leslie Diamond Centre for the period January 1 - December 31, 2004. Source of funds: City Childcare Endowment Reserve;
C. THAT Council authorize payment of an operating subsidy of up to a total of $39,600 to Collingwood Neighbourhood House for the 24 infant/toddler spaces for the period January 1 - December 31, 2004. Source of funds: City Childcare Endowment Reserve;
D. THAT Council direct staff to report back in 2005 with a plan for sustainability of the Childcare Endowment Fund.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A, B, C and D.
COUNCIL POLICY
The Civic Childcare Strategy, approved by Council in October, 1990, recognized the need to ensure the availability of start-up and operating subsidies to sustain those new childcare facilities being opened in high density neighbourhoods as a result of rezoning negotiations or City-initiated projects. In May, 1991, Council approved the creation of the Childcare Endowment Reserve.
On December 15, 1994, Council approved the terms and conditions of the Childcare Endowment Reserve, including eligibility criteria and the process of accessing these funds.
In April, 1996, Council clarified that the City Childcare Endowment Reserve was to be established as an interest bearing fund.
In January, 2000, Council approved a strategy, in principle, of winding down the existing City Childcare Endowment Fund over the next ten years, as outlined in the January 10, 2000, Administrative Report. Council approved the maximum rate for the infant/toddler operating subsidy at $1,650 per licensed infant/toddler space per annum for the period January 1, 2001 - December 31, 2002 from the Childcare Endowment Reserve.
In March, 2004, Council signed the Joint Civic Childcare Protocol which committed to maintain and expand childcare spaces by 5%.
Approval of grant recommendations requires eight affirmative votes.
PURPOSE
The purpose of this report is to authorize payment of up to the maximum subsidies available for 2004 as per the approved existing Operating Agreements.
BACKGROUND
Council approved a requirement of the developers of Marathon-Coal Harbour to enter into an agreement for the provision of childcare services. This involved a reduction in spaces from 86 to 37 spaces with a pay-in-lieu of $1,256,850. These funds were allocated to the Childcare Endowment Reserve and intended to provide the annual operating offset and a start-up contribution of $2,000 per space for the first two years of operation. This program will open late 2004 in the new Shaw Tower. Start-up funding for this program was approved by Council in May, 2004.
On April 8, 1996, Council approved childcare agreements covering the period 1995 to 1998, with three eligible childcare operators - the Vancouver Society of Children's Centres (VSOCC), the Vancouver YWCA(YWCA) and the Collingwood Neighbourhood House Society(CNH). The agreements laid out the terms and conditions for accessing infant and toddler operating subsidies and set the maximum contribution level per space per annum for the term of the agreements. In January, 2000, Council directed the Law Department to renew operating agreements with the three eligible childcare operators.
Social Planning was directed by Council to administer the Childcare Endowment Reserve funds, report back on the actual funding spent each year and seek Council annual authorization of payments up to the contribution limits for each eligible childcare operator. In January, 2000, Council approved the maximum rate for the infant/toddler operating subsidy at $1,650 per licensed space per annum for the period January 1 2001 - December 31, 2002. In January, 2000, Council approved a strategy, in principle, of winding down the existing Childcare Endowment Reserve fund over the next ten years.
Infant and toddler care is the most expensive form of licensed childcare for an operator to deliver. Quality dictates a high staff to child ratio and, as such, there is a high staffing cost to these programs. The actual cost of care per space per year in these programs ranges from $15,500 to $19,400. Provincial policy changes regarding the consolidation of childcare grants, elimination of wage lift funding, and childcare subsidy changes, have also impacted the overall operation of infant/toddler programs. Staff are requesting that Council extend the Childcare Endowment Reserve Fund at the current approved rate of $1,650 for an additional year. Staff are examining a number of options for revitalizing the Childcare Endowment Fund, given that a number of new programs will be opening in the next few years and that programs will continue to experience significant deficits to deliver the much needed infant and toddler spaces. Without an Endowment contribution, organizations have indicated that they could not provide this service at a cost some parents can afford.
Currently, there is a balance of $4,470,701.48 in the Childcare Endowment Reserve.
DISCUSSION
The existing three organizations (VSOCC, YWCA and Collingwood Neighbourhood House) currently receiving Childcare Endowment funding, continue to operate at a deficit, despite the Provincial operating grant of $220 per month (average) per child in infant /toddler spaces. In 2003, programs reported annual operating deficits without the Childcare Endowment grants of: $132,840 Vancouver Society of Children's Centres (60 spaces); $69,030 Collingwood Neighbourhood House (24 spaces); and $131,345 YWCA (24 spaces).
FINANCIAL IMPLICATIONS
The following chart sets out the approved and actual payments for the infant/toddler operating subsidies for the VSOCC infant/toddler childcare programs: Library Square (12 spaces), Dorothy Lam (24 spaces) and Quayside (24 spaces); Collingwood Neighborhood House Society (24 spaces); and YWCA (24 spaces), from January 1, 2004 to December 31, 2004. In addition the start up costs for the Shaw Tower Child Care Centre is payable to VSOCC for 12 spaces (previously approved by Council).
Program |
Approved 2003 |
Allocated 2003 |
Proposed 2004 |
Approved 2004 |
Library Square |
19,800 |
19,800 |
19,800 |
|
Dorothy Lam |
39,600 |
39,600 |
39,600 |
|
Quayside |
39,600 |
39,600 |
39,600 |
|
Shaw Tower startup |
n/a |
n/a |
0 |
74,000 |
Leslie Diamond |
39,600 |
39,600 |
39,600 |
|
Collingwood |
39,600 |
39,600 |
39,600 |
|
Total |
$178,200 |
74,000 |
Note: In May, 2004, Council approved up to $74,000 in start-up funding to VSOCC for Shaw Tower from September, 2004 - August, 2006.
Currently, the balance of the Childcare Endowment Fund was $4,470,701
CONCLUSION
The Childcare Endowment Reserve funds continue to be required to support the VSOCC infant and toddler programs at Library Square (12 spaces), Quayside (24 spaces) Dorothy Lam (24 spaces); the infant/toddler programs at YWCA - Leslie Diamond Centre (24 spaces) and Collingwood Village (24 spaces). Social Planning recommends authorization of payments of $1,650 per space for the 2004 infant/toddler operating subsidy up to $178,200.
* * * * *
