SUPPORTS ITEM NO. 4
CS&B COMMITTEE AGENDA
FEBRUARY 1, 1996
ADMINISTRATIVE REPORT
Date: January 16, 1996
TO: Standing Committee on City Services and Budgets
FROM: Director of Cultural Affairs
SUBJECT: 1996 Cultural Grants Budget Ceiling
RECOMMENDATION
THAT Council approve a 1996 Cultural Grants budget of $3,059,690,
as outlined in summary Table I.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
Council established the annual civic grants programs in March 1978.
Budget ceilings for the Cultural Grants program, as well as the
'Community Services', 'Childcare', and 'Other' grant programs, are
established annually.
PURPOSE
The purpose of this report is to establish a budget ceiling for the
1996 Cultural Grants program, which includes Operating, Project, and
Incentive grants, as well as Grants Equal to Rent.
SUMMARY
In keeping with the recommendation of the Director of Finance, the
Director of Cultural Affairs is submitting a 1996 Cultural Grants
budget ceiling of $3,059,690, which represents a 2% inflation increase
over the 1995 Cultural Grants budget. He recommends that funds within
this budget ceiling be distributed among the grant categories as
summarized in Table I, following.
TABLE I
1996 Cultural Grants Budget
Recommended Recommended
1995 Budget Change 1996 Budget
Operating $1,336,555 $25,330 $1,361,885
Project 55,000 0 55,000
Incentive 75,000 4,000 79,000
Grants=Rent 1,533,140 30,665 1,563,805
TOTAL $2,999,695 $59,995 $3,059,690
BACKGROUND
State of the Arts
Vancouver artists currently operate in an environment of increased
competition for funding and revenues. While City and Provincial
funding for the arts has been steady, the federal government has cut
back its support through the Department of Canadian Heritage, the
Canada Council, and the CBC, which presents and commissions work from
local musicians. The imminent restructuring of federal job training
and development programs will inevitably have implications for the
cultural sector. Proposed changes in cigarette company sponsorships
regulations would also have an impact.
The Vancouver Arts Stabilization program, supported by governments and
the private sector, should help to strengthen a number of Vancouver's
larger arts organizations in the long term. In general, however, arts
organizations report increased difficulties in private sector fund-
raising for operating costs. The difficulties have been exacerbated
by the fact that many corporations have headquarters in Ontario, where
government cutbacks have put greater pressure on the private sector.
And local performing arts organizations are facing growing
competition from commercial touring shows at the recently opened Ford
Centre for the Performing Arts.
Civic Cultural Grants
In this context, the City's four categories of Cultural Grants
continue to play an important role in helping to sustain and develop a
lively and accessible arts sector in our city. Civic Operating,
Project and Theatre Rental grants contribute to the creation,
production, presentation and distribution of artists' work. Incentive
grants encourage and assist arts groups to undertake organizational
development, audience outreach and intercultural activities. A more
detailed description of each grant category, its objectives, and
recommended funding level is included in the "Discussion" section of
this report.
Grant applications for Grants Equal to Theatre Rent and Incentive
Grants will be reviewed later this year. In the Project and Operating
categories, 143 applications totalling $1,950,905 have been received
for 1996. Table II, following, shows how these requests compare with
those in the past three years. Among other things, the table
indicates a regular turnover in applicants. Every year, about a
quarter of the requests are for new and formerly unfunded groups,
while a certain number of previously funded and unfunded groups do not
reapply.
TABLE II
Operating and Project Grant Applications
1993 1994 1995 1996
Applications
Orgs. funded previous year 110 104 106 109
Return orgs. not funded prev. 15 5 10 15
New applicants 26 27 34 19
Total 151 136 150 143
Orgs.that have not returned
Orgs. funded in previous year 10 14 8 10
Orgs. not funded in prev. year 9 25 12 16
Total 19 39 20 26
DISCUSSION
1996 Budget Ceiling
For 1995, Council approved a Cultural Grants budget totalling
$2,999,695 in all four categories. For 1996, the Director of Finance
advises that grant budget figures are to include a 2% adjustment for
inflation, bringing the Cultural Grants budget to $3,059,690. Within
this 1996 budget ceiling, funds are allocated among the four Cultural
Grant categories based on priorities and anticipated needs. Their
distribution is summarized in Table I, and described in detail in the
following sections of this report.
Operating Grants
Operating Grants play an important role in helping to sustain the
operations of Vancouver's more established arts organizations, large
and small. They are designed to contribute to the financial stability
that arts groups need over the long term to develop and maintain
quality programming. To be considered, applicants must have received
project funding for a minimum of two consecutive years, and have an
ongoing presence in the community. They are assessed on the basis of
need, program quality, activity level, organizational competence,
community access, and contribution to the community as a whole.
For 1996, 91 Operating grant requests totalling $1,619,900 have been
received. Staff recommend a budget of $1,361,885, representing an
increase of $25,330 on last year's allocation.
In accordance with the process approved by Council on December 14,
1989, this Cultural Grants budget report is accompanied by a report on
applicants recommended for instalments on their 1996 operating grants.
This year, 61 organizations are recommended for instalments totalling
$495,600, representing 40% of their 1995 operating grant. This amount
is included in the Operating Grants budget proposed in this report.
Project Grants
Project grants are intended to assist new and developing arts
organizations, as well as those that operate on a project by project
basis. Applicants are expected to have been functioning for at least
six months.
Project grant assessments are based on some of the same criteria as
those for Operating grants, including organizational competence,
artistic merit, community relevance and access. Additionally, in
evaluating the appropriateness of a grant to a new or recent
applicant, two priorities identified by the Vancouver Arts Initiative
in 1993 currently play a significant role: support for cultural
diversity and for experimental, innovative artistic expression.
For 1996, 52 Project grant requests totalling $253,005 have been
received, eight fewer than in 1995. Of these, 19 are from
organizations funded last year, 14 are from groups turned down last
year, and 19 are new. Staff recommend a budget of $55,000 in this
category, the same as last year. A budget at this level should enable
the City to respond to requests from first-time applicants that meet
the criteria and the priorities identified above, as well as from
previously funded groups.
Grants Equal to Rent
Grants Equal to Rent are provided to established arts organizations
that regularly use one of the three Civic Theatres. Following a staff
review, Council approved a new process for Grant Equal to Rent on July
27, 1995, providing for seasonally based grants considered in the
Spring of each year. The budget ceiling for Grants Equal to Rent,
however, will continue to be set at the same time as the rest of the
Cultural Grants budget.
In 1995 Council approved an initial budget of $1,509,645 for Grants
Equal to Theatre Rent, and later adjusted the budget to $1,533,140 to
accommodate rental rate increases and the change to seasonally based
grants. For 1996, staff are proposing a Grants Equal to Rent budget
that represents a 2% inflationary increase on the adjusted 1995
budget, in the amount of $1,563,805.
Incentive Grants
Incentive grant programs are designed to encourage and assist arts
organizations to undertake organizational development and cross-
cultural initiatives. A detailed description of the programs in the
Incentive Grants category is provided below.
In 1995, Council approved a budget of $75,000 in the Incentives
category. For 1996, staff recommend a budget of $79,000, distributed
as follows:
(1) Organizational Development Fund: $29,000
(2) Cross-Cultural Initiatives Fund: $50,000
(1) Organizational Development Fund
Organizational development and renewal in the cultural sector is
increasingly important, especially given budget cutbacks, the changing
demographics of our community, and increased competition for
audiences. The Organizational Development component of the Cultural
Grants budget helps organizations upgrade staff skills, obtain
expertise needed to address specific operational problems, and
undertake long-range planning and audience development initiatives.
Over the past few years, local arts organizations have been taking
measures to reduce expenditures, increase efficiency and pool
resources in response to current economic realities. They are also
undertaking new approaches to audience development (for example, the
Bravo campaign planned for next October). The City has been able to
assist with some of these initiatives using Organizational Development
funds. For 1996, staff recommend an increase of $4,000 in the fund,
bringing the total to $29,000.
As in the past, $15,000 of the Organizational Development Fund would
be allocated to the Partners in Organizational Development Program
(POD). The program assists groups with strategic planning, board
development, fundraising plans and similar activities. The arts
component of the program has been funded by the City and Vancouver
Foundation, with administrative services provided by the United Way.
Staff propose that the remaining $14,000 be designated for arts
administration training and audience development collaborations by
arts organizations.
(2) Cross-Cultural Initiatives Fund
Council set up the Cross-Cultural Initiatives Fund in 1990 to
encourage projects in the arts that promote co-operation between
distinct cultural communities in Vancouver. In 1993 the Vancouver
Arts Initiative identified the Cross-Cultural fund as a valuable means
of responding to the diversity in our community. That same year, an
evaluation of the program in conjunction with community
representatives resulted in clearer guidelines and improved
communication about the program.
To date, the fund has supported 82 projects, facilitating
intercultural community outreach, supporting artistic collaborations,
expanding the resources available to artists cultural organizations
interested in cross-cultural development, and stimulating dialogue on
race relations.
For 1996, staff recommend that Council approve a budget of $50,000,
the same level as in 1995. At the same time, given that the
environment for intercultural initiatives has changed since 1993,
staff are proposing to do a second evaluation of the program's
criteria and delivery this year, with a view to making recommendations
to Council by the summer.
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