A6 ADMINISTRATIVE REPORT Date: March 26, 1997 Dept. File No. AN C.C. File No. 2052-1 TO: Vancouver City Council FROM: Director, Office of Cultural Affairs SUBJECT: 1997 Cultural Grants: Operating and Project Grant Allocations RECOMMENDATIONS THAT Council approve 77 Operating Grants totalling $1,239,900 and 27 Project Grants totalling $63,500, as listed in Appendix A, for a total of $1,303,400 including conditions on grants, where noted. Source of funds to be the 1997 Cultural Grants budget. GENERAL MANAGER'S COMMENTS The General Manager of Community Services submits the foregoing for Council's CONSIDERATION. COUNCIL POLICY City Council confirmed the criteria used in assessing Cultural Grant applications on February 3, 1987, and approved the current Cultural Grant categories (Operating, Project, Grants Equal to Rent and Incentive grants) on December 14, 1989. On November 22, 1994, City Council approved a new two-step grant approval process whereby staff recommendations not in dispute are approved first (and are the subject of this report), while applications being reconsidered are given a second review and are presented for Council approval at a later date. Approval of grant recommendations requires eight affirmative votes. SUMMARY As listed alphabetically in Appendix A, staff recommend approval of 104 Operating and Project Grants totalling $1,303,400, out of 134 requests received, leaving a balance of $38,960. Not included in Appendix A are four Project Grant applicants requesting reconsideration, as indicated in Appendix B. Their applications will be considered by Council on May 8th. Appendix C provides a summary of all 1997 Operating and Project grant recommendations by activity (those considered in this report as well as those that will be reconsidered later), compared to grants in the previous year. In addition, a package of the front pages of all the applications, with staff comments, was sent to each member of City Council in advance. PURPOSE This report recommends 1997 Cultural Grant allocations in the Operating and Project categories for all applications not referred to the reconsideration process. BACKGROUND In approving the 1997 Cultural Grants budget ceiling on March 13, 1997, Council allocated $1,277,360 for Operating Grants and $65,000 for Project Grants, for a total of $1,342,360. For this year, 134 Operating and Project grant requests amounting to $1,760,550 were received, not including Science World, which will be reported on at the City Services and Budgets Committee of April 10th. Staff initially recommended approval of 77 Operating grants and 27 Project grants, for a total $1,303,400, leaving an unallocated balance of $37,460 in Operating and $1,500 in Projects, for a total of $38,960. Applicants were notified of these recommendations, and four Project Grant applicants, none of which have been recommended for funding, have requested reconsideration (See Appendix B). DISCUSSION Recommendations This report presents staff recommendations for the 130 applicants that have not requested reconsideration (see Appendix A). In addition, any grant recommendations in this report not approved by Council will be referred to the reconsideration process, so that applicants may have the opportunity to speak to Council's concerns. Criteria The recommendations in this report have been made in the context of the increased financial pressures on Vancouver's non-profit arts organizations, partly reflected by the declining number of Cultural Grant applicants in recent years. Staff have tried to maximize the effectiveness of City support by considering each applicant's contribution to the community, as well as by assessing basic eligibility, organizational competence, financial status, and program quality. This review has resulted in recommendations for increases to organizations that are artistically viable, accessible, active in Vancouver, and working to strengthen the cultural community as a whole. It has also resulted in some decreases and fewer grants overall than in previous years. As in the past, a number of grant recommendations to smaller, developing organizations have been made, focusing on support for innovation and distinctiveness, including the cultural activity of diverse communities. A summary of the number of grants recommended and not recommended, compared to those in previous years is provided in Table I, following. TABLE I OVERVIEW OF RECOMMENDATIONS Operating and Project Grants No. of No.of No.of Groups Groups Groups 1997 1996 1995 TOTAL 134 143 146 Not recommended 30 23 30 Recommended: 104 120 116 Decreased grants 8 8 12 Grants held at same level 67 62 44 Increased grants 20 34 44 New grants 9 16 16 Additional Items Children's Festival: As indicated in Appendix A, staff are currently recommending a decrease of $3,600 in the Operating grant to the Children's Festival, which receives no other form of assistance. This is based on the proportional decrease to major cultural organizations proposed in the 1997 Funding Ceilings report, but not finalized pending Council's consideration of Science World's grant on April 10. The grant recommendation for the Festival is being presented now to avoid any further delay in providing funds, given the lack of advance grants this year. If subsequent decisions affect the Festival's proportional reduction, a further recommendation will be presented for Council's consideration. Final decisions on the other major organizations affected by the budget reduction target, which receive rental or "Other" grants, will be made after Council considers Science World's grant. Vancouver East Cultural Centre: In November 1996 Council approved an emergency grant of $17,085 to the VECC to ensure continued operation of the theatre. Staff will be reporting back to Council in May in detail on the considerable progress made in improved fiscal an managerial controls. In brief, the society has stabilized its cash flow and implemented current and stringent accounting procedures and policies including a monthly external review by a volunteer financial adviser. Current audited financial statements are on file with City Clerk's. Other notable improvements: 130,000 in new funds and in-kind support have been secured towards the debt-reduction plan and improved operating support, which has enabled: (1) reduction of accounts payable by 50% and a debt-reduction plan by remaining creditors, and (2) completion of much of VECC's capital improvement project, including new sound, lights and seating; a full season of rentals and co-productions has been booked; marketing and therefore ticket sales are much improved; and residency relationships with local arts organizations have been formed. CONCLUSION This report, and the reconsideration report to be considered on May 8th, are the main reports on Operating and Project grants scheduled for 1997. A limited number of Project grants will be reviewed, if appropriate, throughout the year. Reports on the other Cultural Grant programs are scheduled for later in the year, including 1997/98 Grants Equal to Rent in July. * * * * *