SUPPORTS ITEM NO. 4
CS&B AGENDA
APRIL 10, 1997
ADMINISTRATIVE REPORT
Date: March 14, 1997
Dept. File: ASTC03.14
C.C. File No. 2001-1
TO: Standing Committee on City Services and Budgets
FROM: Director of the Office of Cultural Affairs and Director of
Finance
SUBJECT: A.S.T.C. Science World Society
CONSIDERATION
A. THAT Council discontinue operating funding to A.S.T.C. Science World effective January 1, 1997 with no
transition funding;
- or -
B. THAT Council approve a 1997 operating grant of $40,000 to
A.S.T.C. Science World which will provide transitional funding
to June 30, 1997 and A.S.T.C. Science World be advised that
the City will discontinue its financial support effective July
1, 1997;
- or -
C. THAT Council approve a 1997 operating grant of $77,400 ($80,000 less a proportional
decrease) to A.S.T.C. Science World which will provide a full year s funding at the adjusted level, and
A.S.T.C. Science World be advised that the City will discontinue its financial support effective January
1, 1998;
- or -
D. THAT Council approve a 1997 operating grant of $77,400 to A.S.T.C. Science World and consider future
grant applications in the context of the Other Grants budget.
GENERAL MANAGERS COMMENTS
The General Managers of Community and Corporate Services submit the choice of A , or B, or C, or D for
Council s CONSIDERATION.
COUNCIL POLICY
The City of Vancouver first provided annual operating support to the Arts Science and Technology Centre (Science
World) in 1982. From 1982 through 1984, grants were made through both the
Other Grants and Cultural grants categories. In 1984 Council moved the
A.S.T.C. (Science World) grant from Other to Cultural Grants and since
then requests for operating funding have been reviewed annually in the
context of the cultural grant process.
In reviewing the 1997 grants ceiling report which recommended moving
Science World to the Other Grants category, Council directed staff to
review and report back on Science World s operations, financial
situation and civic grant level.
PURPOSE
This report reviews background information on Science World, as requested by Council and presents options for grant
funding. Once Council has chosen an option, staff will report back the implications on the 1997 Cultural and Other
Grants target budget reductions with recommendations for Council s consideration, for the redistribution of grant
reductions to the major institutions.
SUMMARY
The Arts, Science and Technology Centre, Science World has had a funding relationship with the City of Vancouver since
1982. Because this institution has combined science and the arts through exhibitory and programming, their funding has
at times been provided through both the Other and through Cultural grants budgets. In considering the 1997 Grant Ceiling
report on March 13th, and prior to making a decision regarding Science World, Council directed staff to review and report
back on Science World s operation, financial situation and civic grant level.
In summary, Science World provides a high level of public programming which is well supported in the community. They
offer a range of programs and exhibits focusing on affordable, hands-on, family education and entertainment through art,
science and technology. With an annual budget of $6.8 million and more than 590,000 visitors annually, Science World has
become a major institution in Vancouver.
While they receive 79% of their revenues from ticket sales and earned income, Science World continues to rely on public
and private support for their annual operations as well as for capital and exhibit infrastructure. Notwithstanding this
high level of community support, Science World has accumulated an operating deficit of $386,208 (as at May 31, 1996).
There are two significant issues arising in the current fiscal year which affect Science World s ability to address their
accumulated deficit:
Ticket sales and fund raising revenues are down. Last December s snow storms cost Science World staff an
estimated income loss of $150,000.
Science World s Executive Director has recently resigned. The Board of Directors have appointed an interim
management team and are engaged in a search for a new director.
Whether measured against other exhibiting institutions or other cultural organizations, the question of civic support is
one of public service, civic priority and financial need. Staff have reviewed the program against these criteria and
this report proposes a range of funding options for Council s consideration. Once Council has chosen an option, staff
will report back the implications on the 1997 Cultural and Other Grants target budget reductions with recommendations for
Council s consideration, for the redistribution of grant reductions to the major institutions.
BACKGROUND
In 1977 the City, in conjunction with the Junior League of Vancouver
launched a joint initiative to develop an arts and sciences centre for
Vancouver. In 1982 the Arts Science and Technology Centre (Science
World) Society opened a storefront location at Dunsmuir and Granville
Streets. In 1986 they spearheaded a move to its current location at
the renovated EXPO Centre. With the assistance of four levels of
government, including a $1 million capital grant from the City of
Vancouver, Science World opened to the public in May of 1989.
The City of Vancouver has provided operating support since A.S.T.C.
Science World first opened in 1982. In 1982 and 1983 these grants were
a combination of Cultural ($5,000 in 1982 & $8,900 in 1983) and Other
($60,000 in 1982 & 1983) grants. Notwithstanding that the activities of
Science World were deemed to be somewhat different from other cultural
organizations, in 1984 Council directed staff to move the grant to the
Cultural Grants budget and assess it annually. In 1995 Council
expressed concerns about the appropriateness of continuing to fund
Science World through the Cultural Grants budget, and about the level of
funding. However, on appeal by the Society, Council approved a stable level of funding from the Cultural Grants
budget. A history of civic grants to Science World approved since 1982 are detailed in an Appendix A
Science World submitted an application for a 1997 Operating Grant in
November 1996 and was included in the cultural grant assessment process.
In the 1997 Grant Ceiling report considered by Council on March 13th,
and prior to presenting final 1997 grant recommendations to Council,
staff recommended that a reduction of $2,600 be applied to Science World
as a proportional share of the proposed $180,000 budget reduction target
approved by Council this year. Staff also recommended in the ceiling
report that Science World be moved to the Other Grants category.
Prior to making a decision regarding Science World, Council passed the
following resolution:
THAT staff review Science World s operation, financial
situation and civic grant and report back.
DISCUSSION:
Science World offers a range of programs and exhibits focusing on hands-on, family education and entertainment through
art, science and technology. With an annual budget of $6.8 million and more than 590,000 visitors annually, Science
World has become a major institution in Vancouver. Whether measured against other exhibiting institutions or other
cultural organizations, the question of civic support is one of public service, civic priority and financial need.
Public Service:
Recent exhibits and programs include:
Permanent exhibitions - Music Machines, Mine Games and The Matter and Forces;
New exhibitions - Backyard Monsters, Bats, KidSpace, Naked Truth, Living Planet;
Educational Programs - Science In the Schools, Opening The Door, School Field Trips;
Centrestage performance series;
3D Laser Shows - The Illuminated Brain;
Omni Theatre - Cosmic Voyage, Blue Planet, Super Highway, The Living Sea;
Outreach programs- Camp-In, On-Line magazine, ScienceEh?, Regional Science Fairs.
Science World was created as the Arts, Science and Technology Centre. Much of the exhibitory and programming, while
based in science, use the arts to present creative, hands-on learning experiences. The Music Machines exhibit allows
children to explore both the science and creation of sound and music. The Centrestage Performance Series features local
actors, musicians and artisans as well as scientists. Science World, in collaboration with the Vancouver Symphony
Orchestra, has presented two school programs of science and music, Robot Rhapsody and Supersonic Symphony.
Civic Priority and Access:
Both the Civic Youth Strategy and the Vancouver Arts Initiative supported programming and education for children as high
priorities for the City of Vancouver. Science World provides a range of programs and opportunities for Vancouver
children and youth. Like arts training, early exposure to science education is a significant factor in encouraging
lifelong learning, creative problem solving and critical thinking. Early exposure has been demonstrated to be a key
factor in encouraging careers in science and participation as future audience members and supporters.
Science World s general admission ticket prices are competitive in the local family attraction and entertainment
marketplace. They also provide flexible family memberships to assist with financial accessibility.
Science World runs a sponsorship program to provide admission and transportation for inner-city Vancouver school children
to attend throughout the school year. As well, Science World has become a favourite destination for ESL classes and now
offer regular ESL orientation sessions.
Financial Need:
Attendance in 1995-1996 reflected a high level of audience participation with 593,028 visits. Ticket sales and earned
income from concessions account for 79% of operating revenues. This is an exceptionally high level of earned income
among non-profit institutions. Science World also relies on diversified sources for other revenues. (A copy of the
1995/1996 audited financial statement is attached as Appendix B.)
Of the funds from government, 1% of income has been provided by the City of Vancouver, 1% by the Government of Canada and
6% by the Province of British Columbia. The project funds from the Province are dedicated to specific provincial
outreach programs, and are not available for operating purposes.
Science World has historically raised between $700,000 and $850,000 year, primarily through sponsorships and special
events. Like all non-profits, Science World has been challenged to maintain this level of support in the increasingly
competitive environment.
Notwithstanding this track record, Science World has accumulated an operating deficit of $386,208 (as at May 31, 1996).
At 6% of their total operating budget, this is neither critical to the ability of the Society to continue to operate, nor
is it out of line with comparable non-profit institutions. In reviewing the society s financial statements, staff track
the history of the deficit to three factors:
Fund Raising Revenues:
While fundraising revenues have increased in total, in the current year, both sponsorship and special event revenues are
down. This reflects the increasingly competitive marketplace. Science World have identified the need to develop a new
fund raising strategy; however, it is unlikely that the current deficit can be eliminated quickly, or fund raising
expanded sufficiently in the current climate.
As well, the Science World Foundation interest revenues (@$250,000 per year) are used to offset operating expenses. With
declining interest rates, Science World cannot rely on historic returns.
Restricted Funds:
Science World receives a high proportion of its non-earned funds for specific programs, activities and capital
improvements. The provincial grant is directed to provincial outreach and education programs. Sponsorship dollars are
restricted to the sponsored events. These funds rarely cover the full costs of the programs or exhibits; the balance is
provided from operating funds.
Infrastructure Lifecycle:
The building is now 12 years old, and the Science World permanent exhibits are 8 years old. In order to continue to
attract visitors, Science World must invest in new exhibits and building upgrades. Future exhibits have been secured,
and in some cases pre-paid, resulting in a cash shortfall for current operations.
There are also two recent factors which will affect the 1996/1997 year:
Earned Revenues:
Revenues are highly dependent on attendance - ticket sales, concessions and sponsorships. School breaks are the peak
periods for attendance - Christmas vacation, March break and summer vacations. Last December, as a result of the snow
storms, Science World staff estimate an earned income loss of approximately $150,000. This appears to be a direct
result of the weather and not indicative of an attendance trend.
Management Changes:
Science World management is in a period of change. On March 3rd their Executive Director of 6 years resigned to take on
the same position at the Ontario Science Centre. The Board of Directors have appointed an interim management team and
will be engaged in a search for a new director. The interim team is aware of and addressing, where possible, the issues
identified above.
FINANCIAL IMPLICATIONS
Depending on Council s decision, two issues will have to be addressed:
The redistribution of the $180,000 budget reduction affecting the
Cultural and Other grant ceilings and the implications for the major
institutions; and
The disposition of any residual funds from the Science World grant
allocation.
Staff will report back on options on these two issues at a later date.
7
CONCLUSION
Staff have reviewed the current operations of Science World and present
a range of options for Council s consideration. The full spectrum of
options is presented in order to provide clarity to Science World with
respect to Council s intentions for current and future funding
opportunities so that they may plan for the future.
* * * *
APPENDIX A
1 of 1
Science World - Civic Operating Grants 1982 - 1996
YEAR AMOUNT SOURCE
1982 $5,000. Cultural Grants
$60,000. Other Grants
1983 $8,900. Cultural Grants
$60,000. Other Grants
1984 $73,500. Cultural Grants
1985 $75,000. Cultural Grants
1986 $77,000. Cultural Grants
1987 $78,500. Cultural Grants
1988 $81,000. Cultural Grants
1989 $81,000. Cultural Grants
1990 $83,000. Cultural Grants
1991 $86,000. Cultural Grants
1992 $88,000 Cultural Grants
1993 $88,000. Cultural Grants
1994 $80,000. Cultural Grants
1995 $80,000. Cultural Grants
1996 $80,000. Cultural Grants