SUPPORTS ITEM NO. 4
CS&B COMMITTEE AGENDA
JULY 24, 1997
ADMINISTRATIVE REPORT
Date: June 24, 1997
CC File: 2202
TO: Standing Committee on City Services and Budgets
FROM: Director of Finance
SUBJECT: 1997 Health Grants to AIDS Organizations
RECOMMENDATION
A. THAT, consistent with resolution of February 4, 1997, Council
approve terminating grants to the AIDS organizations totalling
$50,150 to cover the three month period January 1, 1997 to
March 31, 1997, as follows:
AIDS Vancouver $21,500;
McLaren Housing Society of B.C $ 7,750;
B.C. Persons with AIDS Society $20,900;
source of funds to be the "Other" grants allocation.
CONSIDERATION
B. THAT Council approve an extension of the terminating grants to
the AIDS organizations totalling $50,150, representing an
additional three months funding to the AIDS organizations to
June 30, 1997, to be allocated as follows:
AIDS Vancouver $21,500;
McLaren Housing Society of B.C $ 7,750;
B.C. Persons with AIDS Society $20,900;
source of funds to be 1997 Contingency Reserve.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of A
as being consistent with Councils previous decision on funding
these organizations. Item B is submitted for Council's
CONSIDERATION.
COUNCIL POLICY
City Council, on April 15, 1996, when approving the 1996 grants to the
three AIDS organizations, also resolved :
THAT Council advise AIDS Vancouver, McLaren Housing Society of
B.C., and B.C. Persons with AIDS Society that their grant program
will be terminated at the end of 1996; and instruct staff to assist
the three organizations to secure the necessary funding from the
Ministry of Health and/or the Vancouver Health Board.
City Council, on February 4, 1997, when dealing with the shortfall in
the 1997 Operating Budget, primarily as the result of the $17.2 million
reduction in Provincial transfer payment, affirmed the following:
THAT the remaining City grants in the Health field totalling
approximately $200,000 be referred to the Vancouver/Richmond Health
Board for funding as of April 1, 1997, the day the Vancouver Health
Board gains control over its budget, and that the Mayor sends the
Vancouver Richmond Health Board a letter to this effect.
Approval of grants require eight affirmative votes of Council.
BACKGROUND
Funding to the health related service organizations is a Provincial
Government responsibility. However, since the mid-1980's, the City has
taken a leadership role by providing financial assistance to AIDS
Vancouver, McLaren Housing Society of BC and Persons with AIDS Society.
The City grants have provided funds to support general administrative
costs and, in the case of the McLaren Housing Society of BC, to support
a portion of the salary of the full-time executive director position.
On January 1, 1996, the Vancouver Health Department was transferred to
the Vancouver Health Board (VHB). The transfer resulted in the Board
becoming the policy making body on health related issues. One issue
outstanding from the transfer was the annual grants from the City to the
three AIDS organizations, which was to be subject to further discussion
between the City and the Vancouver Health Board.
After City Council approved the 1996 grants to the three AIDS
organizations, a grant request was submitted by Downtown Eastside Youth
Activities Centre (DEYAS) for funding to support their programs. Staff
advised DEYAS that the responsibility of funding for health related
activities has been assumed by the Vancouver/ Richmond Health Board, and
that such funding request should be made to the Health Board.
In May, 1996, staff from Community Services and Corporate Services,
acting on instruction from Council, met with representatives of the
Health Board to pursue the on-going funding issue of the three AIDS
organizations. Staff from the Health Board advised that the funding to
AIDS organizations in BC remained under the control of the Provincial
Government and had not been transferred to the Health Board.
On February 4, 1997, Council approved a resolution which had the effect
of terminating funding to the three AIDS organizations as of March 31,
1997. However, this created some concern for the organizations because
the Health Board had not committed funding to them. As a result, on
March 26, 1997, the Mayor met with the Chair of the Vancouver/ Richmond
Health Board to clarify the funding situation. At that time, the Mayor
offered to present for Council's consideration, a request for an
extension of the City's funding commitment to June 30, 1997, on the
clear understanding that the City's responsibility for funding beyond
July 1, 1997 would be transferred to the Health Board.
On May 8, 1997, City staff met with the Chief Executive Officer of the
Vancouver/Richmond Health Board, and confirmed that the Ministry of
Health will retain the funding responsibility and contractual authority
for Vancouver's AIDS organizations until March 31, 1998, leading to the
eventual transfer of responsibilities to the Vancouver/Richmond Health
Board as of July 1, 1998. This situation was confirmed by the Director
of the Provincial AIDS Strategy on May 27, 1997.
OPTION FOR CONSIDERATION
On February 4, 1997, Council adopted a recommendation that City funding
for the three AIDS organization be discontinued after March 31, 1997 at
which time it was assumed the Vancouver Health Board would take
responsibility for ongoing funding. This report recommends that Council
approve the following grants to fulfill that resolution:
AIDS Vancouver $21,500
McLaren Housing Society of B.C $ 7,750
B.C. Persons with AIDS Society $20,900
This report also presents for Council consideration, the provision of
additional funding of a similar amount for the three AIDS organizations,
representing an extension of City support until June 30, 1997. This
proposal is consistent with the offer of the Mayor to present to Council
a request for an additional three months of funding to take the
organizations until July 1, 1997.
It is uncertain that, even with the eventual transfer of AIDS funding
from the Ministry of Health, the Health Board will consider support for
these organizations to be a priority. However, as the operations of
these organizations fall under the provincial mandate rather than the
City's, continuation of City funding to these organizations beyond
Council's original commitment of March 31, 1997 will only serve to take
the pressure to fund these organizations off the Province and the Health
Board. In addition, it will provide no incentive for the organizations
to seek alternative sources of ongoing funding for their operations from
non-government sources. Therefore, should Council be supportive of
additional funding for the AIDS organizations, that additional funding
should be in the form of a terminating grant.
FINANCIAL IMPLICATION
The 1997 "Other" grants allocation has limited funding available and
should Council approve funding beyond the initial three months included
in Recommendation A, that additional funding will have to be provided
from Contingency Reserve.
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