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Author/Loc.: L. Prentice/435-1444
FROM: Executive Director, Heritage Conservation Foundation
SUBJECT: Grant for 1998 Operating Funds
A.THAT a $100,000 operating grant be approved for the Vancouver Heritage Conservation Foundation for 1998, with the source of funds to be the Heritage Conservation Reserve; and
B.THAT the Heritage Conservation Reserve be designated an interest-bearing reserve, and interest retroactive to May 29, 1997 be credited to it.
The City Manager RECOMMENDS approval of A and B.
On March 18, 1997, Council approved the transfer of $250,000 from the Demolition Fee Reserve to the Heritage Conservation Reserve, to be made available for grants to the Heritage Conservation Foundation over a three-year period to support operating costs.
The City credits interest on reserves only when specifically directed by Council.
This report seeks Council approval for allocation of the Heritage Conservation Foundation’s 1998 operating funds. It also requests that the City’s Heritage Conservation Reserve be established as an interest-bearing account, with interest payable to the Heritage Conservation Foundation.
On May 29, 1997, Council approved that the funding in the Heritage Conservation Reserve be allocated with $50,000 for operating costs for six months in 1997 and $100,000 for each of 1998 and 1999 to the Vancouver Heritage Conservation Foundation. The funding for 1997 was authorised at that time.
The financial results for the Foundation are reported in Appendix A, and are consistent with the budget forecast for that year.
The Vancouver Heritage Conservation Foundation is in full operation. The Board has commenced a strategic planning process and actions to implement the strategic plan are underway. The Foundation’s project plan has been distributed to Council as Honorary Members of the Foundation, and a full operating plan will be presented to Council by the end of this year.
The Foundation now requires its operating funding for 1998. Consistent with Council’s 1997 resolution, the Foundation is requesting a grant of $100,000.
In July 1997, the private donation of $219,000 to the Heritage Foundation being held in the Heritage Conservation Reserve, along with accrued interest in the amount of $46,000, was transferred to the Heritage Foundation for the creation of an endowment fund under the auspices of the Vancouver Foundation. Interest on the donated funds accrued to the Foundation as directed by Council.
Council made no such direction with respect to the funding provided by the City. Since Council directed that the private donation bear interest to the benefit of the Foundation, it is appropriate that the City contribution also bear interest. Recommendation B, if approved by Council, would implement this.
COMMENTS OF THE DIRECTOR OF FINANCE
Council policy is that interest not be credited on City reserves, unless specifically directed. This allows the Operating Budget to benefit from the interest earnings on these cash balances. If Council chooses to re-allocate those interest earnings to the Heritage Conservation Reserve, the source of funding will be Contingency Reserve.
Alternatively, Council could simply leave the issue for now, and should Council choose to grant additional funds to the Foundation in future years, then those funds might be funded from the Operating Budget at that time.
To continue the evolution of the Heritage Foundation under the direction of its new Board of Directors, a grant in the amount of $100,000 is requested to provide operating funds for 1998, as previously approved by Council. Designation of the Reserve as interest bearing is considered appropriate, and Council action to make this designation is recommended.
NOTE:ATTACHMENTS TO THIS REPORT THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE.
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