SUPPORTS ITEM NO. 2
CS&B COMMITTEE AGENDA
APRIL 18, 1996
ADMINISTRATIVE REPORT
Date: April 2, 1996
TO: Standing Committee on City Services and Budgets
FROM: Director, Community Services Division, Social
Planning
SUBJECT: City Childcare Endowment Reserve Operating
Agreements
RECOMMENDATION
A. THAT Council authorize the Director of Finance to
establish the Childcare Endowment Reserve as an
interest bearing fund.
B. THAT Council approve the childcare operating
agreement with the Vancouver YWCA (see Appendix I)
and authorize payment of an operating subsidy for
the period January 1 - December 31, 1996, of up to
$72,000 for the infant and toddler programs at the
YWCA Leslie Diamond Child Care Centre. Source of
funds: the City Childcare Endowment Reserve.
C. THAT Council approve the childcare operating
agreement with the Collingwood Neighbourhood House
Society (see Appendix II) and authorize payment of
an operating subsidy for the period of September 1,
1995 - December 31, 1996, of up to $96,000 for the
infant and toddler programs at the Collingwood
Village Child Care Centre. Source of funds: the
City Childcare Endowment Reserve.
D. THAT Council approve the childcare operating
agreement with the Vancouver Society of Children's
Centres (see Appendix III) and authorize payments
of start-up funding of up to $48,900 and an infant/
toddler operating subsidy for the period September
1, 1995 - December 31, 1996, of up to $48,000 for
the childcare programs at Library Square Children's
Centre. Source of funds: the City Childcare Endow-
ment Reserve.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS
approval of A, B and C.
COUNCIL POLICY
On December 15, 1994, Council approved the terms and
conditions of the Childcare Endowment Reserve, including the
eligibility criteria and process for accessing these monies.
Approval of grant recommendations requires eight affirmative
votes.
PURPOSE
The City Childcare Endowment Reserve report of December 15,
1994 required that Social Planning develop operating
agreements with the three eligible childcare operators and
bring these agreements back for Council approval. Further,
approval is being sought to put the Childcare Endowment funds
into an interest bearing account.
BACKGROUND
The creation of a Childcare Endowment Reserve was approved in
May 1991, to ensure the availability of the start-up and
operating subsidies needed to sustain those new childcare
facilities being opened in high density neighbourhoods, as a
result of rezoning negotiations or City initiated projects.
A Council report in December 1994 provided guidelines for the
development of the required operating agreements and
identified the eligible childcare projects. It also
established the start-up funding rate at $2,000 per childcare
space and the ongoing infant/toddler subsidy at $3,000 per
space per annum. To date the Reserve has $443,381.89.
DISCUSSION
When the Childcare Endowment Reserve was first introduced, it
was envisaged that contributions to the Reserve would be put
into an interest bearing account and that the interest would
be accrued to the Reserve. It was recognized that this would
help to extend the life of the Reserve and ensure that
funding for start-up and infant/toddler subsidies would be
available for eligible childcare operations for the
foreseeable future. Current policy requires Council approval
to authorize the Director of Finance to make the necessary
arrangements for interest to be paid to the Endowment
Reserve.
The new childcare facilities at Bentall V/YWCA, Citygate,
Collingwood Village and Library Square are now in the early
months of operation. The programs are filling quickly and
the infant and toddler programs already have waiting lists.
It is anticipated that enrolment for the "3-5" programs
should be at capacity by September 1996 and that all start-up
issues should be resolved by no later than September 1997.
1. Start-up Funding
The operators of the new childcare facilities at Bentall
V/YWCA, Citygate and Collingwood Village received
approval for their full start-up funding contributions in
December 1994. Payments related to start-up costs are
being released as required up until the end of 1997.
The Vancouver Society of Children's Centres (VSOCC) which
operates the new Library Square childcare facility was
only approved for a Phase I start-up grant of $25,100 in
1994. It is now eligible to apply for the remaining
$48,900. Staff recommend that this amount be approved as
the final start-up contribution for Library Square
Children's Centre and that it be disbursed at the
discretion of Social Planning up until December 31, 1997.
2. Infant/Toddler Operating Subsidy
As anticipated in previous Council reports, all the
infant and toddler programs in the new childcare
facilities are running operating deficits each month
because the young families who need the care cannot
afford the full cost. The expenses are primarily made up
of staffing costs required to meet the 1:4 staff to child
ratios required for childcare licensing regulations and
the higher than usual building operating costs associated
with incorporating daycare centres into the more
expensive building types of high density neighbourhoods.
The monthly infant and toddler fees being charged by the
operators range from $780 to $850 per child depending on
the type of care (provincial daycare subsidies of up to
$585 per month are available for eligible low income
families). As well, operators are accessing some
provincial operating dollars through the Childcare Wage
Supplement Initiative and the Infant/Toddler Incentive
Program. Even so, access to the Childcare Endowment
Reserve monies is still key to maintaining the long term
viability of the new infant/toddler programs.
The Childcare Endowment Reserve operating agreements with
the Vancouver YWCA, the Collingwood Neighbourhood House
Society and Vancouver Society of Children's Centres are
attached in the appendices. Based on the terms and
conditions approved by Council in December 1994, these
agreements outline certain requirements as well as the
maximum contributions available to each operator from the
Childcare Endowment Reserve until December 31, 1998. The
contributions are still subject to Council approval each
year and the actual amounts paid out will be based upon
the review of the actual expenses each quarter by Social
Planning. This will ensure that there is no unnecessary
draw-down of the Childcare Endowment Reserve funds. It
will also allow all parties to closely monitor the start-
up and operating costs of these new facilities so we can
effectively plan for the development of other new
childcare facilities planned for the high density
neighbourhoods of False Creek North and Coal Harbour.
The recommended maximum annual contribution levels for
1995/1996 infant/toddler subsidy are as follows:
Vancouver YWCA $72,000
Collingwood Neighbourhood House $96,000
Vancouver Society of Children's Centres $48,000
As noted earlier, Social Planning will review quarterly
financial statements submitted by the agencies, to
determine the actual amount and timing of the payments
within the contribution maximums established by Council.
Social Planning will report back on the 1995/96 actuals
when the 1997 contribution limits are being established.
CONCLUSION
The Childcare Endowment Reserve funds are now required to
ensure the ongoing viability of the new facilities opened at
Bentall V/YWCA, Collingwood Village and Library Square.
Social Planning recommends the approval of the three
operating agree-ments attached in the appendices and the
1995/96 maximum start-up and infant/toddler subsidy
contribution levels as contained in this report. Council is
also asked to authorize the Director of Finance to arrange
for the Childcare Endowment Reserve to earn interest.
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