ADMINISTRATIVE REPORT

Date: November 4, 1997

Author/Local: PCoates 6042

CC File No. 2402

TO:	Standing Committee on City Services and Budgets
FROM:	Director of Community Services, Social Planning
SUBJECT:	1997 City Childcare Endowment Reserve Allocations

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RECOMMENDATION

A.THAT Council authorize payment of an operating subsidy to the Vancouver YWCA for the period January 1 - December 31, 1997 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.

B.THAT Council authorize payment of an operating subsidy to the Collingwood Neighbourhood House Society for the period January 1 -December 31, 1997 of up to $51,610 for the infant and toddler programs at the Collingwood Village Child Care Centre. Source of funds: the City Childcare Endowment Reserve.

C.THAT Council authorize payment of an operating subsidy to the Vancouver Society for Children’s Centres (VSOCC) for the period January 1 -December 31, 1997 of up to $36,000 for the infant and toddler program at Library Square Children’s Centre. Source of funds: the City Childcare Endowment Reserve.

D.THAT Council authorize payment of Phase I start-up funding to the Vancouver Society of Children’s Centres (VSOCC) for the period September 1, 1997 - August 31, 1998 of up to $27,600 for the childcare programs at Roundhouse Children’s Centre. Source of funds: the City Childcare Endowment Reserve.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A to D.

COUNCIL POLICY

The Civic Childcare Strategy, approved by Council October 1990, recognized the need to ensure the availability of 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. In May 1991, Council approved the creation of a Childcare Endowment Reserve.

On December 15, 1994, Council approved the terms and conditions of the Childcare Endowment Reserve, including eligibility criteria and the process of accessing these monies.

Approval of grant recommendations requires eight affirmative votes.

PURPOSE

This report provides Council with information as to the start-up funding and operating subsidies paid out of the Childcare Endowment Reserve between September 1, 1995 and December 31, 1996. It also establishes the maximum subsidies to be available for 1997, as per the three childcare operating agreements approved by Council for the period 1995 to 1998. Finally it seeks Council approval for start-up funds for the new Roundhouse Children’s Centre.

BACKGROUND

On April 8, 1996, Council approved childcare agreements covering the period 1995 to 1998 with three eligible childcare operators: the Vancouver YWCA, Collingwood Neighbourhood House Society and the Vancouver Society of Children’s Centres (VSOCC). The agreements laid out the terms and conditions for accessing infant and toddler operating subsidies and set the maximum contribution level per space per annum for the term of the agreements. Social Planning was directed by Council to administer the Childcare Endowment Reserve funds, to report back on the actual funding spent and to seek Council approval annually for the contribution limits for each eligible childcare operator. There is currently $380,449 in the Childcare Endowment Reserve.

DISCUSSION

The childcare programs at YWCA Leslie Diamond Centre, Collingwood Village and Library Square are all operating at full capacity and now have significant waiting lists. The Childcare Endowment Reserve has played an essential role in ensuring a smooth start-up transition and stable operating funding. The funds continue to be critical to the ongoing viability and accessibility of the infant and toddler programs in particular.

For the period 1995 to 1996, the use of funds has been as follows:

Childcare Centre	Start-up		Infant/Toddler Subsidy
	Budget	Actual	Budget 95-96	Actual 95-96	Excess Paid
Collingwood N.H. (24 spaces)	$138,000	$57,500	$96,000	$51,610	$20,390
YWCA (24 spaces)	$48,000	$32,000	$72,000	$72,000	0
Library Square (12 spaces)	$48,900	$12,225	$48,000	$40,000	0

No further pay-outs are required for start-up or the 95/96 infant and toddler operating subsidy. The unexpended funds remain in the Endowment Reserve. As a result, the Childcare Endowment Reserve is in a healthier position than originally anticipated. In recognition of the need to maximize the interest earnings within the Childcare Endowment Reserve, the three operators have been diligent in only applying for funds when absolutely necessary. They have also worked extremely hard to reach full enrollment as quickly as possible so as to minimize the draw-down on start-up funds.

The childcare operators are now in urgent need of their 1997 infant and toddler operating subsidies. It is, therefore, recommended that the following 1997 contribution limits be established as per the three year operating agreements already in place:

1997 Requirements
	Budget Maximum	1996 Carry-Over	1997 Maximum Subsidy
Collingwood N.H.	$72,000	$20,390	$51,610
YWCA	$72,000	0	$72,000
Library Square	$36,000	0	$36,000

Social Planning will be working with the three operators to streamline the quarterly reporting process so reports can be brought to Council on a more timely basis.

This report also recommends that start-up funding be made available to the Vancouver Society of Children’s Centres (VSOCC) for the opening of the Roundhouse Children’s Centre scheduled for September 1998. This is the first of the childcare facilities to be built by Concord Pacific for the False Creek North area. Based on $2,000 per space, the total start-up budget for Roundhouse is $138,000. However, for pre-opening expenses such as marketing, staff recruitment and early registration, only 20% of the budget is required at this time. It is therefore recommended that VSOCC be given a start-up grant of $27,600. In 1998, Social Planning will report back on additional start-up funding requirements and will seek approval for an operating subsidy for the new infant and toddler spaces at Roundhouse.

CONCLUSION

The Childcare Endowment Reserve funds continue to be required to ensure the sustainability of the infant and toddler programs at the YWCA Leslie Diamond Centre, Collingwood Village and Library Square. Social Planning recommends approval of the 1997 infant/toddler operating subsidy contribution levels contained in this report. Council is also asked to authorize approval of Phase I start-up funding for the new Roundhouse Children’s Centre.

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(c) 1997 City of Vancouver