HomeMy WebLinkAboutCAO-13-031 - Arts and Culture Sustainability Funding - Complete
REPORT TO:
Community and Infrastructure Services Committee
DATE OF MEETING:
December 2, 2013
SUBMITTED BY: Rod Regier, Executive Director, Economic
Development, 519-741-2200 x7506
PREPARED BY: Rod Regier, Executive Director, Economic
Development, 519-741-2200 x7506
WARD(S) INVOLVED:
ALL
DATE OF REPORT:
November 26, 2013
REPORT NO.:
CAO-13-031
SUBJECT:
ARTS AND CULTURE SUSTAINABILITY FUND 2014
RECOMMENDATION:
That a one-time allocation of the listed investment amounts for 2014, from the
Arts and Culture Sustainability Fund, be approved subject to finalization through
2014 budget deliberations:
THEMUSEUM $120,000
Kitchener-Waterloo Art Gallery 40,000
Kitchener Waterloo Symphony 40,000
Creative Enterprise Initiative (CEI) Allocation to be leveraged for
36,000
new to mid-career organizations
TOTAL $236,000
And further that staff review the allocation process for the Arts and Culture
Sustainability Fund for subsequent years.
BACKGROUND:
Origin of the Arts and Culture Sustainability Fund
The Arts and Culture Sustainability Fund was developed in 2010 as a result of a call to action
from the community for the municipalities (local and regional) to help fund, in part, an estimated
$2.5 to $5.0 million shortfall for community arts organizations.
Headed by the Prosperity Council, 2008 research had shown a funding shortfall of $3.0 million,
based on data collected from a survey of 27 arts and 18 funding organizations. The shortfall
was estimated using figures from the accumulated debt reported by organizations. Anecdotal
information also indicated that significant additional funding would be needed to put these
organizations’ operating budgets on a sustainable footing.
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Further supporting the findings above, the gap suggested by the ‘Earned Revenue Analysis for
the Performing Arts’ showed that municipal and senior government funding in the area should
be increased by about $4 million, with additional increases for museums, galleries and festivals.
Taking the expanded cultural sector into consideration, the general magnitude of the gap in
financial resources for arts, culture and heritage operating budgets was estimated between $2.5
million and $5 million. The Prosperity Council of Waterloo, through its Task Force On Creative
Enterprise, proposed the following to help stabilize arts and culture in the community:
1. That there be a commitment to increase funding to arts and culture by $3 million
annually in order to address the sustainability shortfall to be funded as follows:
a. $ 1 million from increased private sector contributions,
b. $ 1 million from increased municipal support, and
c. $ 1 million increased support from provincial and federal programs (leveraging
the municipal and private sector support).
2. That an “Enabling Organization” be created to support creative enterprises, the budget
to be funded as follows:
a. 25% by regional government
b. 25% by local governments (pro-rated based on population) and
c. 50% other sources (grant applications and private sector)
They further suggested that the $1 million of increased municipal support could be realized by
each of the municipalities, local and regional, by increasing their annual funding by $1 per
capita.
2010-2013 Arts and Culture Sustainability Fund Allocations
The Prosperity Council’s research in 2008 identified chronic de-stabilization of the arts sector
due to underfunding. Based on this research, the City’s allocations were meant to assist with
the stabilization of 3 pillar arts organizations: THEMUSEUM, Kitchener-Waterloo Art Gallery and
Kitchener Waterloo Symphony. Due to a one time allocation for MTSpace of $7,143, and $1,500
to Lost and Found Theatre, 2013 allocation for CEI was reduced to $27,357 from $31,000 in
2012:
Organization 201020112012 2013
THEMUSEUM 120,000120,000120,000 120,000
Kitchener-Waterloo Art Gallery 40,00040,00040,000 40,000
Kitchener Waterloo Symphony 40,00040,00040,000 40,000
Creative Enterprise Initiative (to be invested
020,00031,000 27,357
in new - mid-career organizations)
MTSpace (one time allocation) 7,143
Lost and Found Theatre (one time
1,500
allocation)
Held by City of Kitchener (Tier 3) 20,00000 0
Total $220,000 $220,000 $231,000 $236,000
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REPORT:
This report specifically addresses allocation of the Arts and Culture Sustainability Fund
and Council’s continued commitment to support the arts and culture sector at the level
of $1 per capita over and above the City’s pre-2010 investments. Continued with this
commitment, the investment allocation process will be reviewed by staff and
stakeholder consultation during 2014 in time for the 2015 budget.
The strategy for the Arts and Culture Sustainability Fund in 2014 continues to stabilize
the 3 major cultural organizations: THE MUSEUM, The Kitchener-Waterloo Art Gallery,
the Kitchener-Waterloo Symphony, with an allocation to CEI to be invested in new and
mid-career not-for-profit entities, considered against a number of filters including the
following:
The organization makes good business sense, enables longer term success of
the individual or organization;
The approach leads to sustainable revenues versus short term revenues;
A cross section of arts disciplines are represented;
There is a regional cross-section of individuals represented;
Small, mid and large entities are represented;
It enables the overall creative value of the region in terms of talent attraction and
retention;
The organization, product etc. to a tourism ready organization, product etc. They
are saleable to external audiences; and/or
There is collaboration.
The total amount reflects the population growth estimates in keeping with Council’s
commitment to provide $1 per capita for arts and culture. THEMUSEUM, The Kitchener
Waterloo Symphony and Kitchener-Waterloo Art Gallery are recommended at the same
level of funding for 2014 as in previous years. For 2014, $36,000 is recommended to
be allocated for the Creative Enterprise Initiative to invest. In summary the following
allocations are being recommended:
THEMUSEUM $120,000
Kitchener-Waterloo Art Gallery 40,000
Kitchener Waterloo Symphony 40,000
Allocation to be invested in new to mid-career organizations 36,000
TOTAL $236,000
The following benefits, as reported by the organizations, are summarized below.
THEMUSEUM
THEMUSEUM Financial Statement is attached in Appendix A, with benefits of
sustainability funding having leveraged high quality exhibits to almost 85,000 visitors.
Exhibition Highlights include Treasures of China Featuring the Rock Carvings of Dazu,
AVATAR: The Exhibition, and ONE LOVE: The Bob Marley Exhibit. Close to 10,000
school children come for educational visits from school field trips and tens of thousands
of visitors in the downtown area to impact retail and restaurant trade. Regional tourism
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is boosted through unique tourism packages with hotels, restaurants and other tourist
attractions where hotel stays and other economic impacts are derived for the city of
Kitchener. THEMUSEUM further reports that access passes to low income families and
newcomers to the community were provided, as well as improved cultural offering
through financial stability at THEMUSEUM.
Kitchener-Waterloo Art Gallery
Appendix B provides financial statements for the Kitchener Waterloo Art Gallery. They
report the quality and number of exhibitions was maintained at 12 annually featuring
local, national and international artists; quality educational programming and community
outreach were designed and implemented with excellent results such as 67% increase
in public school engagement; and progress was made towards strengthening the
funding base in a time of great economic uncertainty with membership development,
corporate sponsorships and fundraising events such as the Black and Gold Gala. The
Annual Campaign has been leveraged with the Community Access Space renovation
successfully raising $120,000 to complete the space. The new community space is
designed for community cross disciplinary collaborations and programming as well as
rentals to the businesses, corporations, individuals, etc. They further report that the
permanent collection numbers increased in 2013 due to generous donations from artists
and private collectors.
Kitchener Waterloo Symphony
The Kitchener-Waterloo Symphony reports that it continues to benefit from sustainability
investment, where deficit reduction remains a focus of the management and Board of
Directors of the KWS, as outlined in its Strategic Plan. This investment contributes to
the maintenance of high quality programming and outreach initiatives offered by the
KWS, along with the Youth Orchestra Program and free School Concerts Program. In
addition, sustainability investment helps the KWS to manage unexpected shortfalls in
revenue in a difficult economic environment. Financial statements are attached as
Appendix C.
Creative Enterprise Initiative
CEI reports annual investment of $340,000 attracted from twenty-two private-sector
companies, individuals and organizations across business and academia,
with cumulative private sector investment is more than $1 million and growing.
CEI’s own local Kitchener investment is reported as direct financial support of
approximately $50,000; mentoring, marketing and audience development was provided
for multiple organizations and initiatives in Kitchener including the following: MT Space/
IMPACT 13, Neruda Productions – Kultrun and Latin Festival, Pat the Dog Playwright
Centre, Night Shift, Lost & Found Theatre, Grand River Film Festival, KOI Festival,
KOICon, Waterloo Region Arts Awards, Open Doors Waterloo Region, Flush Ink
Productions, Steel Rails, CAFKA, Open Ears, Festival for Animated Cinema, the Tech
Sessions in support of ticket sales for TD Kitchener Blues Festival and KOI Festival;
and promoted over 100 local art shows, bands, community events and activities through
weekly on-air promotion on Rogers radio with the grandsocial.ca entertainment update.
CEI reports that it invests directly back into the community through its own programs
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and activities – grandsocial.ca, a mobile ticketing system, and (in process), the sourcing
of increased studio space for artists. 2012 Financial Statements for CEI are attached as
Appendix D.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Arts and culture make important contributions to “Quality of Life” through creativity, heritage and
diversity. The economic impact of arts and culture activities contributes to the economic viability
of the entire community, where content creators in the arts can leverage innovation throughout
businesses as diverse as digital media and advanced manufacturing design. A critical
component to talent attraction, retention and development, support for arts and culture activities
helps to develop Kitchener’s distinct identity as a desirable place to live and to visit.
“Development” goals are also served through arts and culture adding to urban vitality and
downtown development.
FINANCIAL IMPLICATIONS:
The $1 per capita fund of $236,000 Arts and Culture Sustainability Fund will be addressed
during 2014 operating budget discussions.
COMMUNITY ENGAGEMENT:
The Arts and Culture Advisory Committee will be reviewing current and future allocation, and
participating in stakeholder consultation of the Arts and Culture Sustainability Fund beginning in
2014.
ACKNOWLEDGED BY: Jeff Willmer, CAO
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CAO-13-031
Arts and Culture Sustainability Funding 2014
Appendix A:
THEMUSEUM financial statements for the year
ended June 30, 2012
16 pages
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CAO-13-031
Arts and Culture Sustainability Funding 2014
Appendix B:
Kitchener-Waterloo Art Gallery financial statements
for the year ended December 31, 2012
16 pages
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CAO-13-031
Arts and Culture Sustainability Funding 2014
Appendix C:
KW Symphony
Financial Statements for the
year ended JULY 31, 2012
17 pages
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KITCHENER-WATERLOO SYMPHONY ORCHESTRA
ASSOCIATION INC.
Statement of Financial Position
July 31, 2012, with comparative information for 2011
20122011
Assets
Current assets:
Cash$298,102$103,412
Accounts receivable273,725291,162
Prepaid expenses15,37720,190
Prepaid production costs92,59388,704
679,797503,468
Special funds (note 3)53,26058,091
Capital assets (note 4)312,308326,782
$1,045,365$888,341
Liabilities and Deficit
Current liabilities:
Accounts payable and accrued liabilities$113,416$214,384
Revenue received in advance (note 5)1,329,3251,022,739
Loan payable(note 6)147,504-
1,590,2451,237,123
Loan payable (note 6)-139,804
Deferred capital contributions (note 7)35,01742,015
Deficit (note 8)(579,897)(530,601)
Commitments (note 10)
$1,045,365$888,341
See accompanying notes to financial statements.
On behalf of the Board:
Members Members
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KITCHENER-WATERLOO SYMPHONY ORCHESTRA
ASSOCIATION INC.
Statement of Operations
Year ended July 31, 2012, with comparative information for 2011
20122011
Revenue:
Earned revenue:
Ticket and service sales:
Ticket sales - subscriptions $ 839,553 $ 857,540
Ticket sales - single tickets 447,710 392,191
Sales of service 418,424 454,492
Youth orchestra 38,145 38,918
Rental 79,868 82,449
Other 51,488 49,235
1,875,188 1,874,825
Contributed revenue:
Individual campaigns 1,138,914 1,147,292
Corporate sponsorships/donations 414,482 447,930
Foundations 74,782 97,984
Endowment income (notes 9 and 11) 93,222 117,701
Special events 87,984 122,351
Volunteer committee (note 11) 63,360 54,125
1,872,744 1,987,383
Grants:
Region of Waterloo and Cities of Kitchener, Waterloo
and Cambridge 703,060 689,510
Canada Council 481,491 472,222
Ontario Arts Council 451,166 449,944
1,635,717 1,611,676
Total revenue 5,383,649 5,473,884
Expenditures:
Orchestra and artistic:
Contract wages and benefits 2,178,971 2,228,552
Per service wages and benefits 150,526 166,083
Guest artists and conductors 486,462 457,685
Other 19,451 10,877
2,835,410 2,863,197
Education and outreach:
Youth orchestra 27,635 38,773
Educational programs 84,649 85,129
112,284 123,902
Other:
Development fundraising 307,887 314,171
Marketing 653,383 630,418
Administration 463,149 450,467
Orchestra and building operations 1,048,997 976,918
Loan interest 11,404 12,528
2,484,820 2,384,502
Total expenditures 5,432,514 5,371,601
Excess (deficiency) of revenue over expenditures $ (48,865) $ 102,283
See accompanying notes to financial statements.
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CAO-13-031
Arts and Culture Sustainability Funding 2014
Appendix D:
CREATIVE ENTERPRISE INITIATIVE financial
statements for the
year ended DECEMBER 31, 2012
11 pages
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