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HomeMy WebLinkAboutFin & Corp Svcs - 2007-02-05FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 CITY OF KITCHENER A special Finance and Corporate Services Committee met this date, commencing at 10:07 a.m. Present: Councillor B. Vrbanovic, Chair Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, J. Smola, C. Weylie and K. Galloway Staff: P. Houston, General Manager, Financial Services & City Treasurer A. Pappert, General Manager, Community Services R. Browning, General Manager, Development & Technical Services D. Chapman, Supervisor of Special Events R. Regier, Executive Director of Economic Development K. Weiss, Director of Business Development D. Chapman, Director of Financial Planning & Reporting S. Saleh, Senior Financial Analyst R. Willms, Supervisor of Administration R. Cyr, Coordinator of Athletics D. Gilchrist, Committee Administrator This meeting was held to review the grant applications received by the City for Economic Development Grants, Capital Grants, Minor Sports Grants and Annual Operating Grants from community groups for 2007 funding. This meeting was also being held to hear appeals from organizations of the recommendations of staff as to the amount of grant that should be awarded to them. Councillor Vrbanovic advised all delegations in attendance that the Committee would hear their appeals, and may request more information from them, but would not make a decision on their grants at this time. He noted that any additional information required by the Committee should be provided to staff by Friday February 9, 2007 so that staff can distribute it to Committee members in time for the Finance and Corporate Services Committee meeting of February 26, 2007. Mr. D. Chapman gave an overview as to how this meeting would progress, and a financial overview of grant financing; noting that in 2006 the City awarded grants totalling $2,304,000. In 2007, there is a total of $2,894,000 in grant funding being requested, $2,248,000 in grant funding being recommended by staff, and $2,323,000 of grant funding included in the proforma budget. The difference between the total amount being recommended by staff, the amount included in the proforma budget is $75,000, and the total amount being appealed is $497,000. 1. ECONOMIC DEVELOPMENT GRANTS Canada's Technoloav Trian The Committee was in receipt of Chief Administrative Officer report CAO-07-004 dated January 22, 2007, supporting the 2007 funding request of Canada's Technology Triangle Inc. in the amount of $140,000, with increases in 2008, 2009 and 2010 of $3,000 each year. It was noted in the report that funding of this organization has remained constant at $134,000 for the years 2002 to 2006 inclusive. Mr. J. Tennant, Chief Executive Officer, Canada's Technology Triangle (CTT) was in attendance to give the Committee an overview of the purpose, achievements, and vision for this organization, and to request the funding identified in the staff report. Councillor Gazzola noted that 50% of this organization's funding comes from the Region and the other 50% comes from the 3 urban municipalities. He questioned why they do not approach the rural municipalities for funding. Mr. Tennant responded that CTT was established on this funding plan, and the plan did not include funding from the townships. With respect to funding from senior levels of government, Mr. Tennant responded that they contribute in ways other than money, and in addition CTT gets funding through the Federal Government's Community Investment Program; however, this funding has not increased in the past 8 years. Councillor Gazzola stated that he thought CTT was going to increase private sector support, and Mr. Tennant stated he was not aware of this emphasis. With respect to their 2006 financial statements, Mr. Tennant advised that their year ends on December 31St and their audited financial statements for 2006 will not be available until March or April; although, they can provide their 2005 audited financial statements. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 32 - CITY OF KITCHENER 1. ECONOMIC DEVELOPMENT GRANTS tCONT'D) Councillor Gazzola questioned who benefits when new businesses establish in this area. Mr. Tennant stated there are a host of benefits that generate economic security for the municipalities, one of which is an increased tax base. With respect to the number of jobs lost in this area, Mr. Tennant advised they are due to changes in and the evolution of the economy. He stated that our strength is this region's ability to adapt to change. A number of the job losses are in industries that have been under pressure for sometime, and this area has managed to keep a presence in these areas, such as textiles and rubber, where others have not. CTT works aggressively in bringing in new businesses, creating diversity. There are also a number of businesses which have been assisted to grow. With respect to private funding sources, Mayor Zehr noted there was some discussion during the initial stages of this organization that there would be more aggressive private funding; however, it soon became obvious that it would be very difficult to obtain. Mayor Zehr then noted the discrepancy between 2005 private funding of $182,000 and the actual $116,000. Mr. Tennant advised that CTT sometimes operates at the "banker" and some of these dollars simply flow through the organization. Mayor Zehr then questioned the 2006 forecast provided and Mr. Tennant advised that federal/provincial income will be closer to $100,000, and corporate partnerships will be approximately $120,000 with some additional reserves. He further advised that senior government funding is not dependable nor consistent. The Committee requested the following information from Mr. Tennant: 2006 unaudited financial statements and a 3 year forecast. Waterloo Region Small Business Centre The Committee considered Chief Administrative Officer report CAO-07-005, dated January 22, 2007, requesting increased funding in 2007, for the Small Business Enterprise Centre, in the amount of $12,500. Ms. K. Weiss presented this grant request noting the Centre's financial situation, and the fact that they have fully repaid the loan they had from the City of Kitchener. Councillor Gazzola questioned when the customers will start paying for services. Ms. Weiss responded that their client base is either unemployed or in low pay jobs, and she is not aware of any other small business centres charging for consultations. She advised they do charge $35.00 for seminars but this fee does not cover the costs. Ms. Weiss advised they operate two self-employment programs funded by the federal government. It was also noted that the City encourages small business owners to come to this municipality. They assist the community by employing people and paying taxes. Ms. Weiss was requested to provide the Committee with statistics on how many small businesses have been started through assistance received by the Small Business Enterprise Centre since its inception. Ms. Weiss advised that they have not tracked small business successes in the past, or how many people they employ, but they will start to do so this year, as the province is funding a program to allow them to do so. The Committee noted discrepancies in the financial information provided with the staff report and directed Ms. Weiss to correct this information and re-circulate it by Friday. The Committee also requested projections for 2008. Communitech Technology Association The Committee considered Chief Administrative Officer report CAO-07-006, dated January 23, 2007, recommending that the request of Communitech Inc. for $45,000 of additional funding in 2007 not be supported. Mr. S. Klugman, President & CEO, Communitech Inc. was in attendance to represent their grant request. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 33 - CITY OF KITCHENER 1. ECONOMIC DEVELOPMENT GRANTS tCONT'D) Mayor Zehr noted that when the City's funding changed 2 years ago from $5,000 to $35,000, that the $30,000 was a one time grant. In calculating the increased funding request for 2007, it should be noted that $80,000 represents an increase of $75,000 over the base funding. Mr. Klugman stated that they are looking at last year's grant as an investment, and he asked the Committee to recognize that investments are needed to attract talent and commercialization. He stated that Communitech sees this funding from the perspective of building a successful business and they need these kinds of investments from the municipality to encourage funding from the private sector and senior levels of government. With respect to attracting new businesses to this area, Mr. Klugman advised that they have attracted some new companies to come to this area, but their main focus is organic growth. The Committee requested the following additional information from Communitech: 2006 financial statements and projections over the next few years. The Committee directed staff to report on ways the City can assist Communitech other than with cash. 2. CAPITAL GRANTS KidsAbility Foundation The Committee considered Community Services Department report CSD-07-013, dated January 22, 2007, recommending that the grant application for the KidsAbility Foundation's Endowment Fund, in the amount of $75,000, not be approved. In their report, staff explained that the services provided by KidsAbility are health care related and are not a core municipal responsibility. Ms. L. Talbot, Executive Director and Mr. D. Letson, of the KidsAbility Foundation were in attendance to represent this grant request. Following an explanation of the programs offered at the KidsAbility Centre for Child Development, the delegation explained that the purpose of the Foundation is to create sufficient income to provide the Centre's share of operating dollars each year so they do not have to pursue grand funding every year. They advised that they are responsible for paying 8% of operating costs which equals $800,000. They are trying to establish an endorsement fund of $10M in order to cover their portion of operating funds each year. To date their endowment fund sits at $2.5M. Mr. Letson advised that they are requesting $75,000 from the City of Kitchener which could be paid out over more than one year. He also advised that financial support from municipalities helps them leverage other funds. Mayor Zehr questioned whether this Foundation has received funding from the Region. Ms. Talbot advised the Centre receives funding from the Region for their early years program, so they thought they would not be able to apply for the endowment fund as well. Mayor Zehr suggested they apply to the Region for assistance with the endowment fund. The Working Centre The Committee considered Community Services Department report CSD-07-014, dated January 22, 2007, recommending that the application of The Working Centre for $20,000 in grant funding for renovations done at 97 Victoria Street North, not be approved. Mr. J. Mancini, Director of The Working Centre was in attendance to represent this grant request. He asked that Council recognize the Centre's efforts in Downtown Kitchener beyond their social service work. The Centre has restored buildings in Downtown Kitchener at 97 Victoria Street North, 43 & 66 Queen Street South. In these buildings The Working Centre provides services as well as retail and residential space. Mr. Mancini advised that they did obtain a fagade loan from the City for 97 Victoria Street North, which they have repaid. He stated this is a one-time capital grant or it could be a program grant, to recognize volunteer and community efforts. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 34 - CITY OF KITCHENER 2. CAPITAL GRANTS tCONT'D) When questioned about the gap of $202,000, Mr. Mancini advised they proceeded with this project on the basis of their reserves and a loan from a generous benefactor. They haven't included their reserves in the financial statements because they are hoping to make-up the difference. They have received $36,000 from the Region, and another funding source may be available for some of the money; however, there are no other funding sources available. Mr. Mancini stated that this is truly a one time request for funding. In the 25 years that The Working Centre has operated in the City, they have never approached nor received funding from the City of Kitchener. Mayor Zehr questioned the $150,000 from the Region noted in the financial statements. Mr. Mancini responded that only $36,000 was from the Region for 97 Victoria Street North, the remainder or the money was a flow through from the Province for 66 Queen Street North. He noted that The Working Centre has renovated 30,000 sq. ft. of space in Downtown Kitchener, and has fund raised to do this, and doing so has improved Downtown Kitchener. In response to a question from Councillor Gazzola, Ms. Willms advised that staff have recommended that this grant not be approved solely on the basis of the grant policy criteria. Kitchener Alliance Community Homes The Committee considered Community Services Department report CSD-07-015, dated January 22, 2007, respecting a grant application from Kitchener Alliance Community Homes Inc., on behalf of the Four Churches Project Coalition. The purpose of the $35,000 grant would be to assist with funding phase 3 of a 4 phase assets/needs research and feasibility study. Mr. N. Motts, spoke on behalf of the Coalition advising they wish to be part of revitalizing space in the Downtown and they are requesting this one time grant in order to proceed with the third phase of this study. He advised they made this same grant request last year and it was refused. He asked that they receive immediate approval of the grant, or that it be approved as soon as possible; as this will enable them to secure $12,000 in needed funding, and it will reassure those who have already contributed. It was noted that there is no City of Kitchener representation in this organization, although there is Regional representation. Mr. Motts advised that Mr. G. Richardson used to be a representative; however, since he left the City, no one has been appointed to take his place. When questioned by Councillor Gazzola, Mr. Motts advised that there are approximately 12 churches in the Downtown. He also advised that the churches are cash poor but have assets in land and buildings. The churches do not have secure funding as their memberships are declining, and the attrition rate is undermining their longevity. Further their capacity for outreach has substantially diminished; also they want to be part of the redevelopment of the Downtown. The use of this space will fulfill a variety of needs. Concerning the relationship between Kitchener Alliance Community Homes and the 4 Churches Project, Mr. Motts advised that the churches collectively needed to be a legal entity, and Kitchener Alliance Community Homes administers their funds. Respecting grant funds and sources, Mr. Motts advised that if they are not able to proceed in the short term, they may lose their Trillium grant. They have informally approached other grant programs but they have not approached the provincial and federal governments. Upon further questioning, Mr. Motts advised there have been other Downtown studies which may in part overlap their study; however, those other studies do not fully address their needs. The Committee requested the following: (a) that staff become involved with this project; (b) whether there are other sources of City financial support for feasibility studies that would be available to any developer; FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 35 - CITY OF KITCHENER 2. CAPITAL GRANTS tCONT'D) (c) whether there is an Economic Development Fund context; and, (d) whether funding is available under the Community Development Infrastructure Grant Program. This meeting recessed at 12:35 p.m. and reconvened at 1:10 p.m. with all members present. 3. ANNUAL OPERATING GRANTS Skills Canada Ontario The Committee considered the application from Skills Canada Ontario for 2007 grant funding in the amount of $10,000 in cash to support their Young Women's Conferences. It was noted by staff that Skills Canada Ontario received a grant form the City of $650 in in-kind services in 2006, and their current grant request equals a 1438% increase over their 2006 grant. It is recommended by staff that the grant not be approved, as the services provided by this organization are education related and therefore are not a core municipal responsibility. Ms. G. Smyth and Mr. V. Goudas, of Skills Canada Ontario were in attendance to represent their grant request and appeal the staff recommendation. They advised they are a not for profit organization that has been in existence since 1997, and their purpose is to promote trades and technology. Further, they advised that the base for their competition used to be the Kitchener Memorial Auditorium Complex; however, the competition grew, so they moved to RIM Park. The competition has grown again, so in 2008 they will need to hold the competition in 2 venues, one in Kitchener and one in Waterloo. It was noted this is one of the largest skills competitions in the country, and they are committed to staying in Kitchener and Waterloo for the long term. Upon questioning the delegation advised that this competition is supported by the provincial and federal governments. The provincial funding is based on matching funds from municipal governments and private sponsors. Mr. Goudas commented on their surplus position, stating that they need an overall contingency for the organization to sustain itself, and noted that last year they were in a deficit position. He also noted that at one time, when the competition was held at the Auditorium, the City's grant funding was $25,000. In response to questions form Mayor Zehr, the delegation advised that with this year's competition, they have reached their capacity at RIM Park, and for the 2008 and 2009 competitions they will be holding the competitions at venues in both Kitchener and Waterloo. Councillor Weylie questioned what would happen with the Young Women's Conferences if they do not receive funding from the City of Kitchener, and Ms. Smyth advised that they will run in a diminished capacity. Upon further questioning she advised that there will be 250 to 300 participants each day. With respect to their work in Northern Ontario, the delegation advised that they receive a grant from the Duke Energy Foundation, and that part of the competition is financed separately from the work done in Kitchener-Waterloo. With respect to their budget, Mr. Goudas advised that much of the funding they receive is tied to a specific project. The Committee requested the following information from the delegation: their 2006 financial statements, and a breakdown of future revenues and expenses for their 2008 and 2009 venues in Kitchener and Waterloo. Business & Education Partnership of Waterloo Region The Committee considered the grant request of the Business and Education Partnership of Waterloo Region for $7,500 in cash funding for 2007. They advise that the grant will be used to expand the delivery of existing programs and to expand programming. Staff notes that this organization received a $5,000 cash grant in 2006 as well as $750 in in-kind services, and their current grant request represents a 30% increase over 2006. Staff recommends this FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 36 - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) application not be approved as this organization provides services that are educational, which is not a core municipal responsibility. A delegation led by Ms. S. Petricevic, of the Business and Education Partnership of Waterloo Region, addressed the Committee in support of their grant application, and in opposition to the staff recommendation. Ms. Petricevic reviewed the Partnerships mandate and programs noting that there are 300 volunteer speakers in their speakers' bureau. She also noted that 60% of high school graduates go directly into the work force and the Partnerships' services help provide for a successful transition. Ms. Petricevic advised that 30% of their funding comes from local partners. They are building a diverse revenue base and they need Council's financial and moral support. Upon questioning Ms. Petricevic stated that their connection with Communitech relates to office space and administrative support. With respect to career development within the school curriculum, Ms. Petricevic advised that the province cut funding for that portion of the curriculum. Respecting provincial funding for the Partnership, Ms. Petricevic advised that the province's Passport to Prosperity Program has been discontinued, and although they were issued funding for 2 years, they have had to be very careful in managing that funding. She stated that if this grant application to the City of Kitchener is not approved, their ability to continue and expand their services will be seriously curtailed. With respect to their financial statements, Ms. Petricevic advised they now have audited financial statements. With respect to their 26% increase in expenses, she advised it directly relates to their increased services, such as Certification Day. With respect to the reduction in a staff person, the Committee was advised that they now pay a flat rate to Communitech to provide executive management, financial administration and support. The Committee requested that the Business and Education Partnership provide their audited financial statements. Councillor Vrbanovic advised the Committee that staff only request audited financial statements for grant applications of $50,000 or more. Staff needs to know if the Committee wants a different arrangement. Latitude Storeytelling Festival The Committee considered the grant application of the Latitudes Storeytelling Festival for a grant in the amount of $42,000 to run the Latitude Storeytelling Festival in 2007. Staff advised that this group did not receive a grant in 2006; however, they did receive $5,000 in funding through the City's operating budget to assist with expenses for the event. Special Events staff will continue to work with this organization to host an event in 2007 during the Tapestry Festival. Marguerite and Wade Johnson were in attendance in support of this grant application and to appeal the staff recommendation. They advised that the Latitude Storytelling Festival is a non-religious, multicultural festival, which is an initiative of Trinity United Church. Their original grant application was for $42,000 to build on the event held in 2006. They are now revising their grant application to apply for only $5,000 in funding. Trinity United Church is supporting this event, and they will ask the congregation for $5,000 toward the event. Ms. Johnson noted that the storeytellers are paid. Upon questioning, Mr. D. Chapman advised that Tapestry can still help with marketing and promotion to the amount of $5,000. When questioned by Councillor Gazzola, Ms. Wade advised that in 2006, they received funding from the Kitchener-Waterloo Community Foundation which is not available to them this year. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 37 - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) Leadership Waterloo Region The Committee considered the grant application submitted by Leadership Waterloo Region for a grant of $7,500, representing a 0% increase over their 2006 grant. Staff recommend that this application not be approved as their services are education related and this is not a core municipal responsibility. Ms. A. Lavender, Leadership Waterloo Region was in attendance to support the application and in opposition to the staff recommendation. When questioned about financial support from other municipalities, Ms. Lavender advised that the Region and the Cities of Waterloo and Cambridge have been approached for funding this year, and have supported them in the past. The townships will be approached next year, but their grant application deadlines for this year have passed. Ms. Lavender advised that they do charge tuition of $2,500 which does not cover their costs. With respect to leadership deficit, Ms. Lavender advised that there is a looming leadership deficit in this area, as the baby boomers retire. New residents are not connected to this community and there needs to be some way to connect them. Both Mayor Zehr and Councillor Vrbanovic commented that they thought the grant for this organization had been annualized last year, but it was determined that it had not been. Contemporary Arts Forum Kitchener and Area The Committee considered the grant application form the Contemporary Art Forum Kitchener and Area (CAFKA) for a grant totalling $45,000, of which $25,000 would be cash and $20,000 in in-kind services. In 2006, Council approved a grant of $19,000 for this organization. It is noted in the staff report that in 2006, this organization presented a proposal to Council to change this event from an annual event to one that will be held every other year. At that time, Council did not approve the requested increased funding for the expanded program. Consequently, staff is currently recommending a 2% increase over the 2006 grant. Staff also note in their report that the City has applied fora 2009 Cultural Capitals grant, and if it is approved, CAFKA will receive $135,750 in 2009 for the expansion/enhancement of their event. Ms. S. Ronald and Mr. R. Linwood were in attendance on behalf of CAFKA to represent their grant application and to appeal the staff recommendation. They advised that the funding does not cover on-going administrative costs. They also advised that he next Forum will take place in September 2007 and they have confirmed partnerships for this event in Kitchener and Waterloo. In response to questions they advised of other funding sources including the Waterloo Regional Arts Fund, and that they have applied to other funding sources which have not given a final decision. With respect to the changes made in 2006 to hold this event every second year, the delegation advised that when they made their 2006 grant application, they had advised Council they would be seeking funding of $45,000 this year. The delegation also advised that this event ties into the City's Cultural Capital grant application as they are growing this event into an event that has international significance. Kitchener-Waterloo Arts Awards The Committee considered a grant application from K-W Art Awards for an operating grant of $10,000 and a one time grant of $4,500 to cover incorporation fees so that they can become a not for profit incorporation. It was noted in the staff report that in 2006, this organization was funded through the Community Services Department's operating budget. In 2006 they received $5,000 in cash and $1,600 in in-kind services. Staff recommend a $10,000 grant for this organization in order to assist them in becoming self-sufficient and sustainable, and that the costs of incorporation be paid from the $10,000 cash grant. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 3$ - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) Ms. J. Kraemer was in attendance on behalf of K-W Arts Awards in support to the grant application and in opposition to the staff recommendation. Ms. Kraemer pointed out that this is a transition year for the Awards. Up until this year, their funding had always come from the City's operating budget. They have become victims of their own success and their volunteers are suffering from burn-out. They are now a not for profit incorporation, and will be undertaking a strategic planning process. Their not for profit status will allow them to seek funding from other sources. They are requesting a yearly grant commensurate with their work over time. This event has changed over time to a larger community event, and it is hard to get people on the Committee because it is a lot of work and there is not enough money. Moving to not for profit status and a Board structure will enable them to enhance fund-raising and explore new programming. When questioned by the Committee, Ms. Kraemer advised that they have applied to the City of Waterloo for $10,000, $7,000 of which is for their operating budget and $3,000 for Board development. They did not ask them for a contribution towards incorporation costs because they did not know these costs would be so high. Councillor Gazzola questioned whether director's liability insurance for this group could be covered under the City's insurance. Councillor Lorentz directed that staff investigate whether the insurance pool could cover this type of insurance in all municipalities in the pool. Kitchener-Waterloo Art Gallery Ms. A. Pappert left the meeting at this time. The Committee considered the grant application of the Kitchener-Waterloo Art Gallery for grant funding in 2007 of $228,000, of which $144,000 would be cash and $84,000 would be in-kind. This grant request represents a 39% increase over the Art Gallery's 2006 grant. In their report, staff are recommending a 2007 grant of $170,940, of which $90,036 would be cash and $80,904 would be in-kind. It was noted by staff that in 2004, 2005, and 2006 the Art Gallery received additional funding, over their base amount, of $54,000 each of those years, to assist with implementation of their strategic plan. They are now requesting that their $54,000 be added to their base funding and continued permanently. Also, the in-kind portion of the grant is for the Gallery's rent and it should equal the actual rent. Mr. A. Bogusky, Director General of the Kitchener-Waterloo Art Gallery, was in attendance to represent this grant request and in opposition to the staff recommendation. Following an explanation of some of the programs offered by the gallery, Mr. Bogusky answered questions from the Committee. He advised that if the full amount of grant requested is not approved, the public co-ordinator position at the Gallery would be at risk. He stated that the Gallery has come along way but there are still challenges to be faced, and there will be hard choices to make. Councillor Gazzola requested financial statements for 2006. With respect to the one-time funding for 2004, 2005, and 2006, Mr. Bogusky advised this funding was to help implement their strategic plan. In 2007, they will undertake financial and strategic planning. He stated they will continue their investment in public programming and in raising the profile of the Gallery. They are still carrying a $200,000 deficit. They believed investing money in an endowment fund was better use of funds rather than paying down their debt. Mr. Bogusky was requested to provide the Committee with the Gallery's unaudited 2006 financial statements. Ms. A. Pappert re-entered the meeting at this time. House of Friendship -Kingsdale Community Program The Committee considered the grant application submitted by the House of Friendship for costs associated with operating the Kingsdale Community Centre. Their 2007 grant request is $61,800 representing a 6% increase over their 2006 grant. In their report, staff recommends a FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 39 - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) decrease of 11 % in this grant funding as compared to this group's 2006 grant. The City currently funds 50% of the cost of the full-time Program Co-ordinator position and 20 hours per week for part-time Community Centre Assistants. The House of Friendship is requesting an increase of part-time hours from 20 to 30 hours per week but have not indicated an increase in services. Staff also noted that cleaning at this community centre will now be done by City staff, and they have recommended a decrease in funding as a result. Staff further advise that since they submitted their grant application, the House of Friendship is changing their request for staffing. Instead of increasing the hours of part-time Community Centre Attendants, they now wish an additional 16 hours for Facility Attendants, as they have had an increased demand for use of this centre in the evenings and on week-ends. This staffing model is used at other City of Kitchener community centres. Ms. D. Schlicter, House of Friendship was in attendance to represent this grant application, and in opposition to the staff recommendation. She advised that the floor area of this community centre has quadrupled. The demand for week-end and evening programming has increased so they need additional funding for Facility Attendants to ensure security for the centre. Mayor Zehr questioned how this request compares with other centre, and Mr. M. Hildebrand advised that where a number of programs operate during evenings and week-ends, there can be problems ensuring access to the centre and making sure doors are locked. The City's other centres have this type of monitoring. Homer Watson House & Gallerv The Committee considered the grant application submitted by the Homer Watson House and Gallery for grant funding in 2007 of $196,400, representing a 20% increase over their 2006 grant. The Committee also considered the staff recommendation of $167,484 in funding in 2007, representing a 2% increase over the Homer Watson House and Gallery's 2006 grant of $164,200. Staff advise in their report that the grant request fora 20% increase in funding relates to a 5 year (2004 to 2008) plan to achieve wage equity. Ms. F. Hieblinger, Director/Curator, Homer Watson House and Gallery was in attendance to represent the grant application and to oppose the staff recommendation. She advised that in order to get professional staff and to retain them, it was necessary to achieve wage equity with other galleries. Ms. Hieblinger advised that the Gallery has been able to dramatically reduce their cost per visitor, and they have been able to generate additional funding. Further, she advised that they maintain a 3.7 acre park and buildings and in sharing this responsibility they reduce the City's costs as compared to the City maintaining them alone. Councillor Gazzola requested their 2006 unaudited financial statements, and an updated schedule of pay rate comparisons. In response to questions from Mayor Zehr, Ms. Hieblinger advised the City's grant pays for 4 full-time equivalent professional positions, and the Gallery pays for student positions. In response to a question from Councillor Vrbanovic, Ms. Heiblinger advised the Homer Watson House and Gallery has looked into a management partnership with the K-W Art Gallery and with Joseph Schneider Haus, and it has been determined there would be no savings. However, they will investigate an alliance for marketing. Kitchener Blues Festival The Committee considered the grant application of the Kitchener Blues Community Inc. for the Blues Festival to be held in Downtown Kitchener from August 10 - 12, 2007. This application requests funding for $35,000, $20,000 of which is requested as cash and $15,000 as in-kind services. This request represents a 243% increase over their 2006 grant of $10,200. Staff, in their report, recommend a grant of $10,404 split equally between cash and in-kind services, representing a 2% increase over their 2006 grant. Staff also note that this organization is requesting that the City's annual grant equal 10% of the festival's budget, and that in April 2006, Council approved an additional $20,000 for this festival as an over-expenditure of the FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 40 - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) City's Special Events operating budget. Ms. D. Tieleman and Mr. C. Clothier attended this meeting representing the grant application and in opposition to the staff recommendation. They advised that this festival has grown from a 1 day event to a 3 day event, and they also run a blues in the schools program and participate in the Kitchener Downtown Business Association Blues Bazaar. They noted that 45,000 people attended their event last year, and they are increasing their profile as a destination event. Upon questioning, the delegation advised their budget for this year's event will be approximately $275,000, possibly a little more, and they are aiming to double last year's attendance. Also, they will be able to increase their afternoon attendance if they get a grant from the province. The Committee directed the delegation to provide their 2006 financial statements. Kitchener Waterloo Chess Club The Committee considered the request of the K-W Chess Club for 2007 funding in the amount of $28,400, representing a 242% increase over their 2006 grant of $8,300. The Committee noted that staff is recommending a grant for this organization of $8,400 which represents a 1.2% increase over their 2006 grant. In their report staff notes that of their $28,400 grant request, $20,000 is to host an annual Kitchener Chess Festival, and in 2005, Council approved a $20,000 grant for a similar event. It is also noted in the staff report that in 2007, the Special Events Unit will be developing a strategic plan to determine the City's role in special events and festivals, which will include strategic directions to allow staff to make funding and other resource support decisions for events, but are not in a position at this time to recommend approval for a new festival. Messrs. P. MacDonald and H. Bond attended this meeting in support of this grant application and in opposition to the staff recommendation. They noted the Chess Club has hosted 3 of the 4 main tournaments in Canada, and following last year's event they have the excitement and momentum to build a successful annual event. They reviewed their requirements and costs, and advised they have support from Maple Leaf Foods. Further, there is a potential to host future events such as the World Youth Chess Championships in which 80 to 90 countries participate. Tamil Cultural Association The Committee considered the grant request of the Tamil Cultural Association for 2007 grant funding of $2,000, being an increase of 150% over their 2006 grant. Staff is recommending a grant of $816.00 representing a 2% increase over 2006 funding. Staff notes that the purpose of the grant is to assist with expenses for this group's "Annual Cultural Nite". This event promotes Tamil arts and culture in Waterloo Region through dance, music and drama presentations. This event takes place at the Waterloo Humanities Theatre. Mr. S. Abraham was in attendance to represent the grant application and in opposition to the staff recommendation. He advised that the purpose of their organization is to expose people to Tamil culture, and in this regard, they participated in the 2006 Tapestry Festival. The "Annual Cultural Nite" offers youth an opportunity to present their talents on stage, and they invite other cultures to participate in their events. There are between 65 and 75 students who participated in their event last year, and 700 people attended. Admission to their event is free, and the event is financially sponsored mainly by the Cities of Kitchener and Waterloo with some additional private funding. When questioned about holding the event at the Humanities Theatre, Mr. Abraham stated that this venue comes with all associated needs addressed, and other venues cost more. K-W Performing Arts Association/Theatre & Companv The Committee considered the grant application of the K-W Performing Arts Association/Theatre & Company fora 2007 grant in the amount of $$82,875, of which $75,000 is requested in cash and $7,875 in In-kind services, representing a 53% increase over their FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 41 - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) 2006 grant. It was noted in the staff report that in 2005 and 2006, this organization received a $47,700 one-time grant in addition to their annual operating grant for each year. In their report, staff recommends a 2007 grant in the amount of $6,630 of which $2,550 would be in cash and $4,080 would be in-kind, which represents a 2% increase over their 2004 grant of $6,500. It was also noted in the staff report that the additional grant funding in 2005 and 2006 was to assist with the organizations deficit reduction plan. Their current financial statement as at June 30, 2006, submitted with their grant appeal, indicated a fund balance of $177,239. Further, although their service area includes 38% from Waterloo, 14% from Cambridge and 3% from outside the Region, they did not apply to Waterloo or Cambridge for grant funding. Ms. C. Ewing and Messrs. D. Thorne and B. Hutton were in attendance on behalf of the K-W Performing Arts Association/Theatre & Company to represent their grant application and to appeal the staff recommendation. They advised that some patrons are still nervous about coming to the Downtown in the evenings and this organization provides a safe place for people to come, and 30,000 people come through their doors in the evenings per year. They have a full board of 9 people, new senior staff and they are discussing a partnership with the Registry Theatre, and they will have a joint program with the Registry Theatre this year. They are also discussing with The Registry Theatre the possibility of a fringe festival in 2008. They are also involved with the Tapestry Festival. Their City of Kitchener grant request equals 5% of their budget, and this grant funding helps them to leverage other funding. They want to increase community activity and to become nationally recognized as a regional theatre. With regard to the staff comment about funding from other municipalities, Mr. Hutton advised that they had intended to apply to the Cities of Waterloo and Cambridge, but missed the submission deadline. The City of Waterloo did advise they would probably be financially involved in the future. They did apply to the Region of Waterloo for funding but were not successful. Further, they have applied for other forms of grant funding. In response to questions from the Committee, Mr. Hutton advised that as of the end of 2006 they are in a deficit position of $35,000, due to a major change which has since been addressed. Further, they don't have multi-year projections at this time, but they may have by February 26th. The Committee requested the submission of a multi-year projection. K-W Weavers and Spinners Guild The Committee considered the grant application from the KW Weavers and Spinners Guild for grant funding in 2007 of $1,200 representing a 129% increase over their 2006 grant of $482.00. Staff recommends a grant of $492.00, representing a 2% increase over their 2006 grant. Staff noted in their report that the mandate of this organization is to preserve the heritage skills and textile traditions of hand weaving and hand spinning in Waterloo Region. Ms. R. Biewenga-Hyams was in attendance on behalf of this organization to represent their grant request and to appeal the staff recommendation. She advised that the grant is strictly for operational costs, and it would pay 1 month of rent and equipment maintenance costs. She advised that many volunteer hours are contributed to operate this Guild. They have a high profile for heritage crafts, have a professionally developed web site, they are on local and national media, and they are one of the few guilds in the province that maintains and active studio. In response to questions from the Committee, Ms. Biewenga-Hyams advised that their fundraising revenue is used to finance their web site and for equipment. Art Fest will match donations in-kind, but they don't have any. The Region will not support operating expenses. Their studio is now located at Brighton School and their sale takes place at the Waterloo Recreation Centre. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 5, 2007 - 42 - CITY OF KITCHENER 3. ANNUAL OPERATING GRANTS tCONT'D) The MT tMulticultural Theatre) Space The Committee considered a grant application from The MT (Multicultural Theatre) Space for grant funding of $12,000 representing a 100% increase over their 2006 grant. Staff recommends a grant in 2007 of $6,120 representing a 2% increase over their 2006 grant. Staff notes that in their grant application this organization states that their purpose is to "explore cultural experience between people, their histories, and their forms of expression in performance". The increased funding will "support the high quality work being presented" and bring the City's support "in line with the significance and impact of the organization's influence in the arts and culture community". Staff also notes that if the City's 2009 Cultural Capitals application is approved, $38,750 has been allocated through this program to this organization for expansion and/or enhancement of their programming in 2009. Ms. L. Levesque and Mr. M. Bou-Matar attended this meeting in support of their grant request and in opposition to the staff recommendation. They advised that MT Space is steadily achieving their goals, are gaining national recognition, and represent the city and the region at national conferences and events. They are about to complete the first 3 year cycle of their business plan and they need the additional financing for a solid foundation. With respect to other funding sources, Ms. Levesque advised that they received $5,000 from the Region and $16,000 from the provincial and federal governments. They have submitted grant applications to the Cities of Cambridge and Waterloo, but haven't heard whether they have been successful. In response to questions from the Committee, the delegation advised they are unique because they are the only theatre company to explore intercultural contemporary theatre forms. Their creative artists are immigrants of diverse cultural backgrounds and they bring their theatrical cultural heritage. The difference is that influence of diversity of cultural backgrounds. They are changing the face of Canadian theatre. They reflect the street, and this community as it currently exists. 4. MINOR SPORTS GRANTS The Committee considered Community Services Department report CSD-07-012, dated January 22, 2007, recommending a total of $671,147 in grants for minor sports groups for 2007. The specific allocations for each group plus a holding fund, were outlined in this staff report. It was noted that the total amount of grant funding represents a 2% increase over the 2006 budget. Mr. R. Cyr was in attendance to present this report, and he noted some changes in funding for various groups. 5. ADJOURNMENT On motion, the meeting adjourned at 4:55 p.m. Dianne Gilchrist Committee Administrator