Grant in Aid Policy Report COUNCIL REPORT

TOWN OF VIEW ROYAL COUNCIL REPORT

TO: Council DATE: March 29, 2017 FROM: Michael Dillabaugh, Director of Finance MEETING DATE: April 4, 2017

Grant in Aid Policy Report

RECOMMENDATION:

THAT the Council receive the March 29, 2017 Grant in Aid Policy Report for information.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:

I concur with the recommendation.

PURPOSE OF REPORT:

To provide Council with information regarding the Town Grant in Aid Policy.

BACKGROUND DISCUSSION:

The Grant in Aid program is designed to assist not-for-profit societies, other non-profit and community organizations in achieving their objectives. Currently, each year Council provides an amount of funding equal to 5% of the Town’s share of the prior year’s funding that was received from the View Royal Casino. Under the current policy and program qualifying organizations can apply for operational ongoing funding each year or for one time project specific funding. The current program does not distinguish between ongoing or one time funding requests and funding is allocated from the same budget. Under the current model, Council may approve up to 95% of the funding budget to applications received before the deadline, currently March 1st, and the remaining 5% is allocated out during the year.

Council has asked staff to look into the current Grant in Aid policy in comparison to neighboring communities. In looking at other communities in the CRD it appears that the majority do give out Grants in Aid, or Community Grants as some refer it. Many municipalities allocate their Grants in Aid for one time expenditures and have entered service agreements/fee for service or have permanent line items for organizations that receive annual operating funding. This one time expenditure could be for a specific project or specific program. It could also be for a start-up organization. Another factor that Council may wish to consider is whether the organization is receiving funding from another source to assist with the expenditures and offset the funding requirement from the Town.

The Town is in a unique situation in receiving Casino Gaming funds that can be allocated out to the community through community grants to provide additional services to the community. In comparison to other municipalities the funding by the Town that is provided through Grants in Aid as a percentage of total operating budgets would appear above average. This could be due to the Town including operating funding to organizations through this program where another municipality likely has those funds allocated elsewhere in their operating budget.

Table showing comparisons:

Municipality:	Annual Grants in Aid Funding:
View Royal	$105,725 (2016 Funding)
Metchosin	$5,500
Saanich	$770,000
Highlands	$13,000
Sidney	$12,000
Central Saanich	$15,000
Langford	$50,000
North Saanich	$40,000
Sooke	$65,000
Victoria	$2,500,000

Fee for Service:

Another funding option available to the Town that is used by many municipalities is a Fee for Service Agreement. Under this option, the Town would enter into a formal agreement with the organization for services that the Town wishes to provide and the organization is better suited to provide the service. This follows with the Town philosophy of contracting services. As an example, the District of Sooke has fee for service agreements with organizations providing services on behalf of the municipality, including for Economic development with the Sooke Region Tourism Association, for economic development with the Sooke Region Chamber of Commerce, for the Community Hall with the Sooke Community Association, for the Visitor Centre with the Sooke Region Historical Society.

Opportunities may be in place for organizations that have traditionally received funding from the Town through the Grants in Aid process that provide a service on behalf of the Town. For example the crossing guards program, Shoreline Community School Association and the View Royal Reading Centre.

Funding source:

In addition, the Town can move regular grant funding applicants out of the Grant in Aid program and into the regular operating budget. Currently the funding for the Grants in Aid is from Casino revenue, however, the change to regular operating would mean that funding would come from taxation or another ongoing source.

Option 1:

Maintain the current Policy and procedures for the Grants in Aid program.

Option 2:

Amend the Grant in Aid Policy to include two categories of grants, one for regular ongoing operating expenditures and the other for one time projects or programs that won’t be ongoing in nature. It is recommended that applicants under both programs continue to apply each year and maintain the reporting requirement currently in the policy as well to ensure compliance and fiscal accountability to the Town. Under this option it would be recommended that each category have a budget each year to better allow the Town to budget for and administer the program.