REQUEST FOR DECISION
DATE: September 5, 2017 Report No. FIN-17-017
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
Funding Request - Esquimalt Neighbourhood House Society
End
RECOMMENDATION:
Recommendation
It is accepted procedure that staff not make recommendations on funding requests. Options available to Council are listed below under ALTERNATIVES.
Body
RELEVANT POLICY:
Council Policy FIN-16 Permissive Tax Exemption Policy
Council Policy ADMIN-32 Local Grants Policy
STRATEGIC RELEVANCE:
Continue to enhance the health and liveability in the community
BACKGROUND:
During its meeting on August 21, 2017 Council received a letter from the Esquimalt Neighbourhood House Society requesting $25,000 in additional financial support. Council also made the decision to refer the request to staff for the identification of potential funding options. If Council elects to approve financial support, there are two funding options available: the Local Grants account and the Contingency account within the 2017 Financial Plan.
The Local Grants account is funded each year within the Financial Plan approved by Council. The existing Council Policy ADMIN-32 Local Grants states that the purpose of the grant program is to “financially assist community groups and not-for-profit societies and organizations in achieving their objectives. Local grant funding is intended to provide support to societies, organizations and committees with the expectation that alternate sources of funding will be secured.”
The Contingency account is set up each year with a balance which is intended to cover any unforeseen or unexpected expenditures. Any funds that remain in the Contingency account at the end of each year are transferred to accumulated surplus for utilization on significant capital projects or acquisitions.
In 2017, Council granted the Esquimalt Neighbourhood House Society a permissive tax exemption totaling $12,418 during the 2017 taxation year. Of this amount, $7,566 represented an exemption of municipal property taxes. The organization has also submitted an application to be considered for a 2018 permissive tax exemption.
In 2013, Council Policy FIN-16 Permissive Tax Exemptions was revised at the request of Council. One of the changes was the inclusion of a clause which would allow Council to deny any local grant application from an organization receiving a permissive tax exemption in the same taxation year. As the Esquimalt Neighbourhood House Society received a 2017 tax exemption, under section 4 of the current Council Policy FIN-16, they are ineligible to apply for additional local grants funding.
If Council approves additional funding to support this request, it is overriding the current Council Policy. This will establish a precedent which may communicate to all other permissive tax exemption applicants that a secondary source of funding is again available from the Township.
ISSUES:
1. Rationale for Selected Option
The decision regarding any local grant funding allocation is at the discretion of Council.
2. Organizational Implications
Additionally, if the decision is made to provide funding in this instance, Council should also consider revising the Council Policy to eliminate the statement which prevents organizations from applying for both forms of local grant funding.
3. Financial Implications
Within the 2017 Financial Plan, an amount of $136,500 was allocated for the purposes of issuing local grants. To date, local grants totaling $123,850 have been approved with a remaining balance of $12,650 in the account as of the date of this report.
The Contingency account typically includes an initial balance of $250,000 in the approved Financial Plan. Currently, there are sufficient funds in the account to fully support this request.
4. Sustainability & Environmental Implications
There are no sustainability or environmental implications of this decision.
5. Communication & Engagement
Whether or not a payment is approved, a letter will be sent to the Esquimalt Neighbourhood House Society advising them of Council’s decision. If a payment is approved, a cheque will be issued and will accompany the letter.
If revisions to the Council Policy are requested, the updated approved document will be provided to all current permissive tax exemption applicants. The updated Council Policy will also be updated on the Township’s website.
ALTERNATIVES:
That Council:
1. Approve funding in full by using the remaining local grant budget of $12,650 and $12,350 coming from the Contingency account.
2. Approve funding in full with funds coming from the Contingency account.
3. Approve funding in an amount less than was requested.
4. Amend the Council Policy ADMIN-32 Local Grants to allow for organizations to apply for a permissive tax exemption and a local grant in the same taxation year.
5. Deny the request for funding.