TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: November 18, 2024 Report No. ADM-24-074
TO: Committee of the Whole
FROM: Terése Finegan, Manager of Economic Development
SUBJECT: Review of Local Grant Funding and Policy Options
RECOMMENDATION:
Recommendation
That the Committee of the Whole recommends to Council that it consider the proposed Local Grant Guidelines as attached to Staff Report ADM-24-074 which will inform the changes to FIN-20.
Body
EXECUTIVE SUMMARY:
Council directed staff to review how other municipalities in the CRD handle grants. Staff researched best practices for local grant programs and included options for Council’s consideration. Comments raised at the April 15, 2024, Committee of the Whole meeting were carefully considered by staff and addressed in the analysis below.
BACKGROUND:
At the April 15 2024 meeting the Committee of the Whole recommended to Council that staff be directed to conduct a review of Local Grant policies of comparable municipalities in the Capital Regional District and identify policy options regarding funding criteria and amounts, processes used to make approval decisions, types of categories, and lengths of grants.
Staff Report FIN-24-007 (April 15, 2024) provides a chronological overview of past reviews and discussions dating back to February 2016.
ANALYSIS:
1. Committee of the Whole - April 15, 2024, Comments.
The following summarizes the Committee of the Whole comments from COTW April 15, 2024, ordered thematically and addressed with responses from staff. These themes played a key role in shaping the subsequent analysis and recommendations.
1.1 Strategic Alignment and Prioritization
• Comment: There are local established events which rely on funding received through the Local Grants program and whose initiatives and events are valued by the community.
• Comment: Some local grant applicants are filling gaps in services which are responsibilities of higher levels of government, but it is a challenge to deny funding given their contribution to the social fabric of the community, and the lack of other funding options.
• Comment: Events run by community groups have been significant to the social fabric in the Township, and funding should continue, but prioritization may be necessary.
• Comment: Evaluating requests against Council's strategic priorities is of interest.
• Comment: It is noted that some groups have been denied funding despite their submission of more fulsome applications because more established groups have been approved.
Response: The revised grant program emphasizes alignment with Council's strategic priorities. The updated evaluation criteria will clearly link funding decisions to these priorities, ensuring that grants support the community's most important goals. This will help to guide prioritization and ensure a transparent and objective assessment process.
1.2 Supporting Innovation and Established Groups
• Comment: Local Grant policy should support established groups, but also ensure opportunities are available to new and innovative community initiatives.
Response: The revised policy will balance support for established groups with opportunities for new and innovative initiatives. This will be achieved through a potential two-round application process: Round 1 could focus on established programs, while Round 2 could be dedicated to new and emerging initiatives, allowing for flexibility and responsiveness to evolving community needs.
1.3 Application Process and Evaluation
• Comment: As it becomes more common practice for organizers to hire or contract fundraisers, it could be beneficial to consider whether Council wishes to provide funding to groups with these resources.
• Comment: The amount and size of applications can be a challenge for Local Grant Committee members to evaluate in a timely and effective manner; considering alternative models, such as incorporating volunteer evaluators, or having staff representation on the Committee, may be of interest.
• Comment: Review of the application form and process may reveal other opportunities for improved decision-making and accessibility.
Response: The introduction of an online application system, standardized guidelines, and automated Excel reporting tools will streamline the application and evaluation process. This will improve efficiency and transparency for both applicants and reviewers. Further consideration will be given to alternative evaluation models, including staff representation or volunteer evaluators, to ensure timely and effective assessment of applications.
1.4 Policy Review and Expertise
• Comment: Given the number of reviews the Local Grant Policy has undergone in recent years, it may be beneficial to hire a consultant with expertise on grant policies to improve the longevity of the revised policy.
Response: The suggestion to engage a consultant with grant policy expertise will be subject to Council direction.
1.5 Application Cycle and Budget Considerations
• Comment: The current practice of allowing requests to be made outside of the application cycle creates a challenge as they are removed from broader budget discussions.
Response: A two-round application system can be implemented to address this concern. Round 1 will align with the annual budget cycle, while Round 2 will provide a limited pool of funds for innovative projects that emerge later in the year. This approach balances predictable funding with flexibility for new initiatives.
1.6 Regional Best Practices and Funding Categories
• Comment: Further analysis is requested on the array of policies and operational approaches around the region about who is responsible for decision-making, the frequency and length of funding terms, and whether financial sustainability is a requirement.
• Comment: Consideration of an additional innovation fund or of separate sub-categories for funding, such as events and festivals, economic development, arts and culture, social services, or other types of organizations and initiatives, is of interest.
Response: A review of grant policies in comparable municipalities has been conducted to identify best practices and inform our program revisions. The revised program includes new categories directly linked to strategic priorities, ensuring that funding is allocated effectively across various areas of community need.
2. Review of Local Grant Policies of comparable municipalities.
Appendix 1, as attached, reviews Local Grant policies of Esquimalt, Victoria, Oak Bay, Saanich, Central Saanich, North Saanich, Sidney, View Royal, Colwood, Langford, the CRD, and Tourism Cowichan.
2.1 Key Observations and Recommendations.
Annual and Multi-Year Awards: Most municipalities utilize a combination of annual and multi-year grant awards. This approach provides funding stability while allowing for flexibility and adaptation to changing needs. Staff recommend adopting a similar model.
Grant Guidelines: Approximately half of the reviewed jurisdictions provide detailed grant guidelines. Clear guidelines enhance transparency, ensure consistent application assessment, and promote high-quality applications. Staff recommend developing comprehensive grant guidelines.
Alignment with Strategic Goals: Central Saanich effectively links its grant evaluation criteria to its Official Community Plan (OCP) priorities. We recommend aligning the grant evaluation criteria with the municipality's strategic goals to ensure that funding decisions support broader community objectives.
2.2 Best practice.
Appendix 2 provides a summary of best practices identified in the grant policies of: Central Saanich (Community Service Funding), City of Victoria (Festival Investment Grant) and the Capital Regional District (Arts and Culture Funding).
These examples offer valuable insights for developing and refining the local grant program.
3. Review of Esquimalt past and current grant funding.
Staff aimed to improve their understanding of how grant funding is allocated. To achieve this, they developed and tested a new system for categorizing grant projects. This system was used to analyze past projects and connect them to the municipality's strategic priorities. The benefits of this approach include;
Improved Analysis. By categorizing projects, a clearer picture of funding distribution across key priority areas is gained. This allows us to identify potential funding gaps or areas of over-investment.
Strategic Alignment. This system strengthens the link between funding decisions and strategic goals, ensuring greater transparency and accountability.
Informed Future Planning. The insights derived from this analysis will guide future budget allocation, promoting strategic and efficient use of grant funds.
Appendix 2 provides a detailed breakdown of Esquimalt's local grant funding allocation up to 2024, and how the categories were allocated to each even/organization.
Table 1 below correlates the alignment between funding categories and Council’s strategic priorities.
Further data analysis provides the following breakdowns.
Pie Chart 1: Distribution of 2024 Funds illustrates the percentage of funding per category with Community development receiving 44% of funding.
Bar Graph 1: Local Grant Funding 2024 illustrates the distribution of funding per dollar amounts.
4. Questions for discussion by the Committee.
Staff are seeking discussion, direction or further comment on the suggested changes.
1. Strategic Alignment of Funding Categories: Staff suggest a project categorization system that aligns with Council's strategic priorities. This approach provides valuable insights into funding trends and ensures alignment with broader community goals, giving stakeholders confidence in the strategic direction of the grant program.
2. Guidelines vs. Policy: To provide greater flexibility, staff propose distinguishing between "Guidelines" and "Policy." Guidelines containing specific details like annual funding amounts can be updated annually. The Policy will remain high-level, providing overarching direction and stability (e.g., "Council will approve an annual amount for the Local Grant Program within the Financial Plan"). This distinction allows for adjustments to funding levels and program specifics without requiring full policy revisions
3. Evaluation Criteria: Staff have revised the evaluation criteria to incorporate best practices and outcome-focused language, ensuring a more robust and objective assessment process.
4. Online Application System: To streamline the application process and alleviate the burden of paperwork, staff are proposing a move to an online application system. This web-based form will simplify submissions and improve efficiency for both applicants and staff. Support will be provided to applicants needing assistance with the new system, ensuring a smooth transition and a more user-friendly experience.
5. Grant Duration: If updated the new guidelines will apply from 2026 with applications opening for submissions in spring/summer 2025. Two rounds per year with options for annual, multi-year and one-time grants awarded by the Local Grants Committee.
6. Committee composition: Comments in 1.3 suggested that staff be included on the committee. The current composition is three Council appointed Councilors.
7. Enhanced Reporting: Staff suggest implementing a more robust reporting system to track grant outcomes and demonstrate the impact of funded projects. This will enhance accountability and provide valuable data for future program improvements. Support and capacity building will be provided to applicants needing assistance with the new system
Going forward:
As funding has already been allocated for 2025 these suggested changes and updated policy will be implemented in 2025 for 2026 intake.
OPTIONS:
Option 1: That the Committee of the Whole recommend proposed changes to Council as discussed in the form of the Local Grant Guidelines which will inform the revised Local Grant Fin-20 Policy to be brought forward at a later date.
Option 2: That the Committee of the Whole provide alternate direction to staff
COUNCIL PRIORITY:
Good Governance & Organizational Excellence
FINANCIAL IMPACT:
Unless changes are recommended to the annual funding levels, there are no direct financial implications
COMMUNICATIONS/ENGAGEMENT:
If changes are made to the current program and the local grant policy, the Township website will be updated to reflect any changes. In addition, current grantees will be contacted to ensure potential applicants are made aware of the new guidelines and application dates.
TIMELINES & NEXT STEPS:
Based on the Committee’s direction, an updated Local Grant Policy could be developed for review and bought forward Council at a later date.
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Sarah Holloway, Deputy Corporate Officer, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
List all items attached to the Staff Report
Appendix 1: Spreadsheet - Local Grant Policy Comparison
Appendix 2: Best Practice Summary
Appendix 3: 2020 - 2024 Local Grant Applications
Appendix 4: Draft Local Grant Guidelines