(City Council on April 16, 1998, deferred consideration of this Clause to the Special Meeting of Council to be held on Tuesday, April 28, 1998.)

(See Clause No. 1 of Report No. 5A of The Strategic Policies and Priorities Committee.)

(City Council on April 16, 1998, adopted the following recommendation:

"It is recommended that the recommendation of the Budget Committee embodied in the transmittal letter dated April 9, 1998, from the City Clerk, be adopted.")

The Strategic Policies and Priorities Committee submits, without recommendation, the following transmittal letter (April 9, 1998) from the Budget Committee:

Recommendation:

The Budget Committee on April 3, 1998 recommended to the Strategic Policies and Priorities Committee, and Council, that interim funding for the City-wide Watermain Relining and Replacement Projects in the amount of $6,950,000.00 be approved and considered by Council at its next meeting scheduled for April 16, 1998.

Background:

The Budget Committee on April 3, 1998, had before it a report (February 17, 1998) from the Chief Financial Officer and Treasurer regarding the 1998 Interim Capital Projects Requiring Urgent Financing Approval.

Purpose:

This report provides a complete list of city-wide watermain relining and replacement proposed for 1998.

Funding Sources, Financial Implications and Impact Statement:

The projects proposed for 1998 have been included in the water rate supported programs for 1998 and will be financed from existing capital reserves.

Recommendation:

That Appendix "B" Project 35 - Watermain Capital Maintenance of $6,950,000.00 be approved.

Council Reference/Background/History:

At the Budget Committee meeting of January 26, 1998, the Committee had before it a report from the Chief Financial Officer and Treasurer outlining those capital projects that require early financing approval. The Budget Committee referred Project 35 - Watermain Capital Maintenance back for a report setting out the complete list of watermain relining projects on a city-wide basis.

Attached is the 1998 Program for Watermain Cleaning and Lining in each of the former Area Municipalities as requested. The early funding requested represents approximately forty percent of the 1998 program of $17,721,000.00.

The early funding is to allow contracts for watermain lining rehabilitation to be called in Etobicoke, North York, York, Toronto, and Scarborough. These contracts need to be awarded in April so the unsuccessful contractors can bid on the remaining rehabilitation contracts for all six districts in May, in order that the program can be completed by November.

The watermain rehabilitation program and the method of calling contracts will be reviewed when the condition of the infrastructure is known on a city-wide basis. However, for 1998, it is intended to carry out the watermain rehabilitation program in accordance with the programs put forward by each of the former Area Municipalities unless changes are requested through the budget process.

The early funding requested represents approximately forty percent of the 1998 program of $17,721,000.00.

Conclusions:

Funding is required to allow the early award of contracts to ensure the tendering is done strategically to obtain optimal pricing and allow the program outlined to be completed during the construction season.

Contact Name:

Michael G. Thorne, P.Eng., Interim Functional Lead, Water and Wastewater, Tel: (416) 392-8200.

(A copy of the 1998 Program for Watermain Cleaning and Lining in each of the former Area Municipalities, referred to in the foregoing report, was forwarded to all Members of Council with the Strategic Policies and Priorities Committee agenda for its special meeting on April 14, 1998, and a copy thereof is on file in the office of the City Clerk).

(City Council on April 16, 1998, adopted Recommendations (A) to (F) of the Municipal Grants Review Committee embodied in the report dated April 14, 1998, from the City Clerk, subject to:

(1) the additional grant of $150,000.00 for the Caribana Festival mas bands and cultural producers referred to in Recommendation (A)(1)(b) being approved and provided from the Grants envelope; and

(2) deleting the names "Councillor Tom Jakobek" and "Councillor Bas Balkissoon" from the membership of the Caribana Festival Support Group and inserting in lieu thereof the following:

(a) the Mayor, or his designate; and

(b) the Budget Chair, or his designate.

Council also adopted the following recommendations:

"It is recommended that:

(1) the grant be deemed to be in the interest of the municipality;

(2) the Budget Committee be requested to increase the grants envelope by $75,000.00;

(3) the Commissioner of Economic Development, Culture and Tourism be requested:

(a) to devise and execute an economic development study of the 1998 Caribana Festival measuring direct and indirect impacts, such study to include the value of volunteer hours and public sector impacts; and

(b) in consultation with Special Events' staff:

(i) to submit a report to the Economic Development Committee on the feasibility of the City of Toronto entering into a 'strategic joint venture partnership' with the Caribbean Cultural Committee Inc. (CCC) in the production of the annual Caribana Festival; and

(ii) after having assessed the economic benefits of the 1998 Caribana Festival, submit a report to the Strategic Policies and Priorities Committee, through the Economic Development Committee, on the feasibility of changing the mechanism by which funds flow to Caribana to a method which would allow the organization to market revenue-positive events with more lead time; and

(4) the report dated April 16, 1998, from the Chief Financial Officer and Treasurer, embodying the following recommendations, be adopted:

'It is recommended that:

(1) if the Chief Financial Officer and Treasurer receives donations to the City which are accompanied by a desire that the City use such monies to support Caribana, that she then report to Council for instructions on the disbursement of any such donations;

(2) the City demonstrate its support for the Caribana festival by providing the CCC with any necessary assistance which will facilitate its receiving Charitable Status on a timely basis; and,

(3) the appropriate City officials be authorized and directed to take the necessary steps to give effect thereto.' " )

The Strategic Policies and Priorities Committee submits, without recommendation, the following:

(1) report (April 14, 1998) from the City Clerk, as revised by staff to reflect all of the recommendations and conditions related to grants and loans for Caribana, addressed to the Strategic Policies and Priorities Committee and containing the following reports:

(a) (April 9, 1998) from the Commissioner of Community and Neighbourhood Services, addressed to the Municipal Grants Review Committee;

(b) (April 8, 1998) from the City Clerk, addressed to the Municipal Grants Review Committee; and

(c) (April 2, 1998) from the Chief Administrative Officer, addressed to the Budget Committee; and

(2) the motion by Councillor Pantalone:

"That the report (April 14, 1998) from the City Clerk, be amended so as to provide $150,000.00 to the Caribana mas bands, funds to be provided from the Contingency Account."

The Strategic Policies and Priorities Committee reports, for the information of Council, that it has:

(1) referred the following Recommendation No. (G) contained in the revised report (April 14, 1998) from the City Clerk to the Toronto Police Services Board, for report back to the Strategic Policies and Priorities Committee:

"That the Chair of the Toronto Police Services Board be requested to report to Council on April 28, 1998, on why Paid Duty Officers have to be paid up front in cash for Caribana."

(2) referred the following Recommendation No. (H) contained in the revised report (April 14, 1998) from the City Clerk to Tourism Toronto, and other affected associations, for report back to the Strategic Policies and Priorities Committee on the Room Surcharge fee and/or tax:

"That Council request Tourism Toronto to urge the hotel industry to establish a room surcharge fee for the Caribbean Cultural Committee and to replenish its own grant from the City of Toronto."

The Strategic Policies and Priorities Committee submits the following report (April 14, 1998) from the City Clerk:

Recommendations:

The Municipal Grants Review Committee on April 14, 1998, recommended to the Strategic Policies and Priorities Committee, and Council:

(A) the adoption of the report dated April 9, 1998, from the Commissioner of Community and Neighbourhood Services amended as follows:

"(1) the report from the Chief Administrative Officer of April 2, 1998, submitted to the Budget Committee, be adopted as amended by the Budget Committee on April 3, 1998, and that:

(a) a total of $203,500.00 be approved by Council at its April 16, 1998, meeting to the Caribana Festival Support Group;

(b) an additional total of $150,000.00 be approved by Council at its April 16, 1998, meeting for the Caribana Festival mas bands and cultural producers, as follows:

(i) the first $75,000.00 to come from any underexpenditure in line item grants; and

(ii) the City of Toronto provide a loan guarantee for an amount not to exceed $75,000.00 for the Caribana mas bands and cultural producers;

(c) the Municipal Grants Review Committee report to the Budget Committee should the full $75,000.00 mas bands grant recommended not be found through the anticipated underexpenditures within the Grants envelope; and

(d) the allocation of these grants and the loan guarantee be subject to the following conditions outlined in the Chief Administrative Officer's April 2, 1998, report, as well as the additional conditions outlined in this report;

"(i) the CCC will need to fill out one application form. The form required by the Toronto Arts Council and used in past years will enable the CCC to meet this obligation. The form should be filled out before any funds are released and must include an appropriate budget document for 1998;

(ii) funds should be released via monthly instalments based on performance satisfactory to Caribana Festival Support Group. Indicators of performance will include such matters as variance reports on cash-flow projections and actuals, and progress on organizational restructuring. Additional indicators should be established by the Support Group in consultation with the CCC and forwarded to City Staff for approval. Further, the CCC will need to develop a 1998 budget and budget framework for future years that is acceptable to the Support Group. The monthly payment schedule will be worked out with the CCC and City staff and approved by the Support Group;

(iii) the CCC must indicate a timeframe to undertake the agreed upon restructuring process with the Advisory Board. This will require the CCC to sign a letter of intent identifying its preparedness for such process, the key officials who will work with the Advisory Board and the role of the CCC Chief Executive Officer in leading this initiative;

(iv) the CCC will undertake to work with the Advisory Board to develop and implement a debt reduction strategy with specific targets. This will ensure that the CCC creditors are provided a proposal on timeframes for payments on amounts owing. A progress report on this will need to be submitted to City Council by the CCC through the Support Group by July, 1998;

(v) the CCC will need to provide payment in advance for services of the City departments. This has been implemented in the past and ensures that such services do not become a CCC liability. In the event payments are difficult to manage, the CCC may wish to relinquish a portion of its City grant to pay for City services. Such an approach has been used in the past quite successfully;

(vi) the CCC will provide approximately 10 percent of its revenues, excluding funding provided for the mas bands, to its annual administration;

(vii) at the end of its 1997-98 fiscal year, the CCC will need to attain an unqualified financial audit to provide assurance that its financial controls are in order and working effectively. As it is anticipated that the schedule of payments from the City to the CCC will extend over a year's time, some funds will not have been released before the end of the CCC's current fiscal year. These should be held until the CCC meets this condition;

(viii) the CCC will need to complete its business plan and marketing strategy before any City funds are released. This is essential to providing the organization's blue print for its imminent and future strategies, providing a starting point for City staff and the Support Group to work with the CCC on this year and future activities;

(ix) the CCC will need to submit a progress report to City Council through the Support Group Board by September, 1998 indicating its efforts to date and future directions in its restructuring activities; and

(x) the CCC, through its Chief Executive Officer, will report on monthly basis to the Caribana Festival Support Group.";

(2) this report be forwarded to the Strategic Policies and Priorities Committee for its April 14, 1998, meeting in order to be dealt with by City Council at its April 16, 1998, meeting;

(3) the Chief Financial Officer and Treasurer, in consultation with the Solicitor, report directly to Council on the legalities and mechanisms of the City providing charitable tax receipts to Caribana in the manner proposed in this report; and

(4) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto;"

(B) that the Chief Administrative Officer be requested to report directly to Council for its meeting on April 16, 1998, on alternative funding from the global budget to deal with the $75,000.00 loan guarantee, referred to in the foregoing Recommendation No. (1)(b)(ii);

(C) that if there is any underexpenditure within the Grants envelope in excess of the initial $75,000.00 grant recommended it be directed to offset the loan guarantee;

(D) that the appropriate staff of the City of Toronto be requested to provide marketing and protocol support to the Caribbean Cultural Committee for its 1998 Caribana Festival;

(E) that the Chief Financial Officer and Treasurer be requested to investigate the proposal to provide for the issuance of tax receipts to those donating to the Caribbean Cultural Committee, as well as for other community initiatives, and to report thereon directly to Council for its meeting on April 16, 1998;

(F) that the City of Toronto provide its assistance in helping the Caribbean Cultural Committee become a registered charitable organization as speedily as possible; and further that the appropriate staff be requested to report directly to Council on April 16, 1998, on how quickly charitable status can be achieved for the Caribbean Cultural Committee;

(G) that the Chair of the Toronto Police Services Board be requested to report to Council on April 28, 1998, on why Paid Duty Officers have to be paid up front in cash for Caribana; and

(H) that Council request Tourism Toronto to urge the hotel industry to establish a room surcharge fee for the Caribbean Cultural Committee and to replenish its own grant from the City of Toronto.

The Municipal Grants Review Committee reports, for the information of the Strategic Policies and Priorities Committee, having:

(a) recommended to the Budget Committee that a contingency fund be established for the grants programs, in order to allow for the review of requests for emergency and special requests outside of the regular grants process; and

(b) requested the Chief Administrative Officer to report to the Municipal Grants Review Committee on the feasibility of funding the Caribana Festival Support Group in the same context as the National Ballet of Canada, the Canadian Opera Company, and the Toronto Symphony, in that it should be regarded as an established institution and supported accordingly.

Background:

The Municipal Grants Review Committee had before it the following communication and report:

(i) (April 8, 1998) from the City Clerk advising that the Budget Committee on April 3, 1998, recommended the adoption of the report dated April 2, 1998, from the Chief Administrative Officer respecting financial support to the Caribbean Cultural Committee and Caribana, subject to a number of amendments outlined therein; and

(ii) (April 9, 1998) from the Commissioner of Community and Neighbourhood Services recommending the adoption of the report (April 2, 1998) of the Chief Administrative Officer as amended by the Budget Committee on April 3, 1998, and further that:

(1) the report from the Chief Administrative Officer of April 2, 1998, submitted to the Budget Committee, be adopted as amended by the Budget Committee on April 3, 1998, and that:

(a) a total of $203,500.00 be approved by Council at its April 16, 1998, meeting for the Caribbean Cultural Committee;

(b) an additional total of $75,000.00 be approved by Council at its April 16, 1998, meeting for the Caribana Festival mas bands and cultural producers;

(c) the City of Toronto provide a loan guarantee for an amount not to exceed $75,000.00 for the Caribana mas bands and cultural producers;

(d) the Municipal Grants Review Committee report to the Budget Committee should the full $75,000.00 mas bands grant recommended not be found through the anticipated underexpenditures within the Grants envelope; and

(e) the allocation of these grants and the loan guarantee be subject to the conditions outlined in the Chief Administrative Officer's April 2, 1998, report, as well as the additional conditions outlined in this report;

(2) this report be forwarded to the Strategic Policies and Priorities Committee for its April 14, 1998, meeting in order to be dealt with by City Council at its April 16, 1998, meeting;

(3) the Chief Financial Officer and Treasurer, in consultation with the Solicitor, report directly to Council on the legalities and mechanisms of the City providing charitable tax receipts to Caribana in the manner proposed in this report; and

(4) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

The following persons appeared before the Municipal Grants Review Committee in connection with the foregoing matter:

- Mr. Dalma Hill, Caribbean Cultural Committee and Caribana; and

- Mr. Courtney Doldron, Caribbean Cultural Committee, band leader and producer; and

- Councillor Joe Mihevc, York-Eglinton.

Purpose:

To identify the funding required as a pre-approval in the 1998 budget process from the City of Toronto grants allocations for the Caribbean Cultural Committee (C.C.C.) and the Caribana mas bands and cultural producers.

Funding Sources, Financial Implications and Impact Statement:

The recommended funding from the City of Toronto for the C.C.C. comes from the grants allocation of $45,160,000.00 as set by the Budget Committee. Additional funding requested for the mas bands and cultural producers may be met from the recommended grants allocation; the Municipal Grants Review Committee will submit a report detailing the C.C.C. progress on the fundraising activity and applicable funding requirements.

Recommendations:

It is recommended that:

(1) the report from the Chief Administrative Officer of April 2, 1998, submitted to the Budget Committee be adopted as amended by the Budget Committee on April 3, 1998, and that:

(a) a total of $203,500.00 be approved by Council at its April 16, 1998, meeting for the Caribbean Cultural Committee;

(b) an additional total of $75,000.00 be approved by Council at its April 16, 1998, meeting for the Caribana Festival mas bands and cultural producers;

(c) the City of Toronto provide a loan guarantee for an amount not to exceed $75,000.00 for the Caribana mas bands and cultural producers;

(d) the Municipal Grants Review Committee report to the Budget Committee should the full $75,000.00 mas bands grant recommended not be found through the anticipated underexpenditures within the Grants envelope; and

(e) the allocation of these grants and the loan guarantee be subject to the conditions outlined in the Chief Administrative Officer's April 2, 1998, report as well as the additional conditions outlined in this report;

(2) this report be forwarded to the Strategic Policies and Priorities Committee for its April 14, 1998, meeting in order to be dealt with by City Council at its April 16, 1998, meeting;

(3) the Chief Financial Officer and Treasurer, in consultation with the Solicitor, report directly to Council on the legalities and mechanisms of the City providing charitable tax receipts to Caribana in the manner proposed in this report; and

(4) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

At its meeting on Friday, April 3, 1998, the Budget Committee considered a report from the Chief Administrative Officer entitled "City of Toronto Financial Support to the Caribbean Cultural Committee and Caribana." This report recommended providing $203,500.00 for the C.C.C. and requested that Council consider providing an additional $150,000.00 for the Caribana mas bands and cultural producers.

The funds recommended for the C.C.C. represented a consolidation of funding from the Toronto Arts Council as well as the former City of Toronto and Metropolitan Toronto. The funds for the grant to the mas bands and cultural producers are new and do not exist within the City's budget. To enable the planning and implementation of the 1998 Caribana Festival and Parade, the report noted that these funds required pre-approval in the 1998 budget process and needed to be addressed at the April 16, 1998, meeting of Council.

Comments and/or Discussion and/or Justification:

The Budget Committee considered a number of options in addressing this matter and, subsequently, referred it to the Municipal Grants Review Committee along with the recommended funding envelope of $45,160,000.00 for City grants in 1998. In this context, Budget Committee referred consideration of the funding for both the Caribbean Cultural Committee and the mas bands and cultural producers to the Municipal Grants Review Committee.

Specifically related to the funding amounts for the C.C.C. and the mas bands and cultural producers, the Budget Committee recommended that:

(1) as part of the total 1998 Grants allocation, an amount of $203,000.00 be considered by the Municipal Grants Review Committee for the operation of the 1998 Caribana Festival;

(2) the release of the $203,000.00 grant be subject to:

(a) the Caribana Festival Support Group referred to in Appendix "A" attached to the report (April 2, 1998) from the Chief Administrative Officer being accountable to City Council for the operation of the 1998 Caribana Festival and for its development for 1999; and

(b) Appendix "A" being amended by adding the following members to the Caribana Festival Support Group:

Councillor Tom Jakobek;

Councillor Bas Balkissoon;

Chair, Economic Development Committee;

One staff from Finance; and

One staff from the Access and Equity Centre;

(3) a report on the administration of future City Grants Review Process being forwarded to the appropriate Committee by the fall of this year, including consideration of multi-year funding to stabilize the Caribana Festival and Parade;

(4) upon the Mayor being unable to attend the Caribana Festival Support Group, the Deputy Mayor be his designate;

(5) no expenses can be expended by the Caribana Cultural Committee without the written approval of the newly-formed Caribana Festival Support Group;

(6) the City Auditor be responsible for a more in-depth audit to be funded by the Caribana Cultural Committee; and

(7) the Municipal Grants Review Committee is not precluded from granting more or less than $203,000.00 to the Caribana Cultural Committee for its budget allocation.

To assist the Municipal Grants Review Committee in its efforts to procure the additional $150,000.00 required for the mas bands and cultural producers, the following options were discussed at the Budget Committee:

(a) shift funding within the grants budget, thereby deducting the amount required from unassigned grants or grants allocated to other organizations; or

(b) increase the funding allocated to the grants budget so that there would be adequate funding for the mas bands.

Following considerable discussion, the Budget Committee recommended that the Municipal Grants Review Committee consider the first option and did not allocate any increase to the overall grants budget.

Staff are currently reviewing grant requests through the existing grants programs. Given that the allocations processes are in mid stream it is difficult to confirm that the required funds will be available within the grants envelope. In addition, there are substantial new funding requests in excess of the currently recommended grants budget which would have a valid argument for consideration against any surplus funds that may arise. It is anticipated that there will be some underexpenditure in a number of the line item grants. Staff have confirmed that a minimum of $38,000.00 will be available through under expenditures. However, the exact level of under expenditure is not known at this time.

It is recommended that the additional $75,000.00 grant be funded through anticipated underexpenditures in line item grants. The Municipal Grants Review Committee will report to the Budget Committee should the anticipated underexpenditure not materialize.

Based on the review, it is recommended that $203,500.00 be provided to the C.C.C. and that an additional $75,000.00, representing half the amount required be released for the mas bands and cultural producers. Further, the City of Toronto should provide a loan guarantee not to exceed $75,000.00 for the mas bands and cultural producers and that such funds should be raised through the Caribana Festival Support Group established in the April 2, 1998, report of the Chief Administrative Officer.

These recommendations require meeting the conditions outlined in the Chief Administrative report of April 2, 1998 as well as the following additional conditions:

(1) that the Caribana Festival Support Group undertake to raise the additional $75,000.00 required by the mas bands and cultural producers through private donations and corporate sponsorships;

(2) that the City of Toronto provide tax deductible receipts to those submitting donations and sponsorships (authority to do so to be confirmed with City Legal Department); and

(3) that the CCC immediately undertake to receive a charitable number with the support of the CFSG. This will enable the C.C.C. to receive private donations and be able to provide tax receipts for these.

Conclusions:

The Budget Committee has deferred the consideration of funding for the C.C.C. and the mas bands and cultural producers to the Grants Review Committee. In addition, the Budget Committee has not added additional funding to the City's grants allocation to facilitate allocation of funding for the mas bands and cultural producers; therefore, staff have had to examine the grants budget in order to prepare recommendations enabling the Grants Review Committee to fund the Caribana mas bands and cultural producers.

In this context, it is recommended that the C.C.C. receive its annual grant of $203,500.00 in full and that 50 per cent. of the requested $150,000.00 for the mas bands and cultural producers be allocated as a grant, to be funded, to the extent possible, by any underexpenditure in line item grants. Funding for at least half of this grant has already been identified but not the remainder. To secure the remaining $75,000.00, the City of Toronto should provide a loan guarantee subject to the conditions outlined in this report.

The Chief Administrative Officer has been consulted and concurs with this report.

Contact Name:

Charles Smith 392-5581

Chris Brillinger 392-8608

Recommendations:

The Budget Committee on April 3, 1998, recommended that the report (April 2, 1998) from the Chief Administrative Officer, entitled "City of Toronto Financial Support to the Caribbean Cultural Committee and Caribana," be adopted, subject to the following amendments:

(1) that as part of the total 1998 Grants allocation, an amount of $203,500.00 be considered by the Municipal Grants Review Committee for the operation of the 1998 Caribana Festival;

(2) that the release of the $203,500.00 grant be subject to:

(a) the Caribana Festival Support Group referred to in Appendix "A" attached to the report (April 2, 1998) from the Chief Administrative Officer being accountable to City Council for the operation of the 1998 Caribana Festival and for its development for 1999; and

(b) Appendix "A" being amended by adding the following members to the Caribana Festival Support Group:

Councillor Jakobek;

Councillor Balkissoon;

Chair, Economic Development Committee;

one staff from finance; and

one staff from the Access and Equity Centre;

(3) the report on the administration of future City Grants Review Process being forwarded to the appropriate Committee by the fall of this year include consideration of multi-year funding to stabilize the Caribana Festival and Parade;

(4) that upon the Mayor being unable to attend the Caribana Festival Support Group the Deputy Mayor be his designate;

(5) that no expenses can be expended by the Caribana Cultural Committee without the written approval of the newly-formed Caribana Festival Support Group;

(6) that the City Auditor be responsible for a more in-depth audit to be funded by the Caribana Cultural Committee; and

(7) that the Municipal Grants Review Committee is not precluded from granting more or less than $203,500.00 to the Caribana Cultural Committee for its budget allocation.

Background:

The Budget Committee on April 3, 1998, had before it the following:

(1) report (April 2, 1998) from the Chief Administrative Officer entitled, "City of Toronto Financial Support to the Caribbean Cultural Committee and Caribana"; and

(2) Auditor's Report (January 8, 1998) from Oliphant and White, Chartered Accountants/Management Consultants regarding the Caribbean Cultural Committee.

The following Members of Council appeared before the Budget Committee in connection with the foregoing matter:

- Councillor Joe Mihevc, York-Eglinton;

- Councillor Irene Jones, Lakeshore-Queensway;

- Councillor Mario Giansante, Kingsway-Humber; and

- Councillor Joe Pantalone, Trinity-Niagara.

Mr. Charles Smith, Manager, Access and Equity Centre, City of Toronto, Metro Hall also addressed the Budget Committee in connection with the foregoing matter.

Purpose:

To identify the financial support required by the Caribbean Cultural Committee (CCC), and the Caribana mas bands and cultural producers from the City of Toronto, the conditions applied to this funding and other strategies which City Council may use to support the Caribana Festival and Parade. This report requires pre-approval in the 1998 budget process and forwarded to the April 7, 1998, Agenda of the Strategic Planning and Priorities Committee in order for it to be dealt with by Council at its April 15, 1998, meeting.

Funding Sources, Financial Implications and Impact Statement:

The recommended funding from the City of Toronto primarily comes from the consolidation of the former Municipality of Metropolitan Toronto and the former City of Toronto Economic Development grants and the grant provided by the Toronto Arts Council. This consolidated budget provides for a total of $203,500.00 for 1998. The revised request seeks an amount of $150,000.00 above the budget to support the Caribana Festival mas bands and cultural producers. The release of the grant from the City will contribute positively to the development of the 1998 Caribana Festival as well as to the process of restructuring and organizational change taking place within the CCC and guided by its Advisory Board.

Recommendations:

It is recommended that:

(1) the Mayor of the City of Toronto write to the Premier of Ontario and the Ministers of Economic Development, Tourism and Trade, as well as Citizenship, Culture and Recreation to encourage the Province to provide appropriate funding for the Caribana Festival and Parade this year as well as future years;

(2a) a total of $203,500.00 be provided as a grant to the Caribbean Cultural Committee for the operation of the 1998 Caribana Festival; and

(2b) an additional amount of $150,000.00 be considered by Council to support the Caribana mas bands and cultural producers; and further

(2c) pre-approval on the 1998 budget be granted and that this report be forwarded to the April 7, 1998, meeting of the Strategic Planning and Priorities Committee;

(2d) release of these funds be subject to the conditions outlined in this report;

(3) the Caribana Festival Support Group described in Appendix "A" of this report be accountable to City Council for the operation of the 1998 Caribana Festival, and for its development for 1999;

(4) a report on the administration of future City grants to support the Caribana Festival be submitted as part of the grants review process to the appropriate Committee by the Fall of this year and that this report consider reduced multi-year funding to stabilize the Caribana Festival and Parade;

(5) this report be forwarded for information to the Community and Neighbourhood Services Committee and, upon its creation, the Economic Development Committee; and

(6) the appropriate City officials be authorized and directed to give effect thereto.

Council Reference/Background/History:

The Caribana Festival and Parade began in 1967 as a contribution by people of Caribbean descent within the City of Toronto to the nation's centennial celebrations. To support the continuation of this event, over the past two decades, both the former City of Toronto, the Toronto Arts Council, and the former Municipality of Metropolitan Toronto have provided financial support through grants to the Caribbean Cultural Committee (CCC) to assist in staging the annual Caribana Festival and Parade. The Province of Ontario had also provided funding support for the Caribana Festival; however, such support was at first significantly reduced in 1995 and then eliminated in 1996.

The Caribana Festival is a ten-day cultural showcase featuring Caribbean music, dance and dramatic arts. Most of these events are held on City property (e.g., the Toronto Island Picnic, which is held on Olympic Island and the Caribana Parade, which is held on Lakeshore Boulevard and within Exhibition Place). The Caribana Festival is widely considered the jewel of Toronto's summer activities attracting tourists from around the world and contributing significantly to the local economy. Each year the Caribana Parade, which is the Festival's signature event, attracts large crowds of local enthusiasts as well as tourists and is considered one of the best parades of its kind in North America.

While the Festival and its attractions have grown, the CCC as an organization has faced difficulties.

This situation has prompted a number of organizational and financial reviews of the CCC in order to enable the organization to tap into its vast potential and emerge as a premiere entity capable of attracting significant corporate sponsorships. The CCC is currently in the second year of its debt reduction strategy and its recent audit indicates that it has reduced its debt by $200,000.00. This is a result of reducing expenditures on the annual Festival and achieving modest revenues ($30,800.00 in 1997 and $82,200.00 in 1996).

The CCC is aware of the circumstances it faces, particularly given the significant challenges it faced in 1997 when the Metropolitan Toronto Police raised their concerns about security issues and the mas bands and cultural producers did not participate in the Parade. Both of these challenges nearly resulted in the cancellation of the Caribana Festival and Parade. However, the concerns raised by the Police were addressed by the CCC and lesser known bands performed at the Caribana Parade.

As a result of these challenges and their impact on the 1997 Festival, in August, 1997 the CCC convened a high-level Advisory Board chaired by MPP Alvin Curling and comprised of: the former Ontario Lieutenant Governor, the Honourable Lincoln Alexander; Mr. Paul Godfrey of the Toronto Sun; Mr. Rod Seilig of the Hotels Association; Ms. Jean Lam, Assistant Deputy Minister of the Ontario Ministry of Economic Development, Tourism and Trade; Mr. Kirk Shearer, Tourism Toronto; Deputy Police Chief Michael Boyd and representatives of both the City and Metro Toronto.

In addition, for the first time, the City of Toronto appointed a member of Council to liaise with the CCC and, since, January, 1998, Councillor Joe Mihevc has been actively working with the CCC and the Advisory Board.

Advisory Board:

The Advisory Board was set-up to assist the CCC in paying down its debt, restructuring its organization, repairing its relationship with the mas bands and cultural producers and attracting corporate sponsors. The Advisory Board has undertaken initiatives to achieve this and is working closely with the CCC to secure both financial and human resources toward this end.

Since the establishment of the Advisory Board, the CCC has:

(i) received an unqualified audit for its 1996-97 fiscal year. This audit both confirms the organization's debt as well as the reduction of this debt by $200,000.00;

(ii) elected new members to its Board of Directors, thus preparing itself to work toward a successful 1998 Festival; and

(iii) begun to meet with City staff and representatives of the Police, Exhibition Place, TTC, Health, Transportation, Parks, Ambulance and Fire Services to coordinate this year's Festival activities, particularly the Caribana Parade and Marketplace and the Toronto Music Festival which takes place on Olympic Island.

Further, the Chair of the Advisory Board has met with representatives of the mas bands, the provincial Ministers of Citizenship, Culture and Recreation as well as Economic Development, Tourism and Trade, and the Chair of the City of Toronto Budget Committee. As a result of these meetings, Mr. Curling has conveyed that he has received favourable responses from these officials. In particular, the provincial ministers have indicated that they are prepared to make a proposal to Cabinet on funding for the Caribana Festival and Parade.

Mr. Curling has discussed these responses with the Advisory Board and the CCC which, in turn, have been consulted on the need to establish the Caribana Festival Support Group to ensure that:

(1) the CCC has appropriate administrative and financial controls in place;

(2) the CCC's spending is in line with its operating budget; and

(3) the mas bands and cultural producers receive appropriate financial support.

To put this into effect, the Support Group will meet in the near future to develop its workplan and confirm its responsibilities. The Support Group's activities will be coordinated by the CCC's Chief Executive Officer who will report to the Support Group on policy, program, financial and administrative matters. The Support Group will then be accountable for final approval to City Council for all of the Caribana Festival activities.

To contributing to progress on this arrangement, the Advisory Board has approached one of the chartered banks to seek a multi-year secondment of a Chief Executive Officer. A senior vice-president is being sought to take on this responsibility and all indications are that this secondment will be secured in the near future.

The basis for both the CCC operating budget and the criteria for the Support Group will be the CCC's 1998 Business Plan, which is currently being finalized following discussions between the CCC and the Advisory Board. It is anticipated that the CCC Board will approve the CCC Business Plan in the first week in April. Once this is done, the Support Group will meet with the CCC Chief Executive Officer and Treasurer to begin development of monthly cash-flow projections as well as revenues and expenditure timetables.

With this accomplished, the Advisory Board will begin working with the CCC and its Chief Executive Officer on organizational restructuring and debt reduction. This will require reviewing the CCC's constitution and developing recommendations amending the constitution to enable changes to the CCC mandate and structure. As this will have significant implications for the CCC's membership, it is anticipated that there will be community consultations and opportunities for input in this process of change. The Advisory Board's mandate runs until the end of 1998. At that time, an assessment of its work will be done and its future determined.

Financial Status:

According to its 1996-97 audited financial statements, the CCC has accumulated a debt of $1,054,400.00. This represents payments owed to suppliers as well as a significant debtload in back taxes ($765,700.00) owed to the provincial and federal governments.

For the upcoming year, the CCC is projecting increased expenditures for the summer Festival and anticipates increased revenues through the contribution of provincial grants. Further, the CCC's projected budget (Appendix "B") includes additional activities in its attempt to mount a year-round schedule of events. The organization, however, has indicated that these will be pursued only if financial sponsorships are found.

An additional note in its 1998 budget forecasts, the CCC has included revenues and expenditures to cover the costs of improved security as well as payments to the mas bands and other cultural producers essential to the Caribana Festival. At the request of the Chair of the Advisory Board, the CCC has included these amounts in its budget projections and it is anticipated that these funds will be sought from the provincial government.

In previous years, secure funding for the mas bands and cultural producers was not available. While the Province of Ontario had provided funding for these artists, these funds were eliminated in 1995. In an attempt to secure the participation of the mas bands for the 1996 Festival, the former City of Toronto and Metropolitan Toronto provided a one-time loan to the mas bands in the amount of $100,000.00 each. Both the City and Metro were not able to make a similar contribution in 1997. This resulted in the mas bands withdrawing from the Festival and, thereby, seriously diminishing the quality and attractiveness of the Festival to its international audience.

Conditions Applied to City Funding:

The amount of funding requested for the Caribana Festival from the City of Toronto has increased from $203,500.00 in 1997 to $353,500.00 in 1998. This funding is being sought to enable the CCC to have a stable year-round operation capable of paying its key administrative staff and supporting its key activities. It will also ensure that the mas bands and cultural producers have access to start-up funds to develop their costumes for the Annual Parade. In previous years, municipal contributions drawn from the former City of Toronto Economic Development grants ($8,500.00) and the former Municipality of Metropolitan Toronto ($155,000.00) along with the grants from the Toronto Arts Council ($40,000.00) were allocated to ensure the Caribana Festival was successful and did not provide opportunity for the CCC to maintain core staff throughout the year; nor did it respond to the needs of the mas bands and cultural producers.

The increased request would enable the CCC to operate year-round. Reflecting approximately 15 percent of the organization's operating budget, the City's contribution would ensure funds are available for full-time marketing and administrative staff as well as contributions to costs for Caribana Festival activities.

In particular, for the first time, City funding would be able to financially support the mas bands and cultural producers. This is a critical issue since the pageantry of the bands is recognized internationally as the jewel of the Caribana Festival or, as is stated within the community, "With no mas, there's no Caribana."

In the past, the mas bands have requested that $350,000.00 be set aside by funders as start-up funds to assist them in developing their costumes and floats. The absence of such funding in 1997 resulted in their non-participation in the Caribana Festival and, thereby, lowering the quality of the annual event. If the start-up funds are not available for 1998, the bands will once again withdraw. This would have an irreparable impact on the Festival and Parade, possibly resulting in there being no event this year and having negative short and long-term effects on tourism and the economic benefits of the Caribana Festival to Toronto.

As reflected in the attached budget (see Appendix "A"), the CCC expenditures for 1998 have increased in the following areas:

(i) Parade Band Leaders at $450,000.00;

(ii) Pan Alive at $80,000.00; and

(iii) The Caribana Parade (especially appropriate security) at $251,163.00.

These costs would stabilize the annual summer festival and ensure financial support is available for the mas bands and Festival cultural producers. While some of these funds are being requested from the Province, other funds are needed immediately to initiate planning for this year's Festival. Given the commitment of the provincial ministers to the Chair of the CCC Advisory Board and as there are two provincial representatives on the Advisory Board, Mr. Curling is now preparing a formal request to the Province of Ontario. It is anticipated that this request will be addressed by the Provincial Cabinet in April.

To ensure consistency in funding approach and administration of the applicable conditions, the new City of Toronto should combine the grants formerly provided from the sources noted above. This will eliminate duplication of effort by City staff and the CCC, streamline administration and provide a clear access point for the CCC. To facilitate this, staff of the Toronto Arts Council, the Culture Office and the Access and Equity Centre will work together to ensure a smooth transition and to prepare an approach for future funding of the CCC and report to the appropriate Committee as part of the overall review of City grants.

Through cooperation between the CCC and staff of several municipal departments, planning is underway for Caribana Festival events which take place on City property. These events include the Caribana Parade and Marketplace; the Music Festival on Olympic Island; and the series of ferry cruises. For each of these events, payments are required for the delivery of City services, e.g., pay duty police, road permits, and use of facilities at Exhibition Place. In the past, these services required payments in advance.

Given these issues, there are several conditions which will need to be applied to the release of any funding from the City to the CCC. These are:

(i) the CCC will need to fill out one application form. The form required by the Toronto Arts Council and used in past years will enable the CCC to meet this obligation. The form should be filled out before any funds are released and must include an appropriate budget document for 1998;

(ii) funds should be released via monthly instalments based on performance satisfactory to Caribana Festival Support Group. Indicators of performance will include such matters as variance reports on cash-flow projections and actuals, and progress on organizational restructuring. Additional indicators should be established by the Support Group in consultation with the CCC and forwarded to City Staff for approval. Further, the CCC will need to develop a 1998 budget and budget framework for future years that is acceptable to the Support Group. The monthly payment schedule will be worked out with the CCC and City staff and approved by the Support Group;

(iii) the CCC must indicate a timeframe to undertake the agreed upon restructuring process with the Advisory Board. This will require the CCC to sign a letter of intent identifying its preparedness for such process, the key officials who will work with the Advisory Board and the role of the CCC Chief Executive Officer in leading this initiative;

(iv) the CCC will undertake to work with the Advisory Board to develop and implement a debt reduction strategy with specific targets. This will ensure that the CCC creditors are provided a proposal on timeframes for payments on amounts owing. A progress report on this will need to be submitted to City Council by the CCC through the Support Group by July, 1998;

(v) the CCC will need to provide payment in advance for services of the City departments. This has been implemented in the past and ensures that such services do not become a CCC liability. In the event payments are difficult to manage, the CCC may wish to relinquish a portion of its City grant to pay for City services. Such an approach has been used in the past quite successfully;

(vi) the CCC will provide approximately 10 percent of its revenues, excluding funding provided for the mas bands, to its annual administration;

(vii) at the end of its 1997-98 fiscal year, the CCC will need to attain an unqualified financial audit to provide assurance that its financial controls are in order and working effectively. As it is anticipated that the schedule of payments from the City to the CCC will extend over a year's time, some funds will not have been released before the end of the CCC's current fiscal year. These should be held until the CCC meets this condition;

(viii) the CCC will need to complete its business plan and marketing strategy before any City funds are released. This is essential to providing the organization's blue print for its imminent and future strategies, providing a starting point for City staff and the Support Group to work with the CCC on this year and future activities;

(ix) the CCC will need to submit a progress report to City Council through the Support Group Board by September, 1998 indicating its efforts to date and future directions in its restructuring activities; and

(x) the CCC, through its Chief Executive Officer, will report on monthly basis to the Caribana Festival Support Group.

While numerous, these conditions are necessary to ensure City funding has the impact required for the administration of the 1998 Festival and the future growth and development of the CCC organization. To administer the city grant and ensure the conditions are met, staff of the Toronto Arts Council, the City's Culture Office and Access and Equity Centre will work together, liaising with the CCC and the Support Group as required and providing reports to the Budget Committee when necessary.

Conclusions:

The Caribbean Cultural Committee (CCC) has been receiving grants from municipalities within Toronto for the last two decades. It is recommended that these funds should now be combined and administered by a team comprising staff of the Toronto Arts Council, the Culture Office and the Access and Equity Centre. Further it is recommended that the amount of funding provided by the City of Toronto be for $203,500.00 for the CCC; and further, that Council consider providing $150,000.00 for the mas bands and cultural producers.

A Caribana Festival Support Group comprised of members of the CCC, members of the mas bands and cultural producers, and representatives of both the provincial government and the City of Toronto has been established to guide the CCC through its operations and to function as a financial control body over the organization's expenditures. The Support Group is ready to start its work immediately.

To assist the CCC and the Advisory Board in their operations, the Mayor of the City of Toronto should write to the Premier of Ontario and the Ontario Ministers of Economic Development, Tourism and Trade and Citizenship, Culture and Recreation to encourage the provincial government to provide appropriate funding to the CCC. These funds, requested by the CCC on the advice of its Advisory Board, total $820,000.00 and reflect requests for funding of the mas bands and cultural producers as well as enhanced security along the Caribana Parade route. The CCC's Advisory Board, chaired by MPP Alvin Curling, has had productive dialogue with the Ministers noted above and assurances that they will consider appropriate funding requests for the Caribana Festival.

This report has been prepared in consultation with the Finance Department, the Mayor's Office, and the Chair of the Task Force on Community Access and Equity.

Contact Name:

Charles Smith - 392-5581

The Caribana Festival Support Group (CFSG) is established to ensure the successful operation of all activities required for the Caribana Festival and Parade. Comprised of representatives from the Caribbean Cultural Committee and its Advisory Board, the mas bands and cultural producers, the City of Toronto and Province of Ontario, the CFSG will act as an oversight body for the following activities:

(i) the development and implementation of policies and programs by the Caribbean Cultural Committee;

(ii) the financial administration and control of public and private sector funding dedicated to the Caribbean Cultural Committee;

(iii) the process of organizational restructuring and change being developed by the Caribbean Cultural Committee;

(iv) the allocation of appropriate financing to the mas bands and cultural producers by the Caribbean Cultural Committee; and

(v) the meeting of conditions stipulated by the City of Toronto in its support for the Caribana Festival and Parade.

To ensure the smooth implementation of these activities, the CFSG will be supported by the Caribbean Cultural Committee's Chief Executive Officer who will report on these matters to the CFSG on a monthly basis. The CFSG will, in turn, be accountable to both the City of Toronto, Province of Ontario and other funders of the Caribana Festival and Parade. This will be done by providing periodic reports, prepared by the Chief Executive Officer, and reports on those matters upon which funding is made conditional.

Based on the aforementioned stakeholder groups, the members of the CFSG will be: three representatives of the CCC Advisory Board; three members of the executive of the CCC; two representatives of the mas bands; one representative from each of the provincial Ministries of Economic Development, Tourism and Trade, and Citizenship, Culture and Recreation; and the Mayor or his designate, Councillor Joe Mihevc, staff of the Finance Department and the Access and Equity Centre from the City of Toronto.

The CFSG will undertake its tasks immediately with its initial meeting(s) being facilitated by the resources of the CCC Advisory Board until the CCC Chief Executive Officer is in place. In addition, one member of the CFSG, along with the newly appointed Chief Executive Officer, will have signing authority for all financial transactions of the Caribbean Cultural Committee.

The structure of the CFSG is comprised in such a way as to ensure the CCC has the autonomy to pursue its annual activities while, at the same time, ensuring that it is accountable for its performance. In this context, the CCC will continue with the day-to-day administrative and organizational requirements for the Caribana Festival and Parade and will report, through its Chief Executive Officer, to the CFSG on the implementation of these matters.

It is further assumed that the CCC's Advisory Board will continue with its efforts to eliminate the CCC's debt, restructure its operations and secure funding from the private sector. The Advisory Board will report to the CFSG on its progress in implementing these activities.

The CFSG will be established for a minimum of one year and will report back to the Budget Committee of the City of Toronto at the end of its term informing of its progress and recommending a course of action for the 1999 Caribana Festival and Parade.

City, 1991 $132,269.00

Metro, 1997 $37,500.00

City $100,000.00

Metro $100,000.00

(A copy of a chart respecting the set up of the Caribana Festival Support Group and Appendix B, attached to the report (April 2, 1998) from the Chief Administrative Officer, were forwarded to all Members of Council with the agenda of the Strategic Policies and Priorities Committee for its special meeting of April 14, 1998, and copies thereof are on file with the office of the City Clerk).

(City Council on April 16, 1998, had before it, during consideration of the foregoing Clause, the following report (April 15, 1998) from the Chief Administrative Officer

Purpose:

This report is in response to a request from the Municipal Grants Review Committee regarding the issue of City of Toronto financial support to the Caribbean Cultural Committee (CCC) and Caribana. The Municipal Grants Review Committee recommended to the Strategic Policies and Priorities Committee, and Council amongst other things:

"(B) that the Chief Administrative Officer be requested to report directly to City Council for its meeting on April 16, 1998, on alternative funding from the global budget to deal with the $75,000.00 loan guarantee referred to in the foregoing Recommendation No. (1)(b)(ii).".

Funding Sources, Financial Implications and Impact Statement:

Operating Budget.

Recommendation:

It is recommended that the report dated April 9, 1998, from the Commissioner of Community and Neighbourhood Services, as amended by the Municipal Grants Review Committee at its meeting on April 14, 1998, be adopted.

Council Reference/Background/History:

At a special meeting on April 14, 1998, the Municipal Grants Review Committee considered the issue of City of Toronto financial support to the CCC and requested that the Chief Administrative Officer report directly to City Council for its meeting on April 16, 1998 on alternative funding to deal with the guarantee for a $75,000.00 loan to the Caribana mas bands and cultural producers.

Comments and/or Discussion and/or Justification:

During deliberation of the grant request, the Municipal Grants Review Committee discussed options to deal with the $150,000.00 grant to the Caribana mas bands and cultural producers. In connection to this item the Committee had before it a report dated April 9, 1998, from the Commissioner of Community and Neighbourhood Services recommending that a grant in the amount of $75,000.00 be provided from within the corporate grant envelope to this organization and that the City of Toronto provide a guarantee for a loan in the amount of $75,000.00.

The Municipal Grants Review Committee requested the Chief Administrative Officer to review and report directly to City Council on alternative funding from the global budget to deal with the $75,000.00 loan guarantee. A preliminary review has indicated that at this time, given the current corporate pressures it is premature to allocate an additional $75,000.00. Therefore, it is recommended that the report from the Commissioner of Community and Neighbourhood Services be adopted as amended by the Municipal Grants Review Committee, which also recommended that if there is any underexpenditure within the Grants envelope in excess of the initial $75,000.00 grant it be directed to offset the loan guarantee. In the event that this does not materialize, every effort will be made to review corporate expenditures throughout 1998 and to utilize any underexpenditure for this purpose. It is understood that the City of Toronto will fully guarantee the repayment of the loan, if deemed necessary.

Contact Name:

Marie McCutcheon, Telephone: 392-0437, Fax: 392-6963.)

(City Council also had before it, during consideration of the foregoing Clause, the following report (April 16, 1998) from the Chief Financial Officer and Treasurer:

Purpose:

This report is in response to a request from the Municipal Grants Review Committee regarding the issue of City of Toronto financial support to the Caribbean Cultural Committee (CCC) and Caribana. The Municipal Grants Review Committee recommended to the Strategic Policies and Priorities Committee, and Council, amongst other things:

"(E) that the Chief Financial Officer and Treasurer be requested to investigate the proposal to provide for the issuance of tax receipts to those donating to the Caribbean Cultural Committee, as well as for other community initiatives, and to report thereon directly to Council for its meeting on April 16, 1998; and

(F) that the City of Toronto provide its assistance in helping the Caribbean Cultural Committee become a registered charitable organization as speedily as possible; and further that the appropriate staff be requested to report directly to Council on April 16, 1998, on how quickly charitable status can be achieved for the Caribbean Cultural Committee."

Funding Sources, Financial Implications and Impact Statement:

Operating Budget.

Recommendations:

It is recommended that:

(1) if the Chief Financial Officer and Treasurer receives donations to the City, which are accompanied by a desire that the City use such monies to support Caribana, that she then report to Council for instructions on the disbursement of any such donations;

(2) the City demonstrate its support for the Caribana festival by providing the CCC with any necessary assistance which will facilitate its receiving Charitable Status on a timely basis; and

(3) the appropriate City officials be authorized and directed to take the necessary steps to give effect thereto.

Council Reference/Background/History:

At a special meeting on April 14, 1998, the Municipal Grants Review Committee considered the issue of City of Toronto financial support to the CCC and requested the Chief Financial Officer and Treasurer, in consultation with the City Solicitor, to report directly to City Council for its meeting on April 16, 1998 on the legalities and mechanisms of the City providing charitable tax receipts.

Comments and/or Discussion and/or Justification:

During deliberations of the grant request, the CCC advised the Municipal Grants Review Committee that it has applied to Revenue Canada for a Charitable Registration number but to date the request remains outstanding. The Municipal Grants Review Committee requested City staff to provide whatever assistance is needed in order to facilitate this request. To this regard City staff will work with the CCC.

The Municipal Grants Review Committee also requested staff to review and determine a solution for organizations such as CCC who do not have a Charitable Registration Number and wish to have those funds raised or donations received made payable to the City of Toronto directly. This request will require further investigation and will be reported on at a further date.

Under the authority contained in the Income Tax Act in accordance with Sections 110.1 and 118.1, persons who make unconditional gifts to Canadian municipalities may receive a receipt from the municipality which is accepted by Revenue Canada as deductible for income tax purposes. If however, monies are paid to the City with a written condition, that same are to be used to support Caribana, then such gifts may be considered "conditional", and therefore not qualified to receive a charitable receipt from the municipality for income tax purposes. Accordingly, since the gift to the Municipality must be unconditional to be tax deductible, the desire of the donor that the donation be applied to support the Caribana festival should be limited to a request (i.e., rather than a requirement). In addition, City Council will need to make a determination that supporting the festival is in the municipal interest to authorize that municipal funds (to the extent received in such gifts), be used to support the festival.

A further report will be submitted to Council by the Chief Financial Officer and Treasurer as required to advise it on the amount of monies (donations) received and to request instructions on the disbursement of such monies.

Contact Name:

Marie McCutcheon, Telephone: 392-0437, Fax: 392-6963.)

(City Council also had before it, during consideration of the foregoing Clause, the following communication (April 16, 1998) from Mayor Mel Lastman:

Regretfully, I will miss the debate on Caribana funding today because of my trip to Calgary to make the City of Toronto presentation to the Canadian Olympic Committee.

Please be advised, however, I support the additional funding over $203,000.00. The additional funding should come from the City's Grants Account.

In addition, I support sending the additional funding to the Caribana Festival Support Committee for disbursement.)

(City Council also had before it, during consideration of the foregoing Clause, a submission (undated) from Councillor Rob Davis, York - Eglinton, comparing the rates charged at various Toronto hotels on the following dates: April 11, 1998; July 11, 1998 and August 1, 1998.)

(City Council on April 16, 1998, adopted the following recommendation:

"It is recommended that the recommendation of the Budget Committee embodied in the transmittal letter dated April 14, 1998, from the City Clerk, be adopted.")

The Strategic Policies and Priorities Committee submits, without recommendation, the following transmittal letter (April 14, 1998) from the Budget Committee:

Recommendation:

The Budget Committee on April 14, 1998 recommended to the Strategic Policies and Priorities Committee, and Council, that the report (April 9, 1998) from the Commissioner of Community and Neighbourhood Services be adopted.

Background:

The Budget Committee on April 14, 1998, had before it a report (April 9, 1998) from the Commissioner of Community and Neighbourhood Services recommending that:

(1) funds be allocated for an amount no greater than $55,000.00 to support programs that deal with eviction prevention;

(2) upon approval of the funds, staff be directed to implement a purchase of service process through which community agencies can submit proposals for eviction prevention programs; and,

(3) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Purpose:

To report back to the Budget Committee on an amount no greater than $55,000.00 to support programs that deal with eviction prevention which was referred to the April 3, 1998 meeting of the Budget Committee by the Community and Neighbourhood Services Committee.

Funding Sources, Financial Implications and Impact Statement:

This report requests approval for $55,000.00 in additional funds to Community and Neighbourhood Services Department to support programs that deal with eviction prevention.

Recommendations:

It is recommended that:

(1) funds be allocated for an amount no greater than $55,000.00 to support programs that deal with eviction prevention;

(2) upon approval of the funds, staff be directed to implement a purchase of service process through which community agencies can submit proposals for eviction prevention programs; and,

(3) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The March 26 and 27, 1998 meeting of Community and Neighbourhood Services Committee considered a communication from Councillor Layton, in his capacity as co-chair of the Advisory Committee on Homeless and Socially Isolated Persons, outlining an eviction prevention strategy for the City of Toronto. The strategy focuses on reducing preventable evictions through research, analysis, public education and the co-ordinated efforts of legal clinics, social services agencies, municipal politicians and staff.

The Commissioner of Community and Neighbourhood Services was asked to report back to the April 23, 1998 meeting of Community and Neighbourhood Services on a number of the recommendations contained in the communication. A request for a $55,000.00 purchase of service agreement with the Federation of Metro Tenants Associations (FMTA) to develop an eviction prevention public education campaign was forwarded to the April 3, 1998 meeting of the Budget Committee. This Committee requested a report back from Community and Neighbourhood Services staff on the need for this type of service, the availability of in-house resources, how this type of service can best be provided and the cost effectiveness of the use of these funds.

Comments and/or Discussion and/or Justification:

The Need for Eviction Prevention Services:

Since 1992 the rate of evictions in both the private and public housing sectors has risen steadily. The number of eviction applications in Toronto processed by the courts have increased 25 percent between 1992 and 1997. Writs of Possession have also increased. In 1997, a total of 8,195 households were visited by the Sheriff's Office which represents a 43 percent increase since 1990. The new Tenant Protection Legislation is scheduled for implementation in May 1998. Workers in the field are concerned that changes, such as the loss of rent control, may negatively affect eviction rates due to rent increases.

Given the current rate of evictions in Toronto and concerns of a potential increase as a result of the new legislation, services which can support and inform tenants as to their rights and responsibilities under a landlord and tenant relationship are essential.

Detailed inventories on the various types of evictions are not kept by the Attorney General's office. Anecdotal reports from community legal clinics and the Tenant Duty Counsel estimate that upwards of 90 percent of the tenant cases they see concern economic evictions. Comprehensive data is clearly lacking with respect to evictions. The Homelessness Action Task Force has identified evictions as a priority and will be releasing more detailed research in this area in June 1998.

In June 1996, the Advisory Committee on Homeless and Socially Isolated Persons, hosted the forum "Working Together: An Exploration of Strategies to Prevent Evictions" in an effort to generate solutions to the growing problem of evictions and homelessness in Toronto. A number of recommendations emerged from the forum including: promoting landlord/tenant mediation services especially where early identification may prevent eviction, exploring the viability of rent banks, developing and distributing public education materials and comprehensive research on evictions.

In- House Resources:

The Social Services Division formerly employed four counsellors to assist recipients of social assistance with housing, employment and life skills issues. An additional nine Housing Management Specialists helped people to manage on a limited income focusing on budgeting and life skills. These positions have been eliminated.

While the Social Services Division does not have dedicated resources for housing issues, caseworkers do help their clients to maintain housing. However, due to large caseloads, it is difficult for workers to spend the time needed with clients on these types of issues. Often referrals are made to community agencies such as the Federation of Metro Tenants Associations who are skilled in this area.

Assisting people with issues such as an impending eviction is often a complicated and lengthy process, especially if literacy and language barriers exist. Landlord and tenant legislation is complex and given the substantial changes, via the Tenant Protection Legislation, skilled workers who can provide accurate information is essential.

Adding a dedicated housing worker to the Social Services Division would require significantly more than $55,000.00 once salary, benefits, training and administrative support costs have been added.

The Federation of Metro Tenants Association Proposal:

The Advisory Committee on Homeless and Socially Isolated Persons recommended the adoption of $55,000.00 (which includes $5,000.00 to provide in-house printing and translation services) for a purchase of service agreement with the Federation of Metro Tenants Association (FMTA) to provide an eviction prevention public education campaign. This campaign would include: a research component; maintenance of an enhanced telephone hotline and web site; production of a Tenant Eviction Prevention Kit; and a multi-media campaign.

As identified above, the City of Toronto does not have the in-house resources to provide this type of eviction prevention support, and further this would not be a cost-effective approach. With regard to the proposal by FMTA, it is recommended that staff initiate a purchase of service process through which community agencies, including the FMTA, can submit proposals for eviction prevention programs.

Cost-Effectiveness:

Eviction prevention is considered to be an effective approach for a number of reasons. Certainly, it is preferable to keep people in their own homes rather than stress the already full hostel system. From a cost-benefit perspective allocating funds for eviction prevention is a cheaper option than sheltering people in hostels at an estimated cost of $1,000.00 per person, per month. In 1995, Toronto's hostel system provided shelter for 3,511 people because they had been evicted. In addition, a tenant with a record of eviction may face significant obstacles in securing new housing which is difficult enough with Toronto's tight vacancy rate of .8 percent.

Conclusions:

Given the current rate of evictions in Toronto and concerns of a potential increase as a result of the new legislation, services which can support and inform tenants as to their rights and responsibilities under a landlord and tenant relationship are considered beneficial. Strategies aimed at preventing evictions are cost-effective for tenants, landlords and for the municipality which feels the impact through its social assistance and hostel services.

Social Services Division no longer employs counsellors dedicated to housing, employment and life skills issues. Caseworkers assist their clients as much as possible to maintain their housing but heavy caseloads limit the amount of time they can spend. Given the complexity of landlord and tenant issues, especially in light of new legislation to be implemented in May 1998, it is cost-effective to allocate additional funds to community organizations who are skilled in this area and have the time and resources to effectively assist tenants.

Contact Name:

Susan Shepherd 392-5398

(City Council on April 16, 1998, received this Clause, for information.)

(a) 1998 Revised Capital and Operating Budgets Estimates.

The Strategic Policies and Priorities Committee reports having forwarded to all Members of Council for information while hearing deputations from the public at the Committee of the Whole meeting on April 14, 1998, the transmittal letter (April 9, 1998) from the Budget Committee, attached to the 1998 Revised Capital and Operating Budget Estimates.

(April 9, 1998) from the Budget Committee forwarding the 1998 Revised Capital and Operating Budget Estimates and the recommendations of the Budget Committee from its meeting held on March 30 and 31 and April 2 and 3, 1998.

Councillor Pantalone declared an interest in the Daycare component of the Budget and stated that the general nature of his interest is that he has two children in daycare.

Councillor Fotinos declared an interest in the Daycare component of the Budget and stated that the general nature of his interest is that his mother provides home child care.

(b) 1998 Operating and Capital Budgets and 1997 Sinking Fund Surplus and Annual Sinking Fund Levies for 1998

The Strategic Policies and Priorities Committee reports having forwarded, without recommendation, to City Council, for its meeting to be held on April 28, 1998:

(April 9, 1998) from the Budget Committee, recommending:

(1) all Capital projects previously approved and which are proceeding in 1998 be included in the 1998 Capital Budget document;

(2) those Capital projects which have been approved and are not proceeding in 1998 but need to be carried out, be listed in the 1998 Capital Budget and the monies held;

(3) those Capital projects which have been approved and are not proceeding in 1998 and will not be completed within a reasonable period of time, be shown as cancelled and funds be placed back into the general budget;

(4) any funds which may become available from completed capital projects be included in the quarterly variance reports being submitted to the Budget Committee; and

(5) the recommendations contained in the report (March 27, 1998) from the Chief Financial Officer and Treasurer regarding 1997 Sinking Fund Surplus and Annual Sinking Fund Levies for 1998, be adopted.

(Councillor Fotinos, at the meeting of City Council on April 16, 1998, declared his interest in Item (a), headed "1998 Revised Capital and Operating Budgets Estimates", embodied in the foregoing Clause, in that his mother provides home child care.)

(Councillor Pantalone, at the meeting of City Council on April 16, 1998, declared his interest in Item (a), headed "1998 Revised Capital and Operating Budgets Estimates", embodied in the foregoing Clause, in that his children are registered in a child care centre which has a purchase of service agreement with the City of Toronto.)

Respectfully submitted,

MEL LASTMAN,

Chair

Toronto, April 14, 1998

(Report No. 5 of The Strategic Policies and Priorities Committee, including additions thereto, was adopted, as amended, by City Council on April 16, 1998.)

Clause Page

1 Award of Contract for the Construction of the
Toronto Police Service Forensic Examination Centre 2372

2 1998 Interim Capital Budget - Capital Projects Requiring
Urgent Financing Approval 2372

3 Financial Support to the Caribbean Cultural Committee and Caribana 2374

4 Funding Eviction Prevention Strategies 2401

5 Other Items Considered by the Committee 2405