Appendix
A
Report to/Rapport au :
Health, Recreation and Social Services Committee
Comité de la santé, des loisirs et des
services sociaux
10 November 2005 / le 10 novembre 2005
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint,
Community and Protective Services/Services communautaires et de protection
Contact Person/Personne ressource: Colleen
Hendrick, Director, Cultural Services and Community Funding
Cultural Services and Community Funding/Services
culturels et financement communautaire
(613) 580-2424 x24366, Colleen.Hendrick@ottawa.ca
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SUBJECT: |
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OBJET : |
REPORT RECOMMENDATION
That the Health, Recreation and Social Services Committee receive this report for information.
RECOMMANDATION DU RAPPORT
Que le Comité de la
santé, des loisirs et des services sociaux prenne connaissance du présent
rapport.
Staff has been directed to review historical Arts funding in comparison to other cities to recommend changes in funding that would bring Ottawa in line with other Canadian cities on a per-capita basis.
Development of an Arts Investment Strategy for Ottawa was initiated in 2005 to respond to these Council directions. Following extensive research and consultation, an Arts Investment Strategy discussion paper was developed in partnership with the community. The discussion paper detailed all research to date, and presented potential investment strategies for further community consultation and development.
This reports summarizes the seven potential investment strategies that have been identified and developed to date. Moving forward into 2006, the Department plans to hold a cross-section of multi-sector focus groups in order to gain specific expert feedback from investors, community leaders, business leaders and government representatives on the potential strategies. Following these focus groups, consultations will be held with the general public in partnership with the community working team and the City’s Arts, Heritage and Culture Advisory Committee with a recommended Arts Investment Strategy to be submitted to Committee and Council in June 2006.
Les employés ont été priés
d’examiner le financement des arts par rapport à d’autres villes afin de
recommander des modifications qui permettraient à la Ville d’Ottawa de
s’aligner sur d’autres villes pour ce qui est du montant des investissements
per capita.
L’élaboration d’une stratégie
d’investissement dans les arts a débuté en 2005, en réponse à cette demande du
Conseil. Après de nombreuses recherches et consultations, un document de
discussion sur la stratégie d’investissement dans les arts a été élaboré en
collaboration avec la collectivité. Le document de discussion renferme des détails
à propos de toutes les recherches effectuées à ce jour et fait état de
stratégies d’investissement possibles en vue de la consultation publique et du
développement communautaire.
Le présent rapport résume les sept stratégies
d’investissement élaborées à ce jour. En 2006, le Service a l’intention
d’organiser des groupes de discussion multisectoriels pour obtenir des
commentaires précis de la part des investisseurs, des dirigeants de la
collectivité, des gens d’affaires et des représentants de l’État en ce qui a
trait aux stratégies possibles. Ou organisera par la suite des séances de
consultation publique, en collaboration avec l’équipe de travail de la
collectivité et le Comité consultatif sur les arts, le patrimoine et la culture
de la Ville et on soumettra la stratégie recommandée en matière
d’investissement dans les arts au Comité et au Conseil, en juin 2006.
BACKGROUND
On November 27, 2002 and April 23, 2003 respectively, the following motions were carried at City Council:
"That staff review once again historical Arts funding for Ottawa in comparison to other cities and recommend changes in Arts funding to bring Ottawa, on a per-capita basis, in line with other Canadian cities and to recommend a timeline to achieve our goal and to present this report to this committee (HRSS) in early 2003." (November 27, 2002)
"Whereas arts and heritage policy statements mean little without a funding strategy; be it resolved that the 20/20 Arts and Heritage Plan include an investment direction based on the following: a) increasing the per-capita funding for arts and heritage on an annual basis until Ottawa's per-capita arts funding is on a competitive basis with the six (6) other large Canadian cities." (April 23, 2003)
The Council-approved Ottawa 20/20 Arts Plan included the following policy statement:
"The City will increase per-capita arts funding annually until Ottawa's per-capita arts funding is competitive with the six other large Canadian cities. The City will also work with partners to develop and sustain municipal, corporate and other public investment in the local arts sector in order to provide adequate and diversified support and resources." (April 23, 2003)
Development of an Arts Investment Strategy for Ottawa was initiated in 2005 to respond to these Council directions. Following extensive research and consultation, an Arts Investment Strategy discussion paper was developed in partnership with the community. This discussion paper summarized all research to date, and presented potential investment strategies for further community consultation and development.
The following research studies were completed in 2005:
1. Detailed revenue/income study of local arts, festival and fair organizations (see summary chart - Appendix A);
2. Cross-Canada municipal, provincial and federal arts/festival funding per-capita comparison for 2003 (see Appendix B); and
3. Cross-Canada municipal arts/festival per-capita funding trends since 2003.
Detailed Revenue/Income Study
This study analyzed revenue data contained in the most recent audited financial statements of the 158 local, not-for-profit arts, festival and fair organizations that applied in 2005 for municipal funding. Summary results are:
a) The local arts/festival sector directly generates and spends approximately $40 million in Ottawa collectively on an annual basis. Indirect spending and economic impact are in addition to this operating total
b) The total collective revenue generated by this sector comprises earned revenue (42%), private sector and fundraising revenue (26%), provincial and federal government funding (23%), municipal government funding (7%) and other forms of revenue (2%)
c) In spite of its strong revenue-generating initiatives, the local arts/festival sector posted annual operating deficits of $339,185 for its most recent fiscal year.
2003 Cross-Canada Per-Capita Study
This study compared 2003 dedicated operating/project funding (not capital funding) invested in the arts/festival sector from municipal government sources, provincial arts funding agency sources, and the Canada Council for the Arts in Canada's seven largest single cities (Toronto, Montreal, Calgary, Ottawa, Edmonton, Winnipeg and Vancouver). Summary results are:
a) Among Canada's seven largest single cities, Ottawa ranks last in municipal funding at $3.44 per-capita, last in provincial funding at $2.59 per-capita, and second last in Canada Council for the Arts funding at $3.98 per-capita;
b) When all of the above government sources are combined, Ottawa ranks last at $10.01 per-capita. The six other largest single cities rank as follows when comparing combined government funding sources: Toronto ($22.95 per-capita), Calgary ($24.04 per-capita), Edmonton ($24.39 per-capita), Winnipeg ($24.92 per-capita), Vancouver ($43.64 per-capita) and Montreal ($46.11 per-capita).
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City |
2003 Population |
Provincial Arts Funding 2003 Per-Capita |
Canada Council for the Arts Funding 2003 Per-Capita |
Combined Municipal, Prov. Arts Funding Agency and Canada Council for the Arts 2003 Per-Capita |
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$59,949,604 |
2,611,661 |
$5.13 |
$6.62 |
$11.20 |
$22.95 |
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Montreal |
$85,891,612 |
1,862,608 |
$5.99 |
$24.04 |
$16.08 |
$46.11 |
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Calgary |
$22,175,394 |
922,315 |
$3.92 |
$16.35 |
$3.78 |
$24.04 |
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Ottawa |
$8,332,764 |
832,400 |
$3.44 |
$2.59 |
$3.98 |
$10.01 |
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Edmonton |
$16,268,558 |
667,000 |
$4.07 |
$15.22 |
$5.09 |
$24.39 |
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Winnipeg |
$16,062,989 |
644,500 |
$5.01 |
$10.74 |
$9.17 |
$24.92 |
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Vancouver |
$24,809,475 |
568,442 |
$9.34 |
$10.73 |
$23.57 |
$43.64 |
Studies of cross-Canada municipal per-capita arts/festival funding in 2004 and 2005 cannot be completed at this time, since population and funding figures still require final confirmation by several municipalities. It can be confirmed, however, that, since 2003, there have been substantial increases to arts/festival funding in most major Canadian cities.
· Vancouver City Council approved a $1 million increase to its 2005 cultural grants budget with approval in principle for additional million dollar increases in each of 2006 and 2007.
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Toronto increased
its arts/festival grants funding by $723,790 in 2004 and by $919,300 in 2005.
· Edmonton increased its 2005 Community Investment Program Annual Arts and Festival operating funding by $575,000.
· In 2003, Winnipeg City Council approved an investment plan, aimed at doubling arts/festival grants funding over a three-year period (increases of $500,000 for each of 2003, 2004 and 2005).
· Montreal increased its arts grants funding by $500,000 in each of 2004 and 2005.
Ottawa's Arts/Festival Funding as a Per-Capita
Measure (2002 to 2005)
From 2002 to 2005, Ottawa's municipal arts/festival
funding per-capita measure has increased modestly from $3.64 to $3.67. The 2005 per-capita measure is interim, and
may change very slightly based on the final allocation of funding to
arts/festival applicants through the 2005 Cultural Facilities Fund. This peer-assessed $50,000 fund awards minor
capital funding to arts, festival and heritage applicants. Total dollars awarded to arts and festival
recipients will be known by December 2005.
In actual dollars, Ottawa's municipal arts/festival funding budget
decreased by $105,069 in 2003, increased by $158,148 in 2004 and increased by
$127,000 in 2005 (see chart below).
Ottawa Arts/Festival Funding as Per-Capita
Measure (2002 to 2005)
Year
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Population
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Total Arts/Festival Grants |
Total
Arts/Festival Grants as Per-Capita Measure |
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2002 |
814,400 |
$2,967,931 |
$3.64 |
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2003 |
832,400 |
$2,862,862 |
$3.44 |
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2004 |
846,0001 |
$3,021,010 |
$3.57 |
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2005 |
859,1002 |
$3,148,0103 |
$3.674 |
1 Based upon the
City's preliminary 2004 estimate. This
population figure will be altered as calculations become
more accurate.
2 Planning and
Growth Management Services
3 Applications to
the $50,000 Cultural Facilities Fund will be assessed, allocated and disbursed
in December 2005. Final tabulation of
specific arts/festival funding can only occur when this is complete, as this
funding program allocates to arts, festival and heritage applicants.
4 This is an
interim per-capita measure, and may change very slightly based on Cultural
Facilities Fund results.
The Arts Investment Strategy discussion paper
presents potential investment and leadership strategies aimed at closing the
revenue gap for Ottawa's local arts/festival sector, in order to position
Ottawa as a competitive and creative City.
These potential strategies can be summarized as follows:
Strategy One - Steering Committee
Establish a formal steering committee comprised
of arts community, political, business and government leaders to:
a) guide the continued development of an Arts
Investment Strategy for Ottawa;
b)
oversee the
implementation of Ottawa's Arts Investment Strategy, once approved by Council,
including the potential establishment of committees attached to specific
strategies; and
c) assess the feasibility of establishing an arts development body that provides leadership and serves as a steward for Ottawa's local arts/festival sector in the long term.
This Steering Committee could provide guidance,
direction and support for Ottawa's Arts Investment Strategy, and for the
longer-term sustainability of Ottawa's arts/festival/creative sector. Leadership and advice at a strategic level;
promotion and evaluation of progress made; and increased links with economic,
environmental and social sectors are potential roles for consideration.
In response to Council motions of 2002 and 2003, approve a ten-year investment plan that annually increases municipal arts/festival funding by $200,000, beginning in 2007, in order to meet outstanding community needs, and until Ottawa's per-capita arts/festival funding is competitive with Canada's six other largest cities.
Increased investment on an annualized basis
would:
a) ensure the sustainability of the local
arts/festival sector and its direct social and economic impacts by allocating
supplemental funding aimed at addressing historical inequities and chronic
under-funding;
b) allow the City to meet urgent, outstanding
community needs (e.g. diversity, rural service and program etc.);
c) enable Ottawa residents to gain affordable
access to local quality activity in the literary, media, performing and visual
arts;
d) leverage increased investment from other
parties, i.e. other government funders, private sector, foundations, donors
etc.;
e) keep Ottawa's creative talent in Ottawa; and
f)
move Ottawa's funding
to a level that is competitive with Canada's six other largest single cities.
This longer-term investment plan would be
reviewed at the five-year point, and would be attached to the scheduled
priorities and strategic directions within the Ottawa 20/20 Arts Plan.
Strategy Three - Increased Provincial and
Federal Investment
Work to encourage increased allocations for Ottawa's local arts/festival sector from provincial and federal funding sources; and to develop a cultural tripartite agreement as initiated by the Cities Secretariat (Infrastructure Canada) within the context of the 'New Deal for Cities and Communities'.
Ottawa's local arts/festival sector is not
receiving provincial nor federal government funding that can be considered
comparable to the funding received by Canada's six other largest single
cities. Ottawa's local sector appears
to be underserved. Cities that invest
more in their arts/festival sector appear to attract more investment from other
government levels. This requires
further analysis, discussion and development, in partnership with provincial
and federal government agencies and players.
A cultural tripartite agreement within the context of 'New Deal for
Cities and Communities' would represent a longer-term sustainable initiative in
this regard.
Strategy Four - Private Sector Program
Develop a private sector program in 2007 with community and business partners that encourages and recognizes corporate sponsorship of the local arts/festival sector.
The local arts/festival sector currently
generates 26% of its income from private sector and fundraising revenue. Stronger support and recognition related to
contributions from the private sector could encourage increased corporate
support. Momentum related to the
recognition of business support for the arts in Ottawa exists in various
activities carried out by Arts Ottawa East, Council for the Arts in Ottawa, and
other individual arts/festival organizations.
An expanded, comprehensive program in which private sector support is encouraged,
officially recognized and rewarded with exposure and profile should be
considered. Such a program might best
be developed, implemented and evaluated in partnership with the private sector.
Strategy Five - Stabilization Project
Work with the Department of Canadian Heritage and community partners to assess the feasibility of developing an Arts Stabilization Project for Ottawa, aimed at improving the governance, planning, financial and organizational development of the non-profit arts sector.
The objective of the Canadian Arts and Heritage
Sustainability Program is to strengthen organizational effectiveness and build
capacity within arts and heritage sectors.
As part of this program, Canadian Heritage provides grants to
Stabilization Projects, who then raise money from other levels of government
and the private sector. A Stabilization
Project, in turn, funds eligible arts and/or heritage organizations within a
specific geographic area that are willing to undergo fundamental changes
related to planning, organizational development, finance and governance. Stabilization Projects often take on deficit
reduction contracts and working capital development contracts for eligible
organizations.
Various types of Stabilization Projects have
been developed across Canada. They are
administered by independent, non-profit groups that represent the interests of
the larger community through the make-up of their boards and through the
diversity of their revenue bases.
Federal government funding is available for feasibility work around the
development of Stabilization Projects.
Preliminary study and discussion related to the
feasibility of establishing a Stabilization Project in Ottawa is currently
underway with Council for the Arts in Ottawa, the Ottawa Arts Court Foundation
and the City of Ottawa as initial representatives.
Strategy Six - Increased Cultural Partnership
Work with the National Capital Commission (NCC), the City of Gatineau and federal cultural institutions located in Ottawa to develop increased cultural partnership.
As Canada's national capital, Ottawa is
unique. The local arts/festival sector
must compete with Ottawa's national cultural sector for corporate sponsorship,
private donations, fundraising revenue, media attention, audiences and volunteer
support.
Tourists and talent flock to other world
capitals for their dynamic cultural scenes that mirror the city's unique
identity as national and local cultural showcases. A more integrated approach to Ottawa's cultural duality could
serve to benefit both sectors and could help to move Ottawa towards
international competitiveness as a world capital.
One of the National Capital Commission's
mandates/roles is to bring the cities of Ottawa and Gatineau together, and to
co-ordinate the role of federal partners.
This coordinating role could serve to spark and move greater cultural
partnership forward.
Strategy Seven - Arts Endowment Fund
Assess the feasibility of establishing an Ottawa Arts Endowment Fund.
The feasibility of establishing an Arts
Endowment Fund in Ottawa must be assessed.
There are 24 Ottawa-based arts/festival organizations that already have
established endowment funds under the Ontario Arts Foundation's Arts Endowment
Program. In addition, there are other
various arts endowment funds already in existence in Ottawa.
The Rich Little Endowment Fund for the
Performing Arts was established in 1988 by the former City of Nepean. The initial investment was $100,000, with an
additional $4,000 being contributed to the fund since establishment. The current yield on investment that is
disbursed in funding to the community on an annual basis is approximately
$5,000.
The Corel Endowment Fund for the Arts was
established in 1996 by the Council for the Arts in Ottawa at the Community Foundation
of Ottawa-Carleton. The initial
investment was $30,000, with an additional $20,000 being contributed to the
fund since establishment. In 2005,
$2,300 (one portion of 2004 annual investment income) was disbursed to the
community through this fund. A second
portion of 2004 investment income was reinvested back into the Fund, and a
third portion was employed as a Community Foundation management fee.
The World Exchange Plaza Endowment Fund for the
Performing Arts was established in 1997 by the City of Ottawa, and is
administered by the Community Foundation of Ottawa-Carleton. The initial investment was $300,000, and in
2005, $14,900 was disbursed to the community.
The Community Foundation of Ottawa-Carleton
also administers several additional endowment funds in support of the arts.
A new Ottawa Arts Endowment Fund would, most
probably, compete with existing funds and organizations for donations and
private sector support. Significant
caution has been expressed by the community on this potential arts investment
strategy.
CONSULTATION
An Arts Investment Strategy community working team was established in April 2005 that includes representatives from Ottawa's arts and festival umbrella organizations, the City of Ottawa's Arts, Heritage and Culture Advisory Committee and discipline-specific leaders. This working team played an active consultative role during the research phase and contributed directly to the development of the Arts Investment Strategy discussion paper.
The discussion paper was distributed in the summer of this year to
350 local, non-profit, arts and festival organizations. In early 2006, a cross-section of
multi-sectoral focus groups will be held in order to gain specific expert
feedback from investors, community leaders, business leaders and government
representatives on the potential strategies.
Following these focus groups, public consultation sessions will occur in
partnership with the community working team, and the City's Arts, Heritage and
Culture Advisory Committee. A report on a recommended Arts Investment Strategy for Ottawa
will be submitted to Committee and Council by June 2006.
FINANCIAL IMPLICATIONS
The City's 2006 draft operating budget contains the
following proposed arts funding investments:
a)
A Phase Two investment of $80,000
allocated to the Arts Service Agreement Program (approved by Council March 9,
2005). This program was developed to
recognize and invest in six, local, major arts organizations that play a
significant partnership role in the delivery and management of City services,
facilities and programs.
b)
An additional investment of $80,000
allocated to the Arts Funding Program, representing a 2.1% inflationary
increase; and
c)
A one-time investment of $120,000 for
the Arts Investment Strategy, to begin to address the sustainability of the
local arts sector.
SUPPORTING DOCUMENTATION
Appendix A - Revenue Sources - Local Arts/Festival Sector
Appendix B - Arts and Festival Government Funding - Per-Capita Comparison - 2003
DISPOSITION
Community and Protective Services will implement any
directions approved by Council.
Appendix
A
ARTS AND FESTIVAL GOVERNMENT FUNDING - PERCAPITA
COMPARISON – 2003
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(A study that compares 2003 dedicated operating/project funding (not
capital funding) invested in the arts/festival sector from |
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municipal government sources, provincial arts funding agency sources,
and Canada Council for the Arts in Canada's 7 largest single cities) |
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CITY |
Pop 2001 |
Pop 2003 |
Mun 2003 |
PerCapita |
# Grants to Ind. |
# Grants to Org. |
Prov 03-04 |
PerCapita |
% of Prov. Total |
# Grants to Ind. |
# Grants to Org. |
CC 03-04 |
PerCapita |
% of CC Total |
# Grants to Ind. |
# Grants to Org. |
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Toronto1 |
2,481,494 |
2,611,661 |
13,406,860 |
5.13 |
173 |
429 |
17,290,453 |
6.62 |
58.98% |
712 |
445 |
29,252,291 |
11.20 |
23.22% |
439 |
484 |
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Montreal2 |
1,812,723 |
1,862,608 |
11,148,430 |
5.99 |
3 |
419 |
44,783,567 |
24.04 |
68.99% |
860 |
417 |
29,959,615 |
16.08 |
23.79% |
562 |
551 |
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Calgary3 |
878,866 |
922,315 |
3,611,650 |
3.92 |
0 |
121 |
15,076,596 |
16.35 |
51.81% |
177 |
274 |
3,487,148 |
3.78 |
2.77% |
50 |
62 |
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Ottawa4 |
774,072 |
832,400 |
2,862,862 |
3.44 |
60 |
130 |
2,153,566 |
2.59 |
7.35% |
100 |
86 |
3,316,336 |
3.98 |
2.63% |
61 |
82 |
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Edmonton5 |
666,104 |
667,000 |
2,717,900 |
4.07 |
36 |
138 |
10,154,836 |
15.22 |
34.90% |
186 |
237 |
3,395,822 |
5.09 |
2.70% |
38 |
64 |
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Winnipeg6 |
619,544 |
644,500 |
3,228,655 |
5.01 |
64 |
98 |
6,923,968 |
10.74 |
94.96% |
354 |
104 |
5,910,366 |
9.17 |
4.69% |
53 |
88 |
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Vancouver7 |
545,671 |
568,442 |
5,310,532 |
9.34 |
1 |
181 |
6,098,394 |
10.73 |
55.27% |
87 |
156 |
13,400,549 |
23.57 |
10.64% |
217 |
271 |
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1
- Toronto - 2001 amalgamation of 7 municipalities |
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Alberta
Foundation for the Arts - 2003/04 |
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Canada
Council for the Arts - 2003/04 |
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2
- Montreal - 2002 merger of 28 municipalities |
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British
Columbia Arts Council - 2003/04 |
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3
- Calgary - single city |
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Conseil des arts et des lettres du Quebec - 2003/04 |
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4
- Ottawa - 2001 amalgamation of 12 municipalities |
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Manitoba
Arts Council - 2003/04 |
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5
- Edmonton - single city, part of Greater Edmonton (24 municipalities) |
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Ontario
Arts Council - 2003/04 |
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6
- Winnipeg - single city, part of Winnipeg Metro (12 municipalities) |
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7
- Vancover - single city, part of GVRD (21 municipalities + 1 electoral area) |
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2001
population figures sourced from 2001 Statistics Canada Census |
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2003
population figures sourced from municipal planning departments in each city |
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