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HomeMy WebLinkAboutCSD-008-20Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 22, 2020 Report Number: CSD-008-20 Submitted By: George Acorn, Director of Community Services Reviewed By: Andrew C. Allison, CAO File Number: Resolution#: By-law Number: Report Subject: Fee Assistance Program Recommendations: 1.That Report CSD-008-20 be received; 2.That the Fee Assistance Program (FAP) as outlined in this Report be approved; 3.That expired credits on Active.net accounts and unredeemed Jumpstart funds be used to offset the cost of the Fee Assistance Program; and 4.That staff be directed to update all advertising, forms and communication plans related to the Fee Assistance Program. Municipality of Clarington Page 2 Report CSD-008-20 1. Background 1.1. The Fee Assistance Program was originally introduced in 2008 to provide a program for residents facing a financial barrier to participating in our recreation and leisure activities. By implementing this program, people who otherwise would not be able to afford to participate had the option to enjoy the benefits of recreation. The original Program offered all qualifying individuals 50% off up to three activities or three 10-ticket passes per year. Since that time, minor modifications have been made to the Program for ease of administration. 1.2. To further accessibility efforts across the Region, the Advancing Access to Affordable Recreation in Durham (AAARD) working group was formed in 2013. The group is comprised of representatives from: Durham Region Municipalities (Clarington, Oshawa, Whitby, Pickering, Ajax, Brock, Scugog), Durham Region, the Abilities Centre, Boys and Girls Club of Durham, Community Development Council of Durham, Girls Inc., Grandview Kids, Canadian Tire Jumpstart, Their Opportunity and the YMCA. 1.3. The group continues to meet regularly, share best practices, coordinate programs with Durham Region Social Services and partner on Region-wide programs and studies. An example of this is FUSE Durham, a comparative research project to determine if participation in health, recreation and wellness programs increased student attendance, child and adult well-being, and assisted families to become less dependent on Ontario Works. 1.4. In addition to the FAP, the Municipality is a community partner with the Canadian Tire Jumpstart (CTJ) program. This program funds children ages 4 – 18 years old up to $600 per calendar year to participate in recreation activities. As the first point of contact, Report Overview The Fee Assistance Program (FAP) provides Clarington residents that wouldn’t normally be able to afford recreation and leisure programs the opportunity to register and participate by removing a financial barrier. Residents whose annual income is at or below the Government of Canada’s Low Income Cut Off (LICO) are currently eligible to apply under the FAP. If approved, customers can register for eligible programs and memberships through the normal registration process. The original program was launched in 2008 and shortly after, the Durham Region launched a working group, Advancing Access to Affordable Recreation in Durham (AAARD) Committee to coordinate efforts across the Region. Staff have monitored the uptake, short comings and use of this program and are recommending changes that will better serve the community by increasing access to Recreation and Leisure programs and services by further removing financial barriers. Municipality of Clarington Page 3 Report CSD-008-20 Community Services supports applicants, follows up to collect any missing documentation and forwards completed applications to Canadian Tire Jumpstart. Jumpstart applicants use their funds to participate in a range of programs and activities offered by organizations across Clarington, including the Municipality. As the CTJ program is the responsibility of Canadian Tire, staff are not indicating any proposed changes to the program. It should also be noted this program is very effective at providing financing to our community and is very well subscribed to. 1.5. In addition to expanding access to our recreation programs and activities, it is very important to maintain the confidentiality and dignity of all program participants. As such, residents can follow the same registration process as all other participants. Active Net, our recreation software program, allows staff to attach the subsidy to the family account, which helps ensure each resident feels confident that their participation in programming puts them on an even playing field with all other participants. 2. Program Current Program 2.1. The FAP program is open to all Clarington residents, whose family income is at or below the Government of Canada Low Income Cut Off (LICO). There is an application process which outlines the eligibility for residents, along with the required documentation to be considered for the subsidy. Staff review all applications, verify the information against the criteria and inform all customers whether they are successful. 2.2. Residents can complete an application which can either be emailed to us, or they can be dropped off at any municipal recreation facility. Staff in the Community Services Department review all applications against the program criteria. Once approved, a credit of $300 is placed on the applicant’s Active.Net account for each qualified family member. All credits or unused balances expire after a 12-month period. With the credit(s) on account, a resident is then able to register for programs and activities. 2.3. All FAP applications are automatically approved for any residents who present a Durham Region Social Services seasonal card, without additional documentation, creating a simplified process. Both programs have the same eligibility requirements and this efficiency assists residents to access the subsidy without additional barriers. 2.4. To indicate the popularity of this program, during the period April 1, 2019 to March 31, 2020, there were a total of 267 applicants that were approved, totaling $76,800 (as some parents have opted out of the subsidy for themselves). This time period was used based on the implementation timeline of the original program. At this time, we are not able to confirm the total value of applications redeemed. We expect the uptake on this program will increase with the reopening of recreation buildings and the return of programs and activities, following the COVID-19 pandemic. Municipality of Clarington Page 4 Report CSD-008-20 Proposed Changes 2.5. In reviewing the applications received for the FAP, staff have noticed a significant number that have been marginally higher than the LICO cut off. In reviewing the programs of other municipalities, including members of AAARD, a reduced amount of money could be rewarded to people in this circumstance. In order to reach more residents in need, staff are recommending a reduced level of funding be provided to those families whose income is within 25% of LICO in the amount of $200 per eligible family member. 2.6. The LICO calculation is applied consistently across all jurisdictions and is calculated based on the population of a particular community. It does not take into consideration the proximity to larger urban areas and the possible impact this could have on the cost of living in that community. It is reasonable to conclude the cost of living in Clarington is very similar to other communities in the Greater Toronto Area (GTA) and Clarington residents do not benefit from a lower cost of living, as do many smaller rural areas, outside the GTA. 3. Financial Considerations 3.1. As the FAP provides credits on account for successful applicants to access for programs and activities, there is no actual cost to the Municipality. All redeemed credits are reflected as unearned revenue. Staff are recommending that an annual cap of $81,000 be set for the FAP. This amount translates into an award of $300 for a total of 270 residents. 3.2. To offset the value of the unearned revenue for the FAP, staff recommend that all expired credits remaining on individual Active Net accounts, after 24 months be deposited. At this time, it is not possible to quantify this annual value. 3.3. In 2018, the Community Services and Finance Departments developed a process to write off/expire credits that remained unused for a period of 24 months, to limit our financial liabilities. All customers have been advised of this process and were provided an opportunity to have a refund processed. Any credits remaining were then written off to a holding account. Customers still have the right to request a refund on their credit up to seven years. Any unclaimed amounts could be moved from the holding account to offset some of the subsidy costs. 3.4. Canadian Tire Jumpstart has instructed the Municipality not to return any unused funding. Unused funding occasionally happens when a family is unable to make use of their funding. As a result of CTJ not wanting the unused funding returned and asking that it be used to assist children with participating in sport, the Municipality could use those funds to offset the FAP subsidy program. Municipality of Clarington Page 5 Report CSD-008-20 3.5. As of March 2020 there is approximately $27,000 in unused CTJ money and credits to the Active Credit Holding account that could be used to offset the unearned revenue from FAP subsidies. The amount of unused CTJ money varies annually and can range between $300 and $1000. 4. Concurrence 4.1. This Report has been reviewed by the Director of Finance/Treasurer who concurs with the recommendations. 5. Conclusion 5.1. It is respectfully recommended that Council approve the recommendations in this Report and direct staff to implement the necessary changes to this program. Staff are confident these changes will enhance the current program and provide much needed financial assistance to expand access to our recreation programs and activities. Staff Contact: Lee-Ann Reck, Manager Client Services, 905-623-3379 ext. 2508 or lreck@clarington.net. Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision.