Two local non-profit leaders say they're disappointed in St. Albert city council's rejection of a new funding formula that would have seen non-profits groups get more money from the city.
The July 4 decision, in which the new grant funding formula was defeated with only Coun. Natalie Joly, Coun. Ken MacKay, and Coun. Mike Killick in favour, means annual funding envelopes for city grants will continue to be calculated on a per capita basis, rather than the rejected proposal, which would have factored in inflation when calculating annual grants.
St. Albert Mayor Cahty Heron said she rejected the new proposal to put extra money toward non-profits because the city already goes above and beyond to support non-profits and noted council is already "spending money like crazy right now." The mayor was also concerned the attaching the funding to inflation could mean substantial and unsustainable increases to the funding pot in the future.
The city's Outside Agency Grant program, which provides local non-profits with funding to help with operating costs, would have been increased by about $15,000 in 2024 if council had approved the funding formula, according to an administrative report included in the July 4 council meeting agenda.
Without the new funding formula, the city will still distribute about $638,000 through the Outside Agency Grant next year, the report says, which is a year-over-year increase of roughly $44,000 because of updated population estimates. The grant is funded on a $9 per resident basis.
Given that next year's funding pot for the Outside Agency program will still see a substantial increase, executive director of St. Albert Further Education Cheryl Dumont said in an email that while she's disappointed the funding envelope won't be adjusted for inflation, she's grateful for the funding the city does provide annually.
“Our St. Albert non-profit sector assists so many vulnerable citizens on a daily basis on shoestring budgets,” Dumont said. “We could do so much more with adequate, sustainable, predictable funding.”
“For the sake of the many newcomers to Canada and foundational Canadian-born learners that we support, I pray that council members continue to discuss funding in order to help non-profits in St. Albert.”
St. Albert Further Education received $30,303 from the Outside Agency Grant program last year.
Angela Pacholok, the board chair for the St. Albert Housing Society,also said she was disappointed in council's decision, and surprised Heron voted against the formula, given the mayor recently said finding affordable housing in St. Albert was the biggest challenge when it came to supporting the family who fled Ukraine whom Heron and her family hosted in May.
“She specified that there was such a need for affordable housing, and I was really hoping from that comment that there would be some leadership and some support through the City of St. Albert to help with affordable housing,” Pacholok said.
“Inflation reduces our capacity to purchase affordable units or partner with project developments, so this really affects our sustainability in the future, and it limits our initiatives and partnership opportunities moving forward.”
The St. Albert Housing Society (SAHS) owns and operates housing units throughout the city that are rented at rates between 10 and 15 per cent below market standard. Last year the SAHS received $44,650 from the city's Outside Agency Grant program.
“As a society we are trying so hard to support our families that need the support, and it is the community and the city that needs to rally around organizations like us to help move this forward and ultimately have success in providing more affordable housing,” Pacholok said.
Heron rejects the increase
Heron said she voted against the funding formula because she feels as though the city already goes “above and beyond” in its support of local non-profits, and out of concern for city spending, specifically referring to a $20.5 million borrowing bylaw for the next phase of the St. Albert Trail improvement project that council passed first reading on during the same July 4 meeting.
“I feel like this council spending money like crazy right now,” Heron said. “We're just spending a lot of money and I just felt that a population increase was sufficient to help out the not-for-profits in our community.”
Heron also said she agreed with Coun. Sheena Hughes, who said during the meeting having the funding formula account for inflation could mean substantial year-over-year increases to city grants, which could be unsustainable for the city.
“I agree with her that we need to be cautious about throwing inflation in as a formula factor because of that, and ... I get that not-for-profits have to cover off that inflationary increase as well, but again, it just comes down to limited funding and there's just one taxpayer and I just feel like we're supporting our not-for-profits very well in St. Albert,” Heron said.
The Gazette also reached out to the St. Albert Seniors' Association for an interview about council's decision; however, association board president Doug Elniski did not respond.
Last year the Seniors' Association received $208,596 from the Outside Agency Grant program.
