Greater Edmonton Foundation’s Business Plan 2006-2010

Recommendation:
  1. That the Greater Edmonton Foundation provide details onStrategic Priority1 (Increase Units) and Strategic Priority2 (Improve Infrastructure) outlined in the Greater Edmonton Foundation Business Plan 2006-2010 for review and approval by City Council.
  2. That Strategic Priorities 3-7 of theGreater Edmonton Foundation Business Plan 2006-2010 be approved.
  3. That the Greater Edmonton Foundationadd an additional Strategic Priority (Number 8) to explorealternative approaches for City/Provincial cost sharing of the Greater Edmonton Foundation’s annual budget deficit for lodge operation.

Report Summary

This report introduces the Greater Edmonton Foundation Business Plan 2006-2010. It recommends that additional information be sought for the first two Strategic Priorities, and the remaining five Strategic Priorities be approved. It also recommen7ds an additional Strategic Priority.

Report

In accordance with clause 5(1) of Ministerial Order No. H:052/97, the Greater Edmonton Foundation (GEF) submitted its 2006-2010 Business Plan on October 11, 2005 for City Council’s approval. Community Services Department has reviewed the GEF’s 2006-2010 Business Plan in consultation with Corporate Services (Finance).

Strategic Priorities in the Business Plan:

The GEF’s 2006 - 2010 Business Plan identified seven Strategic Priorities for the next five years. They are:

  1. Increase Units
  2. Improve Infrastructure
  3. Reduce Debt
  4. Optimize Internal Efficiency
  5. Enhance Residents Quality of Life
  6. Heighten Public Awareness
  7. Build Partnerships.

Strategic Priority 1, Increase Units:

The GEF currently manages 883 lodge units in nine facilities. It proposes to increase the portfolio by190 units by building two new facilities (Mill Woods and Meadowlark Park) by 2010. The Business Plan is silent on the financial impact of the addition of 190 lodge units on the City.

Strategic Priority 2,Improve Infrastructure:

  • All GEF lodges have been recently upgraded to the latest standards. The GEF is currently working with the Province for the renovations of the Kiwanis Place. If the Province pays the full cost of the upgrades, the Administration will support the initiative. The Administration also supports the routine maintenance of its lodges.
  • The Business Plan made reference to the need for a capital plan in this context. Any capital plan should incorporate the details of new facilities including capital cost and the sources of funding and operational dollars. The Business Plan lacks these capital and operating cost forecasts. While the Business Plan indicates that the GEF will strive “to not incur any new debt” (page 6) and expect “a constant City of Edmonton requisition of $3.5 million per year for the next three years” (page 11), it does not indicate the potential sources of capital funds.

Strategic Priority 3,Reduce Debt:

The City welcomes the GEF’s Strategic Priority to reduce the agency’s mortgage debt. City Council’s recent endorsement of the GEF Policy entitled Utilization of Annual Budget Surplus (GEF File No. F120-0) will also assist the agency to achieve this goal.

Strategic Priority 4,Optimize Internal Efficiency:

The City supports this Strategic Priority as it will assist the GEF to streamline its operations for achieving greater operational (and thereby financial) efficiencies. It is also consistent with Recommendation 1.2.8(4) of the Strategic Review of the Greater Edmonton Foundation (2000) and Recommendation 7 of the Greater Edmonton Foundation Audit conducted by the Office of the City Auditor in 2004.

Strategic Priority 5,Enhance Residents Quality of Life (QOL):

The Greater Edmonton Foundation Audit (October, 2004) prepared by the Office of the City Auditor noted that the “Seniors living in GEF’s lodges were found to have a very good QOL, enjoying the same levels as experienced by seniors living in lodges operated by other housing providers” and “The Quality of Environment (QOE) was found to be comparable and service levels were found to be essentially the same.” (Page 7). Administrationsupports this Strategic Priority and believes that the current service level should be maintained.

Strategic Priority 6, Heighten Public Awareness:

Administration supports this Strategic Priority as it will help to enhance the image of the agency. It would not only help to attract potential residents, it could also benefit the GEF should the agency decide in future to undertake a fundraising campaign.

Strategic Priority 7,Build Partnerships:

Administration supports this Strategic Priority aimedto develop an external communications plan to keep GEF stakeholders (the Province, the City and joint-venture partners) informed of GEF operations.

Suggestion for a New Strategic Priority:

Under the current funding arrangement, the City is obligated to pay the agency’s annual budget deficit, after GEF receipt of the Provincial Lodge Assistance Grant (LAG). As a result, the annual City contribution to the GEF remains at a much higher level than that ofthe Province. Administration believes that the GEF should work with the Province and the City to address this issue, and suggests that the GEF add a new Strategic Priority (Number 8) to explore alternative funding approaches between the City and the Province.

Other Observations:

  • The Business Plan is silent on the potential future sale of the GEF property holdings. Administration is of the opinion that the GEF should consider selling some currently vacant and unproductive properties (except those that may be needed for future lodges) and use all proceeds from such sales to reduce its mortgage debt.
  • The Business Plan acknowledges the growingethnic diversity of our seniorpopulation (page 24). This demographic characteristic should be utilized by the GEF in their service planning and delivery by making a linkage with Strategic Priority 5: Enhance Residents Quality of Life. Examples of service initiatives may include individual room décor, menu choices and celebration of ethnic functions involving volunteers and non-profit groups.
  • The Business Plan does not make any suggestion for increasing the Agency’s revenue. We believe that GEF should pursue several revenue growth opportunities includingcharging fees for meals, laundry and suite cleaning services to GEF apartment tenants and exploringcatering opportunities (e.g. churches, service clubs, meals on wheels).
  • At the time of writing this report, Administration did not have detailed background information onStrategic Priorities 1 and 2 to recommend their approval by City Council. Given the GEF’s view that this requested information could take two to three years to develop, Administration will bring forward to City Council an update report on the GEF Business Plan when that information becomes available in 2007 or 2008.

Justification of Recommendation

  1. Detailed informationwill assist City Council to make an informed decisionon Strategic Priorities 1 and 2. Ministerial Order No. H: 52/97 empowers the City Council to approve the GEF Business Plan.
  2. Approval of Strategic Priorities 3-7 will assist the GEF in improving the agency’s efficiency and effectiveness in providing services to low-income seniors.
  3. A new funding arrangement should result in a more equitable City contribution. It will also encourage the GEF to operate more efficiently. GEF Management has agreed with the Administration recommendation to include this additional Strategic Priority.

Background Information Available on Request

  1. Greater Edmonton Foundation: Housing for Seniors, Business Plan 2006-2010.

Others Approving this Report

J.Tustian, General Manager, Corporate Services Department

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