Report for Community Services Committee February 18, 2003 Meeting

Edmonton Art Gallery “Keeping the Doors Open” 2003 Community Investment Grant.

1. That payment of the first instalment of the Edmonton Art Gallery’s 2003 Community Investment Grant in the amount of $351,120 be approved.
2. That the balance of the Edmonton Art Gallery’s 2003 Community Investment Grant be determined subsequent to the administrative review of the Edmonton Art Gallery’s 2002 audited financial statement.

Report Summary

The purpose of this report is to provide for the awarding of the first instalment of the Edmonton Art Gallery “Keeping the Doors Open” Grant and the balance to be awarded upon the administrative review of its 2002 audited financial statement.

Previous Council/Committee Action

At the December 17, 2002, City Council meeting, the 2003 Community Investment Grant Budget of which $438,900 is for the purpose of funding the 2003 Edmonton Art Gallery, “Keeping the Doors Open” Grant Program was approved.

Report

• City Policy C211E, Community Investment Grants to Organizations and Individuals, provides for financial assistance to the Edmonton Art Gallery (The Gallery) through the “Keeping the Doors Open” Grant Program. The Gallery has submitted a 2003 application reflecting the projected expenditures for 2002 plant and building operations (Attachment 1).
• The Gallery continues to pursue its five year strategic plan (2002-05) which includes initiatives such as:

encouraging greater self sufficiency;

continuing to establish the Gallery as a centre of excellence for the exhibition, animation and collection of works of art and visual culture;

positioning the Gallery as a valued and relevant resource for the Western Canadian Region.

The Gallery has made headway in all these areas, seeing an increase in revenues, admissions, memberships and donations. Further increases in revenues in the year ahead are anticipated. The Gallery also broadened the rich variety of programs and exhibits in the past year.

• The Gallery maintains its focus on raising funds by 2005 for the construction of a world class visual art and culture facility. The Gallery is seeking $66 million in funding from federal and provincial governments and private sector services. To date, some strong private commitments have been made, and the Gallery is actively pursuing other sources to reach its goal.
• The Gallery’s programs and services continue to be well attended overall, although attendance was somewhat lower in 2002 than in 2001 for two reasons:

1. The Gallery 2001 figures included 18,000 – 20,000 people who attended the 2001 World Track and Field Championships during which the Gallery hosted Canada House; and,
2. The 2001 figures include attendance at the major exhibition on Chagall. Although there were no major exhibits in 2002, a large show on the Post-Impressionists in 2003 will likely result in high levels of attendance (Attachment 2).

• The maintenance costs required to operate the Gallery continue to rise. In 2002, humidity, temperature and ceiling leakage problems required increased expenditures in order to safely preserve the Gallery’s collection according to required conservation standards.
• Increased supply costs in 2002 reflect increased costs related to construction and tearing down of exhibits.
• Insurance costs rose as expected in 2002.
• Other areas of revenue from the Gallery will cover the $4,811 deficit in the projected 2002 Plant and Building Budget.

Budget / Financial Implications

Funds are available in the Community Services Department, Community Investment Grant Budget for the “Keeping the Doors Open” Grant Program.

Justification of Recommendation

1. The recommended instalment represents 80% of the 2003 approved grant for “Keeping The Doors Open” as outlined in City Policy C211E.
2. As outlined in City Policy C211E, the second instalment will be determined following a review of the Gallery’s 2002 audited financial statements.

Background Information Attached

1. Edmonton Art Gallery 2002 Plant and Building Budget.
2. Edmonton Art Gallery Statistical Comparison.

Background Information Available on Request

1. Edmonton Art Gallery 2001 Annual Report.
2. City Policy C211E, Community Investment Grants to Organizations and Individuals.

(Page 1 of 2)

Attachment 1

Edmonton Art Gallery 2002 Plant and Building Budget.

Attachment 1 - Page 1 of 1

Attachment 2

Edmonton Art Gallery Statistical Comparison.

STATISTICAL COMPARISON

Attachment 2 - Page 1 of 1

[2]

[1] 2001 Non-recurring electrical rebate received of $55,418 received.

2.2002 Other revenue represents $20,023 received from ATCO Gas Rebate.

[3] 2002 Insurance increased due to volatile insurance market from $7274 to $10,271. This figure also includes $520

audit fee.