The Canmore Community Daycare Society is working towards being a more financially sustainable organization after a challenging 2013.
Last year, the non-profit organization asked for financial assistance from Canmore council after increased costs in its new facility associated with rent, utilities and debt repayment resulted in an operational deficit.
Executive director Cherri Hodgins told council earlier this month the loss of accreditation funding worth $19,500 at the last minute also contributed to the organization’s deficit.
“Last year, we saw a shortfall in our budget due to large loss of ministry accreditation funding, higher than anticipated utility costs and funding diverted into playgrounds,” Hodgins said.
She said the funding was for enhancing programming and was used well by the daycare before the province cut it. A spokesperson with Human Services said the funding came to an end for all child care programs participating in accreditation in the province last year.
Council previously agreed to assume responsibility for water and sewer utilities, defer the repayment of a $137,657 loan and suspend $373 monthly rental payments until 2015. It also accepted a $30,000 debt payment from the daycare that came through a grant program and re-applied that funding to help build the playground.
The daycare contributed $90,000 for the playground, the preschool society contributed $15,000 and the remaining $95,000 came from a Community Infrastructure Improvement Fund grant.
“We are happy to report we have a balanced budget, we have reinvigorated fundraising and have finished the playground,” Hodgins said. “We do not anticipate there will be any need to ask council for future financial relief.”
According to a business plan submitted to council at its May 20 meeting, the daycare society has a $1.2 million budget for 2014-15, which includes fundraising of $22,000 through community events. Hodgins said the daycare continues to explore additional streams of income such as grants, use of its space and a sponsorship of a new fall event.
Councillors were curious about why the daycare does not alter its fee structure so higher income families pay more.
“There is potentially some high-income people who could afford to pay more, but aren’t,” said Councillor Sean Krausert. “What justification can we give a taxpayer for subsidizing a daycare for families in higher income brackets?”
Hodgins said the board considered the change, but decided against it for several reasons, including privacy concerns.
“The board of directors looked at this and concluded it is not feasible,” Hodgins said. “Fees would have to increase to a point it would negatively affect the organization… and the society does not have the authority to review income tax statements.”
The daycare provides services for 66 children at the Roundhouse and 82 children aged four to 12 at Elizabeth Rummel School in its after school program. At 148 children it has reached licensed capacity and has a waitlist of 127.
Hodgins said the organization looked into creating more spaces at Elizabeth Rummel School, as there is no opportunity to expand space at the Roundhouse. She said the startup costs – $30,000 to $40,000 per classroom – was prohibitive and they are not pursuing that at this time.
