Capital Funding Support for Child Care Centres

Facing Eviction from Schools

The Community and Neighbourhood Services Committee recommends the adoption of the following report (July 10, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

The purpose of this report is to seek approval to augment the Child Care Capital Reserve and to provide financial support for the renovation costs occasioned by the eviction of three child care centres from school facilities.

Funding Sources, Financial Implications and Impact Statement:

The former Metropolitan Toronto Council established a $1.3 million Child Care Capital Reserve in 1997 to assist child care centres facing closure as a result of capital renovations to schools in which they were located. This report proposes augmenting this Child Care Capital Reserve and extending its use to support child care programs and services being evicted from schools and facing renovation costs in the sites to which they are relocated.

Recommendations:

It is recommended that:

(1)any user revenue from subsidized child care not required to maintain the approved service levels and the approved level of municipal cost-sharing contribution be added to the Child Care Capital Reserve to assist child care programs with renovation costs associated with relocation following eviction from school premises;

(2)the criteria and guidelines governing the use of the existing Child Care Capital Reserve be extended to include this purpose;

(3)the renovation costs associated with the relocation of Pelmo Park Child Care Centre, Silverthorne Day Care and Playhouse Child Care Centre be considered for funding from the Child Care Capital Reserve; and

(4)the Department, with the assistance of the Mayor's Office and the Children's Advocate request the Federal and Provincial governments to recognize the importance of having a child care capital funding program and provide matching capital funding support.

Council Reference/Background/History:

On February 26, 1997, Metropolitan Toronto Council established a Child Care Capital Reserve to assist child care centres facing closure as a result of capital renovations to schools in which they were located. The municipal funding of this Child Care Capital Reserve was made possible by a change in Regulation 262 of the Day Nurseries Act which allowed the Municipality to retain all user fees generated in the provision of subsidized child care. The former Cities of Toronto and North York committed to cost share the capital requests from centres within their jurisdictions in the amounts of $400,000.00 and $300,000.00, respectively. $1 million in matching Federal funding was also committed to this initiative. Nine child care centres were preserved as a result of this capital funding initiative. This report proposes a continuation of last year's strategy and suggests that any surplus in user revenue not required to meet approved service levels or maintain the approved level of municipal cost-sharing contribution be added to the Child Care Capital Reserve. This year's surplus in actual user revenue over the initial forecast is expected to be approximately $1 million. (Note: Because of the first come first served admission policy, user revenue for subsidized child care is volatile and dependent on the ever changing client mix.)

As a result of the new Provincial educational funding formula and changing enrolment patterns in schools, a number of child care programs are facing changes in their security of tenure and in their assessed occupancy costs. Six child care centres have received eviction notices; three are facing substantial capital costs associated with renovations to bring their proposed alternate premises into compliance with the Day Nurseries Act requirements. A strategy for assisting child care programs affected by the new educational funding formula is being developed and will likely form part of the broader renegotiation of the Master Agreement governing the relationship of the City to the Boards of Education which Council directed be completed by August 31, 1998. However, in light of the immediate relocation crisis being faced by at least three child care centres, a more immediate strategy is required to avoid losing up to 125 licensed child care spaces. For this reason, this report is being brought forward in advance of a proposed new Master Agreement with the Boards of Education.

Comments and/or Discussion and/or Justification:

Because of changing enrolment patterns in individual schools and other pressures related to the new Provincial education funding formula six child care programs are facing eviction from their current space. Some of these programs which previously enjoyed exclusive use space have negotiated shared space in schools. But three of the six programs must relocate and face considerable capital costs associated with the renovations required to bring their proposed alternate premises into compliance with the Provincial Day Nurseries Act requirements.

Pelmo Park Child Care Centre must leave its current school location by August 31, 1998, and has found alternate space in a facility owned by Humber Memorial Hospital. Negotiations are currently underway between the Hospital and the Ministry of Community and Social Services to identify the renovations needed to meet the licensing requirements and the costs associated. While the hospital has agreed to share in the cost of the renovations, preliminary estimates suggest that the centre's portion of the costs are likely to be $25,000.00.

Silverthorne Day Care, operated by the Learning Enrichment Foundation is seeking space in the former City of York Civic Centre. This matter is the subject of a report from the Commissioner of Corporate Services. Renovation costs of $125,350.00 have been identified.

Playhouse Child Care Centre is being evicted from part of its school space effective December31, 1998, and will lose the balance of its space in the school by June 1999. Because this program currently serves infants, toddlers and preschool children, the costs associated with renovations are higher and are estimated to be up to $500,000.00.

None of these child care programs have funds to pay the renovation costs faced. Without capital funding support for the renovation costs being faced by these child care programs they will be forced to close. This will have a serious impact on the stock of licensed space available to support subsidized families and could also hinder the City's ability to maintain the full level of subsidized service required under the service contract with the province. This in turn could adversely impact provincial cost-sharing.

Conclusions:

The Department recommends that any user revenue not required to maintain the approved levels of subsidized child care or to maintain the approved level of City cost-sharing be added to the Child Care Capital Reserve. The Department also recommends extending the criteria governing the use of this Reserve to cover the renovation costs associated with child care programs forced to relocate as a result of eviction from school settings. The Department suggests that the assistance of the Office of the Mayor and the Child Care Advocate be sought to seek matching capital funding support from other levels of government having interest in services to children.

Contact Name:

Brenda Patterson,

Director, Contract and Quality Compliance,

Children's Services Division

Tel: 392-3319

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The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

-Ms. Kim Cross, Pelmo Park Child Care Centre; and

-Ms. Vicki Anderson, Playhouse Child Care Centre.