REQUEST FOR DECISION

File # 1850
1850--20
Report To: Mayor and Council
From: Chief Financial Officer
Presenter: David Joy
Subject: Administration Report No. 0085/21
$3 Million Grant to the North Peace Community Foundation
Meeting: Regular Council
Meeting Date: 25 May 2021

RECOMMENDATION:

"THAT, Council grant the North Peace Community Foundation $3,000,000 to

establish an operating endowment,
AND THAT, this money be transferred from the City's General Infrastructure
reserve."
CAO'S COMMENTS:

The granting of $3,000,000 to the North Peace Community Foundation will provide start up
funds and demonstrate commitment to sustaining the Community Foundation into the
future. This is one of many steps being undertaken concurrently to move the Foundation
towards self sufficiency.

ALTERNATIVE RECOMMENDATION:
RECOMMENDATION:"THAT,
"THAT, Council receives report No. 0085/21 - $3 Million
Grant to the North Peace Community Foundation, for information only."

KEY ISSUES(S)/ CONCEPTS DEFINED:

In the original business plan for the Community Foundation, the intention was to provide a
$3 million interest free loan to the Foundation to establish an endowment fund to offset
annual operating costs. The loan was to be paid back gradually over time. However, during
the inaugural Board meeting, it was determined that it is not feasible to lend money to the
Foundation and then to expect it back from the donations solicited from external parties. The
City will demonstrate its leadership and commitment to the Foundation and to the
community
community--atat--large by granting $3 million to the Foundation once it is legally established as
a registered charity.

With this significant, initial investment, the City will be designated as the Principal Partner
of the Foundation. Until the Foundation establishes a sufficient level of funds to distribute
grants to qualified charitable recipients, the City will continue to provide grants
grants--in
in--aid as it
has in 2021 until the Community Foundation is able to take over these disbursements. An
important driver of the Community Foundation is a desire by the municipality to effectively
invest and distribute proceeds from agreements reached with BC Hydro in support of its Site
C Dam project. The resulting Community Measures Agreement and the Regional Legacy
Benefits Agreement are expected to provide approximately $58 million to the municipality
over the next 70 years. The municipality will transfer these funds directly into the
Community Foundation. Through the City's C5 budget $240,000 is budgeted for operating
costs in 2021 with and additional $130,000 for each of 2022 and 2023.

RELEVANT POLICY:

IMPLICATIONS OF RECOMMENDATION

COMPLIANCE WITH STRATEGIC GOALS:

Goal No. 1 - Enhance community economic development to provide
opportunities and sustainability for Fort St. John.

Goal No. 3 - Build and manage public assets and human resources that support the current
and future needs of the community.

Goal No. 4 - Initiate and foster partnerships that will benefit Fort St. John.
Advocate to decision makers on issues that impact the community.

Goal No. 5 - Actualize downtown Fort St. John as a social, vibrant, liveable
hub as articulated in the Fort St. John Downtown Action Plan.

COMPLIANCE WITH STRATEGIC PRIORITIES:

GENERAL:

ORGANIZATIONAL:

FINANCIAL:

FOLLOW UP ACTION:
COMMUNITY CONSULTATION:

COMMUNICATION:

DEPARTMENTS CONSULTED ON THIS REPORT:

Attachments:

RESPECTFULLY SUBMITTED:
David Joy, Chief Financial Officer
12 May 2021