Community Articles
Go to Site Index See "Community Articles" main page
At A Glance
General News · 2nd October 2018
De Clarke
Cortes is Different: Community Centre Funding on the BC Coast

During all the fire and fury over Cortes' proposed “Hall Tax,” it occurred to me that the problem of increasing difficulty in operating and maintaining our Community Halls can hardly be unique to Cortes. Surely other communities are facing similar challenges; it would be worth finding out how (or whether) they were solving the problem. So I set out to investigate the funding basis of as many coastal community halls as possible, in communities not too different from our own: smallish, rural-ish, remote-ish. The table above summarises what I found out.

(Alert Bay didn’t get back to me in time, so we don’t have that info yet. Blue population figures are under 200 people, yellow ones are over 5000, i.e. more than a factor of 5 away from our own approx 1000 people.)

As you can see, I managed to find funding information for more than 20 community halls ranging from Haida Gwaii to the southern gulf islands. These communities vary in size between populations of less than 200, to more than 15000, as shown below; those closest to our own size are probably the most relevant. Cortes is one of only three communities that don’t support their community halls with a baseline operating budget from property tax assessment.

So that’s the executive summary: almost every hall in my survey receives funding from the property tax base for basic maintenance and operations. Cortes is quite unusual in this regard.

Now for some details...

Since a lack of tax-based funding is clearly the exception rather than the rule, it's worth taking a quick look at the other two comparable non-conformist Halls.

Mayne Island takes a really different approach: they don't need any taxpayer support because a very wealthy American once lived there who deeply loved the community; 25 years ago he set up an Endowment specifically for the Hall. He was also a wizard at investing, and has managed the fund for them ever since. Now in his 80's, he's parlayed the initial stake of $50K to an endowment of around $1M. The terms of the endowment restrict its use strictly to operations and maintenance, so Mayne Island's Hall is set for life. They are living off the dividends. Nice to be them!

Thetis Island's community hall is a fascinating case. They manage entirely on donations and revenue from fundraising! However, it's worth looking more closely at their community and finances to understand how they can do this.
The resident population of Thetis is around 350. They are fairly tightly clustered in one region of the island ("downtown"). Their Community Association charges a $90/year membership fee, which provides about half of their revenue; almost every resident chooses to be a member. Use of the Hall is free for all nonprofit community groups, but some groups choose to pay rent anyway (as a donation). All public programming at the Hall is free to members, and "by donation" to non-members. As my contact said, "We have some people here who are really struggling, and we don't want to exclude anyone. We are a charitable organisation and it's our mission to serve the whole community."

Thetis hall also publishes a quarterly (paper) newsletter which is free to members and takes advertising. A few subscriptions are sold to non-members. The advertising generates another $4K a year or so (in other words, local business owners solidly support the hall). The interesting thing about Thetis Island, to me, is that its community has essentially decided to tax themselves (by purchasing memberships in the community association) at almost the same amount that has been suggested for the Hall Tax here (actually a bit higher, since $85 was an upper limit on the proposed tax assessment for Cortes). This reliable funding enables Thetis Hall, among other things, to provide free office space for other nonprofit organisations on their island. This in turn frees those organisations from some financial stress, in a beneficial chain reaction.
Thetis hall, years ago, wisely sought charitable status. They are thus able to offer receipts for tax deductions to their donors. They receive reliable annual donations of up to $500 from several of their residents. It looks like Thetis Hall has nearly unanimous support from its small, close-knit community.

These notable exceptions - cases where a hall is doing well, is offering a wide variety of programs, and is popular in its community, yet has no RD or muni tax service support - turn out to have some significant differences from our situation on Cortes.

I also looked at the history of some of these hall tax allocations: do they balloon alarmingly over time? Comox Valley Regional District has the best (most easily navigated and understood) financial records online, so I took a quick look at the funding for their halls. I looked at the last 5 years, during which there have been no increases in allocation. The amounts are unchanged, year after year. The same is true of most community hall assessments, unless a major project was undertaken (like building a whole new facility).
Quadra Island, by contrast, does show a steady increase in the assessment for its community hall. But Quadra Island seems to be an exception. There is no reason to expect all hall taxes to inflate rapidly from year to year. Given Quadra Island’s hall budget history (which has indeed ballooned, as SRD 5 year plans show), I’d suggest including language in any bylaw that (a) caps the tax service amount and (b) specifies a fixed index of inflation, so that a further public process is required to adjust the amount otherwise.

The halls that have secure funding - whether from millionaire philanthropy, unanimous community support, or property tax base - seem to be flourishing and heavily booked, with a lot of community participation. Programs for seniors in particular are very popular, as are after-school activities for youth; where basic maintenance and operations are covered there is (as you'd expect) a lot more energy and funding for programming. When I asked Ucluelet’s program manager whether they did a lot of fund-raising for their community centre, she said “Oh god, no.” She knew how time-intensive and unremunerative constant fund-raising can be. She was startled to find that there was any community on our coast that did not support its rec centre or community hall from its tax base. “I can’t believe you’re even having to ask this question,” she said.

"In 1986 we applied for a Charitable Gaming license and bingo became our chief funding source. By 1991 we had to augment that by going to referendum to get on the tax roll. The population voted 64% to support the Community Centre through property taxation. This marked a huge change in our focus. We could now concentrate on recreation programming instead of fundraising to survive.
"(Web site of Quadra Island Community Centre)

One challenge faced by Cortes is that we have multiple villages scattered at some distance on one island, and multiple community halls. Whaletown and Mansons Landing are far enough apart that for each it's a bit of a trek to attend events in the other village. So we have two community halls (three, if we count Tork's community centre which was built with private funds), not one, for our population of only 1000. The Whaletown hall is much cheaper to operate than Mansons, but it still adds to the total cost of community centre support.
Other islands with multiple halls are Saltspring which has three, and Gabriola which has two. So, though their population is higher than ours (a lot higher in the case of Saltspring), they share with us the challenge of multiple social centres. Their halls are supported by a tax service via Capital RD and CVRD respectively.

It’s worth noting that not every tax-supported hall has its own named service. Pender Island's community hall doesn’t, for example; but they are still tax-supported, so I've counted them in that category. They have to apply every year to their RD for a share of the overall Parks and Rec budget. It works - they are doing well and providing valued services to the community - but they are never 100% certain about next year's funding. Their program manager said, "There is no way we could stay open without this funding from the regional district." One of the arguments they made to their RD was that they were being taxed for “Arts and Culture” support which did not exist on Pender, only in suburban/urban areas; they asked to have that money given back to support their local community hall, and their RD agreed.
Also worth noting: halls that have "struck the deal" with their RD to become a tax-based service have benefitted in another way, by access to the RD's umbrella insurance coverage. In some cases this has reduced their insurance costs and helped to balance the books.
The Province appears to be supportive of community halls in general (perceiving, perhaps, their key role in disaster preparedness, fitness/health promotion, social networking, youth programming etc). Halls I talked to that needed upgrades and refits (for weather proofing or to meet modern code) have been successful in acquiring grants to cover renovation expenses. Concerns expressed recently (and anonymously) in the Marketer that the age and condition of our halls make them effectively a "bad investment," I think should be allayed by (a) our success in acquiring grant funding for renos and upgrades, and (b) the availability of (more) affordable insurance. It bears repeating that our halls are actually not in bad shape; a lot of donation and grant money has been raised for renovations. We don’t need to replace or rebuild them any time soon.
The halls have been accused of making no effort to contain their costs. It seems to me hard to overlook the grant-writing effort and planning that led to replacement of inefficient furnaces with modern heat pumps in both halls, or the recent reno of Gorge Hall that included thermal windows to reduce the heating bill; both these projects were attempts to contain costs by reducing our halls' utility bills.

Conclusions:

There was such outrage in some quarters about the very notion of supporting our community halls via a tax service, that at first I thought this must be a new and radical idea, foreign to the culture of coastal BC. What I have found is actually the reverse -- that almost all our coastal community halls are funded via property tax assessment, many of them for over 25 years.
Even tiny Tahsis, with a population of less than 350, has a full-featured rec facility and much-used community hall thanks to property tax assessment; they have facilities we have never dreamt of, all free for community members. In their case, about half the tax revenue comes from two idle mills whose owner is paying commercial property tax on the two large parcels. (Again, nice to be them!) But the rest comes from residential rate payers... and I'm sure their swimming pool, gymnasium, bowling alley and pool tables make the 2300mm rainfall of a Tahsis winter a bit easier to bear.
Even independent-minded, nonconformist Lasqueti has RD tax-based support for their community hall, and so does blue-collar Texada. Cortes is an oddball. We are in a small minority. And not enjoying the unusual advantages of Thetis or Mayne, it’s not surprising that we find ourselves struggling. We're not struggling because our hall management or societies are incompetent; we're facing the same challenges as everyone else, but without the same advantages.
We don't have a millionaire philanthropist/investor eager to set up an endowment to support our halls into the future (at least, no one has stepped up yet!). We also don't have one, single, cohesive centre of habitation; we lack the solidarity of Thetis’ small, co-located community and more closely resemble Salt Spring or Gabriola socially. Mansons Hall (SCCA) does have charitable status, but Whaletown doesn’t. In other ways, we are not "different" at all: we face all the same problems that other small community halls are facing as the 1950’s, 60’s, and 70’s grow ever more distant: more burdensome regulations and bylaws, more demanding insurance requirements, higher Hydro bills, more Byzantine grant application procedures, a long slow decline in volunteer hours, etc.

It's no secret to Tideline readers that I personally support the establishment of a tax service to provide baseline funding for our halls, nor that I consider community centres an essential resource for a healthy community — emphatically not a luxury or a frivolous expense. My recent conversations with other community associations and hall operators elsewhere have only reinforced this view. Not being one of the special cases like Thetis or Mayne, I think we need to look again at what the overwhelming majority of our peers have done to solve this problem... why not adopt the already-invented wheel? I know we often say proudly that Cortes is Different. But there are times when being “different” really does just mean being stubborn to the point of self-sabotage. Why should we reject a solution that has worked for about 90 percent of community halls on the coast? As Oct 20th approaches, perhaps we should take some time to ponder how different we really want to be.

NOTES: this article is the result of a few hundred minutes of phone calls and my own personal opinion. It is not the official position of any Cortes organisation, nor the work of any person other than myself. Heartfelt thanks go to the 40 or so people in coastal BC community associations, ratepayer’s associations, regional district offices and community centre offices who took the time to talk to me about how they were making ends meet. Any errors are almost certainly mine (in memory or transcription) and not theirs.
... but they're all fruit, not fish or eggs
Comment by De Clarke on 8th October 2018
Mr McKenzie seems not quite to have understood the scope of my undertaking. I didn't set out to replicate the latest Canadian census. I included the first population figures I could find on a quick google, merely to give myself and readers some notion of the relative sizes of these communities. The ranking-by-size of communities on the list has not changed much over the years.

Nor did I set out to conduct an exhaustive socio-economic survey of selected communities. Wasn't planning to write a book :-) I set out to answer one simple question: how many other community halls on the coast are, like ours, not supported by a property tax assessment? I answered that question: of the more than 20 halls I surveyed, two are not supported by a property tax assessment. Those two have some compensating advantages that we lack.

I'll pass over other off-topic ruminations except for one, this oft-heard plea for sympathy for the poor struggling landowner burdened by a mortgage and "unable to afford" an $85/year tax. (A buck sixty a week.)

While I do sympathise to some extent with the financial anxieties of those who still have years to go before their mortgages are paid off, I nevertheless feel compelled to remind everyone of a statement that George himself made back in April in these pages: "Cortes is not a cheap place to live and if you choose you [sic] live here you should come with some resources, not expect to be subsidized."

Owning property is also not cheap, and if some folks have got in a bit over their heads, that was voluntary. They chose to go into debt to buy here, they chose to sign that mortgage. They could have chosen to buy somewhere where land is cheaper (like the Maritimes, or Manitoba) and thus minimise their debt burden. They are facing the consequences of their own choices, just like people who try to survive here without being propertied or affluent. When they have zero sympathy for those less well-off people, yet demand our sympathy for their own unwillingness to pay an $85/year tax, I have to confess it does rile me some.

We who buy here are all collectively responsible, as we drive the market upwards with our demand, for the ever-diminishing probability that younger and less affluent people will ever own their own land (not here anyway).

So here's my view: people on Cortes coping with big mortgages don't exist on some higher moral plane, more deserving of sympathy, than other people on Cortes who don't own land and are struggling to put together three part time jobs, or struggling to find a place to rent. The mortgage-holders simply have more security and more options, mostly in the form of equity. In other words...

"Oh God! to hear the Insect on the leaf pronouncing on the too-much life among his hungry brothers in the dust!" (Charles Dickens)

As to "evil" landowners - I myself am a landowner, so obviously I don't believe that all landowners are evil :-)

I do believe however that as a landowner I enjoy immense privilege, not only on the global scale but the local scale as well. To enjoy such privilege without feeling any obligation to invest via tithes or taxes in the cultural as well as physical commons, in the social health and diversity of the larger community and in the future (i.e. younger people) imho amounts to a moral failure. But I fear that on this last point, George and I are simply doomed to disagree :-)
Good work
Comment by Delores Broten on 6th October 2018
Very nice piece of research with useful information. We need so much more of these kinds of contributions to our social conversations.
Apples and Oranges
Comment by George McKenzie on 5th October 2018
Yes, Cortes IS different and what is wrong with that. Surely you don’t want us to become a Saltspring or a Woss or a Tofino ? I’m not sure where you got your figures but these statistics don’t tell the whole story. Your 10,234 population fro Saltspring is from 2011. Your 1074 population for Hornby is from 2006. Port Alberni’s population from bcbusiness.ca is 24,539 which is down 4.1% over the past 5 years. You said 17,753.
You fail to mention which communities got to vote on a hall tax and which halls are supported by a portion of existing property taxes. You fail to mention differences in average income and what industries support these incomes. Some of these communities are run by Islands Trust and some like Cortes are not. Some are municipalities in their own right.
I noticed that none of you addressed the idea of hall memberships. It seems to work on Thetis island at $90/year. The Maine Island case is interesting too. Perhaps if we didn’t collectively badmouth the rich they might step up to the plate and provide an endowment fund for our halls. If we can raise $1.4 million anonymously for Rainbow Ridge perhaps this might be a way to go.
In closing I’d like to address some of your previous comments:

De Clark: “so much of our housing stock is standing empty because it belongs to affluent people who can afford second or third "vacation homes”
Really ? I’d like to see those allegations backed up by numbers.
De Clark: “ ‘As if taxes existed in some mystical vacuum insulated from the larger financial system’”
The do and they are. The implementation of taxes is different in every community. They can just change the mill rate on any portion of property taxes any time they like.

Paul: “‘I'm land rich, currently rattling my bling AND I support hall taxes. Indeed, as Canadians we don't pay enough taxes; witness our national shame re our homeless population’”
A red herring argument. Do you seriously think that if we raise everyone’s taxes homelessness will disappear ? And I know it’s a bit of a joke (thanks John Lennon) but the people I know who have bought land still have years or decades left to pay off their mortgages. Not much bling to rattle.

Gabriel Dinim: “All the people I personally know who are opposed to the hall tax, have not raised children on the island and hence I believe, lack a sense of communal history and a sense of a communal legacy”
I’ll just let that stand in it’s awesome divisiveness.

We can do better than this. Are we really going to impose more taxes on those ‘evil’ landowners ? If the halls were supported with annual memberships like on Thetis island I would pay it in a heartbeat even though I don’t use the halls.
Please reconsider this divisive and un-community-like solution to the halls’ financial woes. No hall tax !
Helping us make an informed decision
Comment by George Sirk on 4th October 2018
Thank you for doing this research and presenting it so clearly, both in the table format and in prose.
Wow
Comment by Stephen Reid on 4th October 2018
I wish half of the "news" I read on this computer was half as thoughtful, objective and pertinent as this article. Nice work DE!
Many thanks, De.
Comment by Stephen Moyse on 3rd October 2018
What a thorough piece of research. My support of the tax initiative is now "informed support." Much preferred. The halls are invaluable focal points for Island life. I mean, where would Santa Claus hold his bazaar and his dinner?!
Thank you
Comment by Gabriel Dinim on 3rd October 2018
Thank you so much. Outstanding work, the kind of work I expect a regional director to do for their community, for such an important issue.
The only contention is in the mind of ideologically driven individuals
Thanks
Comment by Sandy on 3rd October 2018
Thanks for all of your efforts!

De, you are truly impressive. :)
Once again, De...
Comment by Becky Knutson on 3rd October 2018
You are a pragmatic, informative voice of reason. Thank you so much for taking the time to research this issue. The outliers sure have interesting situations!
Thanks so much.
Comment by Caz on 2nd October 2018
This is so helpful shining a bright light on our problem.
My new moto for me is “shut up and pay up”
Our life here is rich in so many ways.
Thanks for your legwork
Comment by Don Tennant on 2nd October 2018
What a well written, and researched article. Thanks so much for getting in touch with all those communities.
Thank you
Comment by Ruth and Roland on 2nd October 2018
Thanks for doing this research and report, De.

We agree that our halls are a very important part of our healthy community and am happy to support them with tax dollars. Your suggestion about limits makes sense, too.
Thank You For Clarifying!
Comment by Heather Bruce on 2nd October 2018
MUCH appreciation for this informative article. I am sure there will be some that continue to find reasons to oppose this hall tax, but I can tell you from my 72 years of observation that most all of us need to feel like we belong to a community that gives a darn! I will again state our support of the hall tax - and lest anyone thinks we are among the affluent, we drive a 15 year old car and live in a 16 x 25 foot cabin if you count the bathroom. If this gets voted down, I will be saddened, as Cortes *will* be being different - but at what cost to the fiber of this Community? Thanks for sharing, De!