With the Arts and Heritage Foundation (AHF) and the City of St. Albert in the midst of negotiating the future of the organization, it is worth revisiting some basic points about the AHF, its role and what challenges the two sides face.
What is the AHF?
The (AHF) is a non-profit group, established by the city in 1998. It manages the Art Gallery of St. Albert (formerly Profiles), the Musée Heritage Museum and St. Albert's heritage sites, such as the Little White School, St. Albert Grain Elevator Park and Riverlot 24. It also offers programming for youth and adults.
Why was the AHF formed?
Prior to 1998, a museum management board, on behalf of the city, was responsible for the Musée Heritage Museum, as well as the heritage sites. A report in 1996, referred to as the LORD report, recommended those responsibilities instead become a duty of city administration. At the same time, the Profiles Art Gallery Society was operating out of space in Grandin Park Plaza. Both the society and museum management board started looking at ways they could work together without duplicating services. The council of the day endorsed moving to one society responsible for both heritage and the gallery. In 1998 the AHF was formed.
One other factor in the AHF's formation was access to government grant money — it was believed a non-profit entity like the AHF could access funding that the city, as an order of government, could not.
How is the AHF funded?
The AHF receives the bulk of its operating dollars from the city, which totaled $1.295 million for 2011. The rest of the organization's 2011 revenue of $2.042 million, according to its year-end financial statement, comes from government grants, programming, charitable donations, the annual art auction and other activities, such as sales from its gift shop.
What is the stewardship agreement?
The stewardship agreement is the document that outlines the responsibilities of both the city and the AHF and how the two parties will communicate. The first stewardship agreement was signed in 2001 for five years. It was renegotiated in 2007 for another five years. It was due to expire in June of 2012 but both sides agreed to a six-month extension.
What are the challenges in negotiating a new stewardship agreement?
According to a report delivered to city council in a special meeting Monday night, it has been difficult for the city to monitor the AHF's terms, roles and responsibilities. The report also stated that communication and collaboration has been a challenge, as has the increased funding to the organization. The presentation also included a slide stating the city and a "Friends of" society could access of most of, if not all, the grants the AHF does.
Is the AHF in deficit?
No. A slide presented to council during Monday's presentation showed raw numbers that, without context, showed the AHF was $209,913 in deficit. But general manager of community and protective services Chris Jardine admitted those numbers should not have been presented without further explanation
According to the AHF, the $209,913 represents expenses from its reserves, not operational dollars. That money has been used for the restoration of the Little White School and other projects. Its audited 2011 statements show a surplus of $154.
What's next?
Subcommittees from both the city and AHF will meet to try and decide the next steps in the process. Options include negotiating a new stewardship agreement, extending the current agreement into 2013, dissolving the AHF and assigning its responsibilities to the city's cultural services department, or a combination of the different options.
