Community halls in financial straits as events cancelled
Neighbourhood facilities under cloud with no idea when pandemic will ease
Community halls across Calgary have been sitting empty for nearly two months and some local associations are wondering whether they can survive the financial blow from the COVID-19 pandemic.
In spaces that normally run a busy schedule of preschools, dance classes and neighbourhood events, virtually everything is on pause — and so is the cash flow that keeps the lights on.
Community halls are cityowned, but managed and maintained by volunteer community association boards. According to the city, more than 180 social recreation groups and community associations operate almost $1 billion of city assets.
David Barrett, vice-president external of the Renfrew Community Association, says COVID-19 has sent the group’s 2020 budget out the window.
The association estimated it would earn $60,000 in revenue from hall rentals for the year, but since the building closed in March, that number is now zero.
Still, Barrett says, no one’s panicking yet. Non-profits like community associations get funds from charitable gaming every 18 months, and the Renfrew Community Association ran its casino last year. The group also has a healthy reserve fund and has been able to keep its single employee on board with the federal government’s wage subsidy program.
But even with a bare-bones budget, the association spends about $6,000 a month on the bills at its northeast community hall.
There’s no telling how long it might have to continue with no hope of generating revenue.
Large gatherings that would typically fill community halls — weddings, family reunions, birthday parties — are all out of the question, and public health officials have warned that those could be among the last parts of normal life to return. Some community associations also run ice rinks and athletic facilities, and recreation centres and arenas won’t be allowed to reopen until Phase 3 of the province’s relaunch.
“I think this could be a make-orbreak scenario for a lot of community associations across the city,” Barrett said. “Without some form of support, they’re at risk of becoming insolvent, I’m sure.”
On Monday, city council will consider setting aside $6 million from its rainy-day reserve fund to support community associations and social recreation groups.
It’s one of several moves the city is eyeing to help local workers and organizations struggling in the wake of COVID-19 restrictions.
According to a city report, if community associations and social recreation groups can’t get additional funding support for day-to-day expenses, 20 per cent of the organizations across the city could fail by the end of the year.
The situation is “grim,” says Leslie Evans, executive director of the Federation of Calgary Communities.
“Depending what happens this year and next year, I think we could have some pretty catastrophic failures unless there’s that sustained support moving forward,” she said.
The relief package the city is considering is critical, Evans said, but she worries it won’t be enough if the crisis stretches into 2021.
Groups that run bigger community buildings are facing tens of thousands of dollars in essential operating costs every month, even after cutting back as much as possible. She said most non-profits keep enough money on hand to sustain them for at least three months, or even six months if they’re in good shape. She’s heard from some community groups that figure they can last up to nine months.
“If this goes beyond December, I think all our groups will be starting to wave flags and go, ‘Whoa, whoa, whoa, we’re in a lot of trouble here,’ ” she said.
“It’s not just the little guys that are failing here. Nobody could possibly be prepared for what’s happening. It’s almost unimaginable.”
And if these volunteer groups run out of money, hundreds of millions of dollars in city-owned assets could fall into disrepair.
“With each passing month, their ability to cover those non-negotiable costs goes down,” Evans said.
“It’s a risk, and it’s a risk to taxpayers.”
Highland Park Community Association president Elise Bieche says her group figures they’ll be stable until the fall, but they need to be able to ramp up revenue streams again. They were due for a casino this month, which certainly won’t happen now.
“If we’re not able to go back in September, then I’ll be worried. I’ll be sick with worry,” she said.
In the meantime, her group is grappling with the question of how to connect the community when their main gathering space — the hall — is off-limits.
The Highland Park association has been helping co-ordinate volunteers across their community to connect with neighbours and make sure people can get support amid COVID-19. Online outreach is increasing too, but Bieche worries about people who might still be falling through the cracks.
“We lost our seniors’ luncheon,” she said. “We had 50 seniors who would come for lunch every single month. So how do we continue to serve that demographic?”
In Renfrew, Barrett said community associations are leading the charge to make sure neighbours stay connected during a time of isolation. Losing the groups trying to help tie the city together, he says, would be a blow.
“It would be hard to get back.”