THE NEW DEAL NON PUPLIC PROPERTY (NPP) PROPOSED FUNDING DISTRIBUTION METHODOLOGY

References : A. CDS Letter “New Deal” Study Directive dated 24 October 2008. B. The New Deal Study Directive Funding Distribution emailed 4 October 2010. C. A-PS-110-001/AG-002 Morale and Welfare Programs in Canadian Forces, Volume 1 Public Support for Morale and Welfare Programs and Non Public Property.

AIM

1. The aim is to present a new Non-Public Funds (NPF) funding distribution model for implementation at the commencement of FY 11/12.

BACKGROUND

2. After reviewing funding distribution options (ref B), the Environmental Commands agreed that Option D had the most universal appeal and requested further refinement.

3. The model at reference B, Option D, negatively affects four bases (Suffield, , Leitrim and RMC). The funding model presented at Annex C is the most equitable solution that could be found by the Tiger Team. Alternate proposals resulted in a large negative outflow for other bases. While a complete solution was not found for aforementioned bases, Annex C minimizes their negative net change while achieving national equitability to the greatest extent possible. Each base that suffers a negative net change is addressed individually later in the “Unique Circumstances” section.

4. Work has commenced with VCDS with respect to reference A and the Outside (OUTCAN) units: CFSU(E), CFSU© and CDCS (W).

PRINCIPLES OF FUNDING DISTRIBUTION

5. The “New Deal” funding distribution methodology minimizes “prescriptiveness” in order to permit flexibility by the local chain of command to address local requirements. The funding provided by DGPFSS is only one part of a Base’s overall funding. If required, Bases are responsible to raise funds locally in order to provide services.

6. There will be no standardized charges or usage guidelines for Community Recreation Cards across the CF.

7. Families will not be asked to pay for something that they will not directly either participate in or benefit from.

8. In general, Bases / Wings should follow the provisions of CFAO 50-20 and table 1-3-1 of ref C in the charging of fees for Specialty Interest entities.

9. This funding distribution methodology will not affect current Consolidated Bank Accounts (CBA) or the interest accrued.

10. The current funding distribution methodology will be changed. CANEX Royalties will be reduced from 1.5% of local sales to 0.6% of local sales. Concession Royalties will be reduced from 30% of net local revenue to 15% of net local revenue. The CFPSA Morale and Welfare grant will be eliminated and replaced with an Equitability Adjustment Grant.

11. HR and Accounting Fees have been inconsistently applied and at time illogical by local management, therefore the entity’s real financial result may be distorted. These fees will no longer be paid for by the Bases and Wings, but will be absorbed by DGPFSS. Consolidated Insurance Premiums (CIP) will continue to be paid by the Bases and Wings.

12. The cost of CIP is not reflected in the Annex C. Although the overall cost of the premiums is not expected to rise, there will be a re-balancing of the premiums which will change the CIP amounts for individual Bases/Wings.

FUNDING DISTRIBUTION METHODOLOGY

13. Without the injection of additional capital, all attempts to more equitably distribute the $2.0M that is currently at Base / disposal would significantly and negatively impact a large number of Bases / Wings. Therefore, a further $1.5M of guaranteed funding has been added to the envelope for a total of $3.5M. The new funding distribution is based on three components:

a) CANEX Royalties (approx $1.0M) b) Community Recreation Core Program Services (approx $1.0M) c) Equitability Adjustment Grant (EAG) (approx $1.5M)

CANEX Royalties:

14. Recognizing that NPF are generated principally through the CANEX (both retail and concessions), Base / Wing Commanders will continue to be “incentivized” to generate NPF revenue through these operations. Also, the fact that Bases and Wings who are making Public contributions (O&M and PILT) to NPF concessions will receive a percentage of NPF sales and concessions within this funding model is additional incentive for Base / Wing Commanders to enhance their concessions portfolio.

15. CANEX royalties will be calculated at 0.6% of total local CANEX sales and 15% of net local concession revenue for a total of approx $1.0M.

16. During the development of the funding methodology 0.6% and 15% royalties were proven to achieve maximum equitability across bases while still respecting the $3.5M cap on overall funding.

Community Recreation Core Program Services:

17. The provision of a core component is one of the key elements in a new distribution model. It recognizes the essential outcomes that NPP beneficiaries should receive regardless of location. Bases / Wings must provide core Community Recreation Program services as identified by an annual Community Needs Assessment (CNA) with guidance from DGPFSS. Core funding is provided to each base to assist with achieving a basic set of services and programs for members and families that one should find regardless of where one serves within Canada. While the Core funding model was developed using specific like items found at every base, it is not the intention for the funding to restrict the unique needs of a Base/Wing. The CNA is meant to assist Base / Wing Commanders in determining the unique needs of their community and offers flexibility in determining what is truly core for their specific base.

18. Core services found within the funding model at Annex A are designed to promote healthy lifestyles, life skills and community recreation involvement through the delivery of services to a wide age segment with broad appeal for the entire CF community.

19. The services will be offered by Personnel Support Program Community Recreation Departments where a demonstrated need(s) exists, and in accordance with the policies published by Director General Personnel Family Support Services (DGPFSS), DND and the CF.

20. Community Recreation Core Program Services are grouped into three elements:

a) Community Needs Assessment (CNA); b) Active Living; and c) Community Programming.

21. The only mandatory portion of Core services for which funding is provided is the annual CNA. Base / Wing Commanders will be required to submit a letter of attestation annually to include verification of completion of a CNA and acknowledgement of action taken based on its results.

22. To “operationalize” the core community recreation costs into a revised funding distribution methodology, DGPFSS determined a model for costing each respective base. Annex B contains an explanation on how these costs were calculated.

23. Based on the core costing model, the funding distribution methodology was set at 33% of core in order to achieve an equitable balance between bases and remain within the $3.5M cap on overall funding.

Equitability Adjustment Grant (EAG)

24. As per APS 110-001, units in Canada are grouped into four categories based on two factors including: proximity to major civilian populations (Urban, Semi-Urban, Rural and Remote) and population at each Base/Wing. See the table below for categorization of size:

Less than150 150-500 500-1500 1500-3000 3000-5000 More than 5000

25. The EAG attempts to compensate for the various factors, such as lack of infrastructure or a small target population for programming, that contribute to life in a rural location not providing the same options as life in an urban area. The EAG also assists in achieving a baseline of service at smaller bases while also assisting with the demands for greater capacity at larger bases.

26. Bases / Wings will remain in their population category until the next full review in FY 13/14. If a base crosses a size threshold (increase or decrease) by 10% or more during a FY, then the Base / Wing may request an earlier review within the CNA Attestation letter.

27. In order to equitably distribute the $1.5M EAG, a baseline grant was established for an urban base with less than 150 people. For all other bases, a multiplier is applied based on the two factors (Geography/Size).

GEOGRAPHY MULTIPLIER Urban 1 Semi-Urban 1.25 Rural 1.5 Remote 2.25

SIZE MULTIPLIER Less than 150 1 150-500 3 500-1500 6 1500-3000 9 3000-5000 12 More than 5000 15

28. Should a local situation develop where CANEX sales markedly deteriorate, DGPFSS will ensure that CANEX Royalty in any given year is not less than 75% of the new FY 2011/12 baseline. Similarly, should a local situation develop whereby CANEX sales increase greater than 150% of the new FY 2011/12 baseline, then any CANEX Royalty above 150% would be invested in CFCF.

29. If a new CANEX operation is established after the implementation of this funding model, the maximum amount of royalties (150%) will be waived until a 3 year baseline can be established.

30. Allocation to small units will be done as per ANNEX D.

UNIQUE CIRCUMSTANCES

31. CFB Suffield . CFB Suffield suffers a large net loss in total funding under the new funding model. This is caused by the “grandfathering” of CFB Suffield’s CANEX Royalties at a rate above that of other bases (5% vs.1.5%) under the current funding model with the result that CFB Suffield has been receiving disproportionate funding relative to other similar bases.

32. DGPFSS, the Army and CFB Suffield shall commence immediately to develop a plan that respects and recognizes the BATUS’ contribution to CFB Suffield’s MW programs.

33. If an agreement is not reached prior to the commencement of FY 2011/12 then CFB Suffield will be funded at their 2009/10 level.

34. CFB Montreal / CFB St-Jean . In order to respect the principle of equitability among bases of like size and geographical location ASU Montreal and ASU St-Jean will absorb an approx $50K loss in net funding and in accordance with Annex C would now be funded to the same degree as other bases in their category.

35. CFB Kingston / RMC . The current relationship between ASU Kingston and RMC balances the funding to these two separate base funds in order to provide MW programs to CF families in the Kingston area. Although, it is expected that this relationship will continue, ASU Kingston and RMC shall formalize this relationship through their respective chains of command.

36. CFSU(O) / CFS Leitrim . CFS Leitrim does not offer any recreational programming accounting for its negative net change from FY 09/10 totals. Similarly, has experienced a significant positive net change in their funding which accounts for the recreational programs offered to families of both CFS Leitrim and Ottawa. CFSU(O) and CFS Leitrim shall negotiate a formal agreement for the provision of MW programs that meet the needs of both communities within the NCR.

IMPLEMENTATION AND REVIEW

37. All components of this funding distribution will become effective FY 11/12. A cost of living adjustment based on national CPI will be incorporated per annum per base/wing.

38. The initial period of this funding distribution methodology will be for 3 years however this document shall be reviewed in FY 13/14 by the NPP BODto ensure the plan is meeting its stated goals of equitability.

39. Pending the results of the initial review in FY 13/14, it is intended that the funding distribution be reviewed by Environmental Commands in cooperation with DGPFSS every 5 years after FY 13/14 to ensure it continues to meet requirements.

ANNEX A – Community Recreation Core Program Services (included)

ANNEX B – Aggregate Cost of Core Programs (included)

ANNEX C – Funding Distribution Methodology (included)

ANNEX D – Small Units Allocation (included) ANNEX A

Community Recreation Core Program Services

Community Needs Assessment (CNA)

1. The CNA is the overarching component that drives the delivery of services for the Active Living and the Community Programming areas. Bases / Wings / Units will be required to do an annual CNA. A variety of methods can be used to assess community needs. These include community surveys, focus groups, key informant interviews, community forums, surveys of specific target groups, reviews of demographic and socioeconomic data, and reviews of service evaluation data. DGPGSS will provide Base / Wing recreation directors with a template that can be used / adapted to meet local needs.

2. The community assessment permits an organization to gather information on the current strengths, concerns, and conditions of children, families, and the community. The main reasons that organizations should conduct community needs assessments are to:

• inform service planning • identify existing community services and resources • establish service priorities • determine the need for specific services • increase accountability • highlight the opinions and reflect the experiences of the community.

Active Living

3. Active Living is an essential component of a core community recreation program. Nine hours of facility access to recreational facilities to encourage active living weekly would be an acceptable standard for a progressive Canadian community. Normally, the hours provided for family use should be balanced between weekend and weekday evenings. This component allows for self-directed recreation throughout a weekly schedule that may vary seasonally.

4. Bases / Wings / Units should use their community assessments to determine the facilities most desired to have access to by their CF members, but the following facilities (if existing at each location) are recommended to be included at minimum once per week:

ANNEX A

Pool Gymnasium Ice Arena

Community Programming

5. Community Programming is the third core component and is typically divided into three categories, profit driven, cost-recovery and subsidized. Community programming will be defined as the latter, where funding can be directed to cover a portion or all of the operating expenses. Fifty hours per anum of community programming location offering a balanced set of programs / services will be delivered for each CF community based on the results of the CNA.

6. Bases/Wings and Units should use their CNAs to determine the nature of the community programming that is most desired; however, the following are encouraged:

• Special Events • Instructional Programming

7. To ease the burden on local Base / Wing staff, DGPFSS will create a signature recreation program that can be offered at any CF location. This program will introduce participants to a new form of leisure experience while maintaining the overall goal of creating an environment that maximizes participation and play, builds social relationships, supports healthy development and encourages skill development. ANNEX B

Aggregate Cost of Core Programs

1. For those Bases with public facilities, the cost is based on the NPP salary cost for recreation attendants only. For those bases without a facility or facilities, the cost is predicated on the actual cost of facility rental in the respective local area. The total cost to deliver the complete core recreation program is $2.9M. As stated previously the Core Recreation Programs will be funded at 33% of this total cost.

2. The cost for the active living recreation program, special events and community assessment were determined using average costs to deliver these services across the CF Community.

3. Funds were set aside for program expenses that are typically passed on to the participant through registration fees. Expenses were generalized using average costs; note that the community assessment would drive the areas of interest for the program. The Recreation Director would be responsible for managing the budget and balancing the interests of the participants with the cost of the program.

4. The core recreation program does not guarantee participation for each CF member and their family, it guarantees access to available programming and facilities. The CF member will need to engage at the local level and respect items such as maximum registration numbers. The core program was designed to allow for maximum participation, but all programs will have restrictions based on safety and supervision. ANNEX B

ANNEX C

Funding Distribution Methodology ANNEX D

Small Units

1. In the current funding model small units receive a per capita allocation in their respective trust fund. Reimbursement of expenditures is requisitioned by submitting a Cheque Request to the designated local NPF Accounting Office.

2. The new funding model eliminates per capita allocation. Small unit strength numbers are included in the Base/Wing size categorization figures and are reflected in the equitability adjustment grant. Bases/Wings, knowing and understanding the unique situation (access to CANEX/concessions, access to Base facilities, community size and distance from the supporting Base) of small units in their area of support, are responsible to insure equitable access to programs and services.

3. Current funding level for small units (table) is to be maintained or increased.

4. The annual B/W Commander NPP letter of attestation will include the requirement to address small unit funding.

Small Units Base/Wing Total

Halifax 5,400.00 Gagetown 4,200.00 Gander 700.00 Greenwood 800.00 St. John's 700.00 Valcartier 6,300.00 32,340.00 London 13,100.00 Borden 400.00 Kingston 100.00 Petawa 2,100.00 Ottawa 4,600.00 500.00 Yellowknife 700.00 Chilliwack 12,900.00 Moose Jaw 3,400.00 Shilo 600.00 ANNEX D

Suffield 100.00 Winnipeg 10,260.00 Esquimalt 2,200.00 Calgary 7,100.00

TOTAL 108,500.00

UNIT Base/Wing Account Total Strength FY2010/2011 Total Per Base NICS (CC) 11100-238 8 800.00 SYDNEY DETACHMENT 11100-239 37 3,700.00 Halifax 1 NS HIGHR TRURO 11100-243 7 700.00 AEF PICTOU 11100-256 2 200.00 5,400.00 BATHURST CFRC 12100-222 3 300.00 CHARLOTTETOWN CFRC 12100-223 5 500.00 HMCS BRUNSWICKER 12100-225 6 600.00 HMCS QUEEN CHAROLETTE 12100-228 3 300.00 CHARLOTTETOWN DET 12100-229 5 500.00 CHARLOTTETOWN PEI REGIMENT 12100-230 5 500.00 Gagetown 3 FD REGT SAINT JOHN 12100-231 2 200.00 721 COMM GR CHARLOTTETOWN 12100-232 2 200.00 722 COMM SAINT JOHN 12100-233 1 100.00 BATHURST 2RNBR 12100-234 3 300.00 31 SAINT JOHN NB 12100-236 4 400.00 CFRC DET SAINT JOHN 12100-237 3 300.00 4,200.00 CORNER BROOK CFRC Gander 13100-134 7 700.00 700.00 AEF LUNENBURG 15100-223 7 700.00 Greenwood 84 INDEP F 15100-224 1 100.00 800.00 2R NFLD R CORNER BROOK St. John's 16100-121 7 700.00 700.00 CRFC RIMOUSKI 21100-275 3 300.00 CFRC ROUYN-NORANDA 21100-276 2 200.00 HMCS RADISSON 21100-281 2 200.00 HMCS D'IBERVILLE 21100-282 4 400.00 METC 21100-283 6 600.00 HMCS JOLLIET 21100-284 1 100.00 CFRC DET SHERBROOKE 21100-286 6 600.00 CFRC TROIS RIVIERES 21100-287 2 200.00 SHERBROOKE HUSSARDS 21100-288 3 300.00 12 RBC TROIS RIVIERES 21100-289 3 300.00 62 FD REGT 21100-290 3 300.00 Valcartier 714 COMM SHERBROOKE 21100-291 3 300.00 9 FLD ENGINEER 21100-292 3 300.00 FUS ST-L RIMOUSKI 21100-293 3 300.00 6R22ER 21100-294 3 300.00 FUS DE SHERBROOKE 21100-295 2 200.00 52 CIE MED SHERBROOKE 21100-296 2 200.00 DET RIMOUSKI QC 21100-356 0 - DET TROIS-RIVIERES 21100-357 1 100.00 CEGEP TROIS-RIVIERES 21100-358 2 200.00 CEGEP RIMOUSKI 21100-394 6 600.00 CEGEP SHERBROOKE 21100-395 3 300.00 6,300.00 ANNEX D

UNIT Base/Wing Account Total Strength FY2010/2011 Total Per Base

CFRC TORONTO 27100-222 32 3,200.00 CEN REG HQ TORONTO 27100-224 7 700.00 HMCS YORK 27100-225 5 500.00 1 DENT UNIT TORONTO 27100-228 4 400.00 CFEME DOWNSVIEW 27100-230 60 5,800.00 DNPAO 27100-231 2 200.00 2 INT COY 27100-233 1 100.00 LFCA HQ 27100-234 73 6,840.00 6 CFQAR 27100-236 1 100.00 CFMG DET TORONTO/32 CF H SVCS 27100-239 20 2,000.00 32 CBG 27100-241 11 1,100.00 2HSOTUME TORONTO 27100-243 5 500.00 GGHG 27100-245 2 200.00 ONT R OSHAWA 27100-247 1 100.00 QY RANGER TORONTO 27100-248 2 200.00 2 FER 27100-253 2 200.00 709 COMM GR TORONTO 27100-254 2 200.00 LORNE SCOTS Toronto 27100-260 3 300.00 25 (TOR) S 27100-265 3 300.00 JAG/CC8E 27100-310 5 500.00 CFNCIV DET 27100-311 7 700.00 WC ONT & PR 27100-329 3 300.00 RCR BS MTD 27100-330 2 200.00 7 TOR REGT 27100-331 2 200.00 QOR OF C TORONTO 27100-332 2 200.00 R REGT OF 27100-333 3 300.00 48 HIGHRS 27100-334 3 300.00 TOR SCOT R 27100-335 4 400.00 CFRC MISS 27100-351 9 900.00 DRDC TORONTO QOL 27100-355 3 300.00 1CAD DET TOR QOL 27100-356 21 2,100.00 RCACC 27100-369 0 - 2 MP UNIT 27100-370 14 1,400.00 70 Comm Gp HQ Det Toronto(OSG) 27100-374 1 100.00 JPSU Det Toronto 27100-375 15 1,500.00 32,340.00 CFRC LONDON 27800-103 8 800.00 CFRC DET WINDSOR 27800-104 7 700.00 CFRC HAMILTON 27800-105 21 2,100.00 CEN REG HQ LONDON 27800-106 6 600.00 HMCS HUNTER 27800-107 1 100.00 HMCS STAR 27800-108 4 400.00 HMCS PREVOST 27800-111 2 200.00 31 CBG HQ 27800-112 10 1,000.00 2HSOTU DET LOND 27800-113 7 700.00 LFCA TC DET 27800-114 2 200.00 31 CER 27800-115 2 200.00 1 H LONDON 27800-116 3 300.00 WINDSOR R 27800-117 1 100.00 11 FD REGT 27800-118 3 300.00 London 56 FD REGT 27800-119 4 400.00 705 COMM S 27800-120 1 100.00 RHLI 27800-121 2 200.00 LINC & WEL 27800-122 7 700.00 4 RCR 27800-123 4 400.00 RHF OF C 27800-124 2 200.00 ANNEX D

UNIT Base/Wing Account Total Strength FY2010/2011 Total Per Base

GREY & SIM 31100-263 1 100.00 Borden OSHAWA CFRC 31100-283 3 300.00 400.00 BROCK RIF Kingston 33100-189 1 100.00 100.00 CFRC SUDBURY 34100-200 6 600.00 CFRC DET SUDBURY 34100-203 3 300.00 ASU N ONT 34100-204 10 1,000.00 49 FD REGT 34100-206 1 100.00 2 IRISH R 34100-207 1 100.00 2,100.00 CFSACO 36760-105 44 4,400.00 Ottawa SD&G HIG 36760-106 2 200.00 4,600.00 NDPAO PRAIRIES 41100-208 4 400.00 Edmonton 749 RESCOMMSQN 41100-229 1 100.00 500.00 JTFNHQ WHITEHORSE 50100-126 3 300.00 DET IQALUIT CFPSYellowknife 50100-127 1 100.00 JTFN HQ DET NUN 50100-128 3 300.00 700.00 1HSOTU 41845-116 9 900.00 CFMSS VANCOUVER 41845-120 7 700.00 CFRC VANCOUVER 41845-123 28 2,800.00 QAWC VANCOUVER 41845-124 1 100.00 UNIV LIAISON OFFICER VANCOUVER 41845-125 45 4,500.00 HMCS DISCOVERY 41845-126 4 400.00 NDPAO VANCOUVER 41845-127 2 200.00 6 INT COY DET VANCOUVER 41845-128 1 100.00 39 CBG HQ 41845-129 5 500.00 BCR VANCOUVER 41845-130 1 100.00 Chilliwack BCD KELOWNA 41845-131 2 200.00 15 FD REGT VANC 41845-132 2 200.00 6 FD ENGR SQN 41845-133 6 600.00 744 COMMREGT 41845-135 1 100.00 RM RANG KAMLOOPS 41845-136 2 200.00 R WESTMR R 41845-137 1 100.00 SEAFORTH OF C 41845-138 3 300.00 12 SVC BN 41845-139 3 300.00 12 MED COY 41845-140 2 200.00 CEGEP AHUNTSIC 41845-147 4 400.00 12,900.00 CADET DET REGINA 43100-172 1 100.00 HMCS UNICORN 43100-173 3 300.00 HMCS QUEEN 43100-174 4 400.00 4 HSOTU DET REGI 43100-175 2 200.00 LFWAHQ DET REG 43100-176 2 200.00 734 COMMSQN 43100-177 2 200.00 N SASK R 43100-178 2 200.00 737 RESCOMMSQNMoose Jaw 43100-180 2 200.00 16 SVC BN DET 43100-181 1 100.00 CFRC DET REGINA 43100-184 5 500.00 CFRC SASKATOON 43100-185 1 100.00 10 FD REGT REG 87600-105 3 300.00 R REGINA RIFLES 87620-104 2 200.00 16 SASK SVC BN 87640-104 4 400.00 16 MED COY 87660-104 0 - 3,400.00 26 FD REGT 44100-160 2 200.00 Shilo CEGEP STEFOY 44100-210 4 400.00 600.00 SALH MEDICINEHAT Suffield 45100-134 1 100.00 100.00 ANNEX D

UNIT Base/Wing Account Total Strength FY2010/2011 Total Per Base

HMCS GRIFFON 47100-168 3 300.00 CFRC THUNDER BAY 47100-170 3 300.00 736 COMM PSP GRT 47100-171 2 200.00 18 (TBAY) SVCBN 47100-173 5 500.00 18(TBAY) MEDCOY 47100-175 1 100.00 Winnipeg THUNDERBAY 47100-196 2 200.00 LAKE SUPERIOR S 47100-197 2 200.00 CFS DET PORTAGE LA PRARIE 47100-274 4 400.00 3CFFTS 47610-103 87 7,960.00 116 INDEP 88220-107 1 100.00 10,260.00 CFMETR NANOOSE 49100-243 4 400.00 CFS DET Esquimalt 49100-244 4 400.00 DET MATSQUI 49870-109 14 1,400.00 2,200.00 ASU CALGARY 51100-105 52 5,200.00 CFRC CALGARY Calgary 51100-106 15 1,500.00 HMCS TECUMSEH 51100-114 4 400.00 7,100.00

Total 1639 108,500.00 108,500.00