The Trail Skills Centre says it’s still fighting to stay alive but city council has narrowly voted against providing the organization with financial help.
The non-profit organization, which provides poverty reduction and employment services, is struggling following the reduction or elimination of government funding. They had asked the city for a $30,000 contribution, but council held off on a decision pending more info.
Board chair Rhys Andrews told council they’re approaching many organizations for help as they try to turn their financial situation around and the amount they requested from the city was “not a strategic number.”
“It could be less, it could be more, frankly,” he said. “But it’s a number we thought was a reasonable ask.”
Andrews said the organization is beginning a financial feasibility study with the firm of Grant Thornton to look at ways to stabilize the Skills Centre, but he acknowledged it may turn out that are “not viable given our financial situation.”
Andrews said he didn’t want to “sugarcoat” their predicament, but said they are working hard to continue to offer programs. The organization has already cut costs and laid off ten of its 14 staff, including former executive director Morag Carter.
Andrews said they expect the study to look at options including merging with or being acquired by another local nonprofit. He said they’re concerned about their downtown building, which they bought and renovated and moved into in 2024.
“We want to continue to see that as an asset for the community,” he said, adding that other non-profits use the building and the Trail FAIR Society plans to move some of its programs there.
Andrews said they are hoping to have the results of the feasibility study within a month and a half.
Andrews said the organization’s operating cost is $40,000 to $50,000 per month, including its mortgage and payroll. Their present financial plan takes them to June or July. He said “almost no money” is coming from the provincial government for programming for the types of clients they serve, limiting their services for the coming year.
“We continue to batten down the hatches and try to survive through a period where we just don’t have the program funding that we have typically had for decades,” he said.
Andrews said they are talking to Kootenay Savings Credit Union and expect to hear soon on a proposal that could provide $100,000 in operating funds. While the Columbia Basin Trust can’t provide operating funding, they agreed to fund the feasibility study.
Executive director Emily Gora said the society is also waiting to hear on a community gaming grant it has applied for and to hear from the Ministry of Social Development and Poverty Reduction about funding for a program that starts April 1.
Gora said the Skills Centre has tapped funding from a variety of other sources, including the RBC Foundation, and collected $14,000 from this year’s Coldest Night of the Year event. Whenever they secure program-specific funding, a portion covers organizational expenses, she added.
Tie vote
Councillor Nick Cashol said he had concerns about providing short-term operational support. He said municipal grants are usually provided to support specific programs or projects, not to stabilize an organization during financial restructuring. And he wasn’t sure the $30,000 would go very far.
“The cash flow projections show significant financial pressures that extend well beyond that amount, suggesting this funding is only a temporary bridge rather than a solution,” he said.
Cashol said it might make more sense to wait until the Skills Centre completes its study before the city considers giving any money.
Mayor Colleen Jones said while there is risk to providing the grant, there is also risk that people won’t be able to get the training they need.
“The Skills Centre is the hub of the community where people go to get support and help with some of the challenges they have,” she said.
The motion to provide the $30,000 was defeated in a tie, with Jones voting in favour with councillors Bev Benson and Terry Martin, while Cashol voted against with councillors Doug Wilson and Thea Hanson. Councillor Paul Butler, who works for Kootenay Savings, recused himself from the discussion.
The Regional District of Kootenay Boundary has agreed to provide the Skills Centre with up to $30,000, which doesn’t include any money from Trail.
Be the first to know! Don’t miss out on breaking news and daily updates in your area. Sign up to MyKootenayNowNews Alerts.
