SOMBA K'E/YELLOWKNIFE - Changes may be in the works for several groups that receive annual core funding from the city, including a 30 per cent reduction for Folk on the Rocks.

The Folk on the Rocks music festival drew more than 5,000 people last summer but the core funding the organization receives from the city is slated to be reduced by $5,000 in 2010. - NNSL file photo

Bob Brooks, chair of the grant review committee, said the city's grants are capped because they cannot exceed two per cent of the operations and maintenance budget and funding shifts had to be made.

"If a group can actually create a viable entity where they can make money and start banking money, then they don't need us anymore," he said, adding Folk on the Rocks would fall into that category.

"They're getting to be very successful, they've been doing it a long time, they keeping rolling over the money. They are making money. As long as we don't have a year where there's a snowstorm over Folk on the Rocks, that should continue," Brooks said.

He added the organization can re-apply for special grants in the future if they were to stop receiving core funding.

Lynn Feasey, executive and artistic director for Folk on the Rocks, said the festival has always been grateful for the support they've received from the city, but she disputed the idea that core funding should be reduced if an organization is successful.

"I'm happy to hear we're not cut off but I'm disappointed to hear it's been reduced," she said.

Feasey said it was important to distinguish core funding from start-up funding, she said the idea shouldn't be to ween organizations from core funding once they get off the ground.

"Core funding is to stabilize an organization, so they can rely on those funds no matter what happens," she said. "Organizations like this are vulnerable to all kinds of things, from staff turnover, an event that didn't turn out because of something that was beyond our control."

Feasey said just because the festival had a successful event this summer, didn't mean they are guaranteed a profitable event in future years.

"Folk on the Rocks was successful this year but those funds went to offset the capital improvements," she said. "We're not really any further ahead. The year before we lost money. To say Folk on the Rocks is successful is relative."

She added the festival, which is going into its 30th year, spent $150,000 on site improvements without financial support from the city.

Feasey said funding the organization was an ongoing investment for the community.

"As we move forward to become more sustainable, that money will go back into the community."

Local artisans and vendors earn revenues from the two days, adding this summer they made more than $60,000 in total, she said.

She said Folk on the Rocks does apply to other governments and organizations for money but many grants come with stipulations for where the money should be spent whereas core funding can help out throughout the year with the operational cost, including having two employees year round.

"We have to raise money to keep our office door open through the winter months," she said. "$5,000 is a lot."

"Our goal is to become a year-round organization and to get less than an organization that is just an event is disheartening," she said, referring to Caribou Carnival, which was recommended to receive $15,000.

The Grant Review Committee met on Oct. 8 and discussed core funding applications, council reviewed their recommendations at Monday's meeting.

Under the proposed allocations, three groups will receive less funding next year, while two groups will see an increase. Folk on the Rocks will receive $5,000 less, St. John's Ambulance is stated for a $1,200 reduction and Caribou Carnival will tentatively lose $2,000 in funding.

If the proposed amounts are passed at city council, $5,000 more will be given to Sidedoor Ministries and $500 more to Yellowknife Special Olympics. The Festival of the Midnight Sun's funding will stay the same in 2010 but is slated to see $500 less per year in 2011 and 2012.

The committee is now recommending proposed funding for three years, with the idea of giving them a more stable long-term plan. Groups requires a year's notice for funding changes and council will continue to vote on funding each year.