Wednesday, December 15, 2010

City council urged to help Rosewood

Financially embattled Rosewood House deserves city help to keep its doors open and become sustainable again, says the chairman of the social services committee.

"I think they're making a reasonable request," Coun. Vince Bucci, the newly elected chairman, said in an interview Wednesday.

He was speaking after the committee agreed to forward to the city's budget process an appeal from Rosewood for an increase in the daily rate to $90 a client from the current $73.04, and an increase in the number of allowed beds for adults to 15 from 11.

"The fact is Rosewood provides an essential service in the city, has rarely come to us for financial help and whenever they have borrowed, they have always paid the money back promptly," Bucci p>He also noted that Rosewood has been receiving a daily rate for clients that is less than that provided to other social housing services.

"The fact that they are not receiving as much as others is unfair and should be brought up to date," he said.

Rosewood, which provides accommodation and life-skill services to clients with mental difficulties, relied for years mostly on its own resources and a modest daily rate from the city, while offering an expanding array of programs from its Nelson Street facility.

Executive director Tim Philp told the committee Wednesday that the facility was thrown into a financial crisis in August. That's when the Children's Aid Society of Brant was forced by a change in provincial policy to cancel a contract with Rosewood, pull out five youths in the facility's care and place them in different accommodation.

The problem, Philp said, was that the CAS was paying a much higher daily rate of $150 according to provincial standards, and Rosewood had not felt the need to seek an increase in the rate for regular clients for several years.

The CAS daily rate was, in effect, subsidizing other Rosewood operations.

With that revenue source gone, Philp said he had to take steps to stabilize the operation's finances with layoffs and cost-cutting, and develop a new business plan to bring to the city.

"We have cut all expenses to the bone," he said, "and we are right at the very minimum level of staffing. Losing 15 special-needs beds in this community would be quite a blow. For those needing them it would be a tragedy."

A complication for Rosewood is that since an increase in the daily rate is a new expense, the matter must be brought before the estimates committee overseeing the city's budget.

It is uncertain at this point how long it will take for the 2011 budget to be finalized.

"It could take a few months. How long can you hold out?" Bucci asked Philp in the hallway after the meeting.

"We have enough to keep going as we are until the eand of March. That's when we would have to make a decision," Philp responded.

"We'll have to work to make it happen," said Bucci.

Dan Temprile, general manager of public health, safety and social services, told the committee that Rosewood should be recognized as a fiscally well-run facility.

"Coming to the city is a last-ditch move," he said.

He noted an instance nine years ago when Rosewood needed a loan toward a down payment for the building, when the organization was switching from a for-profit enterprise to a non-profit agency.

The loan was repaid within 12 months, he recalled

"In my 30 years' experience I have never seen that happen before."

mamarion@theexpositor.com

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