City's 2-tiered insurance system forces community group to close up shop

It started with park meetups, but quickly grew into a lifeline for families during emergencies.

But one unexpected hurdle proved too much for the Kenson Park Community Association: a five-fold increase in its liability insurance, from $260 to $1,250.  

"Unfortunately, it was the the only reason why we we folded," said Matthew McBain, the group's former president.

"We just, as an executive, felt that we could not go back to our community and ask our members to pay more for insurance."

If the group had been around before amalgamation, however, it never would have had to make that choice.

They know it's wrong, but no one is fixing it,​​​​​​.- Nancy Wilson, City View Community Association

 In 2001, the City of Ottawa created the Community Partners Insurance Program to cover the commercial and general liability insurance for 180 existing organizations. 

Alex Cullen, a councillor at the time and now a member of the Federation of Citizen's Associations of Ottawa, said the situation was never meant to be permanent.

But it took decades for the city to take a close look at the fairness of footing the bills for some groups while forcing organizations in newer communities to pay out of pocket.  

"Community groups aren't moneymakers. They're non-profit. They don't have a lot of money," he said. "A lot of community associations are going to say 'Nope. Can't do it.' And we'll be all the poorer for it." 

'It is really unfair'

In order to hold events like public yoga sessions, barbecues and block parties, or take advantage of city-funded grants to create murals or community gardens, community associations need insurance. 

But those fees have been rising. 

During the pandemic, community associations struggling under the new financial burden came together to discuss solutions and discovered the two-tier system. 

"It is really unfair," said Rachelle Lecours, the president of the Greater Avalon Community Association in Orléans. "All the newer community associations are treated as second class." 

Lecours said her group recently paid $1,000 for general liability insurance, a fee that comes out of the money they gather from community businesses to pay for events. 

For years now she's been pushing for the city to create a new system to decide on funding based on criteria like whether an association has a board and an annual general meeting.

"It's just more disappointing, year after year, because they always promise something and never deliver." 

City promises 'equitable' solution

The City View Community Association pays $1,150 for insurance, a rate negotiated by the city.

That eats up a sizeable portion of its annual dues and feels unfair to co-presidents Jill Prot and Nancy Wilson, who say an organization just on the other side of Merivale Road doesn't need to pay at all. 

"They know it's wrong, but no one is fixing it," said Wilson. "You'd think they would be happy that we're doing these things … but if they're putting [our] hands behind our backs and tying them, it's hard to do it." 

The associations are also frustrated by what they see as a lack of transparency. The program is not budgeted, and there's no public list of who receives funding. 

An emailed statement attributed to solicitor David White said the city "values its partnership with the many community groups providing programs to residents and remains committed to finding an equitable way to continue its support for these groups."

It plans to address the program's future during the city's 2024 budget deliberations.

That solution comes too late for the Kenson Park Community Association, but McBain said the connections forged by the group during its short history have survived. 

"I don't think you can put any sort of limit on how important it is to have people coming together and just getting to know their community and looking out for each other," McBain said. 

"I understand there are budget constraints. I get it, I do. But I do think there is far greater value and good in having a viable, vibrant community."