The parks and recreation department should increase user fees at all municipal-owned recreation complexes to cover rising costs, otherwise, taxpayers will be responsible for those additional expenses, one city councillor argues.
City administration presented a report during the recent city council meeting about the 2021 rates and fees at the Kinsmen Sportsplex, the Phyllis Dewar Outdoor Pool, the Kinsmen Arena, Pla-Mor Palace, YaraCentre, and sports grounds and fields.
The main changes include a two-per-cent increase to arena rental rates to address rising costs of utilities and labour, new rush ice rates to compliment fees and programs at Mosaic Place, and a five-per-cent increase to rates for sports grounds and athletic fields to address rising costs of utilities, maintenance, labour and field preparation.
However, all membership rates, admission fees, pool rental rates and turf rental rates will remain the same. The department’s goal is to concentrate on a pandemic recovery since residents have focused more on physical and mental health during this time.
Council voted 6-1 to adopt the new parks and rec rates and fees schedule; Coun. Brian Swanson was opposed.
Council discussion
The Kinsmen arena’s actual cost in 2019 was $131,997, the budgeted cost this year is $143,408, and next year is projected to be $183,972, which is an increase of 28.3 per cent over this year, said Swanson. Costs at Pla-Mor Palace are also expected to increase to $162,028 from $119,181, a 36-per-cent rise.
The 2021 budget has some expense changes due to increased employee benefits, explained parks director Derek Blais. All benefits had previously been charged to the administrative account. With a new payroll system, those expenses are now charged to the facility account, which has driven the increase next year. The increase there results in savings to the admin account.
The cost recovery through user fees last year at the YaraCentre was 99 per cent, and next year, it is projected to decrease to 61 per cent, while costs are projected to increase to $351,681 next year from $119,736 this year, which is an increase of almost 200 per cent, said Coun. Scott McMann. He thought there were more than employee benefits included in that.
The difference is roughly $220,000, with $110,000 due to wages and benefits and another $110,000 in revenue, explained Blais. There have been no user fee increases at YaraCentre.
“I know there’s the argument that if we keep the rate low, more people will use (the rec buildings), but … a user-pay system is the best way to run recreation facilities,” said Swanson, adding YaraCentre is part of the problem since city hall has not collected rent from some groups.
In response, Blais said that his department is working on collecting payments from some groups, while fall programming won’t happen until all accounts are settled.
“Someone has to make up the difference, and it’s the taxpayer at large,” said Swanson. “I don’t agree for the taxpayer at large having to make up failed commitments to pay rent and increased costs for our facilities that won’t have increased costs for usage.”
The municipality already passes on costs to users in other areas, he added, including burials, water, sewer, and garbage.
Increasing user fees doesn’t necessarily lead to an increase in revenue, said Blais. Historically, the numbers show pool admission rates increased by 62 per cent, but revenues only increased by 15 per cent. Passing along user fees will drive away customers, while the parks department wants to push attendance to drive revenues.
The focus should be to gradually increase attendance, which will provide a more sustainable long-term solution to increasing revenue.
The next regular council meeting is Monday, Oct. 19.
