The parks and recreation department observed several interesting trends during its annual review of its fee structure, while its summary of the financial implications for increasing those fees also shows interesting outcomes.
The department submitted a report during the Nov. 12 regular meeting that summarized the fee changes and reasons for the increases. Council adopted the department’s recommendation to accept the new fees for 2020 and implement them on April 1.
Financial implications
The 2020 parks budget will be affected by budget submissions, the proposed rate changes, and projected expenses, such as:
- The annual budgeted expense for aquatics will increase by $30,460, with a one-per-cent decrease in cost recovery. This is attributed to an increase in utility expenses at both pools. When the $21,000 in lost revenue from the YMCA is considered, there will be an increase of $26,000 in expenses over 2019, or an increase of 0.4 per cent.
- The annual budget expense for arenas will be reduced by $4,204, with an increase of one per cent in cost recovery.
- The annual budgeted cost for the sports grounds will increase by $9,616, with a one-per-cent decrease in cost recovery. This is attributed to an increase in water and maintenance charges.
- A new expense is the YaraCentre, which will cost $68,378 to operate. However, 90 per cent of that cost will be recovered through user fees and memberships.
Recreation rates recovery
Rates and fees will continue to be set based on a balance between the direct cost to the users and the cost to taxpayers to operate the building or amenity, said the report. Therefore:
- The projected cost to operate both pools next year is $1,059,476, with 37 per cent of costs recovered through user fees;
- The projected cost to operate the Kinsmen and Pla-Mor arenas is $256,845, with a cost recovery rate of 66 per cent;
- The projected cost to operate the sports grounds is $171,685, with a 21-per-cent cost recovery rate.
Observations and trends
The goal of the 2020 rates and fees is to increase revenues through increased attendance by making recreational buildings and fields more affordable and accessible, while ensuring any changes do not come at an unsustainable cost to municipal taxpayers, the report explained. Activities are discretional, so if a municipality prices itself out of the market, it would take years of fee reductions to re-establish a sustainable customer base. This would also cost more in the long run.
“Vulnerable populations are a priority and the department wants to ensure our facilities and programs are more accessible to (youths), young families and seniors in Moose Jaw,” the report said.
Rentals fees for parks should be expanded to include all municipal parks, it continued. Meanwhile, the department continues to review the different rates to determine ways to simplify rentals for all users and customers.
The department should set attendance and usage targets based on prior history so that any downward trends can be identified and investigated to determine if rates and fees are having an effect, the report noted. Meanwhile, the department is having great success implementing the recreation pass and online registrations and wants to keep that momentum going.
The new membership prices and new recreation software program are contributing to a growth in membership revenues. Moreover, new customer service policies around monthly payment plans, payment methods, payment fees and added membership benefits have increased overall membership, said the report.
The dissolution of Prairie Edge School and the scuba club this past year may negatively affect revenues, while the closure of the YMCA will negatively influence aquatic revenues, memberships and programming in all areas, the report added.
The next regular council meeting is Nov. 25.
