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TO: |
Mayor and Members of Council |
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FROM: |
Barbara M. Roth, Director, |
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PREPARED BY: |
same as above |
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DATE OF
MEETING: |
2005-Nov-07 |
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SUBJECT: |
Proposed 2006 Recreation Services User Fees and Rates |
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RECOMMENDATION:
That the report dated November 7, 2005, from the Community Services
Commission entitled “Proposed 2006 Recreation User Fees and Rates”, be
received;
And that Option I is recommended and that the proposed 2006 rate
increase, based on CPI (Toronto all items September 2004 to September 2005), of
2.7% be effective September 1, 2006 and rounded to the nearest ½ dollar to
correspond to the beginning of the fall programming and ice season with the
exception of the Aquatic rental rates as outlined in the report;
And that the Director of Recreation and Culture Services be authorized
to set future increases annually based on the change in the Consumer Price
Index (Toronto all items March to March) with such increases be effective
September 1 and rounded to the nearest ½ dollar;
And that By-law 2002-276, a by-law to impose fees and charges for
services or activities provided or done by the Town of
And further that notice to the public be provided in accordance with
By-law 2002-275, a by-law to prescribe the form and manner and times for the
provision of reasonable notice.
PURPOSE:
The
purpose of this report is to obtain Council approval for the following:
BACKGROUND:
Recreation Services provides a variety of services
to the community from direct programming to facility rentals. Annual operating expenses are $15.6M which
includes personnel costs of $10.0M (64%) and utilities of $2.3M (15%). The operating expenses are partly offset by
revenues of $11.7M which include user fees of $6.4M (56%) and rentals $4.5M (38%). The net operating budget deficit for
Recreation Services is $3.9M.
Included in the 2006 operating budget is the full
time wage settlement of 3.5%, increase in energy costs on average of approximately
5.5% and various other service contract escalations. The proposed annual rate increase will help
to offset the
The previous increase to user fees and rental was
approved by Council on
As
per the recommendations in the report entitled “Proposed 2005 Recreation User Fees and Rates
– Pool Rental” approved by Council dated December 6,
2004, Aquatic Rental Rates are scheduled to increase by $5.00 per hour as of
September 1, 2006 and therefore, any rate adjustment for Aquatic rentals will
commence September 1, 2007.
In checking with other municipalities there are
various rate increases proposed for 2006.
For example Whitchurch-Stouffville is increasing their ice rates by
$8.00 per hour and 3% inflationary increase to the balance of their fees.
Therefore, an annual increase is in line with the
proposed Parks, Recreation, Culture and Library Master Plan which recommends the
Town maintain our position within the current market place.
OPTIONS/DISCUSSION:
Staff Recommends Option 1
Option 1 – Option 1 would be to
increase program, camp and fitness membership fees and aquatic, gym, hall, ice
and soccer rental rates effective September 1, 2006 by 2.7% (Consumer Price
Index - Toronto all item September 2004 to September 2005). Rate would be rounded to the nearest ½ dollar.
The Director,
Aquatic Rental Rates are scheduled to increase by $5.00
per hour as of
Staff recommends Option 1 that results in increasing
rates on an annual basis based on the Consumer Price Index (CPI) to help offset
increasing personnel and utility costs.
By increasing rates annually based on CPI will also assist the user
groups in planning their fee structure for the upcoming season. Our last fee increase was in 2005 where we
increased rates partially to offset expenditures and reposition ourselves in
the market place. Increases included
programs at $2 per registration, $5 per fitness membership and $20 per hour for
ice and indoor soccer field rental.
Option 2 – Option 2 would be to increase
the program,
camp and fitness membership fees and aquatic, gym, hall, ice and soccer rental
rates effective September 1, 2006 by 3.9%
based on the Town’s previous year tax rate increase. Rates would be rounded to the nearest ½
dollar.
The Director,
Aquatic Rental Rates are scheduled to increase by $5.00
per hour as of
FINANCIAL
CONSIDERATIONS:
The recommended option (option 1) for the rates and
fees increases, effective
The total annualized impact of the fee increase, assuming
current business activity remains stable, is estimated to be $229,000.
BUSINESS
UNITS CONSULTED AND AFFECTED:
Financial Services
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Barbara
M. Roth, R.D.M.R. Director,
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Jim
Sales Commissioner
of Community and Fire Services |
Q:\Recreation\FEES\FEE001\2005\2006 User Fee.doc
