HomeMy WebLinkAboutCSD-15-082 - Facility Rental Discount for Affiliated Ice Groups Update Staff Report
tic tl R Community Services Department wmkitchene►:ca
REPORT TO: Community and Infrastructure Services Committee
DATE OF MEETING: October 19, 2015
SUBMITTED BY: Kim Kugler, Director of Enterprise, 519-741-2200 Ext 7544
PREPARED BY: Kim Kugler, Director of Enterprise, 519-741-2200 Ext 7544
WARD(S) INVOLVED: All
DATE OF REPORT: September 28, 2015
REPORT NO.: CSD-15-082
SUBJECT: FACILITY RENTAL DISCOUNT FOR AFFILIATED ICE GROUPS
UPDATE
RECOMMENDATION:
For Information
BACKGROUND:
Report CSD-13-039 was presented on May 6, 2013. The report included a
recommendation that funding from Tier 1 minor sport grants for affiliated ice groups be
reallocated to a new facility rental discount for affiliated ice groups to receive through a
reduced ice rate effective September 2013.
This recommendation changed the method of providing a subsidy to affiliated ice groups
from a Tier 1 minor sport grant to a facility rental discount.
There were three reasons for the change-
1. To provide the affiliated ice groups more control over their own operating budgets
by mitigating the gap in funding caused by the annual difference in the increases
applied to the city's user fees verses the increases applied to the city's grants.
Historically, the city's ice user fee increased at a higher rate than the increases to
the grants the city provided to the affiliated ice groups.
2. To regulate the grant amount provided annually to affiliated ice groups by
aligning the subsidy with ice inventory used or returned. Historically, increases to
the annual Tier 1 grant were primarily based on an inflationary increase outlined
during the city's budget process. There was no reduction in the grant if the ice
inventory used decreased or an increase in the grant if the ice inventory used
increased.
3. To keep Kitchener's affiliated ice groups competitive by positioning Kitchener ice
rates with the ice rates charged in the surrounding communities.
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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REPORT:
In 2013 the annual Tier 1 minor sport grant allocated to the three affiliated ice groups
(Kitchener Minor Hockey, Kitchener Ringette and KW Skating Club) totaled $556,086.
During the 2014 budget process, a reduced ice rate for affiliated sports was established
and the Tier 1 minor sport grants were reduced by $564,427 (2013 amount of 556,086
plus 1.75% increase).
September 2014 to August 2015 was the first full season of implementing a facility
rental discount.
The outcomes of the first season are listed below-
1. The affiliated ice groups now only have one city variable to calculate into their
operating budgets which is ice costs. By establishing a discounted ice rate the
groups have gained more control over their programs and the fees they have to
collect to be successful. They can budget programs without having to wait for
grant approvals.
2. Any changes in ice inventory purchased or returned are automatically adjusted
when the additional ice is booked or cancelled. In the past if an affiliated ice
group returned ice they would receive a refund with no deduction to the Tier 1
grant and if ice was added the costs grew with no grant increase. The new
method encourages the groups to be creative and to grow their programs with a
reduced risk. This growth also results in new city revenues.
3. The new affiliated ice rate is more comparable today with the surrounding
communities affiliated ice rate as demonstrated in the chart below.
2015-16 Ice Rates Comparison
Municipality/Township Affiliated
Ice Rate
Waterloo-All other ice 106.29
- Memorial only 114.96
Wilmot 123.94
Cambridge 127.66
Woolwich 132.76
Kitchener—All other ice 127.22
- Dom Cardillo 135.42
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The update within this report demonstrates the achievement of the city's strategic vision
through the delivery of core services.
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FINANCIAL IMPLICATIONS:
As illustrated in the chart below, the new method of providing a facility rental discount,
verses a Tier 1 grant, not only improved the budgeting processes for the affiliated ice
groups but; it also, grew the city revenue budgets in 2014 by $8,631 and $27,256 in
2015. This increase in city revenues is a trend city staff anticipates will continue in
coming years. The budget targets were achieved in 2014 and are projected to be
exceeded in 2015.
Financial Review of Facility Rental Discount
Old Method—Tier 1 Grant 2014 2015
Prior year user fee budget $ 3,335,061 $ 3,401,762
Inflation per budget call $ 66,701 $ 102,053
Current year user fee budget $ 3,401,762 $ 3,503,815
Prior year grant amount $ 556,086 $ 564,427
Inflation per budget call $ 8,341 $ 9,877
Current year grant amount $ 564,427 $ 574,305
Net Impact on Budget—User fees less Grant $ 2,837,335 $ 2,929,510
New Method —Facility Rental Discount
Budgeted user fee $ 2,845,966 $ 2,956,766
Additional Revenue to the City Using the
New FRD Method: $ 8,631 $ 27,256
COMMUNITY ENGAGEMENT:
CONSULT -The affiliated ice user groups continue to be consulted in the process of
reviewing fees and charges for ice.
INFORM — This report has been posted to the City's website with the agenda in
advance of the council / committee meeting.
ACKNOWLEDGED BY: Michael May, Deputy CAO, Community Services
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