HomeMy WebLinkAboutCSD-20-010 - User Fee Reductions Due to COVID-19 Red Control RestrictionsREPORT TO:Community and Infrastructure Services Committee
DATE OF MEETING:December 7, 2020
SUBMITTED BY:Kugler, Kim, Director, Sport Division,519-741-2200ext. 7544
PREPARED BY:Dueck, Jeremy, Director, Sport Division,519-741-2200 ext. 5264
WARD(S) INVOLVED:All
DATE OF REPORT:November 25, 2020
REPORT NO.: CSD-20-010
SUBJECT:User fee reductions due to COVID-19Red ControlRestrictions
RECOMMENDATION:
Thatuser fees for sport groups renting recreational facilitiesbe reduced by 28% while
capacity limits are restricted to 10 people.
REPORT HIGHLIGHTS:
The purpose of this report isto reduce affiliated and non-affiliated user fees for sport groups
usingthe City’s indoorrecreational facilities(arenas, gym spaces,and floor spaces)while
the Region of Waterloo is operating under COVID-19 Red Control restrictions that limit
facility space capacities to 10 people.
With COVID-19 cases on the rise, staff are trying to find a balance between following public
health restrictions and providing physical activity opportunities for the physical and mental
well-being of community members.By offering a reduction in fees, some user groups will be
able to continue to offer programming.If no fee reduction is provided, some groups may be
forced to cancel.
BACKGROUND:
Userfeesfor the 2020 season were established and approved before the onset of the
COVID-19 pandemic. Like other organizationsin the community, sport groups have
encountered many challenges while planning and implementing programs that are fully
compliant withProvincial regulationsand Public Health guidelines. User groups must
change program delivery at a moment’s notice when Provincial regulations are updated.
O
n November 23, 2020,the Region of Waterloo moved into the Red Control category of the
Ontario Province’s COVID-19 Response Framework. One of the new restrictions in this
category was the requirement to limit capacity for indoor sport activities from 25 people to
10 people. Sport groups have been forced to cut their program participants in more than half
putting significant pressures on their operating budgets and the fees theyare able to recover
from their participants.For some groups, it may be a reduction in the amount ofice time
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scheduled for their users. In other cases, some groupsmightbe willing to pick up more ice
time at a reduced rate for their users.
REPORT:
Sport groups across the Region of Waterloo are requesting reductions in their current user
fees while the region of Waterloois required to follow the Provincial Red Control restrictions.
By reducing user fees some sport programs will be able to continueto offer some form of
safe programming at a reduced capacity and affordable rate.
Staff are recommending a 28% reduction in user fees for recreational facility rentals which
will initially include ice and flooruser fees but could be expanded to other userfeesif
programming isimpacted by the 10-person capacity restriction.The user fees will be
reduced while the Region is required to follow the Red Control restrictions that limit
capacitiesin indoor recreation facilitiesto 10 people. Staff’s recommended fee reduction is
within the range of fee reductions being approved within other municipalities in Waterloo
Region which vary from 25% to 50%.
A28% reduction in user fees would reduce the affiliate ice rate from $132.06 to $95.08, the
non-affiliate ice rate from $263.72 to $189.88, and the floor rate from $71.46 to $51.45. It is
hard to project the financial impact of the adjustment because without a fee reduction we
would see cancellations, reducing revenue collected by the City.The affiliated ice rentals
booked prior to the Red Control restrictions accounted for 338 hours per week. If the weekly
affiliated book hours remained the same as pre-RedControl restrictions the financial impact
would be $12,499per week. Due to the uncertainty of knowing what the sport groups can
offerit is difficult to determine the financial impact of the reduced ratesat this time. By
offering a reduced fee the goal is trying to support our sport userswithin the communityin
a difficult time and capture as many rentals as possible.
The reduction rate of 28% was selected based on comparisonwith other municipalities. With
a 28% reduction, Kitchener’suser fees will be in the mid-range of reduced regional fees.
This will allow the City tosupport user groups with a reduced fee while maintaining some
revenue to offset additional costs related to COVID-19operational expenses.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The recommendation of reducing fees willimpact operating budgetfor recreational facilities.
Not offering a reduction in fees willlead to the cancellation of rentals which would have a
greater impact on recreational facility operating budgets.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-19-077, 2020 User Fees
APPROVEDBY: Michael May, Deputy CAO, Community Services
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