HomeMy WebLinkAboutCSD-09-068 - Community Centre Room FeesREPORT T0: Mayor and Council
DATE OF MEETING: November 23, 2009
SUBMITTED BY: Mark Hildebrand, Director Community Programs and Services
Ext. 2687
PREPARED BY: Mark Hildebrand, Director Community Programs and Services
Ext. 2687
WARD(S) INVOLVED: All
DATE OF REPORT: November 17, 2009
REPORT NO.: CSD-09-068
SUBJECT: COMMUNITY CENTRE ROOM FEES
RECOMMENDATION:
That community centre room rental rate increases for those not-for-profit groups
outlined in report CSD-09-068 be limited to 5.2% in 2010; and,
That staff be directed to work with these not-for-profit groups to develop strategies to
align them with the appropriate community centre room rental rates in the future; and,
That staff implement the proposed community centre room rental rate increases found in
the City of Kitchener's comprehensive fee review (FIN-09-138) with those for-profit
groups outlined in report CSD-09-068, and any new groups renting community centre
facilities; and further,
That staff be directed to work with the current for-profit businesses, outlined in report
CSD-09-068, on strategies to bring their rental rates into alignment, if the proposed
increases above 5.2% prove to be too burdensome to meet in 2010.
BACKGROUND:
At their regular meeting on November 2, 2009, Council raised concerns with respect to the
proposed community centre room rental rate increases found in Financial Services Department
report FIN-09-138. Resulting from the standardization and alignment of hourly rates across
community centres, staff proposed to increase room rental rates at certain community centres
which were considered to be understated, by more than the proposed 5.2% over the 2009 rate.
Concerns were raised about the possible effect these increases might have on groups that have
been long-term regular renters at City facilities. As such, approval of these rates was deferred
to the November 23, 2009 Council meeting to permit staff to further analyse the increases and
to address concerns.
REPORT:
Staff was asked to review lines 189 to 375 of the City of Kitchener's comprehensive fee review
(FIN-09-138) inclusively. The majority of the adjusted community centre room rates fall on or
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around the proposed 5.2% increase, considering adjustments and rounding to the nearest
twenty-five cents. The rental rates in excess of the 5.2% proposed by staff include:
1. Chandler Mowat Community Centre Increase
• Room 1 50.94%
• Multi-Purpose Room licensed fee 15.27%
2. Country Hills Community Centre
• Multi-Purpose Room licensed fee 29.11
3. Doon Pioneer Park Community Centre
• Meeting Room 46.05%
• Multi-Purpose Room licensed fee 15.27%
4. Forest Heights Community Centre
• Multi-Purpose Room licensed fee 15.27%
5. Stanley Park Community Centre
• Dance Room 23.81%
• Gym 1/3 17.57%
• Full Gym licensed fee 20.00%
• 213 Gym licensed fee 29.72%
• 113 Gym licensed fee 40.51
6. Rockway Centre
• Meeting Room 79.03%
• Auditorium licensed fee 15.27%
7. Downtown Community Centre
• Senior Day Program Room 1 & 2 25.47%
• ~/ Gym licensed fee 15.27%
• Full Gym licensed fee 24.78%
Upon further analysis, it was found that there are six groups that can be considered regular,
long term renters at our facilities that would be affected by the proposed staff increases above.
Four of the groups are not-for-profit and include:
1. The Church of God, who rent the meeting room at Doon Pioneer Park Community
Centre weekly, on Saturdays;
2. Pathways Church, who rent the meeting room at Doon Pioneer Park Community Centre
weekly, on Sundays;
3. Una Church Group, who rent 1/3 of the gym at Stanley Park Community Centre weekly,
on Sundays; and
4. The Muslim Society of Waterloo-Wellington, who rent the Chandler Mowat Community
Centre weekly, on Saturday mornings. It should be noted that this group has been
receiving a discounted rate because they are utilizing the whole facility. Although the
proposed fee increase for Room 1 at Chandler Mowat is 50.94%, total impact on the
group would amount to approximately an 11 % increase, a difference of $25.60 per week.
There are also two regular, long term for-profit groups that would be affected by the proposed
increases and include:
1. Weight Watchers, who rent the meeting room at Rockway Centre weekly, on Mondays
and Wednesdays; and
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2. Prepaid Legal, who rent the meeting room at Rockway Centre weekly, on Thursday
evenings.
It should be noted that there are other regular, long term renters at our other community
centres, however the proposed fees listed in the City of Kitchener's comprehensive fee review
do not affect their rentals above the 5.2% (considering adjustments for rounding} over 2009
rates.
Not-for-profif Groups
There are long term benefits realized from weekly rentals at our community facilities, especially
from not-for-profit groups like those mentioned above. These groups serve individuals in the
community at little or no cost, and contribute a stable revenue source to the facilities they are in,
which help offset yearly operating costs. To ensure the continued viability of these groups, and
understanding that the proposed increases may have a significant impact on budgets that have
already been set, staff are prepared to limit the room rental increase to 5.2% in 2010. Over the
course of 2010, staff can have further discussions with the current user groups to develop
possible strategies to bring them in line with proposed rates in the future.
For-profit Groups
There are also similar benefits associated with renting our facilities out to for-profit groups such
as Weight Watchers and Prepaid Legal. As with the not-for-profit groups, both these rentals
contribute a stable revenue source to the operating budget of the accommodating facility,
offsetting yearly costs. However understanding that these rentals are for-profit businesses, staff
is suggesting that the proposed increases above the 5.2% stand. However, if the room rental
increases are burdensome on the group for 2010, staff would like the flexibility to negotiate
strategies with these groups to align them with proposed rates over a longer period of time.
New rental groups
Long term rentals will continue to be entertained, where appropriate, to continue to help offset
community centre operating budgets. Staff is suggesting that all community centre room fees
outlined in the City of Kitchener's 2010 comprehensive fee review be implemented when
considering all new groups renting community centre facilities at this point and into 2010.
FINANCIAL IMPLICATIONS:
Not implementing the community centre room fees as outlined in the City of Kitchener's 2010
comprehensive fee review would result in an estimated total revenue loss of $9,200.
Associated with the not-for-profit groups is approximately $3,500 in lost revenue and $5,700 is
associated with the for-profit businesses.
ACKNOWLEDGED BY: Pauline Houston, General Manager, Community Services Department
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