HomeMy WebLinkAboutCSD-09-072 - Kitchener Minor Hockey Association - 2009-2010 Fees and ChargesREPORT
REPORT TO:
Community Services Committee
DATE OF MEETING:
December 7, 2009
SUBMITTED BY:
Kim Kugler, Interim Director Enterprise, 2544
PREPARED BY:
Kim Kugler, Interim Director Enterprise, 2544
WARD(S) INVOLVED:
All
DATE OF REPORT: December 1, 2009
REPORT NO.:
CSD-09-072
SUBJECT:
KITCHENER MINOR HOCKEY ASSOCIATION FEES FOR
2009 AND 2010
RECOMMENDATION
:
That for the time period September 1, 2009 to December 31, 2009, Kitchener Minor
Hockey be rebated for the dollar value of the rate differential between the Council
approved fees and charges rates of $188 per hour for multi-pad facility and $168 per hour
for single pad facility to the reduced rate of $183.50 and $162.75, respectively.
That the prime ice rates for affiliated sport groups for January 1, 2010 to August 31, 2010
be set at $183.50 per hour for a multi-pad facility and $162.75 per hour for a single pad
facility, and;
That the 2010 prime ice rates for affiliated sport groups for the period September 1, 2010
to August 31, 2011 be set at $189 per hour for a multi-pad facility and $167.50 per hour
for a single pad facility.
BACKGROUND:
In 2003 the City of Kitchener and Kitchener Minor Hockey Association (KMHA) created a task
force to review and find solutions to improve the financial status of KMHA by investigating
revenue opportunities and expense reduction strategies.
The task force completed the work and reported back to council the findings and the new
strategies that assisted KMHA in meeting their budget shortfall and reducing their operating
deficit. One of the strategies implemented was a commitment to not increase fees by more than
three percent. The City committed to fee increases that would not exceed three percent for
2005 to 2008. With a cap on fees KMHA was able to review annually and set their fees to their
users to ensure their fees would align with covering their operating costs.
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KMHA was able to move the organization from a deficit position to a small surplus position.
Their surplus position allowed KMHA to support the capital fundraising campaign for the Activa
Sportsplex and to move their administrative offices and storage area.
REPORT:
As part of the budget call for 2009, there was a request for fees to be increased six percent and
for grants to be increased two percent. KMHA identified concerns and were going to bring
forward an appeal to the grant committee for additional funding but instead they agreed to work
with staff to review and explore alternatives.
City staff and KMHA staff and board members have met on two occasions to review and explore
options to deal with the potential financial concerns. Identifying the impacts ofKMHA’s capital
commitment to the Activa Sportsplex and the relocation of the administrative offices to their new
location quickly revealed the challenges of adding a six percent fee increase. Not only is KMHA
funding some of the capital campaign for Activa but they also took on more of their own financial
responsibilities for their administration by transitioning from the city’s phone and computer
systems to their own systems.
During the review, it became apparent that the approved fees for ice were going to have a
negative impact on KMHA’s ability to manage the financial impact on their users and programs
beyond the administrative and capital commitments they had to fund.
Staff explored funding options with KMHA and found the best strategy to ensure KMHA is able
to provide a viable and affordable sport was to relook at the fees that were approved in 2008 for
2009. The six percent increase to ice rates came into effect as of September 2009. The
approved 2009 fee for an hour of ice in a multi-pad facility was $188 and for a single pad facility
$168; what is being proposed is a fee that is three percent less at an hourly rate of $183.50 for a
multi-pad and $162.75 for a single pad.
In addition to reducing the 2009 fees by three percent there also needs to be a correction to the
2010 prime ice rates for affiliated sports groups. The 2010 fees for prime ice for multi-pad
facilities will be $189 and for a single pad the fee would be $167.50.
FINANCIAL IMPLICATIONS:
The adjustment to the fees will have a total impact of approximately $20,000 to the 2009
operating budget for the Aud and Arenas and a $36,000 impact on the 2010 operating budget.
Both years operating impacts caused by the resetting of the fees for prime ice for KMHA will be
off set with other rentals that have been secured or are being contracted for the Aud and Arenas
currently.
CONCLUSION:
KMHA staff and board members operate an organization that provides an opportunity for youth
to participate in sport and develop as team players and leaders. The recommendations to
decrease fees in 2009 by three percent and reflect the change through an adjustment in 2010
.
will assist KMHA in their existence as a viable and affordable sport for the youth in Kitchener
ACKNOWLEDGED BY: Pauline Houston, General Manager, Community Services
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