By Thia James

High expenses highlighted in City concession, vending review

Sep 19, 2014 | 12:09 PM

A review of City of Prince Albert-run concession stands at public facilities is revealing a picture of operations affected by high expenses at most venues.

Recreation manager Derek Blais compiled a report which gives a basic overview of the sources of revenue from concessions, ATM fees and vending machines at seven of the city’s facilities. The City had projected profits from concession and vending sales to be at $107,624 for all of 2014. Profits were less than half of that as of Aug. 25, then sitting at $52,595.

Mayor Greg Dionne has been a strong proponent of the review. He called concessions and vending at these facilities “revenue generators.”

“And I want to make sure everyone that we have supplying us supplies are under contract and we’re getting the money that’s coming to us,” he said on Monday.

The review will come into play during budget discussions later this year. Dionne explained that this is also because of the revenues involved.

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“And some of these revenues are applied to our arenas. That’s where we have lots of our concessions. And, so it’s important that we make sure that we get all the revenue in, so when we come to make budget, we know what’s there.”

With less than four months to go, there’s optimism surrounding revenues at the Art Hauser Centre with a new Prince Albert Raiders season about to start later this week, and football season beginning at Prime Minister’s Park. The sentiment is similar in Blais’ report with hockey season starting soon at the Dave G. Steuart and Kinsmen Arenas.

At the same time, profits are much poorer than expected at the Kinsmen Water Park due to the closure of the four large water slides, as well as at the 7th Hole Concession at the Prince Albert Golf and Curling Club due to poor weather in the spring. The 7th Hole Concession is currently operating at a net loss of $10,816.

Blais concedes in his report that “[t]he sales history indicated that both April and October sales do not exceed expenses. Opening in April and October represents more of a service to the community than a revenue generating opportunity.”

However, the club retains the alcohol revenues from the venue which are projected to be $14,000. With this taken into account, revenues are expected to exceed budgeted revenue. But the alcohol revenues are not forwarded back to the City.

At the Alfred Jenkins Field House, the net profit of $2,203 is currently much higher than the full-year forecast of $610. The higher than expected profit is the result of the Field House hosting the Canada Cup archery event and being a host venue of the Saskatchewan Winter Games.

At all of the locations aside from the 7th Hole concession, expenses have closely rivalled the revenues. Community services director Jody Boulet said there are many reasons for the high expenses at the concessions.

Boulet said some of the operations are busier than others and there is also management staff that work at the concessions. He said they spend their time at some of the busier locations than the ones that aren’t as busy.

The City also receives a portion of the fees from ATM use. The ATM service fee at the white label machines provided by En Route Amusements is set at $2.50, with the City receiving 50 per cent, or $1.25 from each transaction.

The City also receives 40 per cent of the proceeds from candy vending and “games of chance,” 35 per cent of the proceeds from transactions on games with guaranteed prizes and 25 per cent of the proceeds from vending sales of feminine products.

The report will be on the agenda at next Monday’s city council meeting.

tjames@panow.com

On Twitter: @thiajames