Proposed fee and rate increase about cost recovery

A 5.1 per cent rate increase to fees and rates may sound like a big jump, but it isn’t, according to a number of members of Prince Albert’s city council.

At Monday’s executive committee meeting, the proposed rate and fee hike at most of the City-run facilities was the subject of a lengthy debate.  Administration is recommending a 2.7 per cent increase based on the Saskatchewan Consumer Price Index – provincial inflation statistics – and a 2.4 per cent charge to offset the cost of upgrading to the ActiveNet online booking system. 

After the meeting, Mayor Greg Dionne said he is in support of annual increases to the rates and fees.

“And the department did it the way, with inflation. And it goes up across the board, so everyone pays equally,” Dionne said.

“Because at the end of the day look at in our budget. Power’s going up. We’re going to spend another $200,000 a year on power. So, we have to collect those back and we can’t keep asking our taxpayers to subsidize it.”

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For the most part, the City is at about a 60 per cent cost recovery rate with its facilities, however Dionne added that the City has to subsidize its facilities. “Unfortunately, that’s a monster of life in every community. They just don’t pay for themselves. And we do believe we have a responsibility in funding it.”

He also sided with councillors who noted that when the increase is viewed in terms of percentages it looks “bigger.”

Coun. Mark Tweidt, was one councillor, who during the meeting, pointed out that the amount that could be added on next year is a small amount when compared to the total cost of playing sports such as hockey.

He said that when residents hear five per cent, they get jumpy. “I think we need to be realistic. When a hockey stick is $200-$250, $5 for ice is relatively cheap.”

For example, prime-time ice rentals during the regular season at the Art Hauser Centre will cost youth groups and minor hockey $120, up from $114.25. For adults renting the ice, it would cost $149 in 2014-2015, as compared to 141.75 in 2013-2014.

And in terms of admission fees, the increases are often less than $1. If council approves the fee and rate increases, adult day admission to the Alfred Jenkins Field House would rise 34 cents. Similarly, the fees for youth to use outdoor fields for soccer or baseball with the lights on would go up to $33 per game from $31.50.

“I think most people know that gas, power and all that isn’t getting any cheaper. So, unless we want to subsidize even more … a lot of people are getting tired of subsidizing a lot of these different things,” Tweidt said.

“So, I think we have to be fair to that, and I certainly believe that the taxpayer is paying enough.”

To Coun. Martin Ring, the taxpayer understands that there has to be a certain investment in the City’s facilities. He said there is a certain dollar value that the City will contribute to these facilities.

On the other hand, the users are the ones who use the facilities, he said. “And they’re going to be expected to pony up the balance of it and when you start breaking down some of these numbers …  you know, a group renting the ice at the hockey arena to have a $5 increase … it’s not that big a deal.”

The reason the rate increase is structured the way it is is to keep the City’s cost recovery rates consistent, according to community services director Jody Boulet. With wage and utility costs also going up, Boulet said after the meeting that the City needs to recover those on an ongoing basis.

“But we always need to also keep in mind that in some cases we don’t want to max out on the price point. Meaning, if we get a situation where our rates get too high, then, if we see a decline in usership as a result, then that could cause a situation where actually it will cost the City more to provide services than having the higher usership numbers to account for some of those costs as well,” he said.

When it comes to evaluating affordability, Boulet said the City works with the user groups and monitors their registration numbers. During the meeting, he had stated that the City’s rates and fees were at the average point when compared to 15 other cities in the province, calling Prince Albert’s rate structure competitive.

And with the rate structure being a factor in affordability for families in Prince Albert, he said the City always wants to approach rates and fee increases with caution.

He noted that there are a couple of instances where administration proposes raising rates more than 5.1 per cent. This includes room rental rate adjustments to account for the staff time that was not being recovered, Boulet added.

Overall, administration expects that the proposed rate increase could mean an additional $55,250 generated for the City.

The Cooke Municipal Golf Course isn’t included in the proposed rate and fee increases. A separate report about the golf course’s rates is expected to be presented to council in the next cycle.

Council is expected to make a final decision about the proposed 5.1 per cent increase at next Monday’s council meeting.

Fees up or fees down depends on the water slides’ return

For the Kinsmen Water Park, whether the admission fees go up or down hinges on whether the City is able to open the slides next year.

The slides were closed for the 2014 season after potential safety hazards were discovered with the fibreglass slides and the metal structure holding it up. The City needs $260,000 to restore the slides, and $85,000 is already in place. A further $175,000 is still needed.

Administration is recommending that the water park’s admission fees go up by 5.1 per cent if the slides re-open. It’s recommending a rate decrease if the slides don’t re-open.

But how much the price of admission could fall is not yet known.

“Our main goal is to have the slides re-open for 2015,” Boulet said. “And we’re certainly working towards that target.”

He said they included this particular option in the report because if the slides do not re-open, the City will reduce service at the water park.

“I think our rates should reflect the level of service that would be offered at the water park. That didn’t happen in 2014 and I think if [were] to happen in successive years, then it would be prudent on our behalf to have another look, not to say that they would be reduced, but to at least put the option in front of council and see if there’s any uptake on that.”

As for the likelihood that the water slides will indeed re-open next year, Boulet said City officials are very optimistic. While they’re continuing to speak with “community partners” to raise the balance of the $260,000 that the City still needs, they’ve also submitted grant applications.

Administration has applied for grants with the Community Initiatives Fund, as well as other provincial agencies that fund sport, culture and recreation projects.

“We’re feeling quite confident about those as well,” Boulet said. “So, it’s going to be a combination of factors that gets us to the main target. That’s what council challenged us to do and we’re confident that we’re going to get there in time to, in the spring, restore the slides and open them in the 2015 season.”

tjames@panow.com

On Twitter: @thiajames