Council here has deferred a decision on three requests for a break on rental fees at municipal recreation facilities, until it has more specific information on the actual costs.
Mayor Neil Driscoll said he wants council to have ‘the right information” before making a decision.
In a report to council at the March 10 meeting, CAO Patty Sinnamon explained the municipality receives three or four requests each year for a reduction of rental fees. Three such requests have been received already in 2015 and all three have entered into rental contracts and were advised the municipality would be reviewing rental rates early in the spring, and their requests would be put forward at that time.
The three requests come from:
– the Norwell District Secondary School prom committee, for an unspecified discount amount;
– Gospel Echoes of Canada, to allow an hourly rental rate, rather than a full-day rental be charged for a weekend event using the PMD hall and ice surface (hourly rates are normally only available on weekdays); and
– the Drayton Kinsmen asking for their total fee for use of the PMD arena complex for their annual farm show, to be capped at $2,600.
“With regard to the request for the farm show, one of the factors in the rate this year is that while the show ends on Thursday, April 2, some exhibitors will not be able to dismantle their booth until Saturday because of Good Friday. That has the result that the facility is booked for one extra day. Council could consider waiving the fee for the Friday to keep the rate the same as 2014. The facility is typically booked for four days for this event,” the report stated.
A financial statement provided with the report shows that for the 2014 farm show, the municipality waived the entire $4,975 rental fee. In total, the report indicates the municipality generated $27,610 in 2014 rental fees at the PMD arena complex and Maryborough Community Centre, but also provided $11,287 in discounts. The discounts were divided among four groups, including the Drayton Kinsmen for the farm show. Other discounts went to:
– the Palmerston and District Hospital Foundation – free rental valued at $4,975 at the PMD arena complex, for its Starlight Gala fundraiser;
– the Mapleton Minto 81’s – a $245 discount off the $475 PMD hall charge for each of four Blueline Club events; and
– a 50 per cent discount amounting to $237 for the Country Christmas Community Craft Show, a fundraiser for local youth organizations.
Council was asked to provide direction regarding requests for reduction in fees. Options suggested in the report include:
– not permitting any reductions;
– having all requests for reductions considered by council on an individual basis;
– permitting reductions for service groups on events where the funds are being raised for a specific municipal purpose; or
– permitting service clubs one free rental per year.
“It would be staff’s recommendation that a line item and dollar amount be shown in each of the two facility budgets for donations. That would be used to offset any reductions or waivers of fees approved by council and would not result in further ‘loss’ at year-end. The reduction in fees would be covered through tax revenues in the annual budget, similar to other donations granted by council,” the report suggested.
“Obviously it’s council’s decision as to whether they wish to provide reductions,” Sinnamon explained.
Councillor Marlene Ottens said she feels the fee schedule, with varying rates for weekday and weekend rentals, is “needlessly complicated.
“Hydro doesn’t cost more on weekends than on Monday – the costs are the same,” said Ottens, who added she has “issues as to what’s being considered non-profit and getting a discount.
“A prom isn’t non profit, or if it is, then a wedding is, too. They’re not trying to make money. They might as well get a discount too.”
“Actually, you do get a discount if you have your buck and doe here as well,” Mayor Neil Driscoll pointed out.
Councillor Dennis Craven suggested the reason for the different rates is a higher demand on weekends.
Public works director Brad McRoberts confirmed that is the case.
“It’s just like any business. There’s more demand on the weekend, so of course you’re going to charge that premium rate, where on weekdays you’re just trying to give them an incentive,” to use the facility, McRoberts explained.
“I agree … why would we want it to sit there empty?” said councillor Lori Woodham. “I’m wondering if we need to step back just a little bit and maybe defer this until we see what we’re looking at in terms of operation of our community centres … I would be in favor of either no exceptions – or we give one free rental, not this constantly coming to council.”
Councillor Michael Martin said council needs to look at its financial goals for recreational facilities.
“I think we need to support our service clubs that are trying to use this hall,” said Martin, adding he does not expect such facilities to be money makers. “Break even would be fabulous.”
Martin added, “I think for 2015 were kind of stuck with the status quo because we have to give everybody adequate notification.”
Sinnamon reminded council that all three of the groups had indicated their events would be going ahead regardless of council’s response to their requests.
Woodham suggested council could take more time to get informed before making a decision and provide a refund after the fact if necessary.
Sinnamon also advised council the practice of granting discounts of this nature is no longer commonplace in most communities.
“We’ve had discussions with other municipalities and they are not granting the exceptions that we have in the past few years,” she said.
“I think I can speak pretty near inclusively for every one of these service clubs,” said Craven, adding, “I think all the funds they raise go back to the community, and I think we have to be aware of that.”
Ottens commented, “I do wonder how many members of the public are aware that these halls run at a loss.”
Council accepted the report for information.
