TOWN OF PENETANGUISHENE
PARKS, RECREATION & CULTURE DEPARTMENT
PROPOSAL REPORT
DATE:
Friday, February 2, 2007
SUBJECT:
PROPOSAL RE: ANNUAL MUNICIPAL SUBSIDY FROM TINY
TOWNSHIP ASSOCIATED WITH ACCESS AND USAGE OF
PENETANGUISHENE ARENA BY THE RESIDENTS OF TINY
TOWNSHIP.
BACKGROUND
In a demonstrated, collaborative effort to offer residents of Tiny Township equal access
opportunities to the Penetanguishene Memorial Community Centre/Arena, the Town of
Penetanguishene and Tiny Township entered into an annual mutual usage agreement dating
back to 1989.
The agreement has been formalized annually and adopted by the respective Councils through
motions and bylaws.
The table listed below illustrates the grant donation history between the Town of
Penetanguishene and the Tiny Township:
YEAR
1989
1990
1991
1992
1993
1994
1995
1996
1997
GRANT AMOUNT
$ 3,000
$ 3,000
$ 3,000
$ 3,000
$ 7,000
$ 8,000
$ 8,000
$ 8,000
$ 8,000
YEAR
1998
1999
2000
2001
2002
2003
2004
2005
2006
GRANT AMOUNT
$ 8,000
$ 8,000
$ 8,000
$ 8,500
$ 8,500
$ 8,500
$ 8,500
$ 8,500
$15,000
During the past five years (2001 - 2005) the municipal grant amount, received from Tiny
Township, was Eighty Five Hundred dollars ($8,500.00) per annum.
Following a preliminary meeting of Staff and Council Representatives from the two
municipalities and a formal deputation to Tiny Township Council by Staff and Council
representatives of the Town of Penetanguishene, a grant of Fifteen Thousand dollars
($15,000.00) was received in 2006.
OPERATIONS BUDGET
As Municipal Governments, we are well aware of the true costs associated with the full
operations of a facility of this nature. The costs associated with utilities consumption alone has
had a profound affect on operational budgets, not to mention insurance and capital upgrades
and improvements.
Attached as Schedule ‘A’ to this report, is a copy of our Actual Operating Budget 2006 and a
copy of our proposed Operating Budget for 2007 to explain and clarify the budgetary impact of
our arena operations on the Municipality.
D:\533583997.DOC
CAPITAL PROGRAM
The table below identifies major capital projects, the Town of Penetanguishene has invested
into the Penetanguishene Arena facility over the past several years.
YEAR
2000
2001
2002
2003
2004
2005
DESCRIPTION OF CAPITAL PROJECTS
Elevator Addition
Arena Chiller
Hot Water Tanks Replaced & Water Softener
Olympia Ice Resurfacer Purchase
COST
$ 180,000.00
$ 45,000.00
$ 16,000.00
$ 60,000.00
New Compressor Replacement
Structural Analysis (every 5 years)
Installation of new sound system
General Maintenance (Comp. Room Roof)
Fire Suppression System (Snack Bar)
Fire Emergency Doors Replaced (exterior)
Inside doors Replaced (changerooms)
Desicon Dehumidifyer Unit
Bleacher Gas Heaters
HVAC Systems
Overhauls/Rebuilds on Compressors (2)
Air Make Up Unit
R.O. (Reverse Osmosis) System
Arena Board Retrofit & General maintenance
Netting & Glass
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
50,000.00
5,000.00
10,000.00
12,500.00
8,000.00
13,000.00
6,000.00
45,000.00
12,000.00
20,000.00
10,000.00
45,000.00
25,000.00
17,000.00
25,000.00
The Town of Penetanguishene continues to commit to improvements and maintenance of the
arena facility as illustrated through our Four Year Capital Investment Program. Please refer to
attached Schedule ‘B’ (2007 -2010 Capital Budget Plan)
The table below is a synopsis of approved, up-coming capital projects.
YEAR
2006
2007
2008
2009
2010
DESCRIPTION OF CAPITAL PROJECTS
Replacement of Condensor #2
Retrofit Arena Ice Pad Lighting
General Building Maintenance/Upgrades
Ice Edger
Ice Cube Machine & Dishwasher
Bleacher Replacement/Wall Insulation
Compressor Top End Rebuilds (2)
Structural Analysis (5 year cycle)
General Building Maintenance/Upgrades
Indoor Staging System
Facility Registration/Booing System
Table & Chair Replacement (Lounge)
Compressor Rebuild & Replacement of One
Olympia Ice Resurfacer Replacement
Parking Lot Light Standards/Improvements
General Building Maintenance/Upgrades
Page 2 of 5
COST
$ 100,000.00
$ 25,000.00
$ 20,000.00
$ 3,000.00
$ 7,500.00
$ 150,000.00
$ 8,000.00
$ 6,000.00
$ 25,000.00
$ 10,000.00
$ 35,000.00
$ 15,000.00
$ 65,000.00
$ 75,000.00
$ 60,000.00
$ 20,000.00
D:\533583997.DOC
The average annual financial contribution by the Municipality to our Penetanguishene
Memorial Community Centre ~ Arena Capital Program is One Hundred Fifty One
Thousand, One Hundred Twenty Five Dollars ($ 151,125.00).
ARENA ENHANCEMENT ~ SPORTS HALL OF FAME PROJECT
In addition to the fore-mentioned capital upgrades and improvements, the Council of the Town
of Penetanguishene also supported and approved an arena enhancement ~ Sports Hall of Fame
project which commenced construction in late Spring 2006.
The project addressed obvious deficiencies within the existing arena facility (washroom
facilities, plumbing, and electrical, associated with construction standards (i.e. Ontario
Building Code & Fire Code). The total project cost is circa One Million Two Hundred
Thousand dollars ($1,200,000.00).
To accomplish
confirmed: 1.
2.
3.
this enhancement project, Council of the Town of Penetanguishene has
financial support from the Penetanguishene Sports Hall of Fame Committee;
appropriate capital reserve financing;
appointed an Ad Hoc SHoF Fundraising Committee with the task of raising
community donations and financial support of the project.
ANALYSIS
The Director of Parks, Recreation & Culture and Parks & Facilities Manager have undertaken
to compile relevant data to provide a clear picture of cross-boundary (municipal) services and
to formulate a recommendation for consideration.
The table below reflects user information based on our most current registration and operating
periods:
ACTIVITY 2004/05
#
Tiny
Minor Hockey
274
49 = 18%
Minor Ball Hockey
685
165 = 24%
Figure Skating Club
170
48 = 28%
Mens Recreational Hockey League
90
19 = 21%
Annual Avg.
22.75 %
#
Tiny
Minor Hockey
289
112 = 38.6%
Minor Ball Hockey
732
180 = 24.6%
Figure Skating Club
222
23 = 10.4%
Mens Recreational Hockey League
84
18 = 22%
Public Skating (est.)
110
19 = 17.3%
Annual Avg.
22.58 %
ACTIVITY 2006/07
AVERAGE:
Page 3 of 5
22.67%
D:\533583997.DOC
ESTABLISHMENT OF A PROCESS AND SUBSIDY FORMULA
Per attached copy of the 2006 Actual Operating Budget and Proposed 2007 Operating Budget,
the annual grant contribution by Tiny Township (shown as a revenue line item) have been recalculated to reflect true operating expenses, in order to provide a clear understanding of the
operating costs associated with the arena operations.
CONTRIBUTION
2006 ACTUAL OPERATIONS COSTS
NET: -$187,500.00
$15,000.00 (received)
2007 PROPOSED OPERATIONS COSTS
NET: -$181,000.00
$18,100.00 (proposed)
Based on the usage patterns illustrated within the activity analysis tables above, the Town of
Penetanguishene is proposing to renew a mutual usage agreement with Tiny Township for an
additional period of five (5) years commencing in the year 2007, based on:
1. an annual contribution of ten percent (10%) of the operations expenses;
2. and an additional annual contribution of ten percent (10%) of the capital program for
each respective year of the Capital Budget Plan (2007 – 2010 respectively).
PROPOSED SUBSIDY MODEL
2007 Proposed Budget
Operations
Operating
Budget Deficit
Contribution
$ 181,000.00
10% = $18,100.00
Capital
Program
$ 174,500.00
Capital
Contribution
10% = 17,450.00
Total
Contribution
$ 35,550.00
2008 Proposed Existing Capital Contribution (reviewed annually)
Capital
Capital
Program
Contribution
$ 70,000.00
10% = 7,000.00
2009 Proposed Existing Capital Contribution (reviewed annually)
Capital
Capital
Program
Contribution
$ 215,000.00
10% = 21,500.00
2010 Proposed Existing Capital Contribution (reviewed annually)
Capital
Capital
Program
Contribution
$ 20,000.00
10% = 2,000.00
The Capital Budget Program shall be reviewed annually as per the mutual usage agreement.
Capital projects may be added through this review process (undertaken with input from Tiny
Township). Tiny Township would be expected to contribute to the revised annual capital
Program
Respectfully Submitted,
Dan Buttineau,
Director of Parks, Recreation & Culture
Page 4 of 5