No change to fees at city recreation facilities

WEDNESDAY, 09 OCTOBER 2013 02:00 JOHN MOORHOUSE Penticton Herald
A two-tier recreation fee schedule could end up losing money for the city, says Penticton's general manager of recreation and facilities. Shortly after Chuck Loewen presented a bevy of figures to back up the statement Monday night, Penticton city council voted against the two-tier system. The proposed rate schedule would have seen out-of-towners charged more for using Penticton recreational facilities.Surveys indicate 16.2 per cent of Penticton Community Centre patrons (including tourists) are from outside the core Penticton/West Bench area. West Bench residents have contributed $20,000 a year since the community centre opened in the early 1980s. Loewen said that based on 25 per cent higher fees for non-Penticton residents, the city could gain an extra $40,642 in revenue. However, studies indicate the city also stood to lose $43,921 in revenue due to fewer patrons, resulting in a net loss of $3,279. Higher revenue losses are predicted if the city bumped fees by 35 per cent or 50 per cent for out-of-towners. Although the status quo will remain for fees, council directed city staff to work with the Regional District of Okanagan-Similkameen to develop a sub-regional funding model to support recreation. This would likely see the city continue to press for Naramata, Kaleden and other outlying communities to contribute an annual amount of tax money to support Penticton recreation facilities. RDOS directors rejected a similar request in 2010. Council voted 5-2 in favour of maintaining the existing rec fee schedule, with councillors John Vassilaki and Helena Konanz opposed. Konanz wondered why the revenue projections were based on a 25 per cent hike for non-Penticton residents. She suggested a dollar or 10 per cent difference would have been a better alternative. "I have been to many, many communities that had two-tier pricing. Never have they been 25 per cent more at the till for the person that's paying more," she said. Konanz said a two-tier system shows respect for local taxpayers. "It doesn't have to be an incredible amount, but just something to show that the taxpayers in Penticton are treated just a little differently than someone who doesn't pay taxes in this city," she said. In the meantime, Loewen noted that the annual operating deficit for the recreation department has dropped dramatically since completion of the community centre's $23-million upgrade in 2011. City taxes subsidized the rec department by more than $1.15 million in 2009, the last full year the community centre operated prior to the upgrade. Final figures for 2012 show the operating shortfall had dropped to $412,000. In addition to the upgraded facilities, Loewen credited the community centre's newly formed Active Membership Club, which now has more than 200 members. The lower operating costs drew raves from council. Mayor Garry Litke described them as "unbelievable numbers." In addition to lauding community centre staff, Litke pointed to the response from the community. "Obviously that place is getting utilized more than we anticipated and it's showing in the numbers," he said.