A recent discussion on a bylaw to update fees and charges somehow morphed into a discussion on alternative revenue streams for Centre Wellington.
Discussion started with councillor Mary Lloyd, who found it disconcerting that while many fees were increasing by two per cent or less, fees at the Grand Theatre were going up 6% due to the elimination of a per-ticket fee.
To Lloyd, it seemed to be punishing users because not enough money is being made from selling tickets.
Centre Wellington managing director of community services Brian Detzler said the move results partially from efforts to streamline the process and encourage online ticket sales “which is more effective and efficient overall.”
He noted that in the last budget, rates were increased at all the facilities by 3% to deal with upgrading the township’s online sales capability.
“The unfortunate part is that in order to recoup that expenditure … it works out to a six per cent increase,” said Detzler.
He attributed part of the increase to lower revenue generation at the Grand Theatre.
Detzler indicated he did not consider it penalizing a user group, but “spreading the pain” across all rentals within the facility.
Councillor Fred Morris said he recognized different user groups exist within the theatre – some are not for profit while others are.
He asked whether the for-profit groups actually pay the costs involved to run the theatre on a nightly basis.
Detzler said it is apparent from the operating budget of the theatre, because there is a portion of tax-based support, “we do not differentiate whether a group is for-profit or not-for-profit … the price is essentially the same.”
Detzler said it could be argued that neither group is paying for the entire cost of running the theatre.
Alternative revenue streams
Morris said not too long ago there was discussion of alternative revenue streams.
“Would it not be possible sometime in 2016 to undertake an analysis of our fees and charges?” Morris asked.
He stressed it did not need to be limited to areas such as recreation, but could include public works.
“If there is a way to have full-cost recovery of services or programs that we provide, perhaps we should move in that direction.”
Morris pointed out that is the same approach taken with water and wastewater services.
“Why would we not do that in other areas of our operation?” he asked. “Is that not a viable option to consider in 2016?”
Mayor Kelly Linton clarified that the township is moving forward to look at alternative revenues.
Detzler agreed it would be appropriate to look at fees across the board.
“We will endeavor in 2016 to look at the process of our rates,” Detzler said, noting factors include regional markets and costs to maintain the facilities.
Detzler did however ask council to involve user groups in the process.
The bylaw for the updated fees was approved.
