User fees to gain access to City of Estevan facilities will be increasing, as cost recovery is becoming a greater focus.
The rate increases were submitted to city council for approval at the Aug. 11 regular meeting, and the city's legislators gave the OK for the fees except for a pair of exceptions regarding summer ice rental. The approved changes will go into effect on Oct. 1.
Nathan Jesse, Leisure Services manager, provided the report to council, noting at the beginning of the process to restructure fees, the Leisure Services Advisory Board and Management were looking in the range of seven to 15 per cent in all areas.
While determining what fees would be appropriate in Estevan, a survey was completed looking at facility fees in Yorkton, Melville, Weyburn, Moose Jaw, Swift Current, Regina and Saskatoon.
Jesse said the new rates reflect comparable fees to all of the cities and facilities surveyed.
The cost-recovery rates for the City came under sharp scrutiny when it was found the figure was sitting around 32 to 35 per cent. Jesse noted, they are now looking at a range between 50 and 60 per cent.
Those numbers will become clearer and more concrete later this fall. Jesse said he is working with the city treasury department to get more accurate numbers.
The largest fee increases are tied to the largest infrastructure facilities in the city, the ice rink at Affinity Place and the pool in the RM of Estevan Aquatic Centre.
The ice rental rate for minor ice groups increased to $103 per hour from $85 or 21.17 per cent and the minor swim club pool rental fee went from $75 per hour to $100, a 33 per cent increase.
The report noted that in preparation for the upcoming ice and winter sporting season, leisure services has met with all of the user groups affected by the price change. By the end of June all groups had their schedules booked for the winter season, the biggest rentals being for the ice pads and the pool.
The only issue that came up regarded summer ice rental. Jesse noted the recommendation was to increase rents from $175 per hour to $240. He told council that rate will primarily affect two user groups in particular, the Fleck's hockey school and the Gold in the Net goaltending camp.
Jesse said he spoke to both groups regarding the rate and was told by both they would not be able to absorb the increase and probably wouldn't return in future years, instead taking the camps to either Weyburn or Regina.
Jesse suggested an increase of up to no more than $200 per hour would be more appropriate, calling the recommended rate too high.
"If we go that high, we'll just price ourselves out of the market. Compared to other summer ice rentals in Regina and Saskatoon, we're way too high," he told council.
Councillor Lori Carr asked what it cost to run the ice throughout the summer, asking if it cost $240 or $300 per hour to run. Those numbers were not available.
"If we're not making money or if we're not at least breaking even, this is a service that once again is being provided by businesses that are in the market of making money and having a bottom line. If we're not going to break even or make a little bit, I'm not even sure why we would run the plant all summer if we're just going to lose more money, which in turn, causes all of your rates to be affected," said Carr, noting she would prefer the City lost no money to operating the rink in the summer.
Coun. Kevin Smith and Greg Hoffort noted it's a balancing act for cities to find the area where they meet their obligation as a City to provide recreation but also removing some of the burden from taxpayers by charging appropriate user fees.
"We're just trying to be a little bit more businesslike in our approach," said Smith.
"It's really simple," noted Hoffort. "Somebody has got to pay the bill, and what the users don't pay, the taxpayers do. We discuss an awful lot of what portion should be paid by the users and what portion should be paid by the taxpayers at large. There is an obligation to provide recreation, culture and all sorts of services in our city. The difficulty is finding the balance as to who pays what."
There are also a number of new charges for city facilities, including a fee for last minute ice rental booked within 24 hours for $103 per hour, playpark rental and a tennis court key deposit of $100 for access to leisure facilities, which was raised in order to ensure compliance with key returns.
