COMMUNITY SERVICES DIVISION Parks & Recreation Department. Chair and Members of the Community and Corporate Services Committee

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1 Pg 1 of Report PR COMMUNITY SERVICES DIVISION Parks & Recreation Department TO: SUBJECT: Chair and Members of the Community and Corporate Services Committee 2010 RATES AND FEES INCREASE PARKS & RECREATION Report Number: PR Report Date: November 19, 2009 Author(s): Cindy Mercanti Date to Committee: December 9, 2009 Telephone: Ext. Date to Council: December 14, 2009 Ward(s) Affected: All File Number(s): APPROVALS: Department Head General Manager City Manager To be completed by the Clerks Department Committee Disposition & Comments Council Disposition & Comments 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 1.0 RECOMMENDATION: THAT the 2010 rates and fees, outlined in the Parks & Recreation report PR-54-09, be approved to become effective on the dates outlined in Appendix B. EXECUTIVE SUMMARY: N/A

2 Pg 2 of Report PR PURPOSE: The purpose of this report is to seek Council s approval to increase rates and fees, for 2010, as outlined in this report. 3.0 BACKGROUND AND RELATIONSHIP TO STRATEGIC PLAN: In preparation of Council s approval of the 2010 rates and fees, staff engaged in public consultations with ice, gym and playfield user groups in order to solicit input on the proposed rates and fees increase. Public consultations with the aforementioned user groups commenced the week of October 26 th and concluded on November 18 th, Consultation was incorporated as part of the regular user group meeting schedules. Relationship to Future Focus VII: 1. Focus: Financial Management 7.2.B Benchmark Burlington services, financial position and taxes in comparison to other similar municipalities as determined by Council. 4.0 DISCUSSION: Based on the October 6 th Budget & Strategic Planning Committee meeting outcomes and the current budget guidelines, it was timely that staff met with ice, gym and playfield user groups to discuss the proposed 2010 rates and fees increase ranging from a minimum of 2% with consideration given to an increase of 3% or greater. 4.1 User Group Consultation Outcomes: The following summarizes the consultation outcomes, by user group category: Playfield User Groups: Groups Represented: Burlington Youth Soccer, Burlington Mixed 3-Pitched Industrial League, Burlington Mixed Softball League, Scooby Soccer and Burlington Minor Football Association. Comments on the Proposed 2010 Rates and Fees Increase: Anticipated a 2-4% rates and fees increase for Concerns about the Harmonized Sales Tax (HST) and the impacts that it will have on registrations. Concerns about the rates differential between Burlington s playfield rates and those of neighbouring municipalities.

3 Pg 3 of Report PR Ice User Groups: Groups Represented: Burlington Lions Optimist Minor Hockey Association, Old-Timers, Burlington Skating Centre, Ringette Association of Burlington and the Golden Horseshoe Hockey League. Comments on the Proposed 2010 Rates and Fees Increase: Minor Hockey has experienced increased demand for the fee assistance program during the 2009/10 season. A 10% combined increase in participant costs (2% rates and fees increase and 8% HST) will have a significant impact on registration. Proposed a 0% rates and fees increase in 2010 followed by a 4% rates and fees increase in Gym User Groups: Groups Represented: North Community Centre Association, Skyhawks Basketball, Burlington Mixed Volleyball and Pearson Senior Badminton Club. Comments on the Proposed 2010 Rates and Fees Increase: Anticipated a 2-4% rates and fees increase for Concerns about the combined impact of a rates and fees increase and the introduction of the HST. As a result of the due diligence process, staff recommends a 0% increase in rates and fees for Cityoperated programs that are currently positioned above the market rate, as summarized in Appendix A. Opportunities to increase rates and fees by 3% or greater have also been identified for selected Cityoperated programs and/or facilities, as detailed in Appendix B. All other City-operated programs/and or facilities will realize a 2% rates and fees increase, as detailed in Appendix B. Please note: Rates and fees for Paletta Lakefront Park and Mansion were assessed separately. 5.0 FINANCIAL MATTERS: In 2010, it is proposed that the rates and fees be constrained to some extent, as a result of the introduction of HST in Although municipal expenditures for the City are expected to increase 2.4% in the proposed base, Parks & Recreation rates and fees have been held for the most part at 2%. In October 2009, City Council considered cost reductions, fee targets and a plan to reduce the projected tax levy increase. The schedule of fees is consistent with the September plan. Please note: The Harmonized Sales Tax (HST) for Ontario comes into effect on July 1, HST would have combined tax rate of 13% - combining the existing 5% Federal Goods and Services Tax (GST) and an 8% Ontario component. Given the City s normal spending profile, the impact of HST on the City is expected to be $431,000 ($215,500 for July 1 to December 31, 2010) per year. The impact of the Ontario HST was calculated using a template provided by the Municipal Finance Officers Association of Ontario (MFOA). Although the City will collect significant HST for rates and fees, these amounts are remitted to the provincial and federal governments. Approval of the proposed fees is required to assist in reaching the City s budgetary targets.

4 Pg 4 of Report PR ENVIRONMENTAL MATTERS: There are no environmental matters associated with this report. 7.0 COMMUNICATION MATTERS: Upon receiving Council approval, staff will post the revised 2010 rates and fees on the city website within the Parks and Recreation section. 8.0 CONCLUSION: Staff recommends that Council approve the attached 2010 Rates and Fees Report, Appendix B. The approved rates and fees will become effective at the start of 2010 program cycle, with programs beginning April 1 st and September 1 st. The proposed rates and fees were reviewed from a market perspective and staff believe that these fees are fair and reasonable. Respectfully submitted, Cindy Mercanti Manager, Active Living

5 Pg 5 of Report PR Copy Filed: s:\inet\ Appendices: Staff / Others Consulted: Appendix A Market Comparison for Identified Programs Appendix B Proposed Rates & Fees Chris Glenn P&R Ext: 7771 Denise Beard P&R Ext: 7373 Doug Pladsen P&R Ext: 7627 Rebecca Bowen P&R Ext: 7383 Judy MacNeil P&R Ext: 7717 Rob Peachey P&R Ext: 7722 Catherine Talbot P&R Ext: 7715 Elisabeth Lewis Finance Ext Notifications: Special Instructions: Burlington Youth Soccer Burlington Mixed Softball League Burlington Minor Football Association Burlington Old-timers Hockey Club Ringette Association of Burlington North Community Centre Association Burlington Mix Volleyball N/A Burlington Mix 3 Pitch Industrial League Scooby Soccer Burlington Lions Optimist Minor Hockey Association Burlington Skating Centre Golden Horseshoe Hockey League Skyhawk Basketball Pearson Senior Badminton Club

6 Pg 6 of Report PR Appendix A. Market Comparators to Support a Recommended 0% Rates and Fees Increase: Section Program Burlington (Youth) 2010 Rates Market Average 2009 (Youth) Burlington (Adult) 2010 Rates Market Average 2009 (Adult) Aquatics * Lap Swim $ 4.11 $ 2.50 $ 5.49 $ 3.47 Private Lessons $ $ Semi Private Lessons $ $ Bronze Star $ $ Public Skating* Youth Shinny $ 4.11 (co-marketed with the lap swim program) Adult Shinny $ 5.49 (co-marketed with the lap swim program) Youth** Drop In Basketball $ 2.97 Note: The program may not be able to support a market increase Much Music Dance $ $11.33 P. D. Day for Youth*** $ $ Preschool/Child *** Holiday Camp Daily $ $37.33 PD Days $ $36.50 March Break 1 Day $ $34.92 *Halton Hills, Milton, Mississauga, Oakville, Guelph, Hamilton, London ** Milton, Halton Hill, Acton, Oakville ***YMCA, Town of Oakville (limited comparable programs for pricing analysis)