The city will have to report annually to council on the operating costs of Servus Credit Union Place following a council motion passed during Monday’s meeting.
The motion — put forward by Coun. Sheena Hughes — will also require the city to provide a financial report for 2021 and the first nine months of 2022 by Nov. 1. This is the second financial report council has voted to have administration draw up annually this month. During a council meeting on Sept. 6, council voted to have an annual report drawn up detailing the city's use of consultant costs and the reasoning behind them.
The decision follows an Aug. 16 council committee meeting where council discussed measures to reduce an impending 8.2-per-cent tax increase, and Hughes raised questions around a $2.5-million operating deficit at Servus Credit Union Place.
“A [$2.5-million] deficit is to me an unacceptable number,” Hughes said, suggesting the budget for Servus Place should be reduced with the instruction to operate differently.
In an email sent later in August, city spokesperson Cory Sinclair said Servus Place generated $6.7 million in revenue and $9.2 million in expenses. In 2021, the city’s subsidization of Servus Place sat at around $2.9 million, Hughes said during the council meeting.
On Monday, Hughes said the ultimate cost of running Servus Place has been “buried” in the city’s general budget. She said she wants to get to the bottom of why the facility broke even in 2014, but has since declined.
City spokesperson Cory Sinclair said in an email the Servus Credit Union Place revenue and expenses are reported as part of the recreation and parks department budget, “and are reported similarly to other city facilities.”
The Gazette reported in 2020 that the cost recovery for the facility improved to 92 per cent in 2013 to a peak of 101 per cent in 2014.
“So far, every time I’ve brought this up, there doesn’t appear to be a very wholesome discussion happening,” Hughes said. “Also, we need to be accountable to the taxpayer as to why we’re asking for over $2 million.”
Hughes said with a large tax increase, the city can’t ignore such a wide gap in revenue.
“We really can’t afford to be sitting here and ignoring the fact that the Servus Place deficit is where it is,” Hughes said.
Coun. Natalie Joly also voiced support for having administration draw up the report, noting it could be “valuable” as the city is in the process of planning a recreation facility.
The city is currently in the early stages of planning for a future rec site, to go on a 59-acre parcel of land between Range Road 260 and Ray Gibbon Drive, slightly south of Villeneuve Road.
“I have every confidence that our staff are doing an absolutely fabulous job at Servus Place managing that facility,” Joly said. “This is not something I’m concerned about, but moving forward, I’d like to have a strong understanding of how operations work.”
Coun. Ken MacKay was also supportive of the motion, but noted public facilities — such as swimming pools — come at a cost.
“There’s a public good that facilities pay,” MacKay said.
The vote to have administration prepare an annual report passed unanimously.
