Leisure Services Budget Dealt With

Monday, February 12, 2007 05:17 PM

The CN Centre's operating budget for the coming year has been approved.

Projected revenue for 2007 is $1,254,840 and that would be offset by operations costs of $1,732,534. Leaving taxpayers to pick up the difference to the tune of $477,694.

Councilor Don Bassermann pointed out that last year the taxpayers picked up a 33% subsidy, while this year, the subsidy for CN Centre is expected to be about 29%.

As for community arenas, revenue in 2006 was up $36 thousand over the projected amount last year, and is expected to climb another $50 thousand in 2007, but not enough to reduce the subsidy. Last year Taxpayers paid $954 thousand for the arenas, in 2007, that amount climbs to just under $985 thousand dollars.

Leisure Services says its Aquatics program budget last year was a little optimistic on the revenue side of the ledger and a little short on the expenditure side.

Once the people come to the pools, they are our customers, says Leisure Services Manager Tom Madden, but expected revenue from various pool uses was about 94 thousand dollars below projections.

There was one program enhancement requested by Leisure Services. It was for a $13,500 aquatic school swim program. It is meant to provide swim lessons and water safety to some 11 hundred school children who couldn't otherwise afford the program which is offered in conjunction with School District 57. It was approved for inclusion in the City's budget. The Mayor is hopeful someone will want to come forward and take on the role of sponsoring the program "If it fits their corporate goals, this is the type of thing a company or organization could take on to promote safety." The Mayor says the budget won't be finalized until May so there is still plenty of time to find a sponsor, and have the item removed from the tax base.

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Posted on Monday, February 12, 2007 05:17 PM in News by 250 News

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Comments

Posted by: bohemian on February 12 2007 9:47 PM

It was interesting to see the 2006 results for CN Centre:

Revenue:
Cougar Operations: $427,485
Show Operations: $1,087,622

Expenses:
Cougar Operations: $272,141
Show Operations: $910,294

Net Revenue:
Cougars Operations: $155,344
Show Operations: $177,328

So Show Operations, which are mostly performing arts events like rock concerts and such, bring in more revenue and are more profitable than the Cougars?

Posted by: realitycheck on February 12 2007 10:37 PM

At barely 2,000+ people per game that doesn't surprise me at all. Give us an owner who cares about giving back to the community, cares about icing a decent squad and cares about running his team like he wants to win vs. make every penny he can and that would change in a hurry.

Posted by: giterdun on February 13 2007 7:58 AM

IF WE HAD A SMART OWNER,COUGARS REVENUE WOULD DOUBLE.COME ON RICK HELP US OUT, SELL OUT AND MOVE ON. WE,VE HAD ENOUGH OF YOUR SECOND RATE SHOW. ITS NOT FAIR TO THE PLAYERS. WE HAVE A GREAT TEAM WE JUST NEED A GOOD OWNER.I BELIEVE THAT UNDER NEW OWNERSHIP WE COULD HAVE A BANNER HANGING IN THE RAFTERS IN TWO YEARS.COME ON PRINCE GEORGE LETS GET BEHIND RICK AND HELP HIM OUT....OF TOWN.

Posted by: owl on February 13 2007 10:30 AM

Based on the above figures, the centre makes money. But we know that is not true.

So, what part of the centre operations are not included in the expenses?

What other activities have to be added in order ot make the CN centre an operation running in the black without a subsidy?

Or which of the two operations have the greatest potential of getting the most additional money in?

If we have a winning team, how much more will the centre make? I assume if there is a winning team, that the owner will want a bigger slice of the pie as well.

How many more Performing Arts events can we get into the centre? Or is that mainly a matter of not getting enough people in to each event? What types of events will get more people in?

BTW is the Hockey Enforcers a Performing Art? .. Are hockey fights a performance?

Then we have rodeos, big mother trucks ... you know, all those fun events ... how about speed skating?

Do we need someone who knows how to turn a centre like that around? Are other cities our size having these problems, or is this a PG thing?

Posted by: Palopu on February 13 2007 9:41 PM

The difference between the Couger Operations and the Show Operations is only $21,984.00 This is because the expenses for the show operations are so much higher. They generate more revenue because they charge 3 times the price of a Couger ticket.

The CN Centre costs taxpayers approx $450,000.00 per year, so neither the Cougers or the Show Operations generate enough revenue to offset costs. You would have to increase the Cougers attendence to approx 4000 fans per game for 34 games and come up with additional Show Operations just to break even. That is not likely to happen.

If you want the CN Centre to at least break even you will have to kiss the Cougers goodbye, move the Spruce Kings into the Multiplex, tear down the Coliseum and move those people who utilize the Coliseum ice to the Multiplex and Kin Centres. The money saved from heating, maintenance, and staffing of the Coliseum would more than offset the cost of running the Multiplex.

This would be a win/win situation for all concerned, however I doubt if it will ever happen. How long will the City have to continue to lose money by subsidizing the Cougers before they wake up. If the City trys to increase their take of revenue the Cougers will threaten to leave, however if they do not increase their revenue then the taxpayers have to pay the money so that the Couger owners can make a profit.

If we increase the price of a hockey ticket to say $25.00 per ticket we could at least break even, however you know and I know that at $25.00 per ticket attendence would drop by half and nothing would be gained.

This is the classic *Catch 22* and is a direct result of this project not being properly **costed** before it was built. We are going to experience the same thing with the **SportPlex** on the hill, wherein the taxpayers will be subsidising that operation to the tune of $400,000.00 per year.

The agreement between the City and the Cougers for the use of the CN Centre for the next 2 years with a further two year option is;

The City receives 12.5% of gross ticket sales up to $1,500,000.00 and 15% thereafter. Average cost of a ticket $14.00. Average attendence per game 3000 (2005) 2900 (2006). Total home games per year, 36. You do the math.

Posted by: owl on February 14 2007 9:03 AM

I like the idea of tearing down the Coliseum. We need the space. There is a tremendous pressure on building space in the downtown area.

;-)