North Battleford city council faced the music Monday with respect to operating budgets for the new Co-op Aquatic Centre.
The city is facing an annual projected net loss of $625,154.
The numbers come from a Sept. 21 memo to council from Director of Parks and Recreation Keith Anderson. In the memo he noted that the "size of the new facility, the added water components, program initiatives all contribute to an increase in operational costs, however with this increase in programming opportunity comes an increase in revenue potential."
According to Anderson's numbers, the new facility will see a projected operating cost of $1,192,154, but the projected revenue adds up to only $567,000.
The $625,154 deficit compares to the net loss of $362,506 from the current Kinsmen Aquatic Centre, which operates with more modest annual revenues of $323,097.23.
The revenue is projected to go up at the new facility due to greater utilization and expanded programming opportunities. Among other things, the new facility will be able to accommodate more programs simultaneously.
Public swim admissions are expected to be much higher than what the current Kinsmen Aquatic Centre has at the moment. It is expected the new facility will generate $300,000 in revenue from public swim admissions, compared to $98,849.59 for the current facility.
Anderson told reporters after the meeting he anticipates a "honeymoon period" shortly after the new facility opens, where swim admission revenues could go even higher than what is being projected. Even after a leveling off takes place, he still expects revenues to be way up.
But operating costs will be up compared to the old facility, due to an increase in staff and due to increased costs of advertising, electricity, equipment repair, laundry, office and other supplies, insurance and water. Anderson noted the new facility will be much larger at 43,000 square feet compared to 9,000 square feet for the current Kinsmen Aquatic Centre.
"There is an increase in utility costs, an increase in custodial costs, lifeguarding costs, there's three tanks at this new facility as opposed to the one tank currently," said Anderson.
The city is looking to add three new life guards and about five to 10 additional part-time staff compared, as well as one additional fulltime caretaker and two fulltime cashiers to replace the current part-time cashier position. The current facility has two full-time lifeguards and 15-20 part-time staff, one part-time cashier and one full-time caretaker.
Anderson said the creation of full-time positions for swim pool staff "will go a long way to ensuring staff retention."
The new facility will also be much bigger with two separate pools, a competition pool and a leisure pool that will feature waves and a lazy river. There will also be two water slides, a steam room, a hot tub and a variety of water features.
Also going up will be the cost of admission. North Battleford plans to bring in higher fees for the new aquatic centre.
Those age two and under will still be admitted free, but admission for pre-schoolers between three and five will cost $3 where before they were admitted free of charge. Children would be admitted for $4 (a rise of 75 cents), students $5 (up 75 cents), adults $7 (up $1.75), seniors $5 (up 75 cents) and family $20 (up $7.75).
Lesson rates will remain largely unchanged except for the family rate, which rises from $140 to $157. Pre-school rates are set at $53, 4- minute lessons at $58, and hour lessons at $61. Anderson explained those rates were on the high end in the province already and they would be offering the same programs, so those rates will remain the same. The full rate schedule will be published on the city's website.
Three resolutions were passed Monday. The first called for all programming opportunities be expanded to maximize facility usage and revenue opportunities in the Co-op Aquatic Centre. That passed unanimously.
The second called for the proposed operational budget for the aquatic centre, as per Anderson's memorandum, be approved. That also passed unanimously.
The third resolution, which also passed, called for the proposed rate structure to be approved and be implemented at the time of occupancy of the new facility.
The news that the new facility would run a deficit was no surprise to councillors. Anderson's report pointed to similar facilities in Lloydminster and Yorkton and their budgets, with Lloydminster incurring a net loss of $753,747.80 and Yorkton a net loss of $650,983.80.
"There just doesn't seem to be a way to get away from not operating with a deficit," said Anderson.
The one piece of good news is that the city expects a greater recovery on operations, with 47.5 per cent recovery expected compared to 44 per cent for the Yorkton and Lloydminster facilities. As well, it would be higher than the 46 per cent for the current Kinsmen Aquatic Centre.
Councillor Ron Crush said he appreciated the report from Anderson. He continued to speak of the benefits of the new facility, adding that he considers the operating loss to be a "contribution or investment" that has the "ancillary impact for the health and well-being of our community."
