Another look at the figures
Prompted by a comment to a recent post, signed by a person, who says he will never reveal his name, - "born and raised here" the financials for the new Community Centre were revisited. Interesting stuff to a CPA but tough slogging for the rest of us. With Disraeli's quote, "Damned statistics etc..." in mind a couple of charts were analysed. using the consultants figures the estimated first year operating costs for the complex show as $667.443. That is a complete and additional cost to the existing costs for the operation of the existing arenas. Revenues for ice time are shown as $525K but no figures for the loss of revenue from the loss of the Memorial Arena ice or the reduced ice time in Pad 2. So you need that figure for an overall impact. 
Where the report gets murky is on the Non-Arena estimates.
The chart on the right side is taken from the report and shows Programme Space revenue, but where is the revenue from the Soccer Club paying for its change rooms, where is the rental from the Bowling Club to pay for its clubroom and kitchen? Where is the revenue from the storage space needed by all the different groups? All of these questions would bring in extra revenue, if applied, but right now look like gifts to the clubs from the Town.
But more disturbing is the question of the YMCA's involvement. Cobourg has no recreation department and has paid the Y to assume an informal role in this. Consequently there is a deficiency in recreational opportunities because citizens have expressed displeasure at the rates charged by the Y (This was even mentioned by a questioner at the last public meeting) - so before all the Y fans jump all over the writer for mentioning this it is a common perception being repeated here. So the Y has offered to joint venture the operation. They would operate the 'non-ice' side of the complex, and thereby reduce the Town's operating cost . In table 8.5 of the report found on page 30 there is a chart illustrating how they intend to reduce the Town's cost. Showing a list of Y expenses totalling $504,961 to run the complex if they joint ventured. In the same column the Town's expenses were shown as $215,947.98. A lot lower than the Town's cost of $667K.
But the unknown here is how would the Y spend half a million dollars of its money to run the joint and still allow the residents of Cobourg to access the facility without paying the normal Y fees? Because the way it looks to the BR that if the Y comes in they get a new building for half a million per annum and still get to charge the same fees. Please correct me if we are wrong.
So the conclusion to us folks here is that a much more thorough analysis needs to be done asking why rental income is lower than possible, why the overall impact of the transfer of ice rental revenue is not explained and the impact of ticket prices to the complex if the Y comes in. We are sure that these questions and more will be answered before the vote on July 21, but only if people ask.
Where the report gets murky is on the Non-Arena estimates.The chart on the right side is taken from the report and shows Programme Space revenue, but where is the revenue from the Soccer Club paying for its change rooms, where is the rental from the Bowling Club to pay for its clubroom and kitchen? Where is the revenue from the storage space needed by all the different groups? All of these questions would bring in extra revenue, if applied, but right now look like gifts to the clubs from the Town.
But more disturbing is the question of the YMCA's involvement. Cobourg has no recreation department and has paid the Y to assume an informal role in this. Consequently there is a deficiency in recreational opportunities because citizens have expressed displeasure at the rates charged by the Y (This was even mentioned by a questioner at the last public meeting) - so before all the Y fans jump all over the writer for mentioning this it is a common perception being repeated here. So the Y has offered to joint venture the operation. They would operate the 'non-ice' side of the complex, and thereby reduce the Town's operating cost . In table 8.5 of the report found on page 30 there is a chart illustrating how they intend to reduce the Town's cost. Showing a list of Y expenses totalling $504,961 to run the complex if they joint ventured. In the same column the Town's expenses were shown as $215,947.98. A lot lower than the Town's cost of $667K.
But the unknown here is how would the Y spend half a million dollars of its money to run the joint and still allow the residents of Cobourg to access the facility without paying the normal Y fees? Because the way it looks to the BR that if the Y comes in they get a new building for half a million per annum and still get to charge the same fees. Please correct me if we are wrong.
So the conclusion to us folks here is that a much more thorough analysis needs to be done asking why rental income is lower than possible, why the overall impact of the transfer of ice rental revenue is not explained and the impact of ticket prices to the complex if the Y comes in. We are sure that these questions and more will be answered before the vote on July 21, but only if people ask.
1 comments:
as another poster has essentially expressed elsewhere on your blog, Why are you so "opposed" to this miracle solution to our need for a community centre? - these are just numbers and numbers can be made to say whatever you want, you know that, don't you?
(now I'll take my tongue out of my cheek again and get back to my world, but it was fun visiting theirs for a moment)
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