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COCHRANE— Untangling the complex financial web of supporting the Spray Lake Sawmills Family Sports Centre proved to be the most challenging aspect of the 2021-23 Cochrane Budget deliberations.
Initially, the facility requested $2 million for operation and capital costs. After a vigorous debate, Cochrane Council tentatively approved $1.7 million on Nov. 17, marking a 15 per cent decrease to the requested funds.
One of the key items of the budget debate was the allocation of funds and inflating operation costs of the sports centre.
Spray Lake Sawmills Family Sports Centre CEO Blair Felesky said he understands the difficult decisions council has to make for the large facility, and the significant economic commitment involved in keeping the centre active in the community.
The $1.7 million approved by council typically sees about 60 to 65 per cent go towards Human Resources, 15 per cent is fixed costs on utilities and power and the remaining is other costs including operational repair and maintenance.
He noted that excluding government grants and municipal subsidies related to COVID-19, the year over year revenue of the Spray Lake Sawmills Family Sports Centre reflected a decline of 22 per cent.
The facility faced economic turmoil when it was forced to close on March 15 for three and a half months and has faced a restrictive operational environment since reopening in July, affecting almost 40 per cent of their fiscal year.
The centre is once again preparing to again close it's doors after the introduction of new COVID-19 public health measures on Tuesday (Dec. 8).
Felesky said the sports centre recently completed an in-depth 10-year modelling with an engineering firm and was given recommendations over the next year that about $800,000 will be needed for capital improvements between Cochrane Arena and Spray Lake Sawmills Family Sports Centre.
A letter was prepared by Felesky and Spray Lake Sawmills Family Sports Centre Finance Manager Erin Wagner and shared with council on Nov. 17
The letter states the increase in operating funding from 2020 to 2021 was due to several factors, including COVID-19 affecting memberships and programs and loss of tenants in the building. To combat these anticipated losses $1.1 million is anticipated in lower wages, and utilities, program expenses and staffing costs are also expected to be lowered.
The letter states, "On a more personal note, the attacks on management and aura of mistrust are infuriating and defeating. Asking questions about staffing costs are very valid but need to be looked at in context of revenues, something that is lost on those who continue to ask and blame. Surely, if you are in the service industry and revenues increase, you would have experienced an increase in staff costs to provide that service."
Additionally, the letter states that the facility could be handed over to the Town of Cochrane in 2021 if it is believed the Town would be able to run the centre more cost-effectively.
“We will do our best to get through this very difficult period to ensure that the things that we are doing on a priority basis will give us time to get to a better place for both the Town of Cochrane and the facility,” Felesky said.
He added it was neither feasible nor realistic to hand the facility over to the Town in 2021 as stated in the letter.
“At the end of the day there’s a lot of emotions that are attached with the times that we are going through, and if there’s ever a point where we should be galvanizing support and alignment for one and other, I speak about our board [the Spray Lakes Sawmills Recreation Park Society], Town of Cochrane Council … It should be now,” Felesky said.
There are benefits to having a separation from the Town as the sports centre has access to government grants, including municipal, the Town would not have access to if they were running the facility.
Felesky said in 2019 alone the sports centre was able to raise more than $1.5 million through a combination of municipal grants and government subsidies.
“Our mandate is to do what we can to provide an outlet for our community to garner physical activity,” Felesky said, a part of this will be continuing to adapt to COVID-19 public health restrictions while lowering their cost base.
He added that to date the sports centre has only used $750,000 of the $1.5 million approved by council in 2020 and does not intend to use more through December.
Councillor Tara McFadden said it is essential the Town have a conversation about the purpose of Spray Lake Sawmills Family Sports Centre and its place in the community.
A key aspect of this dialogue will be deciding if the facility should be solely focussed on sports or expand its role as a community centre.
“When you look at what it provides, how many people engage with it and also the location maybe we should be approaching it from a community lens as opposed to a recreation first lens,” McFadden said. “It’s all about the numbers for me and it always has been."
She added that a $1 million addition to the budget is the equivalent to about a three per cent tax increase.
“To balance that there’s always a trade-off,” McFadden said. “An extra $700,000 to Spray Lakes is $700,000 we didn’t have to invest in other recreation options or other culture options or any other priority that the people of Cochrane have.”
She noted it was disappointing to see the rhetoric used in the letter from Spray Lake Sawmills Family Sports Centre sent to council during budget deliberations.
“We all believe in recreation and serving the public and we’re all trying to make sure we’re getting the best value for every tax-payer dollar,” McFadden said. “To get that level of animosity when you’re just trying to do your job was a little bit shocking and disappointing.”
She noted Spray Lakes Sawmills Family Sports Centre is co-owned by the Town of Cochrane and partner Rocky View County in a 50/50 split. McFadden added more work needs to take place to see if a more equitable solution can be found between the two parties when it comes to funding the facility.
“They’re 50 per cent owners and the Town of Cochrane has certainly paid the lions share,” McFadden said.
Coun. Marni Fedeyko said all of council values the Spray Lake Sawmills Family Sports Centre and the recreation opportunities it has to offer, but there is an impetus to be especially cognizant of taxpayers' money in light of the economic crisis created by the COVID-19 pandemic.
Questions about the funding of the facility are not a personal vendetta against the sports centre, she said, describing it “as purely a numbers game.”
“Every organization needs to be creative right now in how they are going to handle their finances,” Fedeyko said.
In the long-term, the future of the facility will depend on what happens with COVID-19 and if it is feasible for the Town to take over operations of the facility.
Fedeyko added she appreciates the Spray Lakes Sawmills Recreation Park Society and volunteers who work to keep the sports centre open, but, the Town needs to explore other options that could be used to save taxpayer money.
She noted Mayor Jeff Genung has approached Rocky View County for additional financial support of the facility.
“Rocky View hasn’t been paying their fair share,” Fedeyko said.
The intent behind the non-profit organization the Spray Lakes Sawmills Recreation Park Society is to focus on ensuring people have access to recreational services during COVID-19 and in the future, said Cochrane Councillor and Spray Lake Sawmills Recreation Park Society member Alex Reed.
Cochrane continues to work with the County, which lists Spray Lake Sawmills Family Sports Centre as an asset, to understand their obligations to the facility.
“Spray Lakes has been as transparent as possible in terms of all the information,” Reed said. “I’m hoping that we’re moving beyond the toxic level and getting more down into the nitty-gritty of actually communicating.”
Mayor Jeff Genung said the Town of Cochrane is continuing to work with Rocky View County in terms of financial support for the recreation centre and the creation of an operating agreement.
The recent agreement between the County and Town has expired and they are currently working their way through a new document. He added, the agreement has worked well in the past in delivering recreation to the region.
Cochrane has formally asked Rocky View County to consider helping offset some of the costs the Town has agreed to pay for the sports centre due to the increased costs associated with COVID-19.
Cochrane is using the Municipal Operating Support Transfer (MOST) grant to help cover the operating costs for the facility, Genung said, and are asking Rocky View County to consider doing the same. The MOST grant is provided by the Province of Alberta and the Government of Canada to support municipalities during the COVID-19 pandemic.
Rocky View County is currently assessing the request, Genung said, and has not yet responded.
“I’m hoping that as 50 per cent owners that they would see fit in helping us out,” Genung said. “It’s a long, long, long time in the making but we do need to come to an agreement on how we’re funding that together.”
When contacted by The Cochrane Eagle Rocky View County declined to comment on Spray Lake Sawmills Family Sports Centre.
Spray Lakes Sawmills Recreation Park Society board member and Rocky View County councillor Kim McKylor also declined requests for comment from The Cochrane Eagle.
