The pandemic has made money tight for many folks and local sports teams are also feeling the pinch.
Okotoks council is set to review a request from the Bisons Junior Hockey Club to reduce yearly arena rental fees during Monday's meeting, Feb. 28.
If accepted, the reduction would apply to all of Okotoks' junior teams, including the Oilers and the Marauders Lacrosse Club.
In an email to council, Bisons president Jay McFarlane said that the club foresees running into tough financial times if a change is not made.
"Our club has run a deficit the last three years and will be in financial trouble for next year if income [and] expenses do not change," he wrote, in part, adding that the team has been a preferred user of the recreation centre since 1985.
"We hope a solution can be provided that can be looked at each year if necessary to ensure the continued success of the Bisons, both on and off the ice for many more years to come."
According to a report prepared by community health and safety director Susan Laurin, the Bisons paid more than $25,000 (plus another $1,200 in GST) during the 2018-19 season — the last full season prior to the pandemic.
Of the team's regular season bookings, 100 per cent are during prime-time hours and have the junior hockey prime rate applied in accordance with the Fees, Rates and Charges Bylaw.
Rates for junior use and adult use are the same under the bylaw, given that the majority of players in junior hockey or lacrosse are over the age of 18, the report reads.
Fees paid by the club also contribute to the collaborative agreement with the Town, which gives exclusive dressing room use, office space and advertising and promotional opportunities.
Under this agreement, the Bisons also bank 100 per cent of the revenue from alcohol sales during their home games.
However, Laurin recognized pandemic restrictions have made it difficult for the team to generate revenue.
"For the past two years, the restrictions associated with the pandemic (i.e. reduced arena capacity and vaccine passports) have negatively influenced the club’s ability to generate revenue or host fundraising activities resulting in financial challenges for the organization," she wrote.
During the annual budget review, council is presented with comprehensive comparisons of facility fees in neighbouring communities of similar size including High River, Airdrie, Cochrane, Strathmore and Calgary facilities close to Okotoks.
According to Laurin's report, the current annual fees are "mid-market" and provide the Town with a 65 per cent cost recovery.
Administration has presented council with three choices: to not reduce fees, to reduce fees to the youth rate for both games and practises, or to reduce fees to the youth rate for practises and continue with the junior rate for games.
If the decision is made to apply the youth rate for both practices and games for the Bisons, Oilers and Marauders, the Town would lose nearly $25,000 in rental revenue.
Changing the rate only for practices and maintaining the junior rate for games would result in nearly $6,000 in lost revenue.
Council also has the option to establish a new fee category for junior teams that falls in between the current rate for youth and adults.
Consideration on whether or not the decided change would be a permanent policy amendment or a one-time change for the 2022-23 season will also have to be made.
Debate and a vote on the proposition will take place during the Feb. 28 regular meeting, which can be streamed via Okotoks.ca.
