Meridian wants extra security for budget
The operators of the Meridian Centre want to beef up the arena’s security with metal detectors.
General manager Jeff Dixon told the city’s budget standing committee this week that metal detectors are a standard for operator SMG.
It was one of the items Dixon listed as a future challenge in the Meridian Centre’s proposed 2018 budget presentation Wednesday.
But it seems the committee was open to speeding up the process.
“In light of recent global events I think we need to increase the security at the Meridian Centre and one of our jobs as council is to put the safety of our residents first and foremost in our decision making,” said Mayor Walter Sendzik, one of the six city council members who make up the committee.
Sendzik said council needs to pay attention to security for big events like Elton John or the Niagara IceDogs and needs to make a decision sooner rather than later.
He asked to see the costs for the extra security measures in the next Meridian Centre budget presentation to the committee or council.
“With the indulgence of the budget committee, I’d like to see that number come back and we need to have a fulsome discussion about making that investment as soon as possible.”
The Meridian Centre hosted 105 events last year and is on pace to hold 110 this year, Dixon told the committee in his first presentation as the new GM.
This year’s event numbers are up despite the OHL schedule, which added two less IceDogs games in the facility, and the IceDogs not having the playoff run they had in 2016. Dixon said they’ve been putting more types of events in the building.
Attendance, however, was down a bit because it was boosted by that 2016 playoff run.
Dixon said the Meridian Centre is on pace to meet or do a little better than budget expectations in terms of net loss, which is estimated to be about $625,000.
It’s expected to increase revenues in 2018 by $50,000 through additional facility fees and $53,000 through concessions.
Dixon said concession revenues will make up 42 per cent of income.
“The biggest revenues that come in that building are from food and beverage. Hot dogs and popcorn, we make some decent money on.”
It’s also anticipating $45,000 in additional revenues from ticket rebates through a partnership with Ticketmaster.
But there are challenges. Besides security costs, the province’s minimum wage increase will affect the food and beverage side of the organization and wages may be offset a bit with some increases in concession pricing. Dixon said service contracts are also going up because of minimum wage increases.
Repairs and maintenance costs continue to rise for kitchen and concession equipment and the wifi network is under serviced.
Dixon said other challenges for the facility include competition from the 5,000-seat theatre under construction in Niagara Falls and from Hamilton and Buffalo facilities. He said Live Nation promotes 90 per cent of concerts in Canada and has a strong partnership with Hamilton so St. Catharines does lose out. There’s also increased competition for the Canada small tour market.
The standing budget committee’s next meeting is on Monday. It’s aiming to have the city’s 2018 draft budget ready for city council to pass in December.
Library has challenges on the books
St. Catharines Public Library may be a little too successful in getting people to return books on time.
Library CEO Lilita Stripnieks told the budget standing committee Wednesday that the library is losing revenue year to year on overdue book fines.
“Because we are very efficient with respect to notifying people of their holds and their overdues, we are losing money in those particular revenue streams,” she said.
The library isn’t enjoying photocopying revenues the way it used to either because patrons are using their smartphones to make copies, she said.
Library officials were making a presentation to the committee about the proposed 2018 budget.
They requested an increase from the city of 2.5 per cent over 2017 for a total contribution of $5.6 million.
Stripnieks said operating expenditures have increased 3.4 per cent over the previous year due to increases in salaries and benefits, library materials, occupancy costs and general supplies and services.
In particular, the library filled a new building superintendent position for its four branch locations and staffed another vacant position.
It’s also dealing with the province-wide increase in minimum wage which will affect 35 employees that clocked 14,000 of employment in 2017. Library business administrator Jack Foster said they’re cutting 2,000 hours of work out of the 2018 budget to try and balance it.
The U.S. dollar also impacted the budget by affecting the cost of library materials which are purchased from American publishers. Stripnieks said the library has 28 per cent less purchasing power because of the exchange rate.
She said the challenge ahead with the lower Canadian dollar is maintaining library collections at current levels.
The budget committee asked library officials to return with a detailed breakdown of revenues, salaries and benefits and the minimum wage increases.
Transit sees crosstown route on road ahead
St. Catharines Transit is once again proposing the city fund a crosstown route to hit major areas currently not serviced.
The proposed route would include the St. Catharines Museum and new Pathstone Mental Health building on Fourth Avenue, along with the Fourth Avenue commercial and retail area, St. Catharines Hospital and Seapark Drive industrial area.
General Manager Dave Sherlock told the budget standing committee Wednesday the route would cross the city using Welland Avenue and Fourth Avenue, bypassing the downtown terminal and connecting with the north and south bus routes.
The purchase of four buses to operate the crosstown route was approved by city council in April as part of a federal funding package and those buses should arrive in March.
While the capital side is covered, Sherlock said transit still needs the operating funds required to put the route into action.
A report said the cost of implementing the route in 2018 could be anywhere from $355,736 to $807,929, depending on the hours and frequency of stops, whether Sunday service is included and whether it starts in May or September.
Budget chair Mat Siscoe said the route addresses a number of concerns raised by councillors in the past about the museum and new Pathstone building not being serviced.
“We currently don’t have transit access to either of those facilities on opposite ends of the city and I think the crosstown route is a rather elegant solution to that problem,” Siscoe said.
He suggested transit officials come back with an implementation plan so the budget committee can choose an option to propose to council.
Budget committee navigates airport ownership issues
Niagara District’s Airport’s budget will be grounded this year.
Members of the St. Catharines budget standing committee voted to keep the airport’s 2018 budget at 2017 levels rather than approve an increase for 2018.
Mayor Walter Sendzik made the motion for status quo because the three municipalities that own it — St. Catharines, Niagara Falls and Niagara-on-the-Lake — are in discussions and negotiations to have the Region take it over.
“I see there’s a bright future at the airport. It wasn’t there three or four years ago but it’s there now,” Sendzik said. “It’s also important that we hold the line this year until we come to decision as a council as to what the future is for air in our community.”
The commission will be allowed to use capital reserves to address some of the maintenance at the airport that needs to be done.
In July 2016, regional council supported in principle the idea of taking over the airport. But it told the owners in September they’d have to complete a Phase 2 environmental assessment prior to any detailed negotiations for the transfer of ownership.
The three municipalities picked up the tab for the $75,000 assessment and asset valuation.
Sendzik said the results of the environmental assessment came back to the municipalities this September.
“It showed there was very little contamination beyond anything that hadn’t been shared by the commission previously, so we effectively wasted a lot of money,” he said.
The valuation of the airport is still being done by Deloitte so the three municipalities will know the overall value. They’ll then be able to continue discussions with the Region.