NEW TECUMSETH - User groups that pushed New Tecumseth council for the new recreation centre in Alliston, promising rental hours and fundraising to help cover the cost, aren't living up to their end of the bargain, according to some town councillors.

"They (user groups) lobbied very hard for this facility and it can't all be on the taxpayers' back," said Coun. Barbara Huson.

When the town created the 2009 budget, the New Tecumseth Recreation Complex was expected to generate $932,012. It made $844,354, with much of the almost $87,000 deficit from lower than expected rentals of the ice pads and field house.

Altogether last year, the revenue at New Tecumseth's four recreation facilities was $95,459 less than budgeted and $106,000 of user revenue was lost because of people cancelling booked hours and adjustments to user fees.

A town report said the slow economy is impacting use of the facilities because development isn't going up as anticipated. When approved developments are built, a town report on New Tecumseth's arenas and recreation facilities said the revenues will increase.

"These new subdivisions will generate a demand for facilities and services at the recreation facilities, however the economy has negatively impacted on the speed at which these developments proceed," staff wrote in the report.

There are a number of factors impacting the town's revenue at its recreation facilities.

Currently the town waives fees or offers a substantially reduced rate for private and public sector users when an alternative venue for an event would be a private facility.

"Charging a rate more comparable to the private sector could substantially increase revenue for users," wrote staff.

The town also adjusts its user fees for community service group fundraisers.

For ice rates, the town is in the third year of a four-year phase in for an increase to the hourly rental rates. After that phase in is complete, council will have to decide whether or not to implement higher user rates for ice and other sports venues.

Town staff is looking at other ways to increase revenue at the rec facilities.

By revising the town's booking policy, cancellations could be minimized. This would be achieved by booking fewer permits far ahead and updating bookings throughout the season.

The policy may also consider having user groups needing to cancel hours doing so in blocks of time that can be resold, rather than cancelling scattered hours that can't be resold, which is currently happening.

Staff will also be working with user groups to attract more tournaments locally.

The conundrum council faces is what the role of the municipality is; to help groups or to generate revenue.

"There's a philosophical issue and again it comes back to the role of the municipality," said Caron.

"There is an ongoing challenge for a municipality to balance community services, generate the revenue, control the expenditures while minimizing competition with the private sector all at the same time."

Deputy Mayor Rick Milne is hesitant to raise the hourly fee for ice rentals and said families are at their limit with travel and equipment costs. There are some potential hockey players whose families can't afford to put them in the sport, said Milne.

"It always ponders me, are we in the business to make money or are we in the business to provide a level of service we can afford," said Milne.

The Alliston Memorial Arena, which no longer has an ice surface, was the only rec facility to make more money than was budgeted last year.

In 2009, the town budget predicted $40,000 coming from the Alliston Memorial Arena. It actually brought in $43,287.

At the Beeton Arena and Hall, the budget anticipated $224,000 in revenue. It made $220,315.

The Tottenham Arena and Community Centre was expected to bring in $293,000 and brought in $285,697.

At the New Tecumseth Recreation Complex, the budget predicted $932,012 in revenue. It made $844,354.

The Hornet's Nest, the restaurant at New Tec Recreation Complex, and concessions have met the minimum rent standards for the year.

Instead of paying a flat rent fee, the concession and restaurant, operated by Muddy Water Tavern owner and Beeton Coun. Richard Norcross, pays 30 per cent of the revenue. Since opening in March, $30,000 has been paid to the town. The minimum payment required by the town was $18,000.

In addition to the current concerns, Huson is looking to the future cost and financial burden to the town for the recreation facilities, which are being built and renovated back-to-back.

"The upkeep is all going to be due at the same time," said Huson.

The arena report was given to council at a budget meeting. It will be up for discussion again at a committee of the whole meeting Feb. 1, when parks, recreation and culture manager Joyce Epstein will be available for additional questions by council.

Current ice rates (by the hour) in New Tecumseth:

New Tecumseth Recreation Complex, $155 for minor hockey, $205 for adults. Fieldhouse, $140.

Beeton Memorial Arena, $130 for minor hockey, $180 for adults.

Tottenham Community Centre, $145 for minor hockey, $190 for adults.

Proposed rates after the phase in:

At the end of the four-year phase (2010-2011) the cost per hour could be:

New Tecumseth Rec Complex, $175 for minor hockey, $210 for adults.

Beeton Memorial Arena, $145 for minors, $190 for adults.

Tottenham Community Centre, $160 for minors, $200 for adults.