Strathmore forecasts user fee shortfall as recreation memberships decline

By Melissa Crispin-Piche Local Journalism Initiative Reporter

Strathmore is forecasting user-fee revenue $560,000 below budget, with staff reporting lower facility membership sales even as drop-in admissions rise.

Coun. Jim Chisholm raised the forecast during council’s Oct. 7 discussion of the town’s second-quarter corporate report, asking whether the shortfall reflected timing, usage or changes in how residents were using town facilities.

“Our user fees are forecast to be 560K below budget,” Chisholm said.

Administration reported reduced use at some facilities and said revenue assumptions were being lowered in the proposed budget. Staff suggested the economy and the cost of living could be influencing spending, but did not present that as a confirmed explanation.

The membership figures show a change in how residents are paying for recreation.

Staff’s working explanation was that some individuals and families were avoiding a substantial upfront membership purchase and paying for occasional visits instead.

The forecast was based on the second-quarter report, covering the first half of the year. Staff said later quarters could improve the picture, with some activity also dependent on weather.

Coun. Melissa Langmaid asked whether the town still expected a year-end rise in membership purchases, noting that residents sometimes use workplace fitness or wellness spending accounts late in the year.

Administration said year-end purchases had historically been strong, including purchases made before fee increases took effect, but it was too early to know whether that pattern would continue.

Staff also said a more extensive cost-recovery analysis was planned, most likely next year, to inform the 2028 fees bylaw.

The user-fee shortfall does not represent the town’s overall financial result. Chisholm also asked about a projected surplus, and administration said council would decide how to use any surplus once the year-end figures were finalized, usually in February or March.

Administration generally recommends putting surplus funds into reserves or debt reduction. No decision on allocating a surplus was made during the discussion.