Naming rights funds have no impact on 2017 arena budget
Due to practical and collateral costs of name change for Tribute Communities Centre, contract increase does not impact upcoming year
Despite new funds coming in from the recently signed naming rights agreement, the Tribute Communities Centre’s budget will not be impacted. As well, additional revenue from the renegotiated shared marketing agreement between the city and the Oshawa Generals will be allocated to other efforts, as well as towards the purchase of the arena’s new jumbotron.
By Joel Wittnebel/The Oshawa Express
The final dollar amount for the new naming rights agreement has yet to be released publicly – but whatever the figure, it will not have any impact on the budget of the Tribute Communities Centre for 2017.
According to the recent budget submission from the TCC presented to the city’s finance committee by general manager Vince Vella, the increased revenue will have no impact on this year’s numbers.
“Revenue has been kept flat to reflect production expenses incurred in year one for change out of all signage and collateral material,” reads the facilities business plan obtained by The Oshawa Express.
The same was also said for the additional revenue gained through the renegotiation of the shared marketing agreement with the Oshawa Generals, which bumps the city’s annual cut to $260,000 from $190,000. However, that $70,000 increase has been allocated to a new reserve and used to fund the purchase of the new jumbotron installed this past summer.
It’s expected that the increases from both of these agreements are to be felt in 2018.
In the meantime, the TCC will need additional dollars to keep the building in top shape and deal with what Vella labelled as “typical wear and tear.”
The building opened its doors in 2006.
On top of the $300,000 in capital funding allocated last year to the facility, an additional $86,000 will be required with a possibility of more down the road.
Currently, funds are needed for several replacements, including the protective netting around the ice ($18,600), the rubber floor for the main rink ($120,700), a new zamboni ($100,000) and a new event deck ($30,000). As well, $86,700 is needed for the final lease payment for the facilities point of sale system, $10,000 for “IT/Technology” and $20,000 for the annual reserve contribution for a new ice resurfacer.
Additionally, $220,000 may be required to strip and resurface the south parking lot.
The facilities operating budget may also need a helping hand in 2017 as, like other city facilities, the rising cost of global adjustment fees for hydro have led to some surprises come bill time. In 2016 so far, the facility had under-budgeted $100,000 in utility costs on the year and are looking for an additional $80,000 as a contingency for 2017.
The increase remains a “primary concern” Vella says, as the facility paid $354,596 in total for GA fees in 2015. At the end of September, the facility has already shelled out $344,859.
A potential saving grace could be that this past August, the TCC implemented a building automation system, which original predictions say could help reduce energy consumption at the facility by as much as 20 per cent.
The final decision on the TCC’s budget will be made during council’s budget deliberations in January.