Share Costs with Others

1) Cost Sharing Agreements for Recreation Facilities
Owen Sound residents have by far the lowest ability to pay high taxes yet they are burdened with the full cost of providing services that many residents living adjacent municipalities use on a regular basis. Neither Georgian Bluffs nor Meaford residents contribute anything, beyond their user fees, toward the maintenance of these regional recreation facilities such as the Bayshore and the Rec Centre.

Owen Sound has a population of 21,612 residents and occupies only 24 km2 but is surrounded by Georgian Bluffs and Meaford which have a combined population of about 22,585 and cover an area of 1,187 km2. Therefore it’s understandable that residents of both Meaford and Georgian Bluffs would take full advantage of Owen Sound’s attractions and recreation venues. The number of Owen Sound residents filing income taxes on between 2018 and 2019 reduced by 2.2% according to Statistics Canada 41. In all likelihood, wage earners are just moving across municipal boundaries to reduce one of the growing strains on their family finances – high Taxes and the high rents that result from high taxes. After all, they can continue to enjoy everything that Owen Sound has to offer, while living in Georgian Bluffs or just East of 28th avenue in Meaford.

Given their relative populations, Owen Sound should only be paying for 48.9% of the total cost of regional services, Georgian Bluffs and Meaford should cover 25.2% and 25.9% of the cost respectively, including amortization expense.

It was recently brought to my attention that Owen Sound attempted to negotiate a cost sharing agreement with Georgian Bluffs 10 years ago and failed. Given this I would recommend a different approach. My approach would be to start this budget season by publicly giving them notice that effective January 2025 neither the Rec Center nor the Bayshore will be providing subsidized services to non-residents due to current economic conditions. This will either prompt them to open negotiations or not. Either way it will be a win for Owen Sound. If they come to the table our position should be that Georgian Bluffs and Meaford cover 25.2% and 25.9% of net costs respectively. If they don’t open negotiations it will open new opportunities for these facilities.
As well as preserving existing commercial contracts, this approach would allow for expanding commercial services and ancillary uses at competitive rates, e.g. the Rec Center could contract with a 3rd party for the bulk purchase of ice time etc. at market value. If it comes to losing non-residents participation in programs, it should not hurt the business. It could actually help the business by opening new opportunities. This is where the Director of Ancillary Services comes in to grow the business while protecting the original intent of the recreation facilities to provide services to Owen Sound residents at a fair ticket price.

One thing to keep in mind is that these facilities do not exist to provide services to non-residents and the status quo of Owen Sound taxpayers subsidizing recreation for non-residents must end. Either way the potential reduction in expenses is $1,981,452 x 0.511 or $1,012,521.