Title
TransAlta Tri Leisure Centre 2021 Budget Deficit
Proposed Motion
That Council approve the Tri Municipal Leisure Facility Corporation request to utilize $113,147 from their Deferred Revenue, $98,471 from their Operations Reserve and $140,573 from their Restricted Reserve to fund their 2021 Operating Deficit.
Body
Administration Recommendation
Administration supports the proposed motion.
Purpose
The Tri Municipal Leisure Facility Corporation is seeking Council approval to fund their 2021 Operating Deficit from Reserves and Deferred Revenue.
Summary
Parkland County, along with the City of Spruce Grove and Town of Stony Plain are owners of the Trans Alta Tri Leisure Centre (TLC). An agreement is in place with the three owners and the TLC outlining the various terms and responsibilities of each party in the operation and management of the facility. As per Article 6 of the Agreement the TLC's Operating and Capital Budgets require Council approval; given that this is a notable change from the previously approved 2021 Budget this request is before Council for consideration and decision.
The TLC has provided Council with an update and report on their activities over 2021 and the challenges they faced and approaches they took to manage the operations of the facility. A deficit has resulted in the amount of $352,191. Parkland County’s portion of that deficit, as per agreement, is $89,633 (25.45%). The TLC Board considered two options which were shared this morning with Council along with the pros and cons of each. The recommended course of action which the TLC Board is seeking support for from Council is to utilize Deferred Revenue, Operations Reserve and Restricted Reserve to fund the deficit.
Given the Agreement in place states in Article 7 that Reserves are in place to fund deficits of the corporation and no additional tax levy is required from Parkland County, Administration supports the request.
Strategic Plan/Policy/Legal/Staff Implications:
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