Woolwich Township is keeping a close eye on operating expenses at the Woolwich Memorial Centre, which are tracking higher than budgeted.
During the year-to-date report, presented at the Aug. 10 meeting, township treasurer Richard Petherick told councillors that senior staff has already been taking a hard look at the expenses at the Woolwich Memorial Centre.
“It’s one concern I’ve had,” said Petherick. “With the Woolwich Memorial Centre, we are starting to realize that the budget was not realistic.”
Petherick noted that township staff are “actively dealing with it, and we’re on top of it, so by the end of the year, we are going to be in good shape.”
Councillor Sandy Shantz asked for clarification on where the extra expenses are found.
“What part of the figure is salary, or utilities? Are we overspent in both salary and utilities? Can you categorize the overage?”
Petherick said that the staff expenses are “tracking pretty much on budget,” but the utility costs are higher than estimated.
Recreation director Larry Devitt said that the building’s high use is one factor, since more and more people are in and out of the facility on a regular basis, increasing heating costs in winter and air conditioning costs in summer.
“The fact that it is busy is a plus,” said Devitt, but added that this is contributing to the increased cost.
The township also has to pay additional charges because of the overall energy consumption.
Partway through the year, said Devitt, the township adjusted its energy budget for the building by 50 per cent, and “even that we believe will fall short.”
Ultimately, said Devitt, it comes down to one thing — the building itself is significantly different from the Elmira pool and Elmira arena.
“Quite frankly, we guessed low,” said Devitt. “We’ll have much better information the next go around for budget numbers.”
“I’m not surprised you guessed low,” commented councillor Ruby Weber, who noted that this makes it even more important that the township complete its cost analysis for the WMC.
In June, township councillors agreed to hire a consultant to complete this analysis, at an estimated cost of $20,000.
The township has budgeted $1.9 million for operating expenses at the WMC, with $1 million, approximately 55 per cent spent as of June 30. In the fall of 2009, the first six months of operation for the WMC, $462,626 was spent.
Revenues, however, are less than expected, with the township taking in only $173,969 in 2009, and bringing in $551,534 so far this year, against the $1.35 million that was budgeted.