Mulmur Township officials are asking its neighbour municipality for $25,000 toward the operational costs of the arena in Honeywood.
Mulmur staff and council members made the request of Melancthon Township council on Jan. 15.
As Mulmur attempts to balance its budget, the arena, the North Dufferin Recreation and Community Centre, has a deficit.
“This arena is running $60,000 in the red,” said Mayor Paul Mills.
The accumulated debt and this year’s deficit bring the shortfall to $123,000.
Melancthon was to pay $7,500 but Mulmur officials want to see the remuneration more reflective of the usage.
Forty per cent of the people using the arena are from Melancthon, 20 per cent are from Mulmur and the balance is from Shelburne, Grey County or elsewhere.
Mulmur treasurer Heather Boston said user fees were implemented last year from groups using the arena. Non-resident hockey players and figure skaters are paying a $36 seasonal fee.
Boston said even if the rates are increased, it won’t result in additional revenue until next year, so it won’t help with this year’s budget.
“If they put in $25,000 and we put in $25,000 we could maybe break even and then next year if we increase the rates, I can readjust the budget and them maybe we can decrease what we ask,” she said.
Mulmur officials are trying to figure out other ways of creating revenue and last week discussed the possibility of adding other user fees, but there is a reluctance to do so.
There is a banquet hall at the arena that can be rented for events and there is money in reserves to make improvements to the upstairs room but council has no guarantee that the renovation would result in increased revenue.
“There is money to improve the arena and I don’t mind putting money into the arena as long as you are going to see a return,” said Mills. “Where are we going with this thing? We can’t afford to keep going this way.”
The building itself does not create a financial burden for the township, it is the cost of cooling the ice.
The arena was built by volunteers in the 1960s after the original structure was destroyed by fire.
Fewer hockey teams and a dwindling volunteer base are adding a financial burden.
Councillors agreed to ask for more money from Melancthon in hopes of addressing the deficit.