Tuesday July 12, 2011 I recently read an editorial on municipal user fees by Frank Atkins in Business in Calgary magazine. He wrote about new and upgraded facilities such as hockey rinks, recreation centres and such. He indicated that perhaps the solution is to make those who use the facilities (arts centres, multiplexes, etc.) fund them through user fees versus higher taxes. I think it is a good idea. The more you use, the more you pay. But I think Frank missed the boat a little. For municipalities (and other organizations – charitable or for profit -seeking to raise revenues), there is sponsorship. How can we forget this?
Sponsorship is a revenue channel for any organization that owns “exposure.” At a hockey rink, pool, arts centre or school gym, there is exposure. There is signage space, opportunities to promote brands, hand out samples, acquire access for employees, etc. So why are we not looking at such opportunities as an alternate revenue channel for our municipalities? Why is the City of Calgary so far behind such municipalities as Edmonton, Toronto, Ottawa, and even the towns of High River and Kindersley? And Calgary is not the only such “behind the times” municipality. There are lots more!
Wake up! It is time to smell the roses! Rather than raise taxes and charge higher user fees, please look to alternate revenue channels such as sponsorship to carry part of the burden. There is cash sitting there waiting for municipalities such as Calgary and others to ask. They have the assets. They have seen their counterparts reap the rewards, but still they sit there and think the solution is to increase taxes and user fees.
Those sitting on the sidelines will wait a long time, and unfortunately, when they come to the sandbox to play, it may be too late.
These are just one person’s thoughts. Yours are welcomed as well. Please comment below. And thank you for reading.
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