TWINPAD ARENA
POSITION PAPER

Presented by the Campaign to Elect
John Duck for Mayor of Bracebridge
March 2010


Introduction
Many general comments have been received from the public with regards to a new replacement arena for Memorial Arena in Bracebridge. The comments range from excitement from all those who will benefit from this project. There are also those in Bracebridge who believe the Town cannot afford the project at this time. As a result, I have prepared a financial plan for the project that is based on current facts from the Town’s own budget (current and past budget figures) as well as the current Development Charges By-Law. Specific details (figures etc.) can be backed up on request by contacting my campaign office.
This financial plan is intended to show that a new TwinPad Arena can be built, funded and operated by both the current tax base and new growth of the Town at NO additional costs to the existing taxpayer.

Background
The Town of Bracebridge currently provides funding to Memorial Arena in terms of an Operating Budget. The Town also provides additional funding for Capital projects such as major repairs, replacement of arena systems, roof, structure etc. As our current arena gets older and older, there are continuing demands for both increased Operating Budgets and Capital Budgets (repairs). The current tax base pays approximately $51 per household for the Memorial Arena. My intention is to provide a financial plan for a new facility where the costs to the current tax base do not exceed this $51 per household i.e. to provide a new twin pad facility at no additional cost to the tax base.
The Town of Bracebridge currently has in place a Development Charges Bylaw. This bylaw allows the Town to collect monies whenever a new household is developed in town. These funds (known as development charges) are placed in separate reserve accounts to be used when necessary for projects related to Roads, Library, Fire Department and Parks and Recreation. In 2009, the Town of Bracebridge passed a Development Charges Bylaw that included a plan to collect development charges for a future twinpad arena. The average development charge to be collected over the next five year period for each new household is $2,945. Of this amount, approximately $984 was earmarked specifically for a new arena.
Together, funding for a new arena will come from the current tax base (what we already pay) and from growth (development charges). In fact, according to my plan, the current tax base will only contribute for the first 10 years and after that time; the amount of development charges will pay the entire costs of any remaining debenture (or loan).

Arena Budget
The arena will be constructed based on a budget of $18 million (similar projects have been completed from $10 million to $22 million). It is anticipated that construction of a new arena will not be possible without the help of both federal and provincial government funding. Grants of $10 million are anticipated from these two levels of government. This is very typical of a project of this type and style. This leaves $8 million to be determined. These figures are as outlined in the Town’s DC Bylaw.
As with any project of this size, contributions and capital fundraising will be necessary. I would expect to launch a capital campaign to raise $2.5 million from local businesses, organizations and private citizens. A similar project of this type in Brant County took only 18 months to fundraise close to $3.5 million. This would leave $5.5 million left.
With good growth planning, I would anticipate having this project ready to go within four years. This will mean that the Town will have collected and saved monies through development charges for the project. Based on the anticipated growth within the Town, close to $710,000 would have been collected for this project. Using these funds as a downpayment, the remaining funds necessary would be $4.79 million. These funds would be obtained through a municipal infrastructure loan (or debenture). This debenture could be financed for 20 years at 4.61%.
The resulting annual payments for this new debenture would be approximately $367,200. How would these payments be funded? By 2015 (when the new twinpad arena is expected to open), the number of households in Bracebridge should be close to 9,500 (up from the current 8,800). With each household currently contributing $51 to Memorial Arena, this amount of available funding from the current tax base is $484,500 per year. At the same time, the Town is continuing to grow and additional development charges for the arena are being collected. Assuming a 20% increase in development charges (above the 2014 rate), the amount collected per year would be $232,000 from 2015-2029. This creates a pool of available funding for the new arena of $716,500. As mentioned above, the debenture would cost $367,200, leaving $349,300 as an available operating budget (deficit). A twinpad arena can be operated for significantly less than the calculated $349,300 operating budget. This will mean that taxpayers should see less demand for their dollars after a new arena is built (and not an increase).
The interesting thing about this financial plan is that by 2025, the anticipated growth and development charges should result in no funding from the tax base for the debenture. After 2025, the costs of the debenture would be fully covered by the accumulation of development charges for the new arena.

What can you do Now?
The key to this project being successful is the encouragement of responsible growth within our community. Without responsible growth, the accumulation of the necessary reserve funds for a new fire hall, library and twinpad arena will not be possible. Growth within a community can come in many forms including retirees, seasonal residents and new families.
Capital fundraising will be necessary for this project to be successful. Our arena is a special place in this community. For many of us, we spent a considerable amount of our youth at the rink. For some of us, we continue into adulthood enjoying the game we love, encouraging our kids at the rink and helping coach the next batch of hockey players and figure skaters. All of us should be proud of the accomplishments and history of Memorial Arena. As a tribute to its legacy, please plan on a contribution towards its replacement.

Conclusion
The facts and figures given here are not fiction! The numbers used in this position statement were obtained from current Town policy and Town budgets. The growth of the Town is based on figures provided by Watson & Associates in their study prepared for the District of Muskoka.
A new twinpad arena can be built and developed at no additional costs to the current or future tax base. The current Memorial Arena is over sixty years old, costs an amazing $300,000+ in operating expense to the tax base plus is going to continue to be a money pit with needs for capital improvements (Bandaids) to keep the old barn operating.
The time to begin planning this new facility is now. With architectural plans, site planning and development as well as construction spanning close to a two year period, spending the next couple years with the stakeholders of the Town (hockey associations, adult hockey, figure skating and other users), the timeline to begin serious planning for a new arena is now.

Your Vote
With your vote in the upcoming municipal election, I will work very hard to see that the Town continues to grow at the pace necessary to justify this (and other projects) within Bracebridge. The next Council needs to be able to plan this Town in a responsible way that does not affect the current tax base but also provides the necessary infrastructure to service future growth. Without the necessary infrastructure, new residents will be reluctant to move to Town. With a positive growth and infrastructure plan in place, all residents will get to benefit from the new and improved facilities.

VOTE JOHN DUCK FOR MAYOR
Together, we can help build this Town responsibly!

Contact Information
John C Duck
30 Fairlight Glen Cr.
Bracebridge, Ontario
P1L 1W8

Phone 705-646-8972

Introduction

To all my friends, family and and supporters in the Town of Bracebridge,

As many of you know, I announced my candidacy for the position of Mayor for the Town of Bracebridge in late January 2010. I will be hoping to speak with you all face to face in some detail in the coming months. I have announced my intention of being your next mayor well in advance of the September closing of nominations.

Some have asked, why decide to run so early? The answer is quite simple. To those of you that know me, you will know that I do not make shallow promises and I am a detail oriented person who wants his facts straight, organized and precise before disclosing them. I see no merit in making promises that the electorate cannot afford and that the Town does not need.

As the finer details of my campaign are rolled out, you will see that I intend on presenting a campaign in a new and precise fashion. No loose promises. No platform that does not have sound fundamentals and research behind it.

The Town of Bracebridge and all its decisions should be based on sound economic grounds using the best information available to us. In advance, I thank you for your support.