SOUTHWEST MIDDLESEX - Council received an update on facility rentals and revenue for 2025 during its November 19 meeting, outlining the extent of discounted and free rentals offered to community groups and the proposed changes for handling those subsidies in 2026.
Treasurer and Manager of Finance Denice Williamson presented the report on behalf of Manager of Community Services and Facilities Kevin Miller, noting that discounted and waived fees represent a significant portion of the municipality's rental activity. "At the end of this year, there has been 506 facility rentals, of which 234 of them have been discounted by 75% and 175 been free of charge," Williamson said. She added that "just under 409 of the 506 facility rentals have not been recovered at the rate that is in our fees and charges."
According to the report, the municipality would have collected approximately $24,000 if all rentals were charged at the full rate. Instead, it received $12,800, resulting in an estimated $11,200 in forgone revenue. Williamson described this amount as another form of community grant that is not currently reflected in the budget process.
ARTICLE CONTINUES BELOW
With the 2026 budget cycle approaching, staff recommended that all user groups receiving discounted or complimentary rentals begin applying through the municipality's Council Grant Program. Williamson said the intention is to ensure rental subsidies are clearly accounted for and aligned with council's existing grant policy. "We will be fully recovering the fee for facilities and recreation in the revenue for the facilities," she explained, adding that the corresponding discounts would be tracked through the grant system so council can "identify very quickly the great work that they're giving back to the community and the financial dollars associated with that grant."
The report also highlighted a policy concern: a for-profit organization has been using the waived-fee program for 18 rentals. Williamson noted that the group would be required to submit a grant application, though "our current policy does not allow" for-profit users to receive grants.
Some councillors raised questions about the potential impact on long-standing users. Councillor Mark McGill said he was "a little concerned" that groups previously granted free use based on eligibility would now have to complete an application. Williamson responded that staff have already assisted several applicants and will continue offering help as needed.
Deputy Mayor Mike Sholdice asked whether community groups had provided feedback. CAO Amanda Gubbels clarified that while many current grant recipients were notified earlier in the year about the policy change, the user groups receiving waived or discounted rentals had not yet been contacted about this new recommendation.
Council approved the motion directing these groups to apply through the Council Grant Program beginning in 2026, with several members emphasizing the importance of clear communication as the changes roll out.
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