Whitehorse Daily Star

More money unlikely for Games' extra expenses

City council is unlikely to see any outside money to ease the burden of rising Canada Games costs.

By Whitehorse Star on January 23, 2006

City council is unlikely to see any outside money to ease the burden of rising Canada Games costs.

In a meeting between Canada Games Host Society members and city council and officials on Friday afternoon, council learned that half a million dollars in additional Games' costs will likely have to be borne by the municipality.

Last week, council was informed that costs are predicted to be $537,000 higher than first anticipated and that the city would either have to raise property taxes or dip into a contingency fund to cover the increases.

Friday's noon meeting was held at city hall. It was attended by Councillors Dave Stockdale, Mel Stehelin, Dave Austin, Doug Graham and Jan Stick (via telephone); city administrators Dennis Shewfelt, Brian Crist, Linda Rapp and Robert Fendrick; and Canada Games Host Society members Piers McDonald (president) and Chris Morrissey (manager).

The first half of the meeting, centring on Games planning updates, was open to the public.

The second half, focusing on city budget matters, was closed to members of the public including members of the host society.

In a direct question to McDonald, Buckway said council is concerned about the rising cost of the Games and wondered if any of the money gained by the host society would be directed toward the city.

'Additional costs are on our mind,' Buckway said.

'Is there any chance of (additional money from fundraising or the federal government) flowing to the city for our increased costs?'

Outlining the host society's position, McDonald said it's difficult to say at this point exactly where funding sits, but that the prospect of the city receiving outside funds is unlikely.

'It's hypothetical at this point ... I don't want to raise expectations,' McDonald said.

While all federal funding contributions have yet to be secured due to today's federal election, he said, he's confident the society will receive the additional $5 million to $7 million in requested funds from the federal government.

McDonald said he expects the federal funding announcement will be made by the end of February.

'We're waiting for a new federal minister to determine the funds.'

The federal contribution, he said, is the only unknown in the multiparty funding agreement among the City of Whitehorse, the federal and Yukon governments and the Canada Games Council.

McDonald also said fundraising is going well, with $5 million of the $7 million fundraising target having been achieved.

'We expect we'll meet the targets set out for ourselves.'

McDonald added the host society had a policy that it 'cannot plan or contemplate' operating the Games at a deficit.

Any additional costs in the form of a deficit incurred during the operations of the Games is the responsibility of Whitehorse's municipal government.

According to the society, the Games will cost approximately $20 million to run. That doesn't include the infrastructure costs.

Broken down, the expected funding formula, as of late last year, is:

  • a confirmed commitment of $2.8 million from the federal government;

  • a confirmed commitment of $2 million from the Yukon government;

  • a requested $5 million to $7 million in additional funds from the federal government;

  • An expected $7 million in fundraising revenue;

  • A federal grant of $200,000;

  • A $400,000 contribution from Canada's other two territories in a Pan North agreement.

  • An expected $1 million in revenue gained from Games merchandising sales.

Council is expected to bring up Canada Games funding at its meeting on Tuesday evening.

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