People responsible for running the Canada Games Centre and the city's Department of Parks and Recreation should face consequences for budgeting errors that will see the new facility cost $773,000 more a year to run than expected.

That's the opinion of city councillor Doug Graham, who says the city will have to tighten its belt after some of the worst financial errors committed in the history of Whitehorse.

'I think there should be consequences not only for the Canada Games Centre, but for the entire Parks and Recreation Department as well,' Graham said in an interview this morning.

'We've never had an error this big. There has to be some consequences for this type of error.'

According to council documents tabled at Monday night's meeting, new budget forecasts place the Games' Centre's financial position at nearly $1 million lower than originally expected.

'... (R)evenue from the Canada Games Centre which is currently projected to be $549,000 under budget ... expenditures at the Canada Games Centre (are going to be) $224,000 higher than expected,' council documents state.

Graham said he feels the $773,000 miscalculation is a result of poor budget forecasts.

'They estimated that they would sell 1,700 passes at the full $45 each ... that's not realistic. There's seniors' passes, children's passes and family passes,' he said.

The discounted pass sales, he said, were partly responsible for the shortfall.

The Games centre itself, he added, has not been run with as much fiscal responsibility as should have been exercised.

'The Canada Games Centre has not been run as well as it should have been.'

Last night, Graham recommended taking money from the city's capital reserves to finance operation and maintenance costs.

Each year, the city puts 60 per cent of the $4.5-million to $5-million capital grant from the Yukon government into capital reserves.

For one year only, Graham recommended to his fellow councillors Monday night, the city should put 50 per cent of the capital grant in capital reserves and put 10 per cent of the grant to the city's operations and maintenance budget.

'Next year we're going to hit the wall,' Graham said. 'You can't keep robbing capital funds for operations and maintenance (expenses).'

Coun. Dave Austin and Mayor Ernie Bourassa both said they will support Graham's recommendation.

Speaking to council Monday, Robert Fendrick, the city's director of administrative services, said the city's overall budget will be facing a $500,000-deficit if the city did not shift funds from its capital grant, but that city administration expects the situation at the Games' centre to improve.

'We see this year as unusual,' Fendrick said, explaining that bookings at the centre are expected to grow while labour costs are expected to drop.