Entrepreneurial Revenue Generation in Kitchener
One municipality embraces an entrepreneurial approach to revenue generation
By Sarah B . Hood
From the rising cost of policing to the need to maintain aging roads and bridges , most municipal budgets are stretched as far as they can go – and there ’ s a limit to the increases that taxpayers can reasonably be expected to absorb . Tried-and-true revenue generators , like parking and licensing fees , can only take up so much of the slack . Recently , the City of Kitchener has turned to a new revenue stream that ’ s already being tapped by U . S . municipalities , but is still little used in Ontario .
Ryan Hagey , Kitchener ’ s Director of Financial Planning , made a joint presentation about municipal entrepreneurism with Stephanie Potter , Principal of SP Consulting and the Whetstone Group , at the 2014 AMCTO Finance Forum last November to describe Kitchener ’ s approach to exploring new kinds of corporate partnerships . So far , this has already included innovative partnerships between local businesses and municipal buildings like the Kitchener Memorial Auditorium Complex ( known as “ The Aud ”).
Removable floor decals in public areas now point the way to the nearest Boston Pizza or Subway restaurant .
Toyota , which is also is a House League Platinum Sponsor for Kitchener Minor Hockey , found value in setting up a test-drive location outside the Activa Sportsplex . One sponsorship by Libro Credit Union consisted of temporary sign columns that didn ’ t even feature a logo : just an intriguing slogan and a QR code that could be accessed with a smartphone .
The goal is to “ create revenue that does not have to come from the tax base ,” but he cautions that this approach is unlikely to replace traditional revenue streams . In Kitchener ’ s case , he says , “ it would probably amount to less than one per cent of our total tax revenue per year .” Of course , it could vary considerably , depending on what a given municipality is ready to do .
Municipal entrepreneurism can take many forms , some of which are already being tapped in some municipalities , like advertising on municipal buildings or vehicles , sponsorship of events and naming rights to high-profile properties like sports centres , transit hubs or performing arts venues . Or it could consist of a mutually beneficial
A Boston Pizza floor decal in the Grand River Arena points spectators to a nearby location
18 Q2 2015 www . amcto . com