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