HomeMy WebLinkAboutTR-64-82 W150d'Y`NON'LE ,INp {•I '+" • i r
CORPORATION OF THE TOWN OF NEWCASTLE
' q 40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING HELD
OCTOBER 25, 1982.
TR-64-82
SUBJECT: NEWCASTLE ARENA BOARD OUTSTANDING ACCOUNTS RECEIVABLE
RECOMMENDATION:
It is respectfully recommended:
1 . That this report be received; and
2. That the Committee consider the request of the Newcastle Arena
Board to have the outstanding accounts receivable in the amount
of $28,005.23 be written off as uncollectable in the following
manner:
$20,154.46 to Allowance for Bad Debts a/c#1170-X-1-9
7,850.77 to Contingencies a/c#7007-298-X-9
$28,005.23
3. That the Board be informed of the actions of Committee and Council .
BACKGROUND AND COMMENT:
As Committee are aware staff have been in contact with the Arena Board of
Management in Newcastle in an attempt to determine its ability to meet its
obligations to the Town for the expenses set out below;
1978 Advance $4,000.00
1979-1981 Insurance Charges 9,248.00
1979 Fuel Oil 1,650.13
1980 Fuel Oil 2,338.99
1981 Fuel Oil 4,909.86
to April 1982 Fuel Oil 5,858025
$28;005.23
0. . 0/2
I V - 5 Ce�
- 2 -
TR-64-82
G.P.A. Meeting held
October 25, 1982
BACKGROUND AND COMMENT: cont'd. . . .
Letters were exchanged between Staff and the Board which have resulted in
the receipt of first, the letter dated December 30, 1981 (attached) and
second, the letter dated September 23, 1982. The second letter requests
that all amounts due prior to the 1982-83 operating season be forgiven.
It is apparent that the Board did not include the aforementioned costs in its
budget delibertions in prior operating seasons and does not have the financial
resources to meet these obligations. The Board has undertaken some needed
capital repairs to the facility which has used any surplus funding which
might have been available to partially retire this debt.
Staff have undertaken to invoice the Board monthly for its fuel consumption
for the remainder of 1982. We hope that the past problem of indeterminate
lengths of time between billings can be avoided in the future. This procedure
will keep the Board abreast of its true operating costs and assist in the
management of the facility.
The split in the write-off of the account is necessary as the Allowance
for Bad Debt account will be completely exhausted with this entry and the
Contingency account is the most appropriate account to use in this circumstance.
Respectfully submitted,
Kathryn A. Cambpell , C.A. , B.Com. ,
Treasurer.
AC:gf
Enclosures
15 10 82
LB82-HB-9c
IV (c)
December 30, 1981 .
Town Treasurers Office ,
Town of Newcastle ,
40 Temperance St . ,
Bowmanville,Ontario.
Dear Mrs .Campbell ;
With reference to your recent letter regarding monies
owing by the Newcastle Arena Management Board re : Insurance,
Fuel , etc . , please be advised of the following.
As our Budget was struck in June , 1981 for the 1981/P2
season, no provision was made for Insurance or Fuel , as no billing
had been received from the Town for a two year period .
In addition to no Budgeted figures , we have incurred
considerable expense in repairs to the Building and Equipment ,
and attempted to maintain the Building in good condition.
We are anticipating further expenses such as replacement
of Defective Ice Lights , Furnace repairs , and a major project of
proper drainage and levelling of our Parking Lot .
Our present financial position leaves no allowance for
any payment to the Town and we cannot expect any great change by
the end of our Operating year.
Based on this , we must advise that we are not in a
financial position to clear any of the monies listed in your
letter. However, we would be willing to look at a projected pro-
gram by you for future Insurance and Fuel bills and would include
these figures in a Budget for our next operating season, providing
of course that you would supply us with a complete billing.
This will of course , neccesitate an increase in our
future Rental rates , which we have attempted to keep minimal for
our local supporters who have paid the biggest portion of our
new Arena .
Should you require further information, please contact
this writer.
i
Yours truly,
JAN — 41982 Ronald Hope ,
Chairman ,
-- y� Newcastle Arena Management
7,
',
-,5 ,�y � - Board .
%v 4 5 CC)
September 23, 1982
Mrs. C. Ca.mpbell
Trea.s urer
Town of Newcastle
40 Temperance Street
BOWMANVILLE, Ontario
L1C 3AZ
Dea.r Mrs. Campbell:
The Newcastle Arena Management Board hereby
requests forgiveness for a.11 outstanding debts
prior to the 1982-83 opera.ting sea.son.
Sincerely,
�OYA&u )4
R. Hope ,
CHAIRMAN
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