ELORA – A local hockey club is looking to waive a historic debt with the Township of Centre Wellington, or it may have to suspend operations.
According to a report going before Centre Wellington Council on Monday, the Elora Rocks Hockey Club which currently plays in the Western Ontario Super Hockey League owes the township just over $25,149.20.
The report says the community organization has a long history with many successes along the way however, the club has experienced some difficulties financially through recent years.
In 2021, the Rocks came under new management and entered into a new agreement with the township to pay 10% of the debt each year through annual payments of $3,143.65 at the end of each hockey season.
The Elora Rocks Hockey Club management team has shared with township staff they continue to struggle to pay for ice rentals annually each season.
Staff will present to council two options on Monday, either to forgive the loan to the Elora Rocks or have the senior men’s hockey club continue annual payments on it.
Option A: “Option A is what is being requested by the Elora Rocks Hockey Club, to forgive the current balance of the Elora Rocks Hockey Club interest-free loan. If this option is chosen the current agreement with the club would still apply and the Elora Rocks Hockey Club would be required to pay all facility rentals in advanced for all rentals so that no further arrears would be incurred. This option would impact the 2024 operating budget as the write-off would appear in the 2024 operating results within the community services division and equates to an approximately 0.135% impact on current taxation levels. This option would set a precedent for to the Township and other current and future interest-free loan holders.”
Option B: “Option B would be to continue with the current agreement with the Rocks where they would continue to pay installment toward their current interest-free loan obligations. If this option is chosen there could be the possibility of the Elora Rocks Hockey Club suspending their operations because they cannot keep up with their debt obligations.”
“Current practice is that if an individual or organization does not pay their fees/debt owed for rentals or programs, they are suspended from future use of Township facilities until that debt is paid. It requires the authority of Council to implement any other option,” the report stated.
The report will be presented for consideration at Monday’s 6pm meeting.
You can read the full report here.