Fact Check: YMCA Subsidy

Incorrect Statement: Because of the increased subsidy provided by the City of Langford to the YMCA, the City is collecting an extra 4% of taxes in 2024.

Fact Check: In early 2023, the YMCA notified the City that due to continued financial losses at the YMCA Westhills location, the YMCA would cease operations as of March 31, 2023, if the City did not increase its subsidy by an additional $950,000.

This additional subsidy provided by the City to the YMCA resulted in an increase of 2.5% to the 2023 taxes.

For 2024, this subsidy results in a 0% tax increase as the amount of the subsidy does not increase from 2023 to 2024. If the City lowers the subsidy in future years, that reduction would decrease City expenses and would therefore lower future tax increases.

Based on the YMCA financial reporting provided to the City, the YMCA Westhills location incurred a loss of $63,852 in 2023, this loss factors in the additional subsidy from the City. The subsidy payments started in April of 2023, and a one-time rent forgiveness amount was also provided by Westhills Land Corporation. The 2023 financial reporting from the YMCA verifies that the additional subsidy was getting close to the amount needed for the facility to break even.

Incorrect Statement: Memberships at the YMCA Westhills location have returned to pre-COVID-19 levels, therefore the YMCA no longer requires an additional subsidy outside of the contracted amount.

Fact Check: Revenue from memberships at the YMCA Westhills location has not returned to pre-pandemic levels. In 2019, memberships contributed $4,013,267 in revenues. While the YMCA is seeing steady membership growth since 2020, 2023 membership income at the YMCA Westhills location was $2,617,969, which is only 65% of pre-pandemic levels. Additionally, in 2019, when membership revenue was $4,013,267 and there was no additional subsidy, the YMCA lost $867,666 that year. While the YMCA did not ask the City of Langford for an additional subsidy in 2019, the YMCA effectively contributed an additional subsidy of $867,666. From 2016 – 2019, the YMCA Westhills location lost $5,500,000 and from 2020 – 2023 lost $4,300,000 for a total of $9,800,000 since the facility opened. These amounts are effectively subsidies provided to Langford residents and other facility users by the YMCA.

As membership revenues continue to grow, the City and the YMCA will continue to monitor the level of additional subsidy needed. At this time, based on the 2023 financial reporting, the additional subsidy from the City is necessary.

For background facts on the 2023 request from the YMCA to the City of Langford for additional funding please click here.

For background facts on the YMCA business case review and next steps as presented in during the 2024 budget process. please click here.

A copy of the most recent financial income statement, as provided to the City of Langford, is included below.