One city councillor’s concern about how difficult it is to read Mosaic Place’s income and expense statement eventually turned into a discussion about whether the venue deserves its $1-million subsidy.
Coun. Dawn Luhning expressed her confusion about the document — which featured first-quarter and year-to-date data — during the May 25 regular council meeting, saying it took her an hour to understand what the statement was saying.
“There has to be a simpler way to do this … ,” she remarked. “There is just so much information; we almost need a Cole’s Notes version of this report, as well as the financial statements for Mosaic Place.”
According to the income and expense statement, from Jan. 1 to March 31, building manager Spectra Venue Management Services budgeted a deficit of $32,807, but actual figures were a deficit of $40,457.
Year-to-date (YTD), since Jan. 1, Spectra budgeted a deficit of $76,493, but actual numbers were a deficit of $212,047. Meanwhile, the management agency set an annual budget with a deficit of $864,307 — which the subsidy would cover.
These figures look like a lot of money, especially during a pandemic and when it seems like not much is happening at Mosaic Place, Luhning said. She asked for clarification about the document, especially since a YTD deficit of $212,047 would likely turn into $880,000 by Dec. 31.
Luhning read the document correctly, while the net loss of $212,047 includes the management fee, expenses for the Ticket Rocket issue, and pandemic-related costs, said general manager Ryan MacIvor. There have been savings of $171,001, but the absence of live events has offset that number.
MacIvor added that Spectra could provided a simplified statement next time.
More accountability
Coun. Crystal Froese expressed concern about the subsidy city council was giving Mosaic Place, especially since the pandemic had “stifled” the venue almost completely. She pointed out that when other publicly funded organizations shuttered last year, they presented council with worst-case budgets; Mosaic Place didn’t do that or say how it would “be accountable here.”
Even though Spectra reduced staffing by 67 per cent and saved $171,000, Froese wanted rationale about why the subsidy should remain, considering council clawed back funding from other groups last year when they reduced operations.
“This should be an urgent concern as we move through the summer. A $1-million subsidy is a huge amount of money,” she added. “What is the plan going forward?”
Working hard
The core business at Mosaic Place is live events, but when the pandemic stopped that, Spectra moved quickly to release staff and remove the ice, said MacIvor. The remaining staff have worked on preventative maintenance — such as patching, painting, and conducting fire tests — in preparation for the upcoming season.
“Ice plants are expensive to maintain and operate, utility rates went up, the carbon tax increased — some of these things are out of our control,” he said, adding Spectra will ask for a similar subsidy for 2022.
Using other rinks
City hall and Spectra worked together to provide ice time for the community during the first quarter by closing Pla-Mor Palace — there was no point running three rinks — and using Mosaic Place and the Kinsmen arena instead, explained city manager Jim Puffalt.
Both parties are now preparing for the fall when the WHL is expected to return, when vaccination rates are likely to increase, and when more concerts can be held. They are also working to ensure two arenas can meet the community’s needs.
During a non-pandemic year, Mosaic Place likely needs a subsidy that is one-half to three-quarters of the $1-million subsidy, Puffalt added.
Things will improve
It initially seems questionable about how much money Mosaic Place needs, but it was based on other sources of revenue besides the subsidy, said Coun. Heather Eby. Now the subsidy is the main source, while the hockey tenants are providing a little as well.
Spectra was hired in September 2019 to manage Mosaic Place, so it only had a few months before the pandemic hit, she continued. However, it has had the time to prepare for a full year of events and activities.
“I know the budget looks bad, but this really is because of the pandemic … ,” Eby said, reiterating that 37 per cent of staff remain and equipment needs to be maintained. “When it’s time to reopen, they will rock it out over there and things will be in really good shape operationally.”
The next regular council meeting is Monday, June 14.
Council questions need for $1M subsidy to Mosaic Place during pandemic - moosejawtoday.com
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