The Moose Jaw Events Centre wants nearly $3 million from city council for operations and capital projects next year, including an operating subsidy that is $364,000 higher than in 2023.
The sports and entertainment venue wants an operating subsidy — including the management fees for OVG360 — of $1,261,016, representing a subsidy rate of 35 per cent. In comparison, the subsidy this year was $897,001, which was a subsidization rate of 30 per cent.
Therefore, the year-over-year subsidy increase is $364,015 or 29 per cent.
Meanwhile, the Events Centre wants $1,483,000 for six capital projects, compared to this year’s request of $802,039 for four projects.
Next year’s proposed projects include:
• An HVAC/mechanical equipment automation system for $125,000
• A new heating pit coil that melts ice for $58,000
• Phase 2 of sound system upgrades for $55,000
• Phase 3 of LED lighting retrofits for $70,000
• Fire coating for structural beams for $175,000
• Indoor rigging steel for $1 million
Therefore, the total funding that the Events Centre wants is $2,744,016 as compared to $1,699,040 this year.
Dean Clarke, regional vice-president of OVG360, presented the proposal during council’s Dec. 11 budget meeting. Council later voted to table the requests for future discussion.
Operating funding
The venue’s budget is based on expected paid attendance of 103,170 people, expected drop attendance of 105,830 people and 167 projected events, a budget report said.
Total income could be $2,294,815, which would be a two-per-cent decrease compared to this year. Also, total expenses are expected to be $3,339,860, which is a projected nine-per-cent increase.
Therefore, the total net operating loss is expected to be $1,045,045, or roughly 34-per-cent more than this year.
However, with a venue management fee of $147,811, a food management fee of $45,427 and a management incentive of $22,732, the total net operating loss is expected to be $1,261,106, or a 29-per-cent increase.
Next year’s budget does not include $112,500 in revenue for building and curling centre naming rights, while there is a revenue shortfall of $175,000 because of the new terms of the tentative major tenant lease with the WHL’s Moose Jaw Warriors, the report said.
The budget also expects to see higher expenses in areas like CPP and EI contributions, employee benefits and cost of living adjustments, vendors’ materials and supplies, preventative equipment and plant maintenance, more staff in the food and beverage department, and increased revenues for ice rentals, ticketing fees and food and beverage.
Council discussion
Coun. Crystal Froese asked how the Events Centre was doing compared to other venues OVG360 manages and whether the organization had seen a bounce-back since the pandemic.
“It’s a bit shocking regarding how much things have increased. All facilities’ expenses have gone up,” said Clarke.
However, Moose Jaw is doing well, considering the venue is seeing higher operational expenses and missing some revenue pieces, he continued. Moreover, many events are coming here, including an exciting act next year that management will announce in January.
Coun. Heather Eby praised some initiatives the Events Centre has pursued, such as creating a new Crown Royal Lounge above the curling rink and providing more arena beverages from community businesses.
“People have been asking for that (more drink options) for years and really appreciate that that’s there now,” she said.
Eby acknowledged that while the total budget request of $2.7 million was high, that was the amount council initially expected when the building opened in 2010. Meanwhile, next year’s budget lacks income from building naming rights and lower revenue from the tenant agreement, so those are negative factors.
She added that a cost-recovery rate of 65 per cent is good, considering a 50-per-cent cost recovery rate for any recreation venue is decent.
The Express will have a second story with the proposed capital projects for 2024.
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