Finances at Mosaic Place sunk further into the red during the second quarter of this year, as the lack of events due to the pandemic eliminated nearly all sources of revenue.
The one positive thing that might be gleaned from the Mosaic Place financial statement is the net operating loss in the second quarter was less than expected, according to Spectra Venue Management Services. The operations company indicated that it had expected a deficit of $111,039 by the end of June, but that loss was smaller than anticipated, at $92,017.
However, the actual deficit for the first six months of the year was $307,395, compared to the expected deficit of $165,334.
Spectra has pegged the overall net operating loss for this year at $582,638.
City administration presented a summary of the entertainment venue’s finances as part of an overall second-quarter financial report for the municipality during the most recent city council meeting.
While no one on council seemed concerned with the large net operating loss, Coun. Dawn Luhning — who sits on the city’s investment committee — did ask about Mosaic Place’s equity investments. She did not understand how any of the numbers presented in the document added up.
Brian Acker, director of finance, explained the retained earnings deficit of $221,518 was the loss for all of 2019. The current retained earnings deficit of $307,455 is the loss to the end of this June. Offsetting that loss is the money the municipality contributed, of $404,766.
Therefore, the current total equity deficit is $124,207.
The document also showed assets and liabilities totalled $597,731, leaving a total liabilities and equity net of $473,524 halfway through this year.
The next regular council meeting is Monday, Aug. 24.
