Operating Mosaic Place is becoming more expensive every year, based on new financial documents, with one city councillor suggesting the building is becoming a money pit for the municipality.
During the most recent city council meeting, city administration presented the 2019 audited financial statements, which included information about the accumulated surplus for the Downtown Facility and Field House (DFFH)/Mosaic Place.
Coun. Brian Swanson pointed out DFFH/Mosaic Place finished 2018 with a surplus of $503,651. However, by the end of 2019, that had turned into a deficit of $341,777, for a net decline of $845,428.
“… (This) leads me to have a concern that Mosaic Place is starting to become a black hole again for city finances,” he said.
After the meeting, Swanson pointed to the report, which said expenses to operate Mosaic Place declined last year based on budgeted versus actual costs. The parks and recreation department had budgeted $566,370 to operate the building, but actual costs were $314,189, which means the department saved $252,181.
Swanson thought this decrease pointed to city hall not providing a subsidy for 2019.
“It is a bit unclear to me. More subsidy would have impacted the $184,744 surplus the city had for 2019,” he said.
The auditors plan to soon release the audited statement for Mosaic Place from January to September, the month when Spectra Venue Management Services took over managing the building. The statement is likely to provide more details and answer some of Swanson’s other questions.
Finance director Brian Acker said during the meeting that Mosaic Place has already received more money than was budgeted this year, at $704,686, and will likely need an extra $300,000 to $400,000 to ensure the building reaches Dec. 31. Since ticket refunds for the ZZ Top and High Valley concerts will cost another $200,000, Swanson thought seeing the audited statements for DFFH will be necessary to provide a complete financial picture of this building.
The next regular council meeting is Tuesday, Sept. 8.
