MOOSE JAW - The Events Centre holds six to eight concerts annually, but city hall is unable to evaluate these events’ financial outcomes or determine their implications for the venue’s overall economic health.
To rectify that problem, city council voted 6-1 during its Sept. 23 executive committee meeting to establish a concert reserve effective Jan. 1, 2025. The parameters of that separate bank account — which would provide “transparent and accountable financial practices” — include:
- The venue would use the reserve only for concerts
- The reserve would be housed within the Events Centre’s financial operations
- The Events Centre would create a separate bank account for this reserve
- The venue would have to give year-end financial statements using public sector accounting standards
The recommendation will become official when council approves it as a motion during a future regular meeting.
Coun. Jamey Logan was opposed.
The lack of data analysis on the annual concerts — whether they succeeded or failed and their effect on the venue’s bottom line — has created a gap in understanding the economic effect that the concerts have, a council report said.
Creating a structured approach would ensure that all concert-related financial activities would be thoroughly documented and analyzed through the reserve account, the document continued. Insights gained would play a role in strategic planning and decision-making processes and foster continued growth and success at the Events Centre.
“The use of public funds for any type of risk-based situation comes with the need to properly report on the cost or benefit derived,” the report noted.
The concert reserve would contain the profits and losses from the concerts, while it would summarize the net benefits or costs of the events held, the document said. The reserve will grow if concerts are successful, while the Events Centre will use the account if the concerts lose money.
“City council may very well find that hosting concerts is a money-losing proposition, but one (it) still (wishes) to pursue because of the benefits they bring to the community,” the report said.
Having the reserve under the Events Centre’s financial domain instead of with city hall will eliminate the continual exchange of money that would be required if the municipality hosted the account, the document continued.
Segregating the reserve and limiting what it can be used for could provide sufficient safeguards and ensure the venue uses the cash for its intended purpose.
Creating this reserve would boost accountability in hosting concerts, determine funding, allow the hosting of beneficial but potentially unprofitable concerts, and ensure overall profitability or acceptable losses are being understood, the report said.
The document added that creating a concert reserve would have zero financial implications for the city.
Council discussion
When asked whether the city has — or hopes to have — the funds to start this reserve, finance director Brian Acker said it was currently “undetermined.” However, even if no money is available, the account still allows the city to track progress next year.
“The hope would be that since we are having a good year this year at the Events Centre, there may be the opportunity at the end of this year to … transfer monies to have a pool within that reserve,” Acker said.
The finance director doubted that the account would be a revenue generator for the city, while he hoped that most concerts broke even financially. Meanwhile, he pointed out that concerts usually benefit the community more due to hotel bookings and meals.
When asked whether the Events Centre purchases U.S. dollars to pay artists, general manager Shaunna Fritzler said the venue hasn’t done that in a while because the Loonie has been weak for many years.
Coun. Jamey Logan asked whether the Events Centre would funnel concert-related food and beverage revenues and expenses through the reserve account. City manager Maryse Carmichael replied that that would happen as part of the break-even expectations.
The next regular council meeting is Monday, Oct. 7.
