ROSTHERN — The dire financial state of the Station Arts Centre — a local gallery and performing arts centre in the town of Rosthern that began in 1989 — was outlined at a community meeting on January 30.
Around 40 people gathered at the renovated CN Railway Station that evening to hear about the organization’s financial woes, as well as the board’s plan for getting the centre back into a surplus position and to potentially provide feedback on new events or fundraisers.
Before the meeting, the Station Arts Centre announced via its website back in December that it was facing major financial challenges because of reduced funding, rising costs and a business model “that has not been sustainable.”
The website stated, “After much reflection, discussion and consideration, the board has made the difficult decision to implement changes that we hope will ensure the station’s long-term viability.”
This included closing its craft beer and coffee bar as of Dec. 22, reducing its staff to a single person (director of programming Nicole Thiessen), shutting down the facility until mid-January and engaging a consultant to guide the board in reimagining the organization.
“This is an emotional time for all of us. The Station has been a cornerstone of our community for over 35 years, and we are committed to preserving its legacy,” the website stated.
At the January 30 meeting, board chair Rebecca Kennel told the crowd that the Station Arts Centre had received a generous $100,000 grant back in 2010, but over the years, the station has had to whittle down that reserve to cover its expenses.
“This is not a new thing that we’re facing; it has been going on (for a long time),” said Kennel. “The only years that we actually made a profit was during COVID when the government paid for our wages.”
In more recent post-COVID years, with that $100,000 grant fully expended, the board has had to borrow money to stay afloat while at the same time trying to reduce expenses and increase revenue, Kennel said.
Unfortunately, costs like utility bills have continued to rise, while on the revenue side, the amount of grants they receive has not increased for at least five years.
“We’re grateful that sponsorships and donations have remained strong,” she added.
As they now look to become more sustainable, Kennel said they are looking to develop a better, more sustainable business model; strengthen its relationship with the Town of Rosthern; broaden its donor and sponsorship base; and approach fundraising more strategically.
Kennel said the board has long debated whether they were a policy or a working board, but now that debate is settled.
“Now we know: we’re a working board,” she joked, adding that they are also on the search for more board members with the skills to meet their current challenges.
Alex Tiessen, chair of the ways and means committee, told the crowd that they had developed a yearly operating budget that, if followed, will hopefully leave the Station Arts Centre with a $12,000 surplus.
This money would in turn be used to pay down the centre’s outstanding debt and hopefully build a contingency fund that could be used in the future for incidental expenses, like unexpected maintenance.
“This is a budget that we think is quite reasonable, though it is ambitious and will take some work,” he said.
This budget would see the centre take in $137,000 in revenue through the usual avenues of rentals, programming and sponsorships/donations.
However, the board was also looking to expand its memberships, which Tiessen noted does make the organization a little bit of money. “It’s not huge, but it’s important at the same time,” he said.
On the flip side, expenses have been reduced to about $125,000. Tiessen said salaries represented the biggest chunk of the costs they have cut, though expenses like utilities, insurance and a yearly audit are also significant.
Another board member, Brad Nichol, said they viewed the January 30 meeting as an opportunity for re-engaging with the community, acknowledging that they needed both help and suggestions for the future of the centre.
“We have to be a board that gets their hands dirty a little bit more than taking notes and having visions, so tonight is a little bit about that re-engagement of the community of wonderful people who support the Station Arts Centre,” he said.
