REGINA — Mosaic Place finished 2021 with a deficit of $1.2 million, but its food and beverage service program turned a small profit of over $31,000 during the six months it operated last year.
Spectra Venue Management Services — which oversees the recreation venue — budgeted a deficit last year of $843,675, but actual figures were $1,234,315, or $380,640 more in the red than expected, the 2021 income and expense statement indicated.
Mosaic Place hosted 78 events over 54 days that attracted 38,889 people in paid attendance. In comparison, Spectra had expected to host 115 events over 78 days last year and attract 129,370 people in paid attendance.
Total income last year was $1,162,696 while total expenses were $2,213,569, leaving an operating deficit of $1,050,900.
After other expenses are added — $29,739 for COVID-19 measures, $11,430 in Ticket Rocket gift cards refunds, $133,345 in management fees and $10,000 in management fee incentive — and $1,100 in client building rental revenues is added, the adjusted net loss for 2021 was $1,234,315.
Meanwhile, Mosaic Place began offering in-house food and beverage services in July. According to the service’s income statement, concession sales ($172,013) and catering sales ($50,787) totalled $222,800, while the total cost of goods was $75,286, leaving a gross profit of $147,514.
However, after removing $98,456 in payroll wages, taxes, and benefits, along with $17,503 in variable expenses such as bank fees, cleaning supplies, training, linen and office supplies, net profit finished at $31,555.
These numbers are based on 25,869 people attending 60 events.
Council discussion
Coun. Dawn Luhning expressed concern that revenues for sponsorships, suite leases, and club seating were down compared to budget. Specifically, budgeted revenues were $442,945, $147,450 and $19,203, respectively, but actual revenues were $123,596, $45,667 and $8,250, respectively.
Even though income was budgeted, no revenue was generated from January to March 2021 because the last half of the WHL season did not happen as expected, explained general manager Ryan MacIvor. However, a new hockey season began in September, so revenues were spread over two fiscal periods even though the calendar year shows things separately.
The WHL season was still set to proceed when Spectra provided council with a budget for Mosaic Place in November 2020, although it was scheduled to begin in January, he continued. The situation changed early that month when the provincial government adjusted in-person regulations, which forced the WHL to play all its Saskatchewan games in Regina.
These adjustments also affected revenues for the curling club.
When asked why Spectra didn’t re-adjust Mosaic Place’s budget, MacIvor replied that Spectra sets a budget and gives it to council to approve. It then follows a monthly rolling forecast and makes changes along the way.
“But not redoing the budget because we could be literally changing that, as we’ve seen many times due to the uncertainty and unpredictability of what we’ve been going through the last two years,” he added.
Financial data about Mosaic Place were presented as part of a fourth-quarter report during the Feb. 28 regular council meeting. Council voted unanimously to receive and file the information.
The next regular council meeting is Monday, March 14.
