When the curtain goes up on the Morinville Community Cultural Centre next spring, the cost of keeping the lights on will put it in the red to the tune of more than $400,000.
Town councillors got their first look at a proposed operating budget for the centre during budget discussions last week.
In the first year of operations the centre is expected to bring in about $129,000 in revenues through rentals and advertising, while at the same time it will spend approximately $547,000.
The difference between those two figures will be made up from the town’s general revenues at a cost of about $420,000 in the first year.
The budget for the facility is expected to gradually improve as more revenues come in from more rentals and more revenue.
Morinville Mayor Lloyd Bertschi said this first budget is about what he expected the facility would cost, but he thinks it will improve over time.
“Going forward, as we get real numbers and that facility gets more well known, I think our operating costs are going to come down.”
Coun. Gordon Boddez said he believes administration has rightfully taken a very conservative approach and he is hopeful the town will actually see a better return than what they are estimating.
“I think they are being conservative with these sorts of things.”
In addition to keeping the lights on and the water running, the cultural centre budget proposes six total staff members for the facility.
The town has already hired a cultural centre manager who is drafting budgets and helping work on some of the details of the facility.
The plan also calls for a technician, an events and booking co-ordinator and three building service workers.
When presenting the budget last week, administration told council that all of the positions would be phased in as the facility is completed and starts attracting more business.
Those staffing numbers raised some questions last Wednesday when council began considering the budget. Boddez said he would like to see administration explore all the possibilities for cost reduction, but if the facility is going to be well used, it needs to be well staffed.
“We want to look at efficiencies with the high school, but if the facility is well booked with conferences and what not, then you probably will need those people.”
Boddez said he would also like to see a hotel in town, which would be key to attracting conferences to the facility.
Bertschi said it is important to remember the town is not building a for-profit facility. He said he hopes it will do better in subsequent years.
“Any time you have community groups, not-for-profit groups, they are going to get a subsidized rate,” he said. “If we could get that facility to a subsidized rate of about 30 per cent, I would be thrilled.”
