The new arts centre being developed in Canmore will keep surplus operational funding it didn’t spend last year and use it to establish an operational reserve fund.
ArtsPlace executive director Jeremy Elbourne was in front of council earlier in July to make the request to keep funds left unspent last year from $200,000 in operational funding it received.
Council voted to support the request and allocate $121,886 to the Canadian Mountain Arts Foundation, which the municipality contracted to run the arts centre two years ago.
According to Elbourne, there are two reasons the money went unspent last year, including the fact the capital project to renovate the old library and turn it into an arts centre saw significant delays. The other reason, he said, is that CMAF was able to secure various grants from the province and various foundations ($51,841) that went toward capital costs and one-time infrastructure development costs associated with contract services that were already included in the budget presented to council.
He said establishing a reserve fund is a sound business practice and ensures long-term financial stability by guarding against unknown future costs.
“CMAF feels that establishing a reserve fund will provide a safety net that will give artsPlace the confidence, financial security, and the necessary time to put a balanced and diversified financial base in place for the future from multiple earned, private and public sources,” wrote administration in a staff report to council.
“On a practical level, this will mean artsPlace can confidently embark on a plan of delivering even greater value to the community by providing a broader range of programming at prices accessible to all Canmore and Bow Valley residents; enhanced levels of free community-based activities and broader outreach to schools, seniors, teens and in-need families.”
The approval by council means CMAF is well on its way of having $160,000, or 20 per cent of its anticipated operating expense budget of $800,000, in the reserve fund.
