Arts centre, library costly but expected
The West Gippsland Arts Centre and library services run at significant losses for Baw Baw Shire, but they are costs council just has to cop, according to mayor Michael Leaney.
The draft budget papers forecast the arts centre will run at a $1 million loss for council in the next financial year while library services across the shire will cost council just under $2 million.
While both are significant service costs in the budget, Cr Leaney said they were services the community expected council to provide.
Cr Leaney said the $1 million loss for the arts centre was skewed by COVID interruptions and impacts on service provision.
“The arts centre hasn’t had a real operational year since it was refurbished ... we’ ve never seen it reach its full potential. It was always planned the extra seats would increase income so we hope we can bring that cost to council down.
“It has only been in the last few months that we’ve been able to go to that new capacity,” he said.
Council also has set out new fees in its fees and charges schedule as part of the draft budget.
Chief executive officer Mark Dupe said the new arts centre manager had assessed the fee structure and business operations and had made some recommendations for council to consider.
Mr Dupe said council subsidised a range of services, including sport and recreation - “and the arts centre is no different.”
The most significant fee increases are in hire costs, with commercial half day hire of the Fountain Room proposed to increase 224 per cent from $157.30 to $510. Commercial hire fees of the Lyrebird Room will increase 25 per cent from $319.70 to $400.
The cost for commercial hire of half the Fountain Room for a full day increased 36 per cent from $360 to $490. There is no proposed increases for non-commercial hire fees of the Fountain Room or Lyrebird Room.
Theatre hire fees also will increase up to 28.8 per cent for education facilities who will now pay between $600 and $1585 per performance.
Cr Leaney said council had not altered its fees and charges for the arts centre since the refurbishment.
“Now as we get back to normal we are benchmarking our fees against similar facilities
“While there is no expectation the arts centre will pay its own way, we are aware it has to be more aligned with other places. We have invested a lot of money into this building and we can have big shows so the fees have to reflect that,” he said.
Cr Leaney said annual rental for the Warragul library alone was why council needed to pursue a purpose built facility in the proposed new cultural precinct.
“We currently pay $250,000 annually in rent. By having a purpose built building we would have those savings.
“Obviously libraries are a key service the community expects. Yes it is a cost to council but it is a vital service. The provision of library services is a core service for council,” he said.