The Port Theatre is getting financial help to help cover an operating deficit.
Council agreed Monday to transfer $74,500 from the Port Theatre Society’s capital reserve to help cover a $114,000 deficit.
The deficit, blamed on increasing utility costs and poor ticket sales to the theatre’s Spotlight Series, is the society’s first since the theatre opened in 1999.
Al Kenning, city manager, said with the money coming from the theatre’s capital reserve, there is no hardship on the taxpayer.
But he called transferring the funds a double-edged sword, as the city would be responsible for any work on the building should costs exceed the $200,000 left in the capital reserve.
“We feel it’s a calculated risk,” he said.
Mayor John Ruttan said he’s satisfied theatre staff is heading in the right direction regarding the deficit.
“I think they were uncomfortable that this loss occurred and approached us in a responsible manner,” he said. “They cited several things they were going to try and do to improve the bottom line and reduce potential losses. I’m satisfied they’ll do the best they can.”
The society has reduced the number of events that it will be promoting in 2012 to help reduce operating expenses, and is working with businesses to share the financial risk of presenting shows.
Bruce Halliday, theatre general manager, said he’s pleased council saw the benefit in the transfer.
“We’re looking at every single aspect of our operation trying to trim and cut,” he said. “We’re also looking at programming going into the future and trying to minimize our risk.”
The society also asked for a $90,000 annual increase to its $454,000 operating budget, but do decision was made by council. Theatre and city staff continue to meet in accessing the operating budget needs.
Ruttan wants to give the society the benefit of the doubt.
“I think we have some very capable and serious people there who are doing a good job,” he said. “They have undertaken to make sure what happened is not going to be an ongoing thing and hopefully that will be the case. If next year we’re in the same predicament, then that’s an entirely different story and we would ask some tough questions and want some answers.”