Sault Ste. Marie Museum, one of Algoma's most important cultural institutions, could itself become history within a few years if it can't stop bleeding red ink.
The historical museum has served the community for 42 years, but its most recent audited financial statement from 2023 shows a deficit of $103,317.
That fact wasn't mentioned when Mike Delfre, chair of the museum's board, and executive director/curator Will Hollingshead, made budget presentations to city council this week.
But Ward 2 Coun. Lisa Vezeau-Allen spotted the red ink buried in 384 pages of budget information, and pointed it out to Delfre and Hollingshead.
"I know that would very much restrict you from applying for grants due to your deficit status, because most grant-making institutions will not fund an organization in a deficit situation," the councillor said.
The museum officials quietly conceded they're running a deficit and nothing more was said about it at Monday's council meeting.
Delfre, however, did issue some early distress signals about the museum's fiscal fitness.
"I don't want to be alarmist and I don't want to paint a picture that we're in the position the YMCA was in earlier this year, but we face a lot of the same issues that they have with declining revenues, declining admissions, and higher costs," he said.
Delfre said the museum is still reeling from the havoc COVID wreaked on its bottom line.
"Our costs have continued to go up, minimum wage costs and an old building and so forth.
"The last couple of years, we began a process to transform the museum, to make it significantly and substantially different in a way that will be more relevant to the community, support the community, and give the community things that it needs or wants.
"We're at a point now where if we're going to continue that, we need a major increase in our staff. We don't have the people or the expertise, we don't have the resources."
"We came very close to the line in October. We had to use one of our last two reserves to be able to ensure we can meet payroll."
Delfre and Hollingshead are asking the city for an additional $40,000 on top of the $260,000 it gave the museum this year, for a total of $300,000 from the 2025 budget.
"The clock is ticking for us," Delfre said.
"We estimate if we do nothing in terms of change, generating new programming and new value in the community, we have about two more years to operate, and then we'll have to start making cuts, whether it's staff or hours. And that's just a road to closure."
Here are new initiatives the museum is planning:
- development and implementation of exhibits focusing on the historical evolution of the city and its neighbourhoods
- exhibits and content to be displayed at major tourist draw locations, conferences, and events throughout Ontario
- development of a new Arts and Culture Entrepreneurship Program
- a Youth Sports Hall of Fame
- a new five-year strategic plan to be completed by the end of this year
- new and continued partnerships with community and provincial agencies and groups (ie. Rotary Club, Royal Canadian Legion Branch 25, Ontario Culture Days and other attractions)
- launched a new fundraising program aimed at raising $250,000 a year for three years
City council's budget deliberations are scheduled for Dec. 9 and 10.
Tax policy, rate options and other recommendations will be presented to council in March/April of next year.