To editor:
The agenda for the Oliver Paipoonge budget meeting of Nov 25/24 includes the first draft of the 2025 budget. We will not go into the 71 per cent increase in that draft but will focus on the museum portion.
On Oct. 17 we submitted a letter commenting on the museum results for the 2024 season. One key number that was missing in that report to council, Report 2024.200, was the actual paid admission for the 2024 season. It is included in this draft budget and is $4,489. So paid admission fell in spite of the 40 per cent increase in attendance. Report 2023.194 says paid admission was $4694 in 2023. However if you use the admission number from the 2023 Nov 22 draft budget, a number maintained in the drafts and included in the final approved budget, admission was $6,895. Since council voted and by majority vote approved that budget we have to think that the $6895 number is correct which makes the reduction in paid admission $2,406.
The 2025 draft budget includes projected admission of $7,000. In the approved 2023 budget there was no estimate for admission and the actual was $6,895. In 2024 the projection was $6,000 and the actual is down to $4,489. Given that paid admission fell by about 35 per cent we feel that the admission projection should be reduced to no more than $4,489.
Another topic we covered in the previous letter was operating cost. The budgeted operating cost went from $120,243 in 2023 to $145,657 in 2024. In this 2025 draft budget the operating cost is $184,104 or an increase $38,447. If approved, in two years the budgeted operating cost will have increased by $63,861 or 53 per cent.
As well we see that heating cost has dropped from the $12,000 in the 2024 budget to $3,000 in this one. In the first six months of 2024 the actual is $2,978. If the first six months of 2025 are similar to 2024 then that would leave $22 to heat the place for Oct.-Nov.-Dec. When we look through other municipal buildings not one has a drop in heating costs. What is being done at the museum that will reduce heating cost to 25 per cent of the previous budget?
Salaries is another topic that should be pointed out. In the 2024 budget salaries were projected to be $66,355 and benefits another $12,042. In 2025 the projection is salaries $101,668 and benefits another $19,326. We have to wonder if this reflects a raise in pay of 53 per cent or additional staff. There is something about a new staffing plan developed by the museum board in the 2024 Approved Budget Notes (Pg 43).
Here is a scenario that taxpayers might consider. The operating budget in this draft is estimated to increase by 3.5 per cent or $283,159 (Pg. 1 Budget Notes). If our suggestion of capping the municipal funding of the museum at $50,000 was put in place that would result in a drop of $113,604 in the total municipality 2025 operating budget. That would bring the percentage increase to 2.1%. That number is more in line with inflation.
Our suggestion to council in our last letter was provide the insurance coverage, pay the heat and hydro and contribute $20,000 to the museum.
That money can be dedicated to whatever project the museum board wishes to pursue at the site. It will total about $50,000 using 2024 budget numbers for utilities. The museum board would also be allowed to use any admission revenue or donations for on site projects. Our suggestion could be easily modified to be a flat $50,000 commitment to the museum and all the insurance and utility costs paid from that money. If that $9,000 cut in heating costs is correct that method actually increases the amount of money the board would have to allocate to closer to $30,000.
The existing museum reserve would be used to reduce municipal budget deficits or our other suggestion of starting a program of covered ice surfaces at the outdoor rinks.
In 2023 the final approved budget shows a deficit of $126,952, in 2024 it was $131,658 and in this 2025 draft budget it is $163,604. Along with the $433,079 council transferred to museum reserves in 2023 the total is $855,293. Total paid admission for 2023 and 2024 is $11384 and budgeted for $7,000 in 2025.
We believe that the current method of operation has to be completely scrapped if the museum is to survive. In 2026 we may have three new council members that simply vote to close the place and sell off all assets. That is not our goal. But to survive it must cease being a money pit.
We hope that both readers and ThunderBay Newswatch take the time to fact check our numbers. Here are the sources for the information on the Oliver Paipoonge website.
Approved budgets are available under the finance dept.
Draft budgets are all available by year and date under agendas>operating and capital budget meetings.
Report 2024.200 Council Meeting Agenda Oct. 8/24
Report 2023.194 Council Meeting Agenda Nov. 14/23
Report 2023.110 Council Meeting Agenda June 28/23
2025 Draft Budget Operating and Capital Budget Meeting Nov. 25/24
Les Pawluk and
Rick Angove
