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PGSO In The Red to the Tune of $250 Grand

By 250 News

Monday, August 24, 2009 08:13 PM

Prince George, B.C.- The Prince George Symphony Orchestra is in the red to the tune of a quarter of a million dollars. Priince George City Council has  agreed to ease some of the bleeding by providing a grant of $20 thousand dollars  from the Council Contingency fund and a further $20 thousand advanced from the Symphony's  core funding for next year.
In a presentation to Prince George City Council the President of the   PGSO, Sam Kirsch, said the organization  has faced a number of challenges over the past year, including the death of one of the key volunteers to the serious illness of the General Manager and the resignation of key personnel not to mention the economic downturn.
The $250 thousand dollar deficit says Kirsch poses a “considerable obstacle to the organization’s ability to seek additional funding, an obstacle which, unless addressed, will prevent the launch of the season.”
This was to be the PGSO’s 40th season, and Kirsch presented Council with a request for $40 thousand dollars this year. In the presentation, Kirsch says the PGSO is not asking the City to rescue it, but to help  them get started and “give us a chance to implement our recovery strategy.”
Last year the PGSO entertained 11 thousand people over the course of the season.  "Our plan  for the last two years  has been to  grow with the City."  Kirsch says  while the  added performances  over the past two years were ambitious, "We bit off more than we could chew."
Councillor Brian Skakun says he believes the Symphony is critical to the cultural diversity of the  City.  The current grant programs fund  has been expended, but there  are some funds available in the Council contingency fund which has a balance of $52,000.
Councilor Cameron Stolz expressed concern about  "throwing good money after bad" He pointed  out that the previous season got underway with a $135 thousand dollar deficit "What changes have been made to make me feel confident this money would not be flushed down the drain?"
Sam Kirsch says the number of performances set for the coming season has been cut back  from a planned 19 to 13, and budgets were cut.  Kirsch says while it took some time for them to get a clear picture of where they were there are some encouraging sign "Right now we are sitting with more ticket sales than we had last year and the concert season hasn't started."
Kirsch says the PGSO today is sitting in a better position today than it was in a year ago when it comes to reaching their goals. With the hiring of development officer (funded by another agency).  The goal  for corporate  sponsorships and fundraising is $100 thousand dollars, they have reached the $12 thousand dollar mark on the way to that goal.
Councilor Debora Munoz says she supports giving the PGSO the money  as "Cultural vitality is a key component to Prince George's future success."
Councilor Murry Krause  echoed those remarks saying the PGSO is an important factor in recruiting and retaining professionals.  "I think its important in these economic times not to let organizations like this falter or fail, as they are not easy to resurrect." 
"We are never going to be a self sustaining society" says Sam Kirsch " I don't think there is one symphony orchestra anywhere that doesn't need financial assistance from the City that it is in."
Councilor Dave Wilbur says he really struggled with this one "It's the taxpayers money, it's not Council's money." He reminded Council of the most recent budget discussions which saw manyrequests denied "To me, it's the recruitment and retention factor, I also  note there are 45 musicians who rely on this work is another reason why I am nudging towards saying yes."
"Cultural vitality and fiscal responsibility are not mutually exclusive" says Councilor Garth Frizzell "I  support the PGSO, but I would suggest we  give a life saving loan to watch your plan unfold so that what you have in mind has a chance to work.  So we will keep the patient alive, but give it a chance to strengthen and thrive."
Such a loan would add more debt says Kirsch and  his committee has been advised not to accept the offer of a loan.  It is the Symphony's position that  it needs a financial committment that shows there is support for the PGSO.
The PGSO received a loan from the City once before.  In 2002, in addition to the core  funding of $30 thousand dollars the City provided a one time grant of $100 thousand dollars.  Then in 2005 the core funding was boosted from $30 thousand to $60 thousand and a loan of $50 thousand  dollars.  The Symphony has  paid back  about $10 thousand dollars.
The Mayor  says he cannot support the grant  as  he recalls the history, but beleived that in 2005 there had been a great deal of work  done with the Symphony  to  ensure sustainability "But three years later, here we are, having  this conversation once again."   Mayor Rogers voted against the funding option presented.
 
 

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Comments

More taxes to support what 3% of the public.
Shut it down
I think its sink or swim time for a lot of things in the north...... I also think its time us tax payers should get a break.
After we pay this then can we have our Performing Arts Centre? We need culture here to attract more residents to move here. Then we can be called a "cultured gritty little mill town". Sounds better, don't it?
Why do organizations such as this not shut down temporarily until the economy begins to recover.

Why continue to throw money at luxury items such as this while people are losing jobs and just trying to get by.

I suppose we can get used to stories like this though since it will be the same situation once the Performing Arts Center gets going.

Perhaps I should start an unsustainable business myself. If I cant make enough profits to get by, then I can just lobby to various levels of government to send me tax dollars to make up the difference. Then I too can take part in the extra-curricular activities I enjoy as a manner of employment.

Sounds like a sweet deal that more of us should be looking into while they are handing out money. I just hope my business caters to the cultural side of things so that the powers that be see fit to support me.
"Councilor Cameron Stolz expressed concern about "throwing good money after bad" He pointed out that the previous season got underway with a $135 thousand dollar deficit "What changes have been made to make me feel confident this money would not be flushed down the drain?"

Speaking of throwing money down the drain, why do we bother to spend 70K a year on flouride when probably 95% of the tap water in the town LITERALLY goes down the drain via showers, toilets, dishwashers, lawn sprinklers, etc. Seems to me that's a bigger waste than funding the PGSO :)
Hockey is a great thing to have because people support it. PGSO has little support. Duh???

Why don't the supporters pay for it if they want it? Don't make a 100 dollar contribution--make a 10,000 contribution.
So why are people not commenting on the words:
"The Mayor says he cannot support the grant as he recalls the history, but beleived that in 2005 there had been a great deal of work done with the Symphony to ensure sustainability "But three years later, here we are, having this conversation once again."

And people felt he was wishy washy. He is dead on and the others have now become like Rogers was perceived to be.

I am not against providing some fudns to the Symphony as we provide funds to operate hockey rinks, etc. for other groups. However, they are getting worse by the year. They have received increased funding over the years in one form or another, now they want even more after a year when they basically screwed up their operations, to put it bluntly.

They are not a sustainable operation. As they say about teaching people how to fish rather than giving them fish, the PGSO needs a good advisor who can look at the operation and make it viable again.

Teach them "how to fish". Stop "giving them fish".
Wow Gus, you are right on the money. Enough is enough...
Kirsch says “give us a chance to implement our recovery strategy.”

Since the City is becoming a partner in this venture by "rescuing" them once again, contrary to what Kirsh says, I think we need to see what that recovery strategy is. I read the presentation and see no metnion of that strategy.

If it means reducing the performances from 19 to 13, that should go along with cutting back FTE staff and expecting a reduction in number of patrons. Are ticket prices being adjusted up or down? Are visiting musicians being reduced? Are less expensive venues being sought? Is the Board being asked to become a working or more of a working Board if they already are a working Board?

What is their plan to pay back the loans and then beginning to create some reserve funds for contingencies as they feel they have had to deal with?

This just does not feel right to me. Whoi is the CEO with some guts and the ability to pull the Board out of this method of operating a key cultural organization in any city worthy of calling itself a city?
Yeah!; but if they built a $ 52000000 centre [not counting overruns, maintenance,upkeep,utilities etc. etc.] just think of the tens of people that would flock to the city from other areas [Willow River, Shelly, The Hart etc. etc.] to become civilized!!!
Good to hear Rogers said no. The arts should sustain itself. The SPCA do much needed work. Why dont they bail them out. There debt is only 50k not 250k
"The arts should sustain itself"

In that case, so should sports.
"In that case, so should sports"

Agreed. No one has ever lost there life due to lack of the arts or sports. Thats why things like the SPCA should receive help where life is lost for one reason or another (legit reasons or not) every day.
This is not about the arts, not about the performing arts, and certainly not about a Performing Arts Centre. It's about the PGSO, and what appears to be significant mis-management.

Just a few years ago (3?) then PGSO general manager George Sipos proudly presented a report showing the symphony made a modest "profit." To comment on another poster here, the PGSO does in fact, know how to fish. Or it did.

Back then it was a fine reward the the city council of the day (and the taxpayers) that given a proper level of funding (it had increased to $60,000 I think that year), similar to Kamloops, the PGSO could end each year in the black and build a reserve.

But then Sipos was recruited to run the Performing Arts Centre in Saltspring Island.

Unfortunately, the new GM didn't have the experience Sipos had of running a bookstore for 20 years, lean and mean.

And the new GM wasn't as successful at reining in the Music Director as far as programming costs, number of concerts, etc.

Never underestimate the importance of a single person to the success of an organization, particularly in the non-profit sector.

This story is a warning to all the community organizations we care about. It only takes a few mis-steps to find yourself on the edge of (or falling off of) the cliff.
Thanks for that insight bohemian.

Indeed, it shows that a well run organization not only has to operate within its means by having reserve funds, but it also has to have succession planning in place for both staff and Board members.

I think that the City, in determining who will get funding and who will not at these sort of levels, and how much finding will be given, should establish some financial criteria that include an evaluation of the fiscal maturity of the organization with respect to bail-out funding such as this is one more time for this organization.

In fact, for this bail out, they should be advised that there will be no more bail outs and no more funding increases until their loans are fully repaid.

Which private individual or corporation or combination of those is there in this community that will bail the PGSO out and remove the debt fully or bring it down to a manageable sum? Without that the debt they have is not manageable. The next storm they will be sunk.
If a Performing Arts Centre is built in PG, then the PGSO looks like it would be a high risk tenant rather than a solid anchor tenant as the PGSO suggested in their power point presentation to Council.
I agree with vocer...the spca needs the money much more than the PGSO. They sure do much more for the community.
The town musicians of Bremen, according to a story by the Borthers Grimm, were a rooster, cat, dog and donkey.

Perhaps we could fund the local shelter of the BC SPCA to start an animal musician ensemble to provide the city with a unique Prince George "orchestra".

http://farm4.static.flickr.com/3004/3016166933_039c9556dd_o.jpg
"In that case, so should sports"

Agreed. No one has ever lost there life due to lack of the arts or sports. Thats why things like the SPCA should receive help where life is lost for one reason or another (legit reasons or not) every day.
I agree with vocer...the spca needs the money much more than the PGSO. They sure do much more for the community.
I agree with vocer...the spca needs the money much more than the PGSO. They sure do much more for the community.