REAL seeking $12.7 million from Regina city council: budget report

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Regina Exhibition Association Limited (REAL) plans to ask the City of Regina for $12.7 million in funding for 2025, which is more than double the organization’s initial request from the year prior.

If granted, it would be about a $7-million increase over REAL’s operating budget of $5.6 million for 2024, but still less than the $17 million that the organization ultimately received from the city over the past year. More than $15 million in top-ups have been granted to the municipal corporation since 2023 as it grapples with financial shortcomings.

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The latest funding request is included in a report on this week’s executive committee agenda, but city council won’t rule on the submission until budget meetings begin on March 17.

REAL’s primary function is to book events and manage the city-owned facilities at REAL District, including Mosaic Stadium, the Brandt Centre, International Trade Centre, Co-operators Centre and others.

Council has been aware since 2023 that REAL’s financial model is no longer viable. That was the conclusion when MNP Consulting completed a review of the organization’s books after four consecutive years of operating deficits.

In REAL’s submission for 2025, interim CEO Roberta Engel and new board chair Jaime Boldt explained that the budget has been crafted as a plan for stabilization as well as “realistic” event attraction, and transparency in the midst of work to draft a new business model for the future.

“REAL anticipates that 2025 will be a year of further stabilization and business model rejuvenation as it works to improve its commercial viability,” reads the report.

REAL warned city council last fall that it would likely need increased funds moving forward — at least $12.7 million to stay afloat in 2025, and $13.7 million in 2026.

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Approving $12.7 million would equate to 2.21 of a proposed 8.5-per-cent increase to the city’s overall mill rate, which is currently on the table from administration.

Of REAL’s planned 2025 budget, $4.2 million is for operating costs, $4.7 million for working capital to cover other spending, and $2.7 million for debt repayments and interest owed on a combined $14.7 million in loan withdrawals.

Another $1 million is earmarked for capital spending, which covers essential upkeep for the Brandt Centre, Queensbury Centre, Ag Pavilion and various IT upgrades.

The preliminary budget doesn’t include details on further capital investments or upgrades to any of the buildings on REAL’s campus, as an updated facility condition assessment is currently underway. It does estimate that mechanical and electrical upgrades at REAL’s core facilities may possibly exceed $10 million — above normal operating costs — in the next three years.

REAL is anticipating revenue of $41.3 million in 2025, which is several million less than in 2023 and 2024. Despite the increased funding request, REAL is still projecting to finish the fiscal year with an operating loss of $4.2 million — well above the $2.8-million loss that was forecasted for 2024.

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