For people who love free things, the Burnaby Village Museum will continue to offer no-charge admission for the 2012 season.
But for Burnaby taxpayers, it's a $2.3 million expensefor 2011 that is projected to increase again in the 2012 budget.
Burnaby council approved a second year of free museum admission at Monday night's regular council meeting after learning that last year's experiment with free admission has led to a 257 per cent increase in the number of people visiting the museum.
"I think it was a huge success," said Coun. Colleen Jordan. "It allowed people who wouldn't be able to afford to go to the museum to go."
But, on the negative side of the ledger, the museum's operational expenses still far outweigh its revenue.
In 2011, the museum had expenses of almost $2.8 million but revenues of only $455,947, which includes a $32,000 provincial and federal grant. The museum received a transfer from the city of $275,895, but when added to the $2,048,638 net total it costs to run the museum, the museum cost the city $2,324,533 to run in 2011.
In 2010, the museum had revenues of $612,629 and expenses of $2,438,022 for a net operating cost of $1,825,393.
The year 2011 was the first year
the museum went to a free admission policy- in celebration of its 40th anniversary.
The city had budgeted a $385,000 transfer to the museum - to offset lost revenues from free admission - but only had to transfer $275,895.
In addition, the city hoped that the museum would have larger revenues from the carousel and gift shop, but even with modest increases in both departments, the museum as a whole cost almost $500,000 more to operate than in 2010, when the museum charged admission.
For 2012, the museum is budgeted to receive a $300,000 transfer, which when added to the $2,096,623 net total it costs to run the museum, means a final expense of $2,396,623. When you compare that to the $1,825,393 expense to run the museum in 2010, that works out to a 31.2 per cent increase once you factor in all the money being transferred from the city to the museum.
"Let's be clear," said Jordan. "The museum's never made money. We've always had to subsidize it to a certain extent. Our thinking is why are we subsidizing it for some people who had to pay to get in and others who didn't? Why not open the gates and get more people in?"
Jordan said a better parallel for the museum would be to compare it to one of the city's parks, such as Deer Lake Park, where there is no admission charge and it does cost the city money for upkeep.
"It costs us money to run a park, and we don't charge anybody to go into Deer Lake," she said.
Dave Ellenwood, the city's parks, recreation and culture director, said it costs the city more to run the museum each year because of increases in wages, which at $2.1 million in 2011 and $2.2 million in 2012, are the majority of the museum's expenses.
"Revenue has never covered our expenses at the museum," he said. "Wage costs have gone up and yes, it is costing us more to run the museum."
Ellenwood said the positive to be taken from last year's free admission is the attendance bump which saw 157,144 go through the museum's gates, compared to 43,992 in 2010 when there was an admission charge.
"Getting 257 per cent more people into the museum is better for the community," he said. "The mayor has challenged us to be more entrepreneurial by asking us to offer more things that people may want to pay for once they're inside.
"The museum is one of the amenities we offer to citizens. - In our mind, people who pay taxes should have access to amenities in the city. The museum is a special place, a place where you should be able to buy a good cup of coffee or ride a vintage carousel or get a good meal. - Our job is to make the museum a place people want to go."
Ellenwood said potential new offerings may include expanding the general store that is already at the museum or seeing if the existing Royal Bank or bakery in the museum can be enhanced. In addition, the museum has looked at adding a ferris wheel and a mini-golf course.
Jordan agreed that offering new attractions is important, as is increasing revenues across the board, which includes trying to get more people to try out the museum's Ice Cream Parlour, which also serves food.
The Ice Cream Parlour numbers are separate from the museum's numbers because they fall under the city's food services division, but in 2011, sales and revenue increased in 2011 for a net income of $51,620, compared to $18,726 net income in 2010.
While council approved the continuation of the no-charge admission policy for the museum on Monday night, the final budget approvals won't be done until the end of April.
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