Bendigo councillors adopted the 2018-19 budget this week, part of which detailed losses, and projected deficits, on civic assets like the Bendigo Art Gallery.
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According to the COGB, the net cost of the gallery over the past two financial years was just under $2 million, that figure is forecast to rise to $2.4 million in 2017-18, and $2.5 in 2018-19.
The council believes investment in the art gallery is more complex than simply “dollars and cents”, but one councillor, George Flack, said in a rate capping environment, the COGB should consider alternative funding arrangements for venues that were costing money.
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Cr Flack, who owns a financial services company, contributed to an independent review into the COGB in 2013, recommendation eight of which suggested council consider relinquishing public assets like the Bendigo Art Gallery, the Economic Development Unit, The Capital theatre and Major Events.
The Eppalock Ward councillor said he at the time detailed a five-year transition plan that reduced the reliance on councils funds, which was subsequently overlooked by the council, who did not act on the recommendation.
He now feels that period could be stretched out to ten years, but is firm in his belief the council needs to look at more efficient ways of operating public assets.
“It is in the back of my mind how much council should be supporting things like that,” he said.
Considering a gold coin donation at the gallery and other assets, or ticketing more events could be a way to reduce the gap between expenditure and revenue.
“Maybe looking at the use of volunteers – there’s a lot of people that contribute to similar organisations across the region,” Cr Flack said.
“A lot more thought has to go into an idea about how council doesn’t put so much into certain organisations.
“It needs consultation and for ratepayers to be treated fairly for the rates they pay.”
Cr Flack referenced swimming pools as an example of the growing list of infrastructure the council was responsible for.
The council maintains 12 pools, including the under construction $31 million Gurri Wanyarra Wellbeing Centre, and caused uproar earlier this year when it proposed closing the Golden Square Pool, an idea which was later rejected by COGB councillors at a fiery meeting.
Mayor Margaret O’Rourke, who was on the independent review committee in 2013, said the idea of a privately-owned gallery wasn’t considered viable by the COGB after the review following consultation with other local governments that had gone down similar paths.
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“A number of councils who went to that model now want the model we’ve got,” she said.
“Community ownership is wonderful but the community gets tired, community assets are often difficult to maintain at a higher level.”
Less tangible, indirect benefits like tourism and economic development, were a key pillar of local governments’ remit, Cr O’Rourke said.
Despite this, the COGB was aware of the gap between expenditure and revenue, and would consider efficiencies to “make that gap lass”, she said.
Community-owned model
The Castlemaine Art Museum, which came gravely close to closure last year, is a community-owned institution, established amid burgeoning wealth in the gold rush era.
More than half of its $450,000 operating revenue is currently provided by donations, the rest is provided by the state government’s arts department, Creative Victoria, and a smaller amount from the Mount Alexander Shire Council.
CAM deputy chair Craig Mutton said the reliance on donations was not a sustainable long-term financial model.
“It’s always the decision local governments will have to make about how that fits within their budget but institutions like that have to look at the indirect benefits that flow from a gallery – the tourism, education, links with universities,” he said.
“This is an issue in the sector and not something that's unique to Bendigo, questions arise on the extent to which we as a boarder community want to support arts and culture.”
Not just dollars and cents
COGB director of strategy and growth Bernie O'Sullivan said the Bendigo Art Gallery’s success wasn’t measured in “dollars and cents”, rather the social and broader economic development it brings.
He said the four-month Marilyn Monroe exhibition in 2016 brought in more than $13 million for the region. “The community would be worse of if we didn’t have a very vibrant arts and culture scene that is envied by most other places,” he said.
Since 2015, patronage at the gallery has hovered around 150,000 annually, jumping to 213,000 in the Marilyn year.
Bendigo Tourism Board chair Kathie Bolitho said holistically speaking, tourism in the region generated around $1.4 million dollars per day, with the gallery being an important part of this.
“As far as tourism goes revenue generated locally from major exhibitions is incredible, it's a really significant part of generating visitors,” she said.
The Bendigo Art Gallery was contacted for comment but its director Karen Quinlan is overseas and unable to comment.
Gallery rebuilds after turmoil
Almost 12 months on from a position of financial peril, the Castlemaine Art Museum is busily planning for its next stage, which aims to rely less on generosity and focus more on sustainability.
The institution was saved by a $250,000 donation from an anonymous white knight in August last year – the gift ensuring the gallery would remain open for two more years.
CAM deputy chair Craig Mutton said of the gallery’s $450,000 annual budget, more than half came from community donations.
Creative Victoria ($180,000) and the Mount Alexander Shire ($25,000) were the other major contributors.
The gallery was trying to strike the balance between preserving it as a place of attraction while not overstretching itself financially.
That said, the CAM currently operates from Thursday-Sunday and has a “fairly static display”.
That would continue for the next 12-18 months, Mr Mutton said, as the board worked, in conjunction with Creative Victoria, to develop a sustainable long-term business model.
That model would hopefully include partnering with an institution, whether it be a university or local government, he said.
“At this stage it’s too early to tell who that might be, but we need a partner,” he said.
Membership – CAM has 1000 members in a town with a population of 8000 – remained strong, as did their generosity, but ultimately donations were not something the institution could rely on in the long-term, Mr Mutton said.
CAM trustees hold a significant number of bequests, but they were generally tied to purchases of artworks and not to be used for operational expenses, he said.
The plight of art galleries gained national attention earlier this month when an auditor’s report revealed significant cash flow problems at the National Gallery of Australia, and solvency was considered a "major risk" in February this year.
The Australian National Audit Office report also found the gallery used government funding meant for acquiring and maintaining new works to prop up its operating budget.
Mr Mutton said the plight of all galleries, and how much financial support institutions should give them, was a question of measuring broader support for arts and culture, not simply those who had artistic inclinations.
The review into CAM operations should be completed by March 2019.
Fundraiser nets $65,000 for gallery
About $65,000 was raised for the Castlemaine Art Museum at an event earlier this month, the first of many planned for the institution.
The cocktail-style function was attended by life members, and other interested parties, who took part in a ‘bid’ auction to make donations.
CAM deputy chair Craig Mutton said the gallery was “thrilled” with the amount.
“It was a great way to kick off our fundraising activities for the rest of the year,” he said.
Director of the Geelong Gallery Jason Smith made a speech on the challenges facing regional galleries, advocating for a more collegiate approach between groups.
Dja Dja Wurrung Elder Ricky Nelson performed a traditional smoking ceremony for arriving guests.