The Regina Exhibition Association Limited (REAL) will present is preliminary budget request to city executive committee Wednesday, which includes an ask of $12.7 million.
It’s a number city administration estimated the request to be in its proposed budget at the beginning of February. The release of the meeting’s agenda Monday on the city’s website confirmed that number.
In the agenda, REAL says its budget focuses on three areas. Providing stabilization, to be realistic and be fully transparent.
“REAL anticipates 2025 will be a year of further stabilization and business model rejuvenation as it works to improve its commercial viability,” the budget report reads. “There is much work to be done to improve the financial situation REAL is in, and it will continue to require operational, working capital, debt financing and capital funding to continue to operate for the foreseeable future.”
“REAL is on a path to recovery and is thankful to the community and City of Regina for its continued support,” the agenda also says.
The total requested funding of $12,715,224 for 2025 is more than $7 million higher than REAL requested as part of its 2024 budget. There is$4.2 million earmarked for operating, with $1 million related to capital funding.
An additional $2.7 million is slated for debt. The remaining $4.7 is set to fund working capital.
REAL received an $8 million grant from the City of Regina to repay the Canada Revenue Agency for Canadian Emergency Wage Subsidy amounts following an audit last year.
“REAL is forecasting a $4.2 million loss, reflecting the absence of a major concert or event and a realistic approach to budgeting for its signature events including Frost, Canada’s Farm Show and Queen City Exhibition,” the agenda read. “The impact of these items is being offset by an increase in the number of Brandt Centre events.”
“To create a break-even budget, REAL will be seeking $4,211,882 in operational funding from the City,” the report added.
Further Breakdown
REAL’s capital budget included $1 million for capital projects on the site.
“This capital budget ask is in line with what was requested and approved for the 2024 budget,” the agenda said. “Based on information known at this time, assessment on high-risk items and required systems upgrades.”
For debt, REAL says it needs more than $1.2 million to fund principal payments, with another $1.4 million related to interest.
In total, they are budgeting $2.7 million to address current debt.
“Term loans valued at $7.3 million and $3.4 million were term loans approved by City Council in response to REAL’s need for cash flow,” the report said. “A term loan for $4 million was advanced in order to fund the food & beverage investment required for the stadium.”
In its report, REAL claimed its is on a path to financial recovery but noted its struggles persist.
“While the lingering effects of the pandemic, inflation, and shifts in the entertainment landscape and consumer behavior remain as challenges, these upcoming changes bring renewed energy,” the agenda said.
While REAL will present its budget request Wednesday, city councillors are expected to file the report.
No final decisions will be made regarding REAL’s final budget until full deliberations next month.
Regina City Council has scheduled five days for its 2025 budget deliberations between March 17-21.
