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This article was published 11/10/2016 (1442 days ago), so information in it may no longer be current.

OTTAWA — The Canadian Museum for Human Rights had an almost $7-million deficit at the end of the last fiscal year and has gone with cap in hand to the federal government to negotiate a new funding arrangement.

The museum’s 2015-16 annual report was tabled in the House of Commons Friday. It shows the museum was $6.98 million in the red at the end of its first full year of operation — an amount far greater than the $4 million the museum projected it would be in the red.

The deficit is because of an $8-million tax bill from the City of Winnipeg. The bill was resolved in June after seven years of fighting between the city and federal government over what the museum is worth. The result is the museum must pay $2.7 million in property taxes annually. When it was first conceived as a project, property taxes were not included in the museum’s budget. There is currently no money in the budget to cover any of the tax bill.

The tax bill is not the biggest storm cloud on the museum’s financial pages. That distinction goes to the $35 million the museum borrowed against future federal funding in order to complete construction. It has six years to repay the money to Ottawa — $5.83 million a year — starting in 2018-19.

"It’s a significant amount, and it could have a big impact," said museum chief financial officer Suzanne Robertson. "It’s just part of all the discussions with the federal government."

The museum receives $21.7 million a year from Ottawa. But that agreement expires in March, and negotiations on a new funding agreement are underway. Robertson wouldn’t say what the museum is requesting.

There is hope part or all of the $7 million deficit will be repaid with money from a $105.9-million fund the Liberals established to help the country’s six national museums. An announcement on how that money will be divided is expected this fall, although Heritage Minister Mélanie Joly’s office did not respond to a request for information Tuesday.

Robertson acknowledged the museum wants more federal funding — at least to cover the $2.7-million tax bill. Discussions include a number of scenarios for handling the $35-million advance, as well as the fact the museum’s digital exhibits will need to be replaced every few years.

While traditional museums with mostly physical artifacts can go years without replacing exhibit content, the digital tools such as films, computers and cameras involved in most of the human rights museum’s exhibits don’t last as long.

The annual report predicts computers will have a life span of three to five years and films just two to three years.

The report says the museum needs to hire additional staff to manage and repair digital technology.

"The discussions (with Ottawa) have been responsive and understanding to that," Robertson said.

Briefing notes to the minister in the last several years have emphasized that most national museums are struggling financially, haven’t had funding increases to account for rising taxes and utility bills and are behind on capital improvements.

Robertson said the museum’s staff and board members are positive about the financial picture. Revenue from ticket sales, tours and facility rentals hit $3.6 million in 2015-16, which was more than expected.

Robertson wouldn’t say how much more because the government has refused to make public any of the museum’s corporate plans since 2013-14. The museum’s revenue projections for the coming years are unknown.

Robertson said without the property tax bill, the museum had a $1-million surplus last year.

mia.rabson@freepress.mb.ca