2019-03-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                               12 MARCH 2019




Half-yearly performance shows a favourable result in both revenue and expenditure. As a whole,
the centre bettered budget by $36,819.

Total revenue exceeded budget by $18,058, largely due to the strong performance of the group
fitness program, with revenue up $22,680 on budget. Group fitness revenue has benefitted from
strong membership growth at NLC which has been driven by an enhanced range of membership
inclusions and more active promotion of the centre. New membership inclusions comprise line
dancing and qigong classes and social ball sports including netball, pickleball and badminton.
Membership numbers have grown from 121 on 31 Dec 2017 to 183 on 31 Dec 2018, a 51%
increase. During the same period, the number of NLC visit pass holders fell slightly from 174 to
169.

The Kids’ Playroom also performed strongly during the period, finishing the half-year $2,177
ahead of budget, with attendance numbers up 5% compared to the same period last year.

The $18,761 variance in expenditure was primarily due to two areas:

1.     Building and facilities maintenance (contract services) was underspent by $22,592, due to
       scheduled maintenance being moved to the following quarter.

2.     Casual penalty rates were over budget by $6,550 due to an increase of operational hours
       on the weekends to accommodate the growing pickleball program (offset by revenue
       growth) and the relocation of a mini library within the centre while the Noosa Library
       refurbishment works were completed.

The below comparison of the past 4 years’ half-yearly financial performance reveals continued
strong revenue growth at NLC. It also shows relatively minor increases in controllable expenses,
a fact which has helped improve the net operational performance of the facility. A decrease in
internal charges, due mainly to changes in cost allocation methodology, is also evident in
2018/19.

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