2016-08-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                   9 AUGUST 2016




                                Noosa Aquatic Centre
 2,500,000

 2,000,000

 1,500,000

 1,000,000

   500,000

          0
                    Total Revenue               Total Expenditure             Operating Result
  (500,000)

(1,000,000)

                                    2015/16                         2015/16
                                    YTD                             YTD
                                    Budget                          Actuals


The NAC’s full year performance saw a positive variance to budget of $23,380. Tight financial
management practices combined with an efficient maintenance program contributed to this
result. Revenue finished $33,565 in front of a challenging budget target, with expenses coming in
slightly over budget by $10,185.
Revenue benefited from a 3% increase in participants of the learn to swim (LTS) program, with
cumulative annual enrolments growing by 102 students to 3,426 this year. This, coupled with an
extra week of programming due to maintenance works being completed ahead of schedule, saw
LTS revenue exceed budgeted revenue by $46,269. This is a fantastic result and is indicative of
the efforts of Rita (LTS Program Supervisor) and her team.
General admission revenue was down on budget by $28,163, mainly due to the temporary
closure of the 25m pool for capital works in July. These works were originally scheduled to occur
in June 2015 and therefore the 2015/16 budget didn’t allow for the associated reduction in
revenue. Additionally, the 3-week closure of the LTS pool for maintenance in April had a slightly
larger than expected flow-on impact on general admission revenue.

The fitness studio has a current membership of 138, which is on par with previous winters. Year-
end revenue finished $5,595 behind budget as a result of member numbers over summer being
lower than expected. A relaunch of the entire studio, combined with a simplified membership and
fee structure, is planned for January 2017. It is expected this relaunch will reinvigorate the studio
and provide a boost to member numbers and revenue.
Group Fitness revenue exceeded budget by $17,069, finishing the year at $93,951. This is an
impressive result and is due the removal of cheaper 6-month and 20-visit passes and only
offering 3-month and 10-visit passes. Group fitness attendance numbers for the year increased
marginally by 204 to 12,548 compared to 12,344 for 2014/15.
Retail operations now comprise the third largest revenue stream at the NAC and continued to
perform well with revenue of $147,346 and costs of goods sold (COGS) of $79,909. This equates
to a profit of $67,437 at a gross profit margin of 45.77%. The NAC team will continue to trial and
review new retail initiatives throughout 2016/17 to aid the centre’s financial performance.
While expenditure generally tracked in line with budget, electricity charges were $5,890 over
budget and water and sewerage charges finished $18,090 higher than budget. The excessive

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