2014-11-11 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                          11 NOVEMBER 2014


Quarterly summary performance sees the NAC net operating position $41,478 in front of YTD
projections. Actual revenue is $27,526 behind budget projections however expenditure has been
closely monitored and is $69,004 under projections.

The NAC has five revenue streams: general operations, program operations, the gym, group
fitness and retail operations.

The General operations area (general swimming admissions, pool hire etc) was budgeted to
receive $173k however the NAC has had a quieter than expected start to the 2014/15 financial
year due to a wet and cool August (see Attendance figures in Section 2. Customers) and has
received $156k in revenue.

Program Operations revenue is behind by $10,719 due to slight inaccuracies in the profiling
forecasts which did not take into account the introduction of an automatic payment system for the
LTS Program. However, numbers enrolled in the program have increased during the first quarter
from 681 (2013) to 709 (2014) despite increased competition.

The Gym has a current membership of 182 which is an increase on 2013 however below
previous years. With strong competition for this market and the capital funds required to upgrade
ageing equipment requires a review of its operation as a priority. This review is scheduled to
occur in the second quarter.

Group Fitness revenue is tracking $7,000 behind budget due to the elimination of the 6 month
pass which will see four more even quarters rather than two spikes as previously. This will
continue to be monitored with possible re-profiling to occur during the upcoming quarter.

The Retail Operation is performing well and is $1,507 ahead of expected net position, despite the
first quarter traditionally being the quietest period for the facility. Purchases have been closely
monitored as the first quarter incurs large indent orders (where stock is purchased in advance
however the bulk of the sales do not occur until Quarter 2) from Eyeline, Speedo and Hive.
Retail is becoming a significant source of income for the Centre and a planned expansion of the
shop and the products offered is being undertaken.

The majority of budget variation in expenses can be seen in two areas; Salaries & Benefits and
Materials & Services.

Budget savings of $47,000 in the Salaries & Benefits area are overstated as this quarter budget
had not been profiled in Quarter 1. This has been rectified in October.

The $22,000 budget saving shown in the Materials & Services area predominately comes from
savings in maintenance ($8,000) and equipment ($6,000). These are temporary savings and not
expected to be realised as expenditure is scheduled for Quarter 2 to Quarter 4.

2.   Customers

Attendance figures for the quarter are 42,687, slightly down in comparison with 43,984 in 2013
mainly due to an extremely wet and cool August. Rainfall was experienced on 17 days with a
monthly total of 235mm making it the wettest August for years, coupled with an average
temperature of 20.7 degrees (compared with a mean of 24 degrees) caused lower attendance
rates. However the School holidays in September saw record numbers through the gate.

There is predominately a reduction in our casual entries. Adult entries are down 9% from 4,810 to
4,388 with Concession entries down 17% from 4,662 to 3,894 and Family entries also down 30%
from 365 to 258 for the quarter.



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