2018-08-07 Services and Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                   7 AUGUST 2018




                                 Noosa Aquatic Centre
 3,000,000
 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)
(1,500,000)


                                    2017/18                         2017/18
                                    YTD                             YTD
                                    Budget                          Actuals



Strong performance against budget in the first half of the year triggered budget review
amendments resulting in the NAC revenue budget increasing by $160k. Expenditure budgets
also increased by a total of almost $35k, $10k of which related to staff back pay following the
endorsement of Council’s certified agreement. The remaining $25k related to materials and
services expenses required to deliver increased revenue.
By year’s end, the NAC had achieved its best ever operating result of a $22k surplus, net of
uncontrollable depreciation and internal charges expenses. The facility finished $84k ahead of
the revised current budget.
Revenue was 5.5% higher than 2017/18 and was $75k up on the revised budget target. When
compared to 2016/17 actuals, particularly strong performance was seen in gym revenue (up
38.6%), squad (up 14.3%) and group fitness (up 11.2%).
This performance can be attributed to the improved gym facilities and the enhanced membership
and visit pass structure that encourages users to visit all areas of the facility on a regular basis.
There are now 340 members with access to the gym, up from 239 last year and just 146 prior to
upgrading the gym. The addition of new circuit classes and monthly workshops has also aided
revenue growth and improved retention rates.
Revenue performance in the remaining budget lines broadly aligned with budget expectations.
Cumulative annual learn to swim (LTS) program enrolments remained steady at 3,688 and class
occupancy levels averaged 85%, higher than the broadly accepted industry target of 80%.
Just as pleasing as strong revenue performance was the team’s effort to curtail controllable
expenditure. In fact, controllable expenses finished the year 3.5% or $69k down on 2016/17’s
level. Controllable expenditure finished the year roughly $33k under budget, with employee
benefits comprising $23k of this figure.
The comparison of the past 4 years’ financial performance below reveals strong revenue growth
at the NAC, particularly over the past 3 years. It also shows the stabilisation of controllable
expenses over the past 12 months and the resulting improvement to the centre’s net operating
position. Large increases in internal charges, due mainly to changes in cost allocation
methodology, are also evident.

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