2018-08-07 Services and Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                  7 AUGUST 2018



                                   Noosa Leisure Centre
1,400,000
1,200,000
1,000,000
  800,000
  600,000
  400,000
  200,000
        0
(200,000)          Total Revenue               Total Expenditure             Operating Result
(400,000)
(600,000)
(800,000)


                                    2017/18                        2017/18
                                    YTD                            YTD
                                    Budget                         Actuals


End of year performance shows revenue up 7.1% while expenditure was over budget by 2.9%.
Overall the centre finished $4k ahead of budget.

Total revenue exceeded the original budget of $504,842 by $59,195 and was up 12% on
2016/17’s previous record high. The budget was increased by $22k to $526,842 during the
budget review process. Revenue growth was predominately due to the strong performance of the
group fitness program. The program finished the year with attendance numbers up 30% on last
year, due to a combined growth in casual and existing member/visit pass holder attendances.
The kids’ playroom also performed well, finishing the year $7,246 ahead of budget, with
attendance numbers up 23% compared to the same period last year.

The $33,097 variance in expenditure was primarily due to two areas:
1.   Casual penalty rates were over budget by $9,424. This was largely due to an increase of
     operational hours on the weekends to accommodate additional venue hire bookings (offset
     by revenue growth) and the relocation of a mini library within the centre while the Noosa
     Library refurbishment works continue.
2.   A maintenance overspend of $16,092 was due to some unexpected repairs and necessary
     upgrades throughout the year. This included repair work to water damaged floorboards in
     the stadium and repairs and upgrades to two air conditioning units.

It is pleasing to note that the facility’s operating cost to Council (exclusive of depreciation and
internal charges) of $207k is down $37k, a 15% improvement on last year’s result.

The comparison of the past 4 years’ financial performance below reveals strong revenue growth
at NLC, particularly over the past 3 years. It also shows relatively minor increases in controllable
expenses, a fact which has helped improve the net operational performance of the facility. Large
increases in internal charges, due mainly to changes in cost allocation methodology, are also
evident over the past 12 months.




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