2019-08-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                           6 AUGUST 2019



Strong performance was seen in gym and squad program revenue and the addition of new circuit
classes and monthly workshops aided group fitness program revenue growth and improved
member retention rates. Conversely, general admission revenue performance was down against
budget as a result of patrons transitioning from casual users to become more committed visit
pass or membership holders. When comparing data against the previous financial year,
combined visit pass and membership numbers were up approximately 30%.

Learn to swim (LTS) program revenue finished marginally ahead of budget but nearly $50k down
on last year’s results. Student numbers were down 8.8% on 2017/18. This reduction shows the
program has stagnated and justifies the desire to conduct a review of the program and to develop
a LTS strategy for future years. The pullback may also be indicative of people in general finding
themselves in a tighter financial position than in previous years as the economy slows.

Careful management of controllable expenditure led to strong performance, particularly with
regard to employee benefits costs, which finished the year $18k under budget despite increasing
the number of dedicated lifeguard supervision hours for the leisure pool mid-way through the
year. Admittedly some casual labour savings were realised in the final week of the year due to
the shutdown. With the exception of depreciation, all other expenditure categories tracked closely
to budget.

NAC historical financial performance – 2014/15 to 2018/19

                  Historical financial performance - Noosa Aquatic Centre (NAC)

                                           2014/15        2015/16        2016/17        2017/18        2018/19
Revenue                                    actuals        actuals        actuals        actuals        actuals
40023 - Miscellaneous Fees & Charges      (27,919)       (14,055)       (14,038)       (13,139)       (11,194)
40029 - Rent Revenue                        (2,850)      (12,650)       (13,500)       (13,025)       (13,325)
40034 - Lease Revenue                     (53,352)       (60,004)       (61,141)       (65,184)       (53,778)
41153 - Admission Fees                   (692,475)      (429,289)      (494,139)      (513,250)      (482,124)
42000 - Other - Commission Received         (4,134)        (5,592)              0              0              0
42020 - Other - Sales - Retail           (147,437)      (147,346)      (180,613)      (174,294)      (166,958)
42072 - Learn to Swim Revenue            (642,895)      (604,445)      (689,854)      (703,645)      (654,846)
42073 - Squad Revenue                             0      (63,206)       (97,859)      (111,889)      (126,583)
42074 - Group Fitness Revenue                     0      (93,951)      (138,818)      (154,386)      (154,228)
42075 - Gym Revenue                               0     (144,766)      (106,612)      (147,772)      (155,362)
42076 - Creche Revenue                            0        (6,459)        (9,508)        (8,969)        (7,603)
                                       (1,571,063)    (1,581,762)    (1,806,082)    (1,905,552)    (1,826,002)


Controllable expenses
6EX01 - Employee Benefits               1,097,095      1,054,980      1,157,384      1,181,757      1,214,416
6EX02 - Finance Costs                           0             (0)             0          (268)          (118)
6EX03 - Materials & Services              598,376        663,905        793,850        701,009        738,792
6EX06 - Other Expenses                        924            956            990          1,024          1,060
                                        1,696,395      1,719,841      1,952,224      1,883,522      1,954,151

Net operating result                     -125,333       -138,079       -146,143         22,030       -128,149


Uncontrollable expenses
6EX04 - Depreciation & Amortization       154,207        167,573        192,724        228,237        231,689
6EX12 - Internal Charges                  331,615        309,815        448,309        646,462        584,076
                                          485,822        477,388        641,033        874,698        815,765

Total operating result                   -611,155       -615,466       -787,176       -852,669       -943,914




                                                                                           Page 111 of 170