2021-09-07 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                               7 SEPTEMBER 2021


The comparison of historical financial performance below reveals that revenue growth has plateaued
over the past few years. Fortunately, controllable expenses have reduced over the same period,
creating a trend of enhanced operating performance. While this trend is now expected to stabilise,
it’s pleasing to see BCC performing so strongly.

BCC historical financial performance – 2016/17 to 2020/21

                                          2016/17     2017/18      2018/19     2019/20      2020/21
Revenue                                   actuals     actuals      actuals     actuals      actuals
40034 - Lease Revenue                      76,670     101,045      103,246      91,413       97,929
41154 - Venue Hire                         36,125      20,726       35,000      40,000       40,000
                                          112,795     121,771      138,246     131,413      137,929


Controllable expenses
6EX01 - Employee Benefits                  12,884       9,258       10,374      12,813       13,235
6EX02 - Finance Costs                           0         387            0           0            0
6EX03 - Materials & Services               53,318      58,469       43,011      37,868       29,372
6EX06 - Other Expenses                        493         510          528         540          549
                                           66,695      68,624       53,913      51,221       43,157

Net operating result                      46,100       53,147      84,333       80,193       94,773


Uncontrollable expenses
6EX04 - Depreciation & Amortization        50,286      56,067       68,050      84,532       73,019
6EX12 - Internal Charges                    7,346       7,230        7,515      11,425       11,053
                                           57,632      63,297       75,565      95,957       84,073

Total operating result                   (11,532)     (10,150)       8,768     (15,764)      10,700


2.    CUSTOMERS
The key customers at BCC remain Noosa Gymnastics Club (Main Hall lease), Noosa Montessori
School (Demountable building lease and Annexe hire with intention to lease) and Little Seed Theatre
Company (Noosa Montessori School sublets space to this group). No usage occurs outside of these
groups due to the permanent and exclusive nature of the usage agreements.
Council does not maintain visitation statistics for BCC and thus statistics are unable to be provided.

3.    STAFFING
The J staff continue to oversee BCC’s operations and the small team does a great job of running
both centres in a highly efficient manner. Given the nature of BCC’s utilisation by permanent tenants,
there is now little day-to-day involvement at BCC for Council staff. However, relationship
management and oversight of major building maintenance projects remain a priority.

4.    SYSTEMS & PROCESSES AND OTHER MATTERS
     Montessori Noosa has continued to expand. Negotiations are ongoing to finalise an expanded
      lease arrangement with Montessori Noosa, encompassing both the Demountable and Annexe
      buildings.
     A new lease is proposed for Noosa Gymnastics Club to encompass the extensions of the BCC
      Main Hall, however the formalisation of this lease has been delayed during the recent Covid-
      disrupted period.
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