2015-11-10 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING REPORT                              10 NOVEMBER 2015



                             NAC First Quarter 2015/16
 $600,000

 $500,000

 $400,000

 $300,000

 $200,000                                                                              Actual YTD

 $100,000                                                                              Budget YTD

       $0
                 Total Revenue        Total Expenditure       Net Operating
 -$100,000                                                    Surplus/Deficit

 -$200,000

 -$300,000


The NAC reports a net operating surplus of $44,658 for the first quarter of the year; revenue was
$33,208 in excess of the budget target, and expenses were $11,450 under budget projections.
While this initially appears to be a strong result, revenue benefited from a delay to the capital
works planned for the program pool. This resulted in $43K learn to swim revenue being
generated in September, against an expected income budget of $0. Capital works relating to the
program pool will now occur in April 2016 after the peak summer demand subsides. Budget
phasing adjustments will be made to ensure more accurate YTD reporting from this point
forward.

General admission revenue was below budget expectations by $20,555. This was predominately
due to the closure of the 25m pool for the month of July. This project was rolled over from the
2014/15 capital works program after bad weather delayed the contractor’s commencement date
to late July 2015. Patrons who usually frequented the 25m pool opted not to use the 50m pool, as
they find the 50m pool too cool for them during the winter months. Therefore, overall patron
numbers decreased whilst these works took place. This affected casual admission numbers and
consequently revenue dropped below the expected budget of $53,207, to an actual figure of
$37,699. On a positive note, patron numbers immediately resumed to expected levels once the
works were complete.

The gym produced a positive net result of $23,669, slightly higher than budget, however current
membership numbers are at 154, which is 15% less than last year’s figure of 182 members. A
recent marketing campaign targeted squad participants to encourage them to utilise the gym as
their swimming frequency decreased over the winter months. Whilst the campaign attracted 7
new members, it did not meet the anticipated target of 20 new members. The NAC is currently
undergoing a service review which will include all aspects of gym operations and will also
consider the need to address the issue of ageing equipment.

Group fitness revenue was heavily impacted by the closure of the 25m pool as nine of the eleven
weekly classes take place in this pool. Quarterly attendance figures decreased approximately
20% from 2,391 in 2014/2015 to 1,946 in 2015/2016. Despite this, the program has returned a
net profit of $1,276 and remains popular with patrons.




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