2015-07-21 Infrastructure and Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                      21 JULY 2015


*Please note figures shown are June end of month figures and not final end of financial
year figures as these were not available in time for this report.

                            NAC 2014/15 financial performance
 $2,000,000


 $1,500,000


 $1,000,000
                                                                                   Actual YTD
                                                                                   Budget YTD
   $500,000


         $0
                 Total Revenue        Total Expenditure      Net Operating
                                                             Surplus/Deficit
  -$500,000


The NAC’s full year performance saw a positive variance to budget of $61,803. Tight financial
management practices as well as favourable weather conditions contributed to this result.
Revenue finished $25,283 in front of a challenging budget target, with expenses coming in at
$36,520 under budget.

Revenue benefited from a 4% increase in participants of the Learn to Swim program (LTS) with
cumulative annual enrolments growing from 3,242 in 2013/14 to 3,324 this year. This coupled
with improved collection of LTS fees as a result of the implementation of the direct debit payment
process saw LTS revenue exceed budget by $51,183.

General admission revenue was down on budget by $38,825, in part due to patrons shifting their
purchasing preference from visit passes to the more economical option of monthly passes as the
warm summer extended longer into the year than expected.

The positive variance in expenditure is mainly attributed to a saving of $18,299 in annual
electricity costs. Ongoing tracking and profiling of electricity use will allow for greater accuracy for
future budgeting cycles. The final end of year figure for expenditure will increase when wages
and other operating expenses for the last 10 days of June are taken into account.

The Gym has a current membership of 142 which is on par with previous winters. A marketing
campaign encouraging squad participants to utilise the gym as their swimming frequency drops
off is aimed at improving this seasonal reduction. The Gym produced a favourable net result of
$87,523 however the need to update ageing equipment remains. A review of the operation of the
Gym remains ongoing with the outcome being the subject of a separate report.

Group Fitness revenue exceeded budget by $8,281, finishing the year at $73,169. Attendance
numbers for the year were up by 11% at 12,164 compared to 10,898 for 2013/14.

Retail Operations continued to perform very well with a net operating result of $71,715. The
introduction of SPEEDO products drove strong sales performance and the NAC team will
continue to trial and review new retail initiatives throughout 2015/16 to aid the Centre’s financial
performance.



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