2015-07-21 Infrastructure and Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                    21 JULY 2015



                             NLC 2014/15 financial performance
     $800,000


     $600,000


     $400,000

                                                                                 Actual YTD
     $200,000
                                                                                 Budget YTD

          $0
                  Total Revenue      Total Expenditure     Net Operating
                                                           Surplus/Deficit
 ($200,000)


 ($400,000)


The NLC has four major operating streams, being:

      Program operations
      Group fitness program
      Café/retail operations
      General operations

Revenue shortfalls were predominately seen in the group fitness, jump bunch and birthday party
programs, collectively totalling $55,916 behind budget. However increases in venue hire
bookings and centre-run programs, including volleyball and netball, helped to minimise this
impact by exceeding budget by a cumulative amount of $38,744.

Underspend associated with programing changes, together with the delay of some maintenance
works which were unable to be completed prior to the end of the year, saw total expenditure
savings of $58,563. 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.

Whilst the Group Fitness program missed revenue targets by $18,310, the net profitability of the
program remained favourable. The last two quarters showed an increase in attendance numbers
compared to the same period in 2013/14 and in light of the recent major changes to this program,
this is encouraging. The program will remain closely monitored throughout 2015/16 financial year
in order to identify further improvements.

The Jump Bunch program suffered, following the departure of a popular instructor and was also
affected by the growing popularity of the Noosa Gymnastics program which directly competes
with the Jump Bunch target market. The end of year result indicates a need for further analysis of
the program to determine its future at the Centre.

Birthday parties were unable to be initiated as hoped due to the unavailability of quality hosts.
The Centre still has a strong belief in the potential for this program, particularly given the lack of
party venues for the target age group in the Noosa area. Therefore the program will be pursued
in 2015/16 with a comprehensive plan accompanying its roll out.




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