2021-03-09 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                        9 MARCH 2021


NLC continued to increase operations throughout this period as COVID-19 restrictions further eased.
Revenue performance compared to previous years was impacted by the restricted nature of
operations, particularly in Q1, however outperformed budget as a result of the previously mentioned
budget adjustments. In total, YTD revenue was down approximately 22% compared to the same
period last year.

Despite the restrictions and a decline in revenue, it was pleasing to note that the group fitness
program continued to perform well, particularly during October to December, with attendance
numbers up 2.5% compared to the same period last year. The Kids’ Playroom also performed well,
with attendances up 5%. Venue hire revenue was down 32%, largely due to the loss of multiple
regular hirers who have not yet resumed their bookings following the COVID-19 shutdown of the
facility in March 2020.

Expenditure finished $7,672 (1.4%) over budget for the half-year, with no material variances to
report.

The below comparison of the past four years’ half-yearly financial performance data reveals that
venue hire and food sales (café) were the areas most impacted by COVID-19 restrictions. It is
pleasing to note that all remaining revenue streams saw only negligible impacts when compared to
the year prior. No employee benefits cost savings were realised during the period due to
redeployment of staff during restricted operations and then the need for extra staff to assist with
implementation of various COVID-safe practices upon reopening.

               Historical half-yearly financial performance - Noosa Leisure Centre (NLC)

                                             2017/18 YTD          2018/19 YTD          2019/20 YTD          2020/21 YTD
Revenue                               actuals as at 31 Dec actuals as at 31 Dec actuals as at 31 Dec actuals as at 31 Dec
41154 - Venue Hire                             (84,361.32)          (87,537.29)          (92,941.04)          (62,832.93)
42019 - Other - Sales - Food                   (91,723.45)          (86,911.66)          (92,250.84)          (59,380.77)
42020 - Other - Sales - Retail                   (2,771.41)           (1,187.77)           (2,774.88)           (1,115.30)
42074 - Group Fitness Revenue                  (57,929.11)          (85,589.92)         (103,576.97)         (100,899.66)
42076 - Creche Revenue                           (4,469.34)           (4,301.09)           (3,456.00)           (2,413.56)
42077 - Kids Playroom Revenue                    (9,586.39)         (10,122.75)            (8,423.13)           (8,777.24)
42078 - Sports Program Revenue                 (11,307.11)          (13,402.72)          (14,486.95)          (13,496.95)
                                                  (262,148)            (289,053)            (317,910)            (248,916)


Controllable expenses
6EX01 - Employee Benefits                      200,359.30           222,537.76            228,636.69           245,414.53
6EX03 - Materials & Services                   169,437.70           150,776.62            164,639.71           151,846.56
6EX06 - Other Expenses                           1,511.70             1,564.60              1,599.80             1,628.50
                                                  371,309              374,879              394,876               398,890

Net operating result                             -109,161              -85,826               -76,966             -149,973



Uncontrollable expenses
6EX04 - Depreciation & Amortization             40,568.52            43,353.54             44,468.76            44,522.04
6EX12 - Internal Charges                       152,145.18           106,877.04            112,855.72           117,151.39
                                                  192,714              150,231               157,324              161,673

Total operating result                           -301,874             -236,056             -234,291              -311,647



3.     Visitation summary

NLC recorded 40,994 attendances for the half-year, down 33% compared to the same period in
2019/20. COVID-19 restrictions had a large impact on NLC’s visitation numbers, particularly as
limited spectators were permitted to watch sporting groups in the stadium. Additionally, a reduction
in café visits and venue hire bookings impacted the overall attendance figures for the period.

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