2016-03-01 Infrastructure and Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                    1 MARCH 2016



                                  Noosa Aquatic Centre
1,400,000
1,200,000
1,000,000
 800,000
 600,000
 400,000
 200,000
       0
(200,000)         Total Revenue              Total Expenditure         Operating Surplus / (Deficit)
(400,000)
(600,000)

                                   2015/16                       2015/16
                                   YTD                           YTD
                                   Budget                        Actuals


The NAC reports a YTD net favourable variance to budget of $78,923 as at 31 January 2016.
Revenue was $19,204 ahead of the budget target and expenses were $59,720 under budget.

This is a strong result however revenue has benefited from a delay to the capital works planned
for the program pool. These works will now occur in April 2016 after the peak summer demand
subsides. As a result, Learn to Swim revenue will be impacted in the final quarter and total
revenue will fall back to be closer to the budgeted position.

The Learn to Swim program continues to perform strongly and is the centre’s single largest
source of revenue, with YTD income of $339,257. Currently there are 930 children enrolled in the
program.

General admission revenue is $4,782 ahead of budget which is a sound result, particularly given
the slow start to the year due to the 25m pool’s closure during capital works. The Gym produced
revenue of $83,812 which is down $5k on the predicted revenue of $88,713. Current membership
numbers are 138, which is 29% less than last year’s figure of 194 members.

Measures to address membership decline are being proposed as part of the NAC’s service
review. These include a ‘new initiative’ bid for new leased gym equipment (current equipment is
old and tired and doesn’t meet customer expectations) and it is anticipated that this, combined
with a streamlined and more competitive membership offering, will see an improvement in the
Gym’s performance.

Group Fitness revenue was heavily impacted at the beginning of the financial year by the closure
of the 25m pool; nine of the eleven weekly classes take place in this pool. It has recovered well
over summer with in excess of 40 participants per class in most classes. Attendance figures for
the period are 4,673 in comparison with 4,694 last year. Revenue is $4,163 in excess of the
budgeted amount of $45,361.

Retail sales saw a slower than expected start to the year but have returned to be in line with
budget at $93K. The NAC will continue to trial and review new retail opportunities throughout the
remainder of the year to maximise the Centre’s financial performance.


                                                                                        Page 58 of 81