2020-09-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            8 SEPTEMBER 2020



The comparison of the past five years’ financial performance below reveals a trend of strong
revenue growth with only a minor pullback in 2019/20. Controllable expenses have stayed stable
for several years and the net operating result has improved as revenue has grown during this
period. Depreciation increased in 2019/20 due to the increased asset value following the recently
completed expansion of the Main Hall.

BCC historical financial performance – 2015/16 to 2019/20

                                         2015/16      2016/17     2017/18     2018/19     2019/20
Revenue                                  actuals      actuals     actuals     actuals     actuals
40034 - Lease Revenue                   (50,819)     (76,670)   (101,045)   (103,246)    (91,413)
41154 - Venue Hire                      (47,186)     (36,125)    (20,726)    (35,000)    (40,000)
42032 - Other - Sundry Recoupment         (4,838)           0           0           0           0
                                       (102,843)    (112,795)   (121,771)   (138,246)   (131,413)


Controllable expenses
6EX01 - Employee Benefits                 11,401      12,884       9,258       10,374      12,813
6EX02 - Finance Costs                          0           0         387            0           0
6EX03 - Materials & Services              42,467      53,318      58,469       43,011      37,868
6EX06 - Other Expenses                       476         493         510          528         540
                                          54,345      66,695      68,624       53,913      51,221

Net operating result                     48,499       46,100      53,147      84,333      80,193


Uncontrollable expenses
6EX04 - Depreciation & Amortization       48,029      50,286      56,067       68,050      84,532
6EX12 - Internal Charges                  13,765       7,346       7,230        7,515      11,425
                                          61,794      57,632      63,297       75,565      95,957

Total operating result                  -13,295      -11,532     -10,150       8,768      -15,764

2.   CUSTOMERS

The key customers at BCC remain Noosa Gymnastics Club (Main Hall lease), Noosa Montessori
School (Demountable building lease and Annex hire with intention to lease) and Little Seed
Theatre Company (Noosa Montessori School sublets space to this group). No usage occurs
outside of these groups due to the permanent and exclusive nature of the usage agreements.

Visitation statistics are not maintained for BCC by Council. However, we can report the Noosa
Gymnastic Club had to cease operations in late March because of COVID but will be able to
recommence operations in a relatively normal manner in Term 3 2020. Rental charges will
resume for the Club once they are back up and running.

3.   STAFFING

The J staff continue to oversee BCC’s operations and the small team does a great job of running
both centres in a highly efficient manner. Given the nature of BCC’s utilisation by permanent
tenants there is now little day-to-day involvement at BCC for Council staff. However, relationship
management and oversight of major building maintenance projects remain a priority.




                                                                                   Page 42 of 48