2018-04-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                      10 APRIL 2018


Financial position of Pomona Arts Inc
White and Grey’s financial analysis indicates that if it adopts a business as usual approach
Pomona Arts Inc will not be able to sustain its current financial position into the medium/long
term.

While the Gallery and the Country Markets operate at a small profit, the Majestic Theatre has
operated at a loss for a number of years. This has resulted in PAI having a heavy reliance on an
overdraft to meet operating and finance expenses.

In summary, the organisation is currently operating in deficit and this is likely to continue, putting
the organisation at risk of insolvency. Refer analysis below which is based on 2016/17 figures.

Operating            2018       2019       2020       2021       2022       2023       2024       2025        2026       2027
surplus/deficit
(inc mortgage)
Gallery            $4,504     $4,277     $4,380     $4,485     $4,593     $4,703     $4,816     $4,932      $5,050     $5,171
Majestic inc      -$33,467   -$34,270   -$35,092   -$35,935   -$36,797   -$37,680   -$38,584   -$39,510    -$40,459   -$41,430
markets
Combined          -$28,963   -$29,992   -$30,712   -$31,449   -$32,204   -$32,977   -$33,768   -$34,579    -$35,409   -$36,259


There are a number of ways in which the PAI could enhance its operational revenues including:
 increasing the Pomona Country Market stall holder fees;
 increasing the number of shows in the Theatre;
 the development of tourism packages; and
 better use of the commercial kitchen in the Majestic Theatre.

However, the PAI’s long-term financial position is further impacted by the fact that it will have to
pay high ongoing maintenance and holding costs due to the heritage nature of the theatre
building itself.

Council’s ability to assist Pomona Arts Inc
Funds to assist the PAI remain sustainable in the short term can potentially be allocated from
Council’s Heritage Levy as per Council’s Heritage Policy which states:




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