2015-09-15 Infrastructure and Services Committee Att 2 to Item 4 The J Service Review 2014-15

                                                                                  Service Review 2014-15
                                                                                                                              The J

   OPPORTUNITY – Consideration of fee changes to increase revenue streams relating to
  regular commercial and community hire.


  RISK – 39% of current revenue streams relate to only 2 customers. This is a significant
  risk for The J.


10.2.3 Comparison by category
                                                                        % of Hours Booked vs % of Venue
Church hire currently represents the majority of                                 Hire Revenue
both hire and revenue at The J.
                                                                50%       43%
                                                                        40%
Workshops, meetings, classes and ceremonies                     40%
(WMCC) represents 31% of venue hire at The J,                                                  31%
however only produces 14% of the venue hire                     30%                      23%
                                                                                                                % of Hours Booked

revenue. This category includes a number of                     20%                                    17%
                                                                                     13%        14%
free-of-charge Council bookings which do not                                   8%                     9%        % of Venue Hire
generate venue hire income (approximate value                   10%             3%
                                                                                                                Revenue

$4,300). Other WMCC bookings are generally in                     0%
the smaller rooms which have lower venue hire
rates.

Performances generate 23% of venue hire
revenue while only representing 13% of venue
hire. Performances are often commercial in nature and therefore generate higher levels of revenue.

Venue hire for Youth in the graph above includes two significant school performances aimed at
developing their students (St Andrews Anglican College and St Teresa’s Catholic College). These two
performances are major bookings in the theatre and other spaces which include venue hire,
equipment and other cost recovery charges (increasing the overall venue hire revenue for this
category).

10.2.4 Fee Change Scenario
A series of ‘what if’ calculations have been applied to average current fees and charges for The J.
Applying various percentage scenarios, if community and regular bookings were charged at the
commercial rate, there is potential to earn an additional $28,251 - $56,503 for the period. However,
the opportunity cost also needs to be considered. Increasing the booking charges of community to
commercial rates may also result in the loss of the venue hire opportunity in these cases and lead to
community dissatisfaction. With the increase in regular community hire of The J this year, groups like
Noosa Heads Jazz Club and Noosa Chorale have had some impact on commercial hire booking
requests with conflicting hire dates. At this stage alternative dates have been accommodated,
although this needs to be continually monitored.

                                                                              If 100%
                                                                           charged at      If 75% charged       If 50% charged
                           Average                       Jan to Sep      Commercial        at Commercial        at Commercial
                               Rate                      14 Venue      rate, potential     rate, potential      rate, potential
Rate type                  per hour    Number of hours         Hire      increase is…      increase is…         increase is…
Community                   $25.50                 205      $5,228             $7,073               $ 5,304              $3,536
Other Community/
Regular                       $19.33             1,216     $23,500           $49,430                  $37,073          $24,715
Commercial                    $60.00               351     $21,060                $-                       $-               $-
Total Potential increase in venue
hire                                                                         $56,503                  $42,377          $28,251




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