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

                                                                    Service Review 2014-15
                                                                                                  The J

Mothballing – From a community and commercial perspective, mothballing is not a real option,
however for the purpose of this review the following is provided. Under the mothballing scenario,
Total Net Cost would be approximately $376,000.

                                                                                   $
                                                                             Current
 Description                                                                 Budget       $ Mothball

 Revenue
                        Venue Hire / Equipment Hire                        (169,500)
                        Ticketing - Commission & Sales                      (71,400)
                        Sundry Other                                        (69,650)
                        Bar & Kiosk                                         (51,650)
                        Lease                                               (76,372)

                                                                           (438,572)                 0

 Expenses
                        Contract Services                                     57,900           13,400
                        Other Materials & Services                           325,564           22,000
                        Employee costs (salaries & wages)                    374,138           22,651
                        Internal Charges - waste/plant                        18,047            4,512

                                                                             775,649           62,563

 Net Total Operating Costs                                                   337,077           62,563
 (Does not include depreciation & corporate overheads - see below)

 Depreciation &
 Amortization
                        Depreciation Plant & Equipment                        59,969          59,969
                        Depreciation Buildings                               151,784         151,784
                        Depreciation Other Structures                         80,973          80,973
                        Amortisation Intangibles                               2,679           2,679

                                                                             295,405         295,405


 Total Depreciation                                                          295,405         295,405

 Corporate Overhead Charges                                                  181,311           18,131

 Net Total Costs                                                             813,793         376,099



The budget assumptions under the mothball scenario are detailed to provide an estimate of ongoing
or fixed costs to council if The J was to cease operations or basically ‘close up shop’. These costs are
estimated to be $376,099 with the relevant considerations detailed below.

       No revenue as the building is standing empty with no activity
       Basic contract services (e.g. Landscaping, cleaning and electrical)
       Other materials & services (e.g. Cleaning supplies, electricity charges and other basic
        supplies)



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