2015-03-03 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                               3 MARCH 2015



                                    NLC Half Year 2014/15
     $500,000

     $400,000

     $300,000

     $200,000                                                                         Actual YTD

     $100,000                                                                         Budget YTD

          $0
                    Total Revenue       Total Expenditure      Net Operating
 ($100,000)                                                    Surplus/Deficit

 ($200,000)


Half yearly performance sees the NLC net operating position $21,963 in front of year to date
projections. Actual revenue is $17,423 behind budget projections however expenditure is also
$38,945 behind projections.

Revenue:

The NLC has four revenue streams:

    program operations;
    group fitness program;
    café/retail operations; and
    general operations.

Revenue shortfalls are predominately seen in the group fitness and jump bunch program
($37,000), however this is offset by an increase in venue hire bookings (general operations) and
the centre run volleyball and netball programs ($20,000).

A marketing strategy for jump bunch was implemented in the second quarter, which is expected
to increase revenue in the third quarter.

Group fitness revenue continues to be monitored as a result of the change in the business model
for the delivery of Yoga classes. As part of the change, NLC contributes an amount per person
each time pre-existing NLC membership holders attend yoga classes. The impact of this will
continue to decrease as customer memberships and visit passes expire. A true reflection of the
full group fitness program will be clearer throughout the next half of the financial year.

Expenditure:

Total expenditure is $38,945 behind the year to date budget for the half year. This is
predominantly due to underspend in building and facility maintenance which could not occur in
Quarter 2 as a result of venue hire bookings and availability of contractors. Several areas of
maintenance expenditure have been committed for the next six months, including:

 Annual stadium floor resurfacing (which would normally occur late December);
 The centre’s tiered seating units, which were serviced in this quarter require further work to
   ensure health and safety compliance. Work on the units will be completed in February 2015;


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