2017-08-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                  8 AUGUST 2017


General admission revenue was up on budget by $19,234, predominantly due to the long, hot
summer we experienced which encouraged lap swimmers to keep swimming and families to
spend the day at the pool.

The purchase of $100k of new equipment for the Gym, combined with a simplified fee structure
and membership offering introduced in January 2017, has already delivered a strong return to the
NAC. Gym revenue was up $23,337 to $106,612, with the number of members with gym access
increasing from 138 this time last year to 239 at year’s end. The programming of new circuit
classes, small group training and set staffed hours will continue to increase both memberships
and revenue.

Group Fitness (GF) revenue exceeded budget by $25,641, finishing the year at $138,818. This is
a result of a wider variety of instructors, more classes, more options and improved scheduling.
GF attendance numbers for the year increased significantly by 3,015 to 15,563, compared to
12,548 in 2015/16. This represents growth of 24%.

Retail Operations remain the third largest revenue source at the NAC and continued to perform
above expectations thanks to the dedication of two key staff members. Their knowledge and
drive in this area saw revenue reach a record $180,613 at a gross profit margin of 51%.

The $61,068 variance in expenditure was primarily due to two areas:
1.   Water was over budget by $27k. This was due to a water leak that remained undetected for
     some time. It has since been repaired and reinstatement of the BMS system in Q1 2017/18
     will help prevent a reoccurrence. It is anticipated that a rebate of approximately $10k for the
     sewerage component of the charges will be received from Unitywater.
2.   Fitness Instructors wages over budget by $15k due to additional classes offered (offset by
     revenue growth).

On a positive note, electricity expenditure was $7k under budget. Work with the Zero Emissions
team is underway and will hopefully result in further cost and emission reductions.

2.                 CUSTOMERS

The NAC recorded 245,308 attendances for the year. This is an increase of 10,271 from the
2015/16 period of 235,037.
                       NAC Full Year Attendance Comparison
                                      2015/16
                                    to 2016/17
                   260000
                   240000
                   220000
     Attendances




                   200000
                   180000
                   160000
                   140000
                   120000
                   100000
                                2015/16             2016/17



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