2022-10-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            11 OCTOBER 2022


8    COOROY BUTTER FACTORY MANAGEMENT UPDATE 2022

Author            Acting Manager Libraries & Galleries, Tracey King
                  Community Services Department

Index             ECM/ Subject/ 72.04 Butter Factory Arts Centre

Attachments       1.    Cooroy Future Group July–December 2022 Forecast Budget
                  2.    Cooroy Future Group Strategic Plan

EXECUTIVE SUMMARY
Built in 1930, the Butter Factory (BFAC) at Cooroy has fulfilled a variety of community functions
and now operates as an art gallery, supporting initiatives that showcase local amateur and
emerging artists.
In 2015, the Cooroy Future Group Inc (CFG), a volunteer-run community organisation, was
selected through an Expression of Interest process to manage and operate the Butter Factory
and adjoining pottery studio. Support has been provided from Council through an annual
operating subsidy. The agreement with Council expired on 31 December 2019. Council
endorsed a further three-year agreement which will expire on 31 December 2022.
The CFG’s operation of the BFAC under this community-managed model has been highly
effective, with the group capably managing the facility to provide community and cultural
outcomes while demonstrating tight fiscal control, ending each year with a small operating
surplus. The CFG has been proactive in undertaking a range of revenue-raising activities and
funding capital facility improvements and Council’s subsidy is now only paying a third of
operational costs.
Building on the past years of operating the BFAC, the CFG has planned for continued growth
and development of the BFAC through a new Strategic Plan and forecast budget with exhibitions
booked until the end of 2023.
This community-managed model has been found to be more sustainable than previous
operations. It remains the most cost-effective model which delivers the greatest benefits to the
community while reducing the financial and operational burden on Council. This report proposes
entering into a five-year agreement for the CFG to continue operating and managing the Butter
Factory until the end of 2027, supported by an annual subsidy.

RECOMMENDATION
That Council note the report by the Acting Manager Libraries & Galleries to the Services &
Organisation Committee Meeting dated 11 October 2022 and
A.   Authorise the CEO to enter into an agreement with the Cooroy Future Group Inc to operate
     the Butter Factory for a further five-year period, commencing 1 January 2023. This
     agreement is to be in accordance with Council’s Community Leasing Policy and subject
     to continued satisfactory performance by the Group, reviewed on an annual basis;
B.   Provide annual funding of $114,500 (ex GST) to the Cooroy Future Group Inc to support
     operations to December 2027 in line with the approach outlined in the Finance section of
     this report;
C.   Refer future funding arrangements to the 2023/24 budget process; and
D.   Extend congratulations to the Cooroy Future Group on their success thus far in operating
     the Butter Factory.




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