2022-10-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                             11 OCTOBER 2022


    Performance Measures     Jan–Dec 2019     Jan–Dec 2020       Jan–Dec 2021     Jan-June 2022
    Members                     146                173                169               105
    Pottery Members               -                118                156               196
    Media articles               86                 35                 48                18
    Facebook followers         3028               4162               4811              5714
    Instagram followers        2003               2954               3629              4382
    Website views             52361              43,535             61,099            24,019
Council officers observe that the CFG is committed to the success of the BFAC and they have
worked diligently to build a strong operation. They bring a blend of business, community and
arts skills to managing the facility. While the Group has sought advice from Council when
required, it has generally capably managed the facility independently: generating initiatives and
resolving problems. Where there have been issues, the CFG has communicated with Council
officers and received advice constructively. Overall the CFG has run the BFAC successfully for
the past seven years and has built a strong foundation for further success. Impressively, they
have managed to remain viable through Covid impacted years and have returned their
performance strongly, now exceeding the years prior to Covid.
3.      Financial Operations January 2016 – June 2022
Prior to 2006, the BFAC operated under various community organisations however these often
failed due to the financial burden required to operate within a challenging heritage building, the
need to hire staff to manage this type of facility and the building constraints which limited the
ability to raise sufficient revenue. Over the last seven years Council has provided an annual
operating subsidy to the CFG, as the 2015 review found that this was an effective way of
providing a sustainable community solution but reducing the cost burden to Council. As per the
initial agreement, the subsidy has been slightly reduced each year as the CFG have increased
revenue streams. Subsidy amounts: 2016 - $132,879; 2017 - $123,229; 2018 – $122,080; 2019
– $117,546; 2020 - $114,500. Further reductions were paused to support the CFG’s
management of the BFAC throughout the Covid-19 service restrictions.
Council’s subsidy is to assist in funding a broad range of operating costs including human
resources, administration, marketing, programming and telecommunications. Building related
costs such as water, electricity, security and major building maintenance have remained
Council’s responsibility during the permit period while other costs have transitioned to the CFG.
The subsidy is significantly less than what it would cost Council to directly manage the facility
primarily due to the CFG’s ability to raise revenue and use contract and volunteer staffing. Prior
to the transition to a community-managed model, the 2015/16 budget for the BFAC was
$236,808, including depreciation and overheads: whereas the 2022/23 budget is $184,745. If
Council were to resume operation of the facility the annual cost would be a minimum of
$295,000, an increase of 59% over the current budget. This would also be at reduced service
levels as the cost to maintain the current weekend hours of operation would be prohibitive.
The CFG was also expected to undertake a range of revenue-raising activities to fund additional
operational requirements, deliver cultural programming and support identified capital facility
improvements. Over the last seven years, the CFG has met this expectation demonstrating their
commitment to become more sustainable. Revenue for the BFAC comes from grants,
sponsorship, memberships, fundraising, venue hire, residency hire, exhibition commissions and
masterclass and workshop fees. The Artisan Store produced over $30,295 of revenue in rent
and commissions during 2021/2022.
Importantly the CFG, as an incorporated association, can apply for a range of small grants to
operate and upgrade the facility that would not be available to Council. The CFG has proactively
applied for different grant funding opportunities, with 8 successful applications over the previous
three years, resulting in over $92,000 of additional funding used to:
       Purchase a new electric kiln for the Pottery Studio;
       Host a First Nations Exhibition for NAIDOC Week;
       Deliver a Youth Masterclass with Jandamarra Cadd ;

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