Tuesday, 13 March 2018 Phone: 0418 296 767 Email: … · 2018-03-15 · Phone: 0418 296 767 Email: [email protected] Dear Member ... 7.2 Draft 3-Year Business Plan 2018-2021

Fleurieu Regional Aquatic Centre Authority

Address | PO Box 267, Angaston SA 5353

Phone | 0418 296 767 Email | [email protected]

Tuesday, 13 March 2018

Contact for Apologies: Leonie Boothby, Executive Officer Phone: 0418 296 767

Email: [email protected]

Dear Member

NOTICE OF MEETING

Notice is hereby given pursuant to the Fleurieu Regional Aquatic Centre Authority Audit & Risk

Management Committee Terms of Reference and Section 87(7) of the Local Government Act,

1999, as amended that a Meeting of the Fleurieu Regional Aquatic Centre Authority Audit & Risk Management Committee has been called for:

DATE: Thursday 22 March 2018

TIME: 2pm

PLACE: City of Victor Harbor – Encounter Room, Civic Centre, 1 Bay Road, Victor

Harbor

Please find enclosed a copy of the Agenda for the meeting.

Yours faithfully

Leonie Boothby Executive Officer

Please be advised that filming, photography and audio recording may take place at this meeting

when the public and media are not lawfully excluded under Section 90 of the Local Government

Act 1999

1

mailto:[email protected]

Audit & Risk Management Committee - Meeting Agenda

DATE & TIME: Thursday 22 March 2018 at 2pm

LOCATION: City of Victor Harbor – Encounter Room, Civic Centre, 1 Bay Road, Victor Harbor

1. ATTENDANCE

Ian Swan (Independent Chairperson) John Coombe OAM (FRACA Board Member) Alison Kimber (FRACA Board Member) Elizabeth Williams (General Manager Organisation & Community, Alexandrina Council) Kellie Knight Stacey (Director Corporate & Community Services City of Victor Harbor)

2. APOLOGIES

Nil

3. CONFLICT OF INTEREST

4. MINUTES OF THE PREVIOUS MEETING

6 February 2018

5. BUSINESS ARISING

Business Arising / Action Statement / Work plan

6. PRESENTATIONS

Nil

7. REPORTS

7.1 Fees & Charges 2018-19

7.2 Draft 3-Year Business Plan 2018-2021 & Budget 2018-19

7.3 Draft Asset Management Plan 2018-2027

7.4 Draft Long Term Financial Plan 2018-2027

8. URGENT BUSINESS WITHOUT NOTICE

9. CONFIDENTIAL REPORTS

9.1 Draft YMCA Operational Management Key Performance Indicators

10. NEXT MEETING

10am 26 April 2018, Alexandrina Council Office – 11 Cadell St Goolwa, Large Meeting Room

CLOSURE

2

Audit & Risk Management Committee Report

To: FRACA Audit & Risk Management Committee

From: Executive Officer

Subject: Resolutions Report and Work Program Meeting date: 22 March 2018 Item: 5.1 Reference(s): Nil Consultation: Nil Attachments: 5.1.1 Work Program

5.1.2 Resolutions Register

PURPOSE

The purpose of this report is to provide a record of Fleurieu Regional Aquatic Centre Authority Audit

& Risk Management Committee (‘the Committee’) resolutions and outstanding actions; the work program and associated action list with status updates.

RECOMMENDATION That the Committee note the Work Program and Resolutions Report as at 22 March 2018.

INFORMATION

Work Program The Work Program detailing programmed actions and status is attached.

Outstanding Resolutions

The Resolutions Report listing all resolutions from the previous meeting, with a progress note as relevant, is attached.

Summary The Resolutions Report and Work Program is a standing item at each Committee meeting.

RISK ASSESSMENT Risks associated with the recommendation have been assessed as follows:

Governance - there is no direct risk with noting the report. The Committee must manage its

governance risk of implementing decisions and associated actions as well as work required by the Committee Terms of Reference; within required timeframes. This report provides a mechanism for

the Committee to monitor progress of resolutions, work and actions and to manage the associated governance risk.

BUDGET IMPLICATION

There is no direct budget implication with noting the progress of the outstanding actions, the work

program and action list. Resource implications associated with specific resolutions and actions are considered in specific reports.

3

Audit & Risk Management Committee - Work Program

Page 1

Work Program v1.1

Attachment 5.1.1

February 2018 – November 2018

The dates listed below indicate Audit & Risk Management Committee (Committee) meetings;

the actions list likely work at those meetings. The actions listed have been determined largely from the Committee Terms of Reference.

Workshops, out-of-session decision making and feedback to the Executive Officer from

Committee Members; and special meetings may be required to progress work in a timely manner and meet key deadlines.

This work program is subject to review, additions, deletions and amendment, therefore, the work program should be ‘noted’ by the Committee but not ‘endorsed’ as it will need to remain a live document. The Executive Officer is to maintain the Work Program and provide Committee Members with updated versions as appropriate.

Date Action Status

6 February

2018

Audit & Risk Management Committee Schedule of Meetings and

Indicative Work Program for 2018

Audit & Risk Management Committee Terms of Reference

Draft FRACA Strategic Plan

2017/18 Second Quarter Budget Review Report

Completed

Completed

Completed

Completed

22 March

2018

Fees & Charges 2018/19

Draft 3-Year Business Plan (incorporating draft FAC Business &

Marketing Plan 2018/19)

Draft FRACA Asset Management Plan

Draft FRACA Long Term Financial Plan

Draft YMCA Operational Management Key Performance Indicators

26 April

2018

Draft FRACA Public Consultation Policy

Policy review:

• Risk Management Policy

• Procurement Policy

• Allowances & Reimbursement of Expenses Policy

• Communication Policy

• Informal Gatherings Policy

• Records Management Policy

Policy review schedule

Draft FRACA Risk Management Framework

Investment plan - Depreciation Reserve funds

2017/18 Third Quarter Budget Review Report

4

Page 2

Work Program v10.1

Date Action Status

5 July 2018 FRACA significant accounting policies

Review progress against Risk Management Framework implementation

Policy review: Internal Financial Control Policy

FRACA Charter Review

Draft Internal Control Framework and controls improvement plan

13

September

2018


and internal controls improvement plan

Meet with external auditor without management present. Confirm

approach and accountability of management in the audit process

Review 2017/2018 financial statements to ensure they present fairly the

state of affairs of FRACA including a focus on accounting policies and

practices; accounting estimates; adjustments arising from the audit

process; variances from prior year; management’s representations; auditor’s summary management report

Audit & Risk Management Committee annual report to the Board

summarising the activities of the Committee during the year and providing

comment on the risk and control environment

FRACA Draft Annual Report

Competitive Neutrality Review

1

November

2018

Policy review:

• WHS Contractor Management Policy

• Work Health Safety & Return To Work Policy

Audit Committee Schedule of Meetings and Indicative Work Program for

2019


and internal controls improvement plan

Status report on progress against audit findings

Audit Committee Self-Assessment

2018/19 first quarter budget review

Review the format, content, regularity and suitability of budgetary,

financial performance and management reports provided to Board

Members

Draft delegations register

Document History

VERSION DOCUMENT ACTION DATE 0.1 Draft Draft presented - Feb 2018 Committee Meeting Report 6 February 2018 1.0 Version 1.0 As amended at the Board meeting 1.1 Version 1.1 Draft presented - March 2018 Committee Meeting Report 22 March 2018

5

Fleurieu Regional Aquatic Centre Authority - Audit & Risk Management Committee Resolutions (PUBLIC)

Meeting date: 22 March 2018Meeting

DateResolution

Number

Agenda Item Resolution Moved Seconded Status Notes

06-Feb

-18

ARMC0001 6.1 ARMC Terms of

Reference

That the Committee appoint Ms Alison Kimber as Deputy Chairperson of the Authority Audit & Risk

Management Committee

Mr John

Coombe

Ms Elizabeth

WilliamsNo further

action

06-Feb

-18

ARMC0002 6.1 ARMC Terms of

Reference

That the Committee note the Terms of Reference and note that a further review will be undertaken following

review of the FRACA Charter.

Mr John

Coombe

Ms Alison

Kimber

Review to be undertaken following

review of Authority Charter

06-Feb

-18

ARMC0003 6.2 Audit & Risk

Management

Committee Schedule of

Meetings and Indicative

Work Program for 2018

1. That the Committee note the proposed Work Program for 2018.

2. That the Committee endorse a schedule of meeting dates for 2018 in line with the Work Program as

follows:

Meeting date and time Location

2pm, Thursday 22 March 2018 City of Victor Harbor – Encounter Room, Civic Centre, 1 Bay Road, Victor Harbor

10am, Thursday 26 April 2018 Alexandrina Council Office – 11 Cadell St Goolwa, Large Meeting Room10 am, Thursday 5 July 2018 City of Victor Harbor –Civic Centre, 1 Bay Road, Victor Harbor, Council Chambers

10am, Thursday 13 September 2018 Alexandrina Council Office – 11 Cadell St Goolwa, Large Meeting Room

10 am, Thursday 1 November 2018 City of Victor Harbor –Civic Centre, 1 Bay Road, Victor Harbor, Council Chambers

Ms Alison

Kimber

Ms Kellie

Knight-StaceyNo further

action

06-Feb

-18

ARMC0004 6.3 2017/18 Second

Quarter Budget Review

Report

That the Committee recommends to the Authority Board that:

1. For the period ending 31 December 2017, it adopts a Budget Review with Operating Expenses of

$3,004,588 and estimated cash at end of reporting period of $867,589.

2. That the 2017-18 Annual Business Plan and Budget be amended to reflect the variances as authorised

by the Authority.

3. That the Authority recommend the Budget Review (as at 31 December 2017) and the budget variations

contained therein to the constituent Councils for endorsement.

Mr John

Coombe

Ms Alison

Kimber

Executive Officer to work with Fleurieu

Aquatic Centre (FAC) operational

managers (YMCA SA) to document all

initiatives undertaken and planned in

relation to driving income growth and

creating cost-saving efficiencies at FAC

(including efficiencies in energy use).

06-Feb

-18

ARMC0005 6.4 Draft FRACA

Strategic Plan

That the Committee:

1. Note the draft FRACA Strategic Plan 2018-2027 and that the Executive Officer will update the plan in line

with Committee feedback;

2. Recommend that the Fleurieu Regional Aquatic Centre Authority endorse the draft FRACA Strategic Plan

2018-2027 for the purposes of public consultation.

Ms Kellie

Knight-

Stacey

Ms Alison

KimberNo further

action

Page 1 of 1

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Page 1



Subject: Fleurieu Aquatic Centre Fees & Charges 2018-19 Meeting date: 22 March 2018 Item: 7.1 Reference(s): FRAC Authority Charter Consultation: Area Manager, YMCA SA Attachments: Nil

PURPOSE

The purpose of this report is to seek feedback from the Fleurieu Regional Aquatic Centre Authority (Authority) Audit & Risk Management Committee (Committee) on the proposed Fleurieu Aquatic Centre fees and charges for 2018/19.

RECOMMENDATION

That the Committee recommend that the Fleurieu Regional Aquatic Centre Authority endorse the

proposed Fleurieu Aquatic Centre fees and charges for 2018/19 as set out in this report.

INFORMATION

The Authority Charter sets out the functions, powers and duties of the Authority to be exercised in the performance and furtherance of its objects and purposes. These functions and powers include (clause 2.1.10) ‘to set and charge fees for the use of facilities and services at the Aquatic Centre’.

Fees and charges were originally set by the Authority Board in December 2016 and were not increased for 2017/18; noting that the centre was only open for 3 full months of financial year 2016/17.

YMCA SA as operational managers of the Fleurieu Aquatic Centre (FAC) in conjunction with the Authority Executive Officer has reviewed current fees and charges and has developed a proposed schedule of fees

and charges for 2018/19 which also includes fees for new services in allied health.

The proposed fees and charges for 2018-19 are set out in Appendix A.

These fees have been applied in development of the draft operational budget for the Authority for 2018/19. The proposed fees and charges present a range of increases with an overall average increase in fees of 2.4% on current levels. Indicative increases in fees for financial years 2019-20 and 2020-21 are also presented in Appendix A to provide context for consideration of 2018-19 fees. These increases have also been applied in development of the draft Long Term Financial Plan 2018-2027.

The Authority Board, at its 16 February 2018 Workshop, discussed various parameters for the 2018-19 operating budget, including draft proposed fees and charges for FAC. Board Member feedback included a request for the Authority Executive Officer to model two alternate scenarios to the proposed 2018-19 fees and charges (a 0% increase on all current fees and charges; and a standard 2% increase to all current fees and charges); present these models to the Audit & Risk Management Committee; and request the Committee make a recommendation to the Board.

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Page 2

Other general feedback from the Board in relation to setting of fees and charges included:

• In principle support for a change in policy relating to the quantum of discount applied to Mates

Rates membership (reducing from 20% to 15% over 3 years); and

• The general view that pricing for FAC should sit approximately in the middle of the competitor pricing continuum.

Following determination of a Committee recommendation at this meeting; proposed fees and charges for 2018/19 will formally be put to the Board for as an Out of Session Matter for Decision for consideration.

DISCUSSION

Comparison of 2018/19 fees & charges increase scenarios

To assist the Committee in its consideration of proposed fees and charges for 2018-19, background assumptions applied in development of proposed FAC fees and charges and competitor pricing context (where available) is provided below.

Please note; competitor pricing outlined below reflects current publicly available pricing information for 2017-18. It is not known what increases in pricing will be applied by competitors for 2018-19.

Comparison by fee type

SWIMMING INSTRUCTION:

Swim School (Group lessons)

Description 2017-18 Weekly

Fee

FAC Proposed 2018-19 0% increase 2% increase Weekly

Fee Inc. ($)

Inc. (%)

Weekly Fee

Inc. ($)

Inc. (%)

Weekly Fee

Inc. ($) Inc. (%)

Swimming Lessons

$16.90 $17.90 $1.00 5.9% $16.90 $0 0% $17.24 $0.34 2%

Swimming Lessons - Additional Children

$16.05 $17.00 $0.95 5.9% $16.05 $0 0% $16.37 $0.32 2%

Current competitor 2017/18 pricing:

Facility Per lesson (weekly) fee)

Victor Harbor R7 School $13.00

The REX Barossa $18.00 ($16.00 direct debit)

Strathalbyn Outdoor Pool $16.50

The ARC Campbelltown $17.50

Noarlunga Leisure Centre $17.50

Sue Pryor Swim School $19.00

Swimming lessons assist in keeping children healthy and safe by building healthy habits and encouraging safe water practices. Proposed fees are in line with current competitor market pricing.

No increases to fees for private swimming lessons are proposed. The current demand is low, and prices have been set at a sustainable level should the services be accessed.

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Page 3

Vac Swim

The VacSwim program (operated for one week in January each year) provides primary school aged children with opportunities to develop a range of skills and positive experiences in the areas of water safety, confidence and competence in the water, personal survival activities and basic aquatic emergency procedures.

In determining pricing for the FAC VacSwim program, the recommendation made by YMCA is guided by the Office for Recreation & Sport requirements and is in line with current competitor pricing.

Proposed FAC Fees:

Description 2017-18 Fee per class

FAC Proposed 2018-19 0% increase 2% increase Fee per class

Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)

Fee Inc. ($) Inc. (%)

Fee per participant per day

$10.00 $10.00 $0.00 0% $10.00 $0.00 0% $10.20 $0.20 2%


Vac Swim Summer 2017/18 prices (http://www.vacswimsa.com.au/vacswim-locations/)

Location Fees (For 7 classes over one week) Operator Fee per

class

Victor Harbor R-

7 School

$30.00 Enrolment Fee

$16.50 Equipment & Location Fee

Royal Life Saving

Society Australia

(RLSSA)

$6.64

Hindmarsh

Island Caravan

Park


$1.50 Equipment Fee

$15.00 Pay entry fee at pool

RLSSA $6.64

Noarlunga

Leisure Centre


$43.50 Equipment & Location Fee

RLSSA $10.50

Strathalbyn Pool $30.00 Enrolment Fee $40 Equipment & Location Fee YMCA $10

Port Elliot Beach $47.00 (5 - 13-year-old) Enrolment Fee (plus $5 surcharge for

onsite enrolments) Stages 1-9

$67.00 (5 - 13-year-old) Enrolment Fee (plus $5 surcharge for

onsite enrolments) Stage 10

$57.00 (14 - 17-year-old - Stage 9 only) Enrolment Fee (plus $5

surcharge for onsite enrolments)

$77.00 (14 - 17-year-old) Enrolment Fee (plus $5 surcharge for

onsite enrolments) Stage 10

RLSSA $6.71

$9.57

$8.14

$11.00

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http://www.vacswimsa.com.au/vacswim-locations/


Page 4

RECREATIONAL SWIMMING:

Proposed FAC Fees:

20 visit passes are priced at 18 admissions with a 12-month expiry. Concession discounts are available for individual admissions and visit passes (approximately 20%).

Description 2017-18

Fee

FAC Proposed 2018-19 0% increase 2% increase

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


Adult Swim $6.20 $6.50 $0.30 4.8% $6.20 $0.0 0% $6.32 $0.12 2% Adult Swim - concession

$5.00 $5.20 $0.20 4.0% $5.00 $0.0 0% $5.10 $0.10 2%

Child Swim $5.00 $5.20 $0.20 4.0% $5.00 $0.0 0% $5.10 $0.10 2% Family Swim (max. 5 people)

$21.00 $21.00 $0.00 0.0% $21.00 $0.0 0% $21.42 $0.42 2%

Spectators $3.00 $3.00 $0.00 0.0% $3.00 $0.00 0.0% $3.06 $0.06 2% Under 4 Swim (3 and under)

Free Free Free Free

DECD Pool access (per child)

$3.70 $3.80 $0.10 2.7% $3.70 $0.0 0% $3.77 $0.07 2%

School Fun Day Minimum charge per group for up to 50 attendees

2-hour session - two activities including: Inflatable fun, pool games (Flippa ball), Splash park and outdoor splash area; or 3 recreation lanes open for recreational play

$475

Additional charge of $9.50 per additional attendee over 50

attendees

$487.50


attendees

$12.50 2.6%

$475


attendees

$0 0.0%

$484.50


attendees

$9.50 2%


Facility Casual admission - adult Concession /

child

Family Swim Pass

Strathalbyn Outdoor Pool $6.00 $5.50

Murray Bridge Swimming Centre $6.00 (including use of Supaslide) $20.00 Family Day Pass -

up to 6 people with at least

one adult in attendance

The REX Barossa $6.50 $5.50 $17.50

Noarlunga Leisure Centre $7.50 $6.00 $23.50

The ARC Campbelltown $8.00 $6.50 $23.00 (2 adults, 2

children)

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POOL BASED ACTIVITIES:

FlippaBall

FlippaBall is non-contact Water Polo for children aged 7-12 years. The program is designed to help players new to the game of water polo establish the confidence and basic skills required to play the game in a fun but safe and controlled environment. The FAC program comprises 1-hour sessions; minimum 10-week term commitment.

Synchro

A synchronised swimming program being trialled at FAC with potential future rollout at other YMCA sites; however, at this stage, this will be the only program of its type in South Australia. The program will be run in 1-hour sessions with a minimum 10-week term commitment.

Adult social Water Polo

Water Polo is a burgeoning sport and new to the area; 10-week season commitment.

Proposed FAC Fees:

Description 2017-18

Fee


Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


FlippaBall – Non-Member

$10.00 $10.00 $0.00 0% $10.00 $0.00 0% $10.20 $0.20 2.0%

FlippaBall – Member

$9.00 $9.00 $0.00 0% $9.00 $0.00 0% $9.18 $0.18 2.0%

Synchro Swim – Non-Member

$10.00 $10.00 $0.00 0% $10.00 $0.00 0% $10.20 $0.20 2.0%

Synchro Swim – Member

$9.00 $9.00 $0.00 0% $9.00 $0.00 0% $9.18 $0.18 2.0%

Water Polo – Non-Member

$10.00 $10.00 $0.00 0% $10.00 $0.00 0% $10.20 $0.20 2.0%

Water Polo – Member

$9.00 $9.00 $0.00 0% $9.00 $0.00 0% $9.18 $0.18 2.0%

FITNESS SERVICES:

Health & fitness:

‘All Access’ casual admission provides the visitor access to the entire centre, including aquatic facilities,

gym facilities and Group Fitness (aquatic & dryland). The same fees apply to visitors seeking to participate in a Group Fitness class only. Concession fees are calculated by applying a 20% discount to the full fee.

While the primary objective is to encourage facility membership, both Visit Passes and Casual Admissions play an important role towards accommodating all community members regardless of their ability and/or willingness to commit to a full facility membership. In addition, those on Visit Passes will build a strong database to market to regarding the benefits of upgrading to a full membership, as well as the additional registered programs offered at the centre.

Multi-visit passes are 10 visit passes priced at 9 admissions with a 6-month expiry. 20 visit passes are priced at 18 admissions with a 12-month expiry. Concession discounts are available for visit passes.

Pricing for the Strength for Life Group Fitness classes are set by the Council on the Ageing (COTA) South Australia.

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Page 6

Proposed FAC Fees:

Description 2017-18

Fee


Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


All access - per visit fee

$15.00 $15.50 $0.50 3.3% $15.00 $0 0% $15.30 $0.30 2%

All access – concession - per visit fee

$12.00 $12.40 $0.40 3.3% $12.00 $0 0% $12.24 $0.24 2%

Strength for Life $7.00 $7.00 $0.00 0% $7.00 $0 0% $7.14 $0.14 2% Personal training (charge to contractors) *

$9.00 $9.00 $0.00 0% $9.00 $0 0% $9.18 $0.18

2%

*Personal training: FAC facilitates external delivery of personal training by allowing contract personal trainers to access FAC facilities for a fee per person trained at the centre (can be member or non-member client). Zero increase proposed for 2018/19 as demand currently very minor (allow to build). Facilitating this service provides an opportunity for FAC to turn a non-member client into a member.


Price Comparison - Health Club - Full Fee:

Facility Full fee

CrossFit Victor Harbor $15.00

McCracken Country Club $15.00

YMCA Aquadome $17.00

F.I.T Goolwa $17.00

South Australian Leisure and Aquatic Centre Marion (All access single entry) $18.00

REX Barossa $18.00


Adelaide Aquatic Centre (gym visit only) $24.00

Noarlunga Leisure Centre (gym visit only) $25.00

Price Comparison - Health Club – Concession:

Facility Concession


REX Barossa $16.20

Price comparison - Group fitness:

Facility Full fee Concession

YMCA Aquadome $12.00 $9.60

The ARC Campbelltown $17.00 $14.00

Noarlunga Leisure Centre $16.00 (60 min class)

The REX Barossa $18.00 $16.20

Adelaide Aquatic Centre $21.00 $17.00

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Membership

Membership types

Membership type

Description Current discount (on full fee) applied

No. as at 1 Feb 2018

% of total members

Active Adults

Active Adults is a specialised membership category catering to the 60+ older adult market. The membership provides full access to aquatic areas, access to relevant group fitness and aqua fitness classes and restricted access to the gym during non-prime times.

26% 393 37.6%

Full Access - Mates Rates

Members who join with a family member or friend stay longer. To encourage increased community usage (referrals and creating more loyal members) a discounted rate is applied to those who join with a family member or friend

20% 253 24.2%

Full Access Membership

The Full Access membership is the standard membership offering for those 16Y-60Y, which includes unlimited full access to all facility amenities including all aquatic areas, health club, fitness & aqua classes and Playclub (child minding).

n/a 158 15.1%

Full Access - Concession

Concession pricing directly addresses the price sensitivities of the local catchment area, providing equitable community access. Concessions apply to Pension Concession Cards issued by Centrelink, Pensioner Concession Card issued by Veterans’ Affairs and full-time student cards. Concession pricing is also available for visit passes and admissions.

20% 134 12.8%

Foundation

A limited number of Foundation memberships were offered as part of the opening of the centre. The fees for these memberships incur no increases for the life of the membership

23% 83 8.0%

Active Youth 13Y-15Y

Active Youth membership enables young people full access to recreation and wellness facilities in a safe and supportive environment. The membership is designed to be affordable, flexible and with minimal restrictions.

26% 23 2.2%

Proposed pricing policy change – Mates Rates membership type:

Currently 85% of members receive a discount of 20% or greater on full fees. Given the demographic of the area, the percentage of members accessing the Active Adults membership and discount will likely remain high. It is currently proposed to continue to offer the Active Adults, Active Youth and Concession discounts at existing rates (provided above) to ensure that access to the centre is affordable for all

demographics.

The Mates Rates membership type has also proven popular and has assisted in building membership numbers. It is proposed that FAC retain this membership type but decrease the level of discount applied from 20% to 15% over the next three years. This policy change is aimed at retaining the incentive the

13


Page 8

membership type provides whilst seeking to improve FAC’s financial performance and long-term sustainability.

The discount reflected in the proposed fees below steadily decreases from the current level of 20% to 18.5% for 2018/19, 17% for 2019/20 and 15% for 2020/21. Based on current Mates Rates member numbers, the net increase in revenue from this policy change is estimated at $28,755 over the next three years.

Proposed FAC Fees:

Description 2017-18 Weekly

Fee

FAC Proposed 2018-19 0% increase 2% increase Weekly

Fee Inc. ($)

Inc. (%)

Weekly Fee

Inc. ($) Inc. (%)

Weekly Fee

Inc. ($) Inc. (%)

Start-up fee* Foundation $13.00 $13.00 $0.00 0% $13.00 $0 0% $13.00 $0.00 0% All Access $16.90 $17.90 $1.00 5.9% $16.90 $0 0% $17.24 $0.34 2% All Access Concession

$13.90 $14.32 $0.42 3.0% $13.90 $0 0% $14.18 $0.28 2%

All Access Mates Rates

$13.90 $14.59 $0.69 5.0% $13.90 $0 0% $14.18 $0.28 2%

Active Adults $12.50 $13.13 $0.63 5.0% $12.50 $0 0% $12.75 $0.25 2% Active Youth $12.50 $13.13 $0.63 5.0% $12.50 $0 0% $12.75 $0.25 2%

*Start-up fee: This is a once-off fee that reflects the administrative cost of establishing the membership. It is proposed to leave this fee at the current level of $49 for the next three years. The revenue generated by this fee will reduce significantly from 2018/19 as membership numbers flatten out. It is considered that keeping the fee static will ensure that it is not seen as a disincentive to new members.


Facility Full weekly fee

McCracken Country Club $13.10

ECH Victor Harbor Wellness $14.75

Spa Clubs Victor Harbor $16.95

Aldinga Recreation Centre $16.95

Rex Barossa $18.00 ($16.20 concession)

Anytime Fitness Victor Harbor $18.00

F.I.T Goolwa $18.95

CrossFit Victor Harbor $23.80

CHILDREN'S PARTIES:

Proposed FAC Fees:

Description 2017-18

Fee


Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


Non-catered (Access to pool (for up to 12 children – extra fee per child above that). Further additional charge of $50 for 16 or more children)

$170.00 $175.00 $5.00 2.9% $170.00 0% $0 $173.40 $3.40

2% Catered (Access to pool + catering (for up to 12 children – extra fee per child above that). Further additional charge of $50 for 16 or more children)

$260.00 $265.00 $5.00 1.9% $260.00 0% $0 $265.20 $5.20

2%

Use of inflatable (Includes access to inflatable + catering. Maximum 30 children)

$600.00 $600.00 $0.00 0% $600.00 0% $0 $612.00 $12.00

2%

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Price Comparison - Birthday parties - non-catered:

Facility Fee Price per head Conditions

YMCA Aquadome $175.00 $14.58 Includes pool. 12 children

Adelaide Aquatic Centre

$22.00 Up to 15 children.

Price Comparison - Birthday parties – catered:

Facility Fee Price per

head

Conditions

YMCA Aquadome $265.00 $22.08 Includes pool. 12 children

YMCA The Parks $159.00 $15.90 Price for min. 10 children. Price reduces as numbers

increase.

YMCA Adelaide Hills $225.00 $14.06 Gymnastics or 'Sporty' (no pool) - up to 16 children

SA Aquatic & Leisure Centre

$30.00 Min. 8 children.

Adelaide Aquatic Centre

$32.00 $22 for party and $10 for catering (various options available).

Up to 15 children.

Noarlunga Leisure Centre

$20.00 Options include Kindergym, Roller Skating or Pool. Min. 10

people

the REX Barossa $180.00 $18.00 Min. Up to 10 kids. $16 per child after that

The ARC Campbelltown

$28-$32 Includes access to pool and catering. Price varies based on

menu options.

Price comparison - Birthday parties - catered + inflatable:

Facility Catered Price per

head

Conditions

SA Aquatic & Leisure Centre

$20 or $38 Price options based on catered /non-catered, Min. 12 &

max. 25 children - aged 8+. Available during school

holidays only.

NEW SERVICES – ALLIED HEALTH:

Exercise Physiology

Background

YMCA is proposing to improve secondary services at FAC to include Exercise Physiology. Accredited Exercise Physiologists are tertiary-trained allied health professionals who provide exercise therapy and lifestyle interventions for the prevention and management of chronic disease, injury and disability.

Medicare offers rebates for up to five Exercise Physiology sessions per year (which is often sufficient to meet a client’s needs) to people with certain conditions upon referral from a General Practitioner. Client funding towards Exercise Physiology (EP) services are also provided by ReturnToWorkSA and the Department of Veterans’ Affairs (DVA). A number of private health insurers also offer rebates for Exercise Physiology.

YMCA proposes to work with clients to transition to a regular FAC membership following the EP sessions. The addition of these services will provide another lead generator for membership sales and further improve our point of difference in the marketplace.

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Hire of gym facilities to local Physiotherapists

To further develop an Allied Health model for FAC, YMCA recommends running an Expression of Interest (EOI) process for local Physiotherapists (qualified professionals with an established local practice) to hire the FAC gym office for half a day per week. Whilst income would be minimal in terms of rental hire (currently proposed at $25 per hour) this will provide an additional service to members (and increase opportunities to recruit new members) with higher needs.

Proposed services:

Service Description

Chronic Disease Management (CDM)

A chronic medical condition is one that has been (or is likely to be) present for six months or longer, for example, asthma, cancer, cardiovascular disease, diabetes, musculoskeletal conditions and stroke. The CDM assessment and subsequent sessions will involve an assessment of the client’s condition and setting of appropriate exercises. The fee is set by Medicare.

Department of Veterans' Affairs (DVA)

The aim of DVA funded exercise physiology is to:

• assess the entitled person and design an individualised exercise program that addresses the need of their referred, specific clinical condition;

• provide the entitled person with the skills to manage the exercise component of their treatment on their own, through exercise.

Fees are set by the Department of Veterans' Affairs.

Private treatment Similar services as above, privately funded. Covered by private health providers. YMCA has recommended the fee based on industry knowledge

Type 2 Diabetes People with type 2 diabetes can receive Medicare rebates for group services provided by eligible exercise physiologists on referral from a GP. Assessment involves taking a comprehensive client history, identification of individual goals and preparing the client for an appropriate group services program.

Fees are set by Medicare.

Strength for Life The Strength for life (SFL) program promotes health and well-being amongst people over 50 through strength training programs run by accredited fitness providers.

COTA has introduced 2 categories to SFL:

Tier 1 involves exercise physiologists directly in the program; baseline testing conducted at commencement and after 3 months. Attracts rebates from Health Funds (and sometimes from Medicare).

Tier 2 involves fitness instructors conducting the program and confidently managing participants' long-term needs. Some funds now pay benefits if program is conducted by fitness instructors.

The fee for this service is set by COTA.

ReturnToWorkSA (RTWSA)

Initial assessment: History, assessment and prescription of functional exercises specific to a worker’s injury, work tasks and/or work demands, in accordance with the Clinical Framework for the Delivery of Health Services.

Individual session: Review, instruction, supervision and upgrade of prescribed functional and work-related exercise activities. Maximum of 10 sessions (inclusive of initial assessment and any group sessions).

Treating exercise physiology report: A written clinical opinion, statement or response to questions relating to the progress and status of a worker’s functional and work-related exercise activities, requested in writing by the case manager, self-insured employer, worker or worker’s representative. The fee for this service is set by RTWSA.

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Proposed FAC Fees:

Description FAC Proposed 2018-19

CDM Initial Assessment $52.95 CDM Subsequent session $52.95 DVA Initial Assessment $69.63 DVA Subsequent session $69.63 DVA Group session (per attendee) min. 3 per group $31.13 Private Initial Assessment $80.00 Private Subsequent session $40.00 Private Group session (per attendee) min. 3 per group $20.00 Type 2 Diabetes Initial Assessment $67.90 Type 2 Diabetes Group session (per attendee) min. 3 per group $16.95 Strength for Life Assessment $52.95 RTWSA Initial Assessment (60mins) $144.00 RTWSA Subsequent session $144.00 RTWSA Report (60mins) $144.00 Hire of FAC gym office to local physiotherapists $25 per hour

The 0% and 2% increase scenarios are not relevant for this fee type as the fees are for new services and the majority of the fee levels are set by third parties.

OTHER FEES AND CHARGES:

Proposed FAC Fees:

Description 2017-18

Fee

FAC Proposed 2018-19

0% increase 2% increase

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)

Lane hire hourly fee (25m pool) * $25.00 $25.00 $0.00 0% $25.00 $0.00 0% $25.50 $0.50 2% Learner Pool hourly fee (shared use) *

$12.50 $12.50 $0.00 0% $12.50 $0.00 0% $12.75 $0.25 2%

Meeting / function room hourly hire fee*

$30.00 $30.00 $0.00 0% $30.00 $0.00 0% $30.60 $0.60 2%

Meeting / function room – full day rate (20% discount based on 8 hours hire)

$192 $192 $0.00 0% $192 $0.00 0% $195.8

4 $3.84

2%

Meeting / function room – half day rate (10% discount based on 4 hours)

$108 $108 $0.00 0% $108 $0.00 0% $110.1

6 $2.16

2%

Locker hire $2.00 $2.00 $0.00 0% $2.00 $0.00 0% $2.04 $0.04 2% Member card / band replacement $8.00 $8.00 $0.00 0% $8.00 $0.00 0% $8.16 $0.16 2%

Hydrotherapy pool (shared use) Hire fee per hour outside public access times. Total fee charged per hour i.e. if more than one hirer using the Warm Water Pool at the same time then hourly fee will be split equally between hirers.

$50.00 $50.00 $0.00 0% $50.00 $0.00 0% $51.00 $1.00

2%

*Discounts applied for regular facility users:

Bookings (per year) Discount applied

5-19 weeks 5%

20-40 weeks 10%

41 + weeks 20%

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Summary

Price increase scenario

Range of increases Impact on operating result (reduction in income as compared to proposed fee structure)

Scenario 1 – Proposed fee schedule – average increase 2.4%

0% to 5.9% – average increase 2.4%

n/a

Scenario 2 – no increase on current fees

0% $(71,876)

Scenario 3 – flat 2 % increase across all fees & charges

2% $(40,077)

Recommendation

That the Committee recommend that the Fleurieu Regional Aquatic Centre Authority endorse the

proposed Fleurieu Aquatic Centre fees and charges for 201819 as set out in Appendix A to this report.

RISK ASSESSMENT

Risks associated with the recommendation have been assessed as follows:

Governance - the recommendation meets the requirements of the Authority Charter and legislation. Low risk.

Financial – Financial management of the Authority is highly regulated by the requirements of the Charter and legislation. Low risk.

BUDGET IMPLICATION

The proposed fees and charges for 2018/19 (an average increase of 2.4%) have been applied in

development of the draft operational budget for the Authority for 2018/19. Indicative increases in fees

for financial years 2019/20 and 2020/21 have also been applied in development of the draft Long Term Financial Plan 2017-2027.

Applying 0% increase in fees and charges for 2018/19 will result in a further increase to the overall Authority deficit operating budget (excluding Council contributions) for 2018-19 of $71,876.

Applying a flat 2% increase in all fees and charges for 2018/19 will result in a further increase to the overall Authority deficit operating budget (excluding Council contributions) for 2018-19 of $40,077.

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Appendix A

2018/19 Proposed Fleurieu Aquatic Centre Fees & Charges

SWIMMING INSTRUCTION:

Swim School (Group lessons)

Description 2017-18 F/nightly

Fee

2018-19 2019-20 2020-21 F/nightly

Fee Inc. ($)

Inc. (%)

F/nightly Fee

Inc. ($)

Inc. (%)

F/nightly Fee

Inc. ($) Inc. (%)

Swimming Lessons Fortnightly Fee

$33.80 $35.80 $2.00 5.9% $37.00 $1.20 3.4% $38.30 $1.29 3.5%

Swimming Lessons Fortnightly Fee - Additional Children

$32.11 $34.01 $1.90 5.9% $35.15 $1.14 3.4% $36.38 $1.23 3.5%

Private Swim Lesson 1 on 1 (only offered on request for special needs clients)

$35.00 per lesson

$35.00 $0.00 0% $35.00 $0.00 0% $35.00 $0.00 0%

Private Swim Lesson 1 on 2

$63.00 per lesson

$63.00 $0.00 0% $63.00 $0.00 0% $63.00 $0.00 0%

Adult swimming lessons (small group) (45-minute lesson - on request)

$22.00 Per

person per lesson

$22.00

$0.00 0%

$22.00

$0.00 0%

$22.00

$0.00 0%

Pre-squad (option for older children post swimming lessons and pre-club) 1-hour class

$19.80

$19.80

$0.00 0%

$19.80

$0.00 0%

$19.80

$0.00 0%

Vac Swim

Description 2017-18

Fee

2018-19 2019-20 2020-21

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


Fee per participant (daily lesson - 7 days)

$70.00 $70.00 $0.00 0% $72.00 $2.00 2.9% $75.00 $3.00 4.2%

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RECREATIONAL SWIMMING:

Description 2017-18

Fee

2018-19 2019-20 2020-21

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


Adult Swim $6.20 $6.50 $0.30 4.8% $6.70 $0.20 3.0% $6.90 $0.20 3.0% Adult Swim 20 Visit Pass

$112.00 $117.00 $5.00 4.5% $120.50 $3.50 3.0% $124.00 $3.50 2.9%

Adult Swim - concession

$5.00 $5.20 $0.20 4.0% $5.40 $0.20 3.8% $5.50 $0.10 1.9%

Child Swim $5.00 $5.20 $0.20 4.0% $5.40 $0.20 3.8% $5.50 $0.10 1.9% Adult Swim Concession / Child Swim 20 Visit Pass

$90.00 $93.60 $3.60 4.0% $97.20 $3.60 3.8% $99.00 $1.80 1.9%

Family Swim (max. 5 people)

$21.00 $21.00 $0.00 0.0% $21.50 $0.50 2.4% $22.00 $0.50 2.3%

Spectators $3.00 $3.00 $0.00 0.0% $3.00 $0.00 0.0% $3.00 $0.00 0.0% Under 4 Swim (3 and under)

Free Free Free Free

DECD (Department of Education & Child

Development) Pool access (per child)

$3.70 $3.80 $0.10 2.7% $3.90 $0.10 2.6% $4.00 $0.10 2.6%

School Fun Day Minimum charge per group for up to 50 attendees

2-hour session - two activities including: Inflatable fun, pool games (Flippa ball), Splash park and outdoor splash area; or 3 recreation lanes open for recreational play

$475


attendees

$487.50


attendees

$12.50

2.6%

$487.50


attendees

$0 0.0%

$487.50


attendees

$0 0.0%

POOL BASED ACTIVITIES:

Description 2017-18

Fee

2018-19 2019-20 2020-21

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


FlippaBall – Non-Member

$10.00 $10.00 $0.00 0% $10.30 $0.30 3.0% $10.61 $0.31 3.0%

FlippaBall – Member

$9.00 $9.00 $0.00 0% $9.27 $0.27 3.0% $9.55 $0.28 3.0%

Synchro Swim – Non-Member

$10.00 $10.00 $0.00 0% $10.30 $0.30 3.0% $10.61 $0.31 3.0%

Synchro Swim – Member

$9.00 $9.00 $0.00 0% $9.27 $0.27 3.0% $9.55 $0.28 3.0%

Water Polo – Non-Member

$10.00 $10.00 $0.00 0% $10.30 $0.30 3.0% $10.61 $0.31 3.0%

Water Polo – Member

$9.00 $9.00 $0.00 0% $9.27 $0.27 3.0% $9.55 $0.28 3.0%

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FITNESS SERVICES:

Health & fitness:

Description 2017-18

Fee

2018-19 2019-20 2020-21

Fee Inc. ($)

Inc. (%)

Fee Inc. ($)

Inc. (%)


All access - per visit fee

$15.00 $15.50 $0.50 3.3% $16.00 $0.50 3.2% $16.50 $0.50 3.1%

All access 10 visit pass

$135.00 $139.50 $4.50 3.3% $144.00 $4.50 3.2% $148.50 $4.50 3.1%

All access – concession - per visit fee

$12.00 $12.40 $0.40 3.3% $12.80 $0.40 3.2% $13.20 $0.40 3.1%

All access – concession -10 visit pass

$108.00 $111.60 $3.60 3.3% $115.20 $3.60 3.2% $118.80 $3.60 3.1%

Strength for Life $7.00 $7.00 $0.00 0% $7.20 $0.20 2.9% $7.30 $0.10 1.4% Personal training (charge to contractors) *

$9.00 $9.00 $0.00 0% $9.50 $0.50 5.6% $10.00 $0.50 5.3%

Membership

Description 2017-18 F/nightly

Fee

2018-19 2019-20 2020-21 F/nightly

Fee Inc. ($)

Inc. (%)

F/nightly Fee

Inc. ($) Inc. (%)

F/nightly Fee

Inc. ($) Inc. (%)

Start-up fee* Foundation $26.00 $26.00 $0.00 0% $26.00 $0.00 0% $26.00 $0.00 0% All Access (per fortnight)

$33.80 $35.80 $2.00 5.9% $37.05 $1.25 3.5% $38.35 $1.30 3.5%

All Access 6 -month term

$439.40 $465.40 $26.00 5.9% $481.69 $16.29 3.5% $498.55 $16.86 3.5%

All Access Concession (per fortnight)

$27.80 $28.64 $0.84 3.0% $29.64 $1.00 3.5% $30.68 $1.04 3.5%

All Access Concession 6 -month term

$361.40 $372.32 $10.92 3.0% $385.35 $13.03 3.5% $398.84 $13.49 3.5%

All Access Mates Rates (per fortnight)

$27.80 $29.18 $1.38 5.0% $30.75 $1.58 5.4% $32.60 $1.84 6.0%

Active Adults (per fortnight)

$25.00 $26.25 $1.25 5.0% $27.20 $0.95 3.6% $28.15 $0.95 3.5%

Active Youth (per fortnight)

$25.00 $26.25 $1.25 5.0% $27.20 $0.95 3.6% $28.15 $0.95 3.5%

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CHILDREN'S PARTIES:

Description 2017-18

Fee

2018-19 2019-20 2020-21

Fee Inc. ($)

Inc. (%)



Non-catered (Access to pool (for up to 12 children – extra fee per child above that). Further additional charge of $50 for 16 or more children)

$170.00 $175.00 $5.00 2.9% $180.25 $5.25 3.0% $185.66 $5.41 3.0%

Catered (Access to pool + catering (for up to 12 children – extra fee per child above that). Further additional charge of $50 for 16 or more children)

$260.00 $265.00 $5.00 1.9% $272.95 $7.95 3.0% $281.14 $8.19 3.0%

Use of inflatable (Includes access to inflatable + catering. Maximum 30 children)

$600.00 $600.00 $0.00 0% $618.00 $18.00 3.0% $636.54 $18.54 3.0%

NEW SERVICES – ALLIED HEALTH:

Description 2018-19

Fee

2019-20 2020-21



CDM Initial Assessment $52.95 $54.53 $1.59 3.0% $56.17 $1.64 3.0% CDM Subsequent session $52.95 $54.53 $1.59 3.0% $56.17 $1.64 3.0% DVA Initial Assessment $69.63 $71.72 $2.09 3.0% $73.87 $2.15 3.0% DVA Subsequent session $69.63 $71.72 $2.09 3.0% $73.87 $2.15 3.0% DVA Group session (per attendee) min. 3 per group

$31.13 $32.06 $0.93 3.0% $33.03 $0.96 3.0%

Private Initial Assessment $80.00 $82.40 $2.40 3.0% $84.88 $2.47 3.0% Private Subsequent session

$40.00 $41.20 $1.20 3.0% $42.43 $1.24 3.0%

Private Group session (per attendee) min. 3 per group

$20.00 $20.60 $0.60 3.0% $21.22 $0.62 3.0%

Type 2 Diabetes Initial Assessment

$67.90 $69.94 $2.04 3.0% $72.04 $2.10 3.0%

Type 2 Diabetes Group session (per attendee) min. 3 per group

$16.95 $17.46 $0.51 3.0% $17.98 $0.52 3.0%

Strength for Life Assessment

$52.95 $54.53 $1.59 3.0% $56.17 $1.64 3.0%

RTWSA Initial Assessment (60mins)

$144.00 $148.32 $4.32 3.0% $152.77 $4.45 3.0%

RTWSA Subsequent session

$144.00 $148.32 $4.32 3.0% $152.77 $4.45 3.0%

RTWSA Report (60mins) $144.00 $148.32 $4.32 3.0% $152.77 $4.45 3.0%

Hire of FAC gym office to local physiotherapists

$25 per hour

$25.00 $0.00 0% $25.00 $0.00 0%

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OTHER FEES AND CHARGES:

Description 2017-18

Fee

2018-19 2019-20 2020-21

Fee Inc. ($)

Inc. (%)



Lane hire hourly fee (25m pool) *

$25.00 $25.00 $0.00 0% $25.00 $0.00 0% $25.00 $0.00 0%

Learner Pool hourly fee (shared use) *

$12.50 $12.50 $0.00 0% $12.50 $0.00 0% $12.50 $0.00 0%

Meeting / function room hourly hire fee*

$30.00 $30.00 $0.00 0% $30.00 $0.00 0% $30.00 $0.00 0%

Meeting / function room – full day rate (20% discount based on 8 hours hire)

$192 $192 $0.00 0% $192 $0.00 0% $192 $0.00 0%

Meeting / function room – half day rate (10% discount based on 4 hours)

$108 $108 $0.00 0% $108 $0.00 0% $108 $0.00 0%

Locker hire $2.00 $2.00 $0.00 0% $2.00 $0.00 0% $2.00 $0.00 0% Member card / band replacement

$8.00 $8.00 $0.00 0% $8.00 $0.00 0% $8.00 $0.00 0%

Hydrotherapy pool (shared use) Hire fee per hour outside public access times. Total fee charged per hour i.e. if more than one hirer using the Warm Water Pool at the same time then hourly fee will be split equally between hirers.

$50.00 $50.00 $0.00 0% $50.00 $0.00 0% $50.00 $0.00 0%

*Discounts applied for regular facility users:

Bookings (per year) Discount applied

5-19 weeks 5%

20-40 weeks 10%

41 + weeks 20%

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Subject: Draft 3-Year Business Plan 2018-2021 & Budget 2018-2019 Meeting date: 22 March 2018 Item: 7.2 Reference(s): FRAC Authority Charter Consultation: Area Manager, YMCA SA Attachments: Fleurieu Regional Aquatic Centre Authority 3-Year Business Plan 2018-2021

(incorporating 2018-2019 Fleurieu Aquatic Centre Business & Marketing Plan) Authority Budget 2018-19

PURPOSE

In accordance with Schedule 2, clauses 24(6) and 25(1 & 2) of the Local Government Act 1999 and the Fleurieu Regional Aquatic Centre Authority (Authority) Charter, the Authority has prepared a Draft 3-Year Business Plan 2018-2021 (incorporating the 2018-2019 Fleurieu Aquatic Centre Business & Marketing Plan) and 2018-2019 Budget; for review by the Audit & Risk Management Committee (Committee).

RECOMMENDATION

1. That the Committee recommend to the Authority the 3-Year Business Plan 2018-2021

(incorporating the 2018-2019 Fleurieu Aquatic Centre Business & Marketing Plan); and

2. That the Committee recommend to the Authority the 2018-19 Budget with Operating Expenses of $3,260,479 and estimated cash as at 30 June 2019 of $1,478,641

INFORMATION

The Authority Charter provides:

5. FINANCIALS

5.1 Budget

5.1.1 The Authority must before 30 April of each year prepare and submit a draft Budget to the Constituent

Councils for the ensuing Financial Year (or, if appropriate, part Financial Year) in accordance with the Act

for approval by the Constituent Councils.

5.1.2 The Authority must adopt after 31 May and within six (6) weeks of approval of the draft Budget by both of

the Constituent Councils in each year, a Budget in accordance with the Act for the ensuing Financial Year

consistent with the approval given by the Constituent Councils pursuant to Clause 5.1.1.

5.1.4 The Authority must each Financial Year provide a copy of its adopted Budget to the Constituent Councils

within five (5) business days after the adoption of the Budget by the Authority.

5.2 Financial Contributions

5.2.1 The Constituent Councils will contribute funds to the Authority as set out in the Budget adopted by the

Authority and approved by the Constituent Councils.

5.2.2 The Constituent Councils may agree to provide the Authority with additional funds at any time on such

terms and conditions, if any, as determined by the Constituent Councils.

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6.2 Business Plan

The Authority:

6.2.1 must in consultation with the Constituent Councils prepare and adopt a Business Plan for a minimum

three (3) year period which will continue in force for the period specified in the Business Plan or until the

earlier adoption by the Authority of a new Business Plan;

6.2.2 must in consultation with the Constituent Councils review the Business Plan annually and following such

a review the Business Plan shall continue to operate for the period for which the Business Plan was

adopted pursuant to Clause 6.2.1;

6.2.3 may, after consultation with the Constituent Councils amend its Business Plan at any time; and

6.2.4 must ensure the contents of the Business Plan is in accordance with the Act.

At its meeting on 29 April 2016, the Authority determined as follows:

Moved: Alison Kimber

Seconded: Cr Grant Gartrell

FRACA00008 That ….A depreciation reserve account is to be established with the Local Government

Finance Authority with monies transferred on a quarterly basis in line with estimated annual depreciation

for the purposes of funding future capital renewal.

CARRIED

In line with the Management Agreement for operational management of Fleurieu Aquatic Centre (FAC), YMCA SA has prepared a 2018-2019 Business & Marketing Plan and Budget. The Authority Executive Officer has reviewed the YMCA prepared budget and has incorporated this information into the Authority 2018-2019 Budget.

The Authority Long Term Financial Plan 2018-2027 (LTFP) sets out key financial sustainability performance targets for the Authority which for the next three years include:

Indicator 2018-2019 2019-2020 2020-2021 Operating Surplus/(Deficit) Ratio - %

0% 0% 0%

Own Source Income Ratio 59% 62% 64% Asset Sustainability Ratio - % n/a n/a n/a

DISCUSSION

The Authority has prepared the Draft 3-Year Business Plan 2018-2021 (incorporating the 2018-2019 FAC Business & Marketing Plan) and Budget 2018-2019 in accordance with its Charter, the requirements of

the Local Government Act 1999 and Local Government (Financial Management) Regulations 2011.

3-Year Business Plan 2018-2021

Draft Authority core strategic planning documents; Strategic Plan 2018-2027, Asset Management Plan 2018-2027 and Long Term Financial Plan 2018-2027; have now been developed. These strategic documents inform and are supported by the Authority 3-Year Business Plan, annual FAC Business & Marketing Plans and annual budgets.

The detailed 3-Year Business Plan has been developed to guide and monitor the operations of the Authority and deliver on strategic priorities for 2018 to 2021. The document sets out key focus areas, performance targets and measurement; actions to achieve outcomes and associated timeframes and responsibilities. The 3-Year Business Plan (provided as an Attachment to this report) has been formulated in consultation with YMCA SA as FAC operational managers; and is supported by the FAC

Business & Marketing Plan 2018-2019 (included as an Appendix).

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Budget 2018-2019

Budget financial statements for 2018-19 are provided as Appendix A.

The Budget 2018-2019 has been prepared based on the previous year original budget and any authorised adjustments approved by the Authority and constituent Councils. Expenditure and income is based on what the Authority Executive Officer and YMCA as FAC Operational Managers believe is required to provide services for the coming year.

Authority Operating Budget 2018-2019

The Authority Operating Budget is provided in summary as Appendix B.

FAC income & expense

Income

Second Quarter

Budget Review 2017/18 DRAFT BUDGET

2018/19 Inc/Dec on 2017/18 ($)

Inc/Dec on 2017/18 (%)

Fleurieu Aquatic Centre Income

Cafe/Kiosk $145,611 $168,535 $22,924 15.7%

Children's Programs (Parties, Flippa, Synchro) & Water Polo

$24,269 $40,830 $16,561 68.2%

Group Fitness - Casual $7,272 $13,068 $5,796 79.7%

Health Club - Casual $10,016 $14,903 $4,887 48.8%

Swimming Lessons $328,119 $444,289 $116,170 35.4%

Membership $647,866 $714,347 $66,481 10.3%

Personal training $1,137 $1,178 $41 3.6%

Merchandise $65,199 $70,080 $4,881 7.5%

Allied Health $0 $9,579 $9,579 n/a

Recreational Swimming $374,738 $405,341 $30,603 8.2%

Rental/Hire $20,186 $22,987 $2,801 13.9%

Vacswim $4,200 $4,900 $700 16.7%

Total FAC Income $1,628,613 $1,910,037 $281,424 17.3%

The first full year of FAC operations will conclude on 24 March 2018. Membership and Swim School

student numbers are forecast to continue to grow; as is recreational swimming attendance and associated café income. YMCA has utilised data gathered to date in development of the detailed FAC 2018-2019 budget and forecast budgets for 2019-2020 and 2020-2021 (to inform LTFP development).

In preparing the FAC 2018-2019 Budget, YMCA and the Authority Executive Officer have reviewed current fees and charges. The fees proposed for 2018-2019 reflect an overall increase of 2.4% on 2017-2018 prices and include new fees and charges for a range of fitness based allied health services. A full year of new children’s programs (Flippa Ball & Synchro) and of Water Polo are reflected; as is increased casual group fitness income based on increased offering (please refer below).

New services – allied health

As indicated above, it is proposed to improve secondary services at FAC by including Exercise Physiology (EP). Accredited Exercise Physiologists are tertiary-trained allied health professionals who provide exercise therapy and lifestyle interventions for the prevention and management of chronic disease, injury and disability. Medicare offers rebates for up to five EP sessions per year (which is often sufficient to meet a client’s needs) to people with certain conditions upon referral from a General Practitioner. Client funding

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towards EP services are also provided by ReturnToWorkSA and the Department of Veterans’ Affairs. A number of private health insurers also offer rebates for EP.

YMCA proposes to work with clients to transition to a regular FAC membership following the EP sessions. The addition of these services will provide another lead generator for membership sales and further improve our point of difference in the marketplace. FAC will obtain HICAPS claims and payment facilities to assist clients in accessing rebates. YMCA will employ an Exercise Physiologist (as part of the FAC team) on a casual basis.

Expense

Second Quarter Budget Review 2017/18

DRAFT BUDGET

2018/19

Inc/Dec on

2017/18 ($)

Inc/Dec on

2017/18 (%)

FAC Cost of goods sold (COGS)

Cafe Purchases $75,969 $91,100 $15,131 19.9%

Merchandise Purchases $38,990 $43,800 $4,810 12.3%

Total COGS Expense $114,959 $134,900 $19,941 17.3%

FAC Operating Expenses

Salaries & Wages (net of Area Manager rebate) $1,001,525 $1,087,402 $85,877 8.6%

Administration & fixed expenses $182,127 $201,721 $19,594 10.8%

Marketing & printing $24,072 $28,000 $3,928 16.3%

Operational (variable) expenses $683,443 $767,977 $84,534 12.4%

Staffing Expense $158,775 $180,987 $22,212 14.0%

Total FAC Operational Expenses $2,049,942 $2,266,087 $216,145 10.5%

Operating expenses for FAC have been based on actual expenses incurred in the first year of operations with increases applied to variable expenses in line with forecast sales and attendance growth.

Comparing the draft 2018-2019 budget to the Second Quarter Budget Review 2017-2018 forecast:

Expense Inc/Dec on

2017/18 ($)

Inc/Dec on

2017/18 (%)

Comments

Cost of goods sold $19,941 17.3% Increased expense in line with forecast sales growth

Salaries & Wages (net of Area Manager rebate)

$85,877 8.6% Budget 2018-2019 includes a 3% wage increase. Remaining increase reflects increased wage cost in line with sales growth and new / expanded services (allied health, expanded group fitness)

Administration & fixed expenses

$19,594 10.8% Includes increased bank fees $7,598 (increased direct debit fees based on increased membership), licensing & subscription $5,785 (Les Mills license fees), equipment leasing $3,708 (additional treadmill and cost allocation change for lease of photocopier – previously included in printing expense); and insurance $2,032.

Marketing & printing

$3,928 16.3% Increased costs in line with marketing plan to drive sales growth

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Expense Inc/Dec on 2017/18 ($)

Inc/Dec on

2017/18 (%)

Comments

Operational (variable) expenses

$84,534 12.4% Includes increased consumables $2,997 (in line with sales growth), electricity $51,624 (10% increase forecast – increased patronage and allowance for increase in network charges), water $(27,046) (2017-18 expense included unbudgeted costs for 2016/17), maintenance & gardening $48,821 (costs for maintenance of FAC assets became sole responsibility of Authority from March 2018 (following completion of original construction contract arrangements)); and cleaning $7,166 (increased costs in line with increased patronage).

Staffing Expense

$22,212 14.0% Includes increased superannuation expense $16,351 and minor increases in other on cost areas (in line with increased salaries & wages).

Utilities and salaries and wages continue to be the core areas of focus for monitoring of expenditure and consideration of initiatives to drive efficiency and minimise costs; without compromising service delivery.

Expanded services – group fitness

Group fitness class attendees are predominantly FAC members with the number of casual attendees being low. Demand for group fitness classes at FAC has been steadily growing and YMCA has gradually expanded the existing program. ‘Dryland’ group fitness classes are either held in the gym, in the creche area (outside creche hours) or outdoors (where appropriate). Continuing to expand and improve the group

fitness program is a key mechanism for retention and growth in membership. Program expansion to date has been via increasing the number of classes delivered; where demand is high.

Current FAC member demographics indicate that over 50% of our membership is over 50 years old. This suggests a need to improve program diversification to aid both retention and growth. To assist in addressing this gap, the group fitness program is proposed to be further expanded by introducing a small number of Les Mills classes (budget based on six classes per week); to be delivered in the creche area.

Les Mills is a global group fitness brand which licences its highly successful group fitness program to fitness centres all over the world. Additional ongoing operational costs to deliver this program include annual licence fees and salaries and wages to deliver classes. The capital expenditure required to deliver this program is outlined below. The impact on operating income is anticipated to be in retention and growth of membership. It is estimated that membership growth of 20-25 members p.a. will cover the increased annual operational expense.

Authority income & expense

Second Quarter Budget

Review 2017/18 DRAFT BUDGET

2018/19

Inc/Dec on 2017/18 ($)

Inc/Dec on 2017/18 (%)

Authority Income

Council Contributions: Alexandrina Council $683,527 $667,411 ($16,116) -2.4% City of Victor Harbor $683,527 $667,411 ($16,116) -2.4% Total Council Contributions

$1,367,053 $1,334,822 ($32,231) -2.4%

Investment income Interest $9,010 $15,620 $6,610 73.4% Total Authority Other Income

$9,010 $15,620 $6,610 73.4%

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Income

Council contributions are based on operating deficit before contributions; forecast to be slightly lower than contributions required for 2017/18. Investment income is predominantly interest on Local Government Financing Authority Depreciation Reserve funds and is forecast to increase in line with increased holding of funds.

Expenses

Authority expenses have been predominantly based on actual expenses incurred in the first year of operations.

Comparing the draft 2018-2019 budget to the Second Quarter Budget Review 2017-2018 forecast:

Expense Inc/Dec on

2017/18 ($)

Inc/Dec on

2017/18 (%)

Comments

Authority contracts

($25,030) -29.3% Executive Officer & Financial Management contracts - reduction in line with the foundation governance and financial management framework nearing completion.

Board Expenses ($2,066) -17.6% Reduction based on reduced number of scheduled meetings.

Audit & Risk Management Committee Expenses

$3,220 66.7% Reflects full year of meetings for committee

Administration Expenses

$2,084 3.2% Includes increase in forecast insurance cost $923 (CPI)

Depreciation $41,600 6.2% Increase in expense reflects depreciation of new assets (refer below) and indexing of depreciation expense based on book revaluation of assets at year end.

Capital expenditure Budget 2018-2019

Capital expenditure on new assets in 2018-19 is recommended to action a number of operational challenges identified during the first year of operations and support expansion of the group fitness program.

New capital expenditure requests include:

Note Item Capital cost

1 Equipment to facilitate Les Mills group fitness classes $7,925

2 Sound system for gym $4,070

3 Additional swipe card security point – entry to gym $4,750

4 Blinds – Program Pool, 25m Pool, Meeting Room $23,330

5 Digital clock improvement - poolside $1,765

Total $41,840

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Notes:

1. Equipment to facilitate Les Mills group fitness classes

Type of cost Capital Expense

Equipment; including bars, weights and steps $7,925

2. Sound system for gym/ group fitness area

It is recommended that a sound system be installed in the gym / group fitness area to increase the level of professional service offered. The current sound system is a small portable system that is not in keeping with the professionalism of the rest of the building and is often commented on by members. Given the increase in member numbers and additional group fitness offering, installation of a commercial grade system is recommended.


Purchase and installation of sound system (as per quotation sourced) $4,070

3. Additional swipe card security point – entry to gym

It is recommended that an additional swipe card security point be installed to access the gym in order to create improved control. This will also allow improved gathering of data on usage patterns of aquatics versus gym areas; enabling improved planning for future activities to existing and new members. The secondary benefits will be improved safety; with only inducted members having access to the gym area as the door will be able to be closed.


Purchase and installation of swipe card security system – as per quote $4,750

4. Blinds – Program Pool, 25m Pool, meeting room

The glare into the pool area at certain times of the day is causing discomfort to users of the facilities as well as to lifeguards and swimming instructors. Additional lifeguards have been rostered on at times to counteract the impact of the glare. It is recommended that blinds along the windows in the main pool hall (25m pool and program pool) and also on the windows to the meeting / function room are installed in order to reduce glare transferred through the glass from the function room to the program pool and indoor splash area. This will also reduce direct sunlight and transferred heat to the function room; particularly during summer months; creating a more inviting area for function room hirers and casual café customers.

Several quotes and options have been sourced for installation of blinds; with the resultant recommendation that manual roller blinds that are durable, economical and safe for staff to manage be installed.

Capital expenditure required for purchase and installation of blinds:

Area Capital Expense (excl. GST)

Program Pool window West $3,180

Program Pool window North $4,360

25m Pool West $7,420

25m Pool South West $1,950

Meeting room / café $3,700

Guide wires $1,900

Scaffold cost $820

Total $23,330

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5. Digital clock improvement - poolside

There are currently two relatively small analogue clocks installed in the main pool hall. It is recommended that a digital clock be installed to assist customers, particularly older adults to clearly read the time whilst swimming laps.


Digital clock $1,765

Financial implications

The Authority has prepared the Draft 3-Year Business Plan 2018-2021 (incorporating the 2018-2019 FAC Business & Marketing Plan) and Budget 2018-2019 in line with the draft LTFP 2018-2027 and the approved

2017-2018 Second Quarter Budget Review. The LTFP incorporates budget estimates for 2018-2019 and future years.

The 2018-19 Authority Budget proposes an operating deficit before Council contributions of $1.335 million.

Financial performance indicators

The Local Government (Financial Management) Regulations 2011 Part 2, 5(1) requires that the Authority LTFP includes estimates and target ranges adopted by the Authority for each year of the LTFP with respect to an operating surplus ratio, a net financial liabilities ratio and an asset sustainability ratio. Due to the nature of the Authority funding model, the net financial liabilities ratio is not relevant. This is due to cash reserves (predominantly Depreciation Reserve) being significantly higher than projected liabilities for the

life of the plan; and the resultant ratio not being a useful measurement of financial performance for the Authority.

Given the above, an alternate third financial sustainability ratio is proposed for use; that being the ‘Own Source Income Ratio’. This ratio is calculated as ‘income excluding Council contributions’ as a percentage of total Authority expenditure. The forecast ratio for 2018-2019 is 59%; the gradual increase in this ratio over the life of the LTFP will indicate improvement in the Authority’s financial self-sustainability.

The key financial measures for the Draft 3-Year Business Plan 2018-2021 (incorporating the 2018-19 Fleurieu Aquatic Centre Business & Marketing Plan) and Budget 2018-19 are:

Indicator 2018-2019 2019-2020 2020-2021 Operating Surplus/(Deficit) Ratio - % 0% 0% 0% Own Source Income Ratio 59% 62% 64% Asset Sustainability Ratio - % n/a n/a n/a

Due to the financial operating model for the Authority, the Operating Surplus/(Deficit) Ratio is budgeted annually at zero; however, may be less or greater than zero at year end should the operating result differ from the budget.

The Own Source Income Ratio is forecast to improve from 59% to 64% during the next three years.

The Asset Sustainability Ratio is not applicable for years in which no expenditure on renewal and replacement of assets is forecast; however, is forecast at 100% over the remaining years of the plan.

The Authority’s Draft 3-Year Business Plan 2018-21 (incorporating the 2018-19 Fleurieu Aquatic Centre Business & Marketing Plan) and Budget 2018-19 are consistent with the Authority Draft Long Term

Financial Plan (LTFP).

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In line with the Management Agreement between the Authority and YMCA South Australia, annual Key Performance Indicators (KPIs) are agreed for operational management of FAC. These KPIs are aligned to the annual FAC Business & Marketing Plan and Budget and include:

• Performance growth metrics: attendance growth, member growth, member retention, swimming lesson growth

• Financial sustainability metrics: swimming lesson occupancy, swimming lesson wage cost ratio, net operating result, secondary spend profit margin, wage cost ratio

• Safety metrics: incidents per 1000 visits, facility hazard management, Royal Life Saving Society - Facility Safety Assessment

RISK ASSESSMENT

The Authority’s key financial indicators for 2018-19 are in line with the draft Long Term Financial Plan.

The Authority will monitor the implementation of the Draft 3-Year Business Plan 2018-21 (incorporating

the 2018-19 Fleurieu Aquatic Centre Business & Marketing Plan) and Budget 2018-19 via regular budget

updates and reviews in accordance with the Local Government Act 1999 and Local Government (Financial Management) Regulations 2011.

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Appendix A

Financial Statements – Draft Budget 2018-2019

ESTIMATED UNIFORM PRESENTATION OF FINANCES

2017 Year End

Actual

2018 Adopted

Budget

2018 Projected

Budget (Q2)

2019 Proposed

Budget

OPERATING ACTIVITIES

1,000,983 Operating Revenues 2,474,853

3,004,585

3,260,479

(1,070,724) less Operating Expenses (2,474,853) (3,004,585) (3,260,479)

(69,741) Operating Surplus/ (Deficit) - - -

CAPITAL ACTIVITIES

less Net Outlays on Existing Assets - Capital Expense on renewal and replacement of Existing Assets - - - (193,733) less Depreciation, Amortisation and Impairment (512,500) (673,452) (715,052)

(193,733) Net Outlays on Existing Assets (512,500) (673,452) (715,052)

123,992 Net Lending/ (Borrowing) for Financial Year 512,500 673,452 673,212

Financing transactions associated with the above net overall deficit, or applying the overall net funding surplus are as follows:

(194,137) (Increase)/Decrease in Cash and Investments (512,500) (673,452) (611,052)

(123,992) Financing Transactions (512,500) (673,452) (611,052)

Heading explanation

2017 Year End Actual – The Authority’s audited financial results as at 30 June 2017

2018 Adopted Budget – The budget for 2017-18 as adopted by the Authority on 28 July 2017

2018 Projected Budget (Q2) – The Authority’s revised budget, projecting its financial position to 30 June 2017 (Quarter 2 Budget Review)

2019 Proposed Budget – Proposed budget for 2018-19.

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ESTIMATED STATEMENT OF COMPREHENSIVE INCOME

2017 Year End

Actual

2018 Adopted

Budget

2018 Projected

Budget (Q2)

2019 Proposed

Budget

INCOME 1,000,844 User Charges 1,364,050

1,628,521

1,910,037

- Council Contributions 1,110,803

1,367,054

1,334,822

139 Investment Income -

9,010

15,620

1,000,983 TOTAL INCOME 2,474,853

3,004,585

3,260,479

EXPENSES 876,991 Materials, contracts & other expenses 1,962,353

2,331,133

2,545,426

193,733 Depreciation, amortisation & impairments 512,500

673,452

715,052

1,070,724 TOTAL EXPENSES 2,474,853

3,004,585

3,260,479

(69,741) TOTAL COMPREHENSIVE INCOME

-

-

-

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ESTIMATED STATEMENT OF FINANCIAL POSITION

2017 Year End

Actual

2018 Adopted

Budget

2018 Projected Budget

(Q2)

2019 Proposed

Budget

ASSETS

Current Assets 194,137 Cash & Cash Equivalents 706,637

867,589

1,478,641

100,101 Trade & Other Receivables 100,101

100,101

100,101

294,238 TOTAL CURRENT ASSETS 806,738

967,690

1,578,742

Non-current Assets 20,874,828 Infrastructure, Property, Plant & Equipment 20,362,328

20,201,376

19,528,164

20,874,828 TOTAL NON-CURRENT ASSETS 20,362,328

20,201,376

19,528,164

21,169,066 Total Assets 21,169,066

21,169,066

21,106,906

LIABILITIES

Current Liabilities 170,246 Trade and Other Payables 170,246

170,246

66,246

170,246 TOTAL CURRENT LIABILITIES 170,246

170,246

66,246

Non-Current Liabilities - TOTAL NON-CURRENT LIABILITIES

-

-

-

170,246 Total Liabilities 170,246

170,246

66,246

20,998,820 NET ASSETS 20,998,820

20,998,820

21,040,660

EQUITY (69,741) Accumulated Surplus

(69,741)

(69,741)

(69,741)

21,068,561 Capital Contribution

21,068,561

21,068,561

21,110,401

20,998,820 TOTAL EQUITY

20,998,820

20,998,820

21,040,660

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ESTIMATED STATEMENT OF CHANGES IN EQUITY

2017 Year End

Actual

2018 Adopted

Budget

2018 Projected Budget

(Q2)

2019 Proposed

Budget

Accumulated Surplus - Balance at Beginning of Period

(69,741)

(69,741)

(69,741)

(69,741) Balance at End of Period

(69,741)

(69,741)

(69,741)

Capital Contribution

Balance at Beginning of Period

21,068,561

21,068,561

21,068,561

21,068,561 Capital Contributions from Councils -

-

41,840

21,068,561 Balance at End of Period

21,068,561

21,068,561

21,110,401

20,998,820 TOTAL EQUITY AT END OF REPORTING PERIOD

20,998,820

20,998,820

21,040,660

ESTIMATED STATEMENT OF CASHFLOWS

2017 Year End

Actual STATEMENT OF CASH FLOWS

2018 Adopted

Budget

2018 Projected

Budget (Q2)

2019 Proposed

Budget

CASH FLOWS FROM OPERATING ACTIVITIES 978,033 Receipts 2,474,853 3,004,585 3,260,479

(783,896) Payments (1,962,353) (2,331,133) (2,649,426)

194,137

Net Cash provided by (or used in) Operating Activities 512,500 673,452 611,052

CASH FLOWS FROM INVESTMENT ACTIVITIES

Receipts - Amounts specifically for new or upgraded assets - - 41,840

Payments - Purchase of Renewal/Replacement Assets - - Purchase of New/Expansion Assets (41,840) -

Net Cash provided by (or used in) Investing Activities - - -

194,137 Net Increase (Decrease) in Cash Held 512,500 673,452 611,052 - Cash & cash equivalents at beginning of period 194,137 194,137 867,589

194,137 Cash & cash equivalents at end of period 706,637 867,589 1,478,641

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Appendix B

Fleurieu Regional Aquatic Centre Authority 2018/19 Draft Operational Budget

Second Quarter Budget Review 2017/18

DRAFT BUDGET

2018/19

Inc/Dec on 2017/18 ($)

Inc/Dec on

2017/18 (%)

DRAFT BUDGET

2019/20

DRAFT BUDGET

2020/21

INCOME Authority Income Council Contributions: Alexandrina Council $683,527 $667,411 ($16,116) -2.4% $649,810 $642,831 City of Victor Harbor $683,527 $667,411 ($16,116) -2.4% $649,810 $642,831 Total Council Contributions

$1,367,053 $1,334,822 ($32,231) -2.4% $1,299,620 $1,285,662

Investment income Interest $9,010 $15,620 $6,610 73.4% $34,010 $61,840 Total Authority Other Income

$9,010 $15,620 $6,610 73.4% $34,010 $61,840

Fleurieu Aquatic Centre Income

Cafe/Kiosk $145,611 $168,535 $22,924 15.7% $176,962 $185,810 Children's Programs (Parties, Flippa, Synchro) & Water Polo

$24,269 $40,830 $16,561 68.2% $49,826 $56,370

Group Fitness - Casual

$7,272 $13,068 $5,796 79.7% $13,470 $13,796

Health Club - Casual $10,016 $14,903 $4,887 48.8% $15,383 $15,864 Swimming Lessons $328,119 $444,289 $116,170 35.4% $490,490 $512,155 Membership $647,866 $714,347 $66,481 10.3% $770,454 $840,175 Personal training $1,137 $1,178 $41 3.6% $1,295 $1,636 Merchandise $65,199 $70,080 $4,881 7.5% $73,584 $77,263 Allied Health $0 $9,579 $9,579 n/a $10,778 $12,332 Recreational Swimming

$374,738 $405,341 $30,603 8.2% $422,065 $434,859

Rental/Hire $20,186 $22,987 $2,801 13.9% $25,266 $27,546 Vacswim $4,200 $4,900 $700 16.7% $6,480 $7,500 Total FAC Income $1,628,613 $1,910,037 $281,424 17.3% $2,056,053 $2,185,306 Sundry Income -$92 $0 $92 -100.0% Total Income $3,004,584 $3,260,479 $255,895 8.5% $3,389,683 $3,532,808

Cost of goods sold expense:

Cafe Purchases $75,969 $91,100 $15,131 19.9% $95,655 $100,438 Merchandise Purchases

$38,990 $43,800 $4,810 12.3% $45,990 $48,290

Total COGS Expense $114,959 $134,900 $19,941 17.3% $141,645 $148,727

Gross Profit $2,889,625 $3,125,579 $235,954 8.2% $3,248,038 $3,384,081

EXPENSES Authority Expenses Authority contracts: Executive Officer & Financial Management

$85,530 $60,500 ($25,030) -29.3% $60,500 $60,500

Board Expenses $11,726 $9,660 ($2,066) -17.6% $9,870 $10,110 Audit & Risk Management Committee Expenses

$4,830 $8,050 $3,220 66.7% $6,440 $6,440

Administration Expenses

$64,145 $66,229 $2,084 3.2% $67,700 $69,330

Depreciation $673,452 $715,052 $41,600 6.2% $730,017 $742,481

Total Authority Expenses

$839,683 $859,491 $19,808 2.4% $874,527 $892,919

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Second Quarter

Budget Review 2017/18

DRAFT BUDGET

2018/19

Inc/Dec on 2017/18 ($)

Inc/Dec on 2017/18 (%)

DRAFT BUDGET

2019/20

DRAFT BUDGET

2020/21 FAC Operating Expenses

Salaries & Wages (net of Area Manager rebate)

$1,001,525 $1,087,402 $85,877 8.6% $1,120,561 $1,158,764

Administration & fixed expenses

$182,127 $201,721 $19,594 10.8% $204,327 $207,012

Marketing & Printing $24,072 $28,000 $3,928 16.3% $28,840 $29,706 Operational (variable) expenses

$683,443 $767,977 $84,534 12.4% $834,267 $904,913

Staffing Expense $158,775 $180,987 $22,212 14.0% $185,516 $190,767 Total FAC Operational Expenses

$2,049,942 $2,266,087 $216,145 10.5% $2,373,511 $2,491,162

Total Expenses $2,889,625 $3,125,578 $235,953 8.2% $3,248,038 $3,384,081

Operating surplus (deficit)

$0 $0 ($0) n/a $0 $0

38

MARCH 2018 3-YEAR BUSINESS PLAN 2018-2021

DRAFT

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Page 2 of 13

EXECUTIVE SUMMARY

The Fleurieu Regional Aquatic Centre Authority (the Authority) is a regional subsidiary established under Section 43 of the Local Government Act 1999 by Constituent Councils; Alexandrina Council; and the City of Victor Harbor. The Authority was established in August 2015 to enable joint ownership and management of the Fleurieu Aquatic Centre. More information about FAC is available on the website http://www.fleurieuaquaticcentre.com.au/.

The Authority is governed by a board of management that is responsible for ensuring the Authority acts in accordance with its Charter and all other relevant legislation. In late 2017, an Audit & Risk Management Committee was constituted to provide advice to the Board and oversight of financial, governance and risk management for the Authority. The Board and Audit & Risk Management Committee are supported by a part-time Executive Officer.

In November 2016, YMCA SA was appointed under a three-year Management Agreement to operate and manage the Fleurieu Aquatic Centre (FAC); which opened on 25 March 2017. FAC is performing well and has established strong membership numbers and swimming lesson student cohort. Casual attendance trends and hire of facilities by user groups are steadily being mapped as FAC heads towards the first anniversary of opening. Adjustments to programming and services will continue to be made as required to meet the community needs.

A suite of Authority strategic planning documents; including the Strategic Plan 2018-2027, Asset Management Plan 2018-2027 and Long Term Financial Plan 2018-2027; have now been developed. These strategic documents inform and are supported by the Authority 3-Year Business Plan, annual FAC Business & Marketing Plan and annual budgets.

This detailed 3-Year Business Plan has been developed to guide and monitor the operations of the Authority and deliver on strategic priorities for 2018 to 2021. The document meets the requirements of the Local Government Act 1999 and our Charter. The 3-Year Business Plan has been formulated in consultation with YMCA SA as FAC operational managers; and is supported by the FAC Business & Marketing Plan 2018/19 prepared by YMCA SA and provided as an Appendix.

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http://www.fleurieuaquaticcentre.com.au/

Page 3 of 13

CONTENTS

EXECUTIVE SUMMARY ............................................................................................................................................ 2

STRATEGIC PILLARS ................................................................................................................................................ 4

Mission.......................................................................................................................................................... 4

Purpose ........................................................................................................................................................ 4

Vision ............................................................................................................................................................ 4

Goals ............................................................................................................................................................ 4

Performance targets ................................................................................................................................. 4

Financial indicators .............................................................................................................................................. 4

FAC Operational Management Key Performance Indicators ................................................................... 5

Requirements for Business Plan development ....................................................................................... 5

Charter ................................................................................................................................................................... 5

Local Government Act 1999 ............................................................................................................................. 5

ACTION PLAN 2018-2021 ...................................................................................................................................... 6

Goal 1: To maintain community participation and enthusiasm for FAC ............................................ 6

Goal 2: To foster and maximise social inclusion ..................................................................................... 7

Goal 3: To preserve and maximise the brands (FAC & Authority) as high value, recognised, trusted and valued in the community .................................................................................................... 8

Goal 4: To act as a conduit for commercial and community partnerships and collaboration ..... 9

Goal 5: To care for, protect and improve FAC in line with changing community needs ............... 9

Goal 6: To, as far as possible, be financially self-sufficient ................................................................. 10

SUMMARY OF PERFORMANCE MEASURES ......................................................................................................... 11

REVIEW .................................................................................................................................................................. 12

AVAILABILITY OF 3-YEAR BUSINESS PLAN .......................................................................................................... 12

APPENDIX A – Fleurieu Aquatic Centre 2018/19 Business & Marketing Plan ............................................... 13

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STRATEGIC PILLARS

Mission

We are an independent governing body that directs the delivery of a regional indoor Aquatic Centre.

Purpose

To deliver the Councils’ objectives for an efficient, premier aquatic facility in the region.

Vision

Fleurieu Aquatic Centre is an inclusive destination that contributes to a healthy regional community.

Goals

1. To maintain community participation and enthusiasm for FAC

2. To foster and maximise social inclusion

3. To preserve and maximise the brands (FAC & FRACA) as high value, recognised, trusted and valued in the community

4. To act as a conduit for commercial and community partnerships and collaboration

5. To care for, protect and improve FAC in line with changing community needs

6. To, as far as possible, be financially self-sufficient

Performance targets

Financial indicators

The Local Government (Financial Management) Regulations 2011 Part 2, 5(1) requires that the Authority LTFP includes estimates and target ranges adopted by the Authority for each year of the LTFP with respect to an operating surplus ratio, a net financial liabilities ratio and an asset sustainability ratio.

Due to the nature of the Authority funding model, the net financial liabilities ratio is not relevant. This is due to cash reserves (predominantly Depreciation Reserve) being significantly higher than projected liabilities for the life of the plan; and the resultant ratio not being a useful measurement of financial performance for the Authority.

Given the above, an alternate third financial sustainability ratio is proposed for use; that being the ‘Own Source Income Ratio’. This ratio is calculated as ‘income excluding Council contributions’ as a percentage of total Authority expenditure. The forecast ratio for 2018-2019 is 59%; the gradual increase in this ratio over the life of the LTFP will indicate improvement in the Authority’s financial self-sustainability.

The key financial measures for the Draft 3-Year Business Plan 2018-2021 (incorporating the 2018-19 Fleurieu Aquatic Centre Business & Marketing Plan) and Budget 2018-19 are:

Indicator 2018-2019 2019-2020 2020-2021 Operating Surplus/(Deficit) Ratio - % 0% 0% 0% Own Source Income Ratio 59% 62% 64% Asset Sustainability Ratio - % n/a n/a n/a

Due to the financial operating model for the Authority, the Operating Surplus/(Deficit) Ratio is budgeted annually at zero; however, may be less or greater than zero at year end should the operating result differ from the budget.

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Page 5 of 13

The Own Source Income Ratio is forecast to improve from 59% to 64% during the next three years.

The Asset Sustainability Ratio is not applicable for years in which no expenditure on renewal and replacement of assets is forecast; however, is forecast at 100% over the remaining years of the plan.

FAC Operational Management Key Performance Indicators

In line with the Management Agreement between the Authority and YMCA South Australia, annual Key Performance Indicators (KPIs) are agreed for operational management of FAC. These KPIs are aligned to the annual FAC Business & Marketing Plan and Budget and include:

• Performance growth metrics: attendance growth, member growth, member retention, swimming lesson growth

• Financial sustainability metrics: swimming lesson occupancy, swimming lesson wage cost ratio, net operating result, secondary spend profit margin, wage cost ratio

• Safety metrics: incidents per 1000 visits, facility hazard management, Royal Life Saving Society - Facility Safety Assessment

Requirements for Business Plan development

Charter

The Authority Charter sets out the following planning requirements:

6.2 Business Plan

The Authority: 6.2.1 must in consultation with the Constituent Councils prepare and adopt a Business Plan for a minimum three (3) year period which will continue in force for the period specified in the Business Plan or until the earlier adoption by the Authority of a new Business Plan; 6.2.2 must in consultation with the Constituent Councils review the Business Plan annually and following such a review the Business Plan shall continue to operate for the period for which the Business Plan was adopted pursuant to Clause 6.2.1; 6.2.3 may, after consultation with the Constituent Councils amend its Business Plan at any time; and

6.2.4 must ensure the contents of the Business Plan is in accordance with the Act. [Local Government Act]

Local Government Act 1999

Schedule 2, clause 24(6) of the Local Government Act 1999 outlines what is required in a Regional Subsidiary Business Plan:

a) the performance targets that the subsidiary is to pursue; and

b) a statement of the financial and other resources, and internal processes, that will be required to achieve the subsidiary's performance targets; and

c) the performance measures that are to be used to monitor and assess performance against targets.

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Page 6 of 13

ACTION PLAN 2018-2021

EO – Authority Executive Officer OM – FAC Operational Managers

Goal 1: To maintain community participation and enthusiasm

for FAC

Strategy Actions Responsibility Target date

Measures

1.1 Marketing & promotion

Develop and implement a high-level 3-Year Marketing & Communications Plan that includes:

• target performance measures;

• key target markets;

• communication and engagement mechanisms;

• marketing, promotional and public relations mechanisms and tools;

• actions to implement;

• timeframes, responsibilities and resources required

OM 30 June 2019

• Year on year growth in FAC performance (membership, swimming lessons, casual admittance and overall attendance)

• Member / customer satisfaction surveys

1.2 Develop and implement a Stakeholder Engagement Plan

Develop and implement a high-level 3-Year Stakeholder Engagement Plan that includes:

• types of stakeholder relationships to be developed;

• target outcomes and strategies;

• communication and engagement mechanisms and tools;

• actions to implement;

• timeframes, responsibilities and resources required

EO / OM 30 June 2019

1.3 Ensure FAC programs and services are in line with community needs

• Implement Ask Nicely customer feedback and survey software; monitor responses, action reviews and create testimonials

• Review opening hours to ensure meeting of customer needs (whilst balancing financial impacts)

• Proactively seek and utilise relevant industry intelligence to improve services and performance

OM

OM / EO

OM / EO

30 June 2019

Annually

Ongoing

1.4 Review FAC facilities, programs, services and performance

Analyse year-on-year performance data, user demographics, customer survey feedback, and industry intelligence

EO / OM Ongoing

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Page 7 of 13

Goal 2: To foster and maximise social inclusion


Measures

2.1 Promote FAC facilities, services and programs to local youth, families, people with special needs and older adult markets

• Develop relationships with childcare facilities, pre and primary schools and libraries within a 10 km radius of facility to promote FAC programs & services

• Introduce Les Mills group fitness programming to target younger demographic

• Introduce a range of Allied Health services

OM 30 June 2019


• Operational safety and compliance audits

• Disability Action Plan implementation

2.2 Ensure that FAC facilities, services and programs meet the needs of and are accessible for people with a disability

• Implement FAC Disability Action Plan

OM 30 June 2020

2.3 Work with identified stakeholders to increase participation from at risk members of the community

• Promote FAC ‘Suspended Swim’ program including engagement with relevant stakeholders

• Work with Reclink Australia to provide programs at FAC that support disadvantaged members of the community

OM

OM

Ongoing

Ongoing

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Page 8 of 13

Goal 3: To preserve and maximise the brands (FAC & Authority)

as high value, recognised, trusted and valued in the community


Measures

3.1 Explore opportunities for co-branding and promotion of FAC brand with aligned organisations

Develop and implement an action plan that:

• Identifies aligned organisations and key influencers;

• Identifies benefits of collaboration and opportunities for development of initiatives that increase FAC performance

• Sets out key actions, responsibilities & timeframes

OM / EO 30 June 2020


• Year on year growth in FAC performance (membership, swimming lessons, casual admittance and overall attendance)

3.2 Establish a signature event hosted at FAC that promotes FAC and participation in swimming

• Work with Great Southern Swimming Club and SwimmingSA to develop a signature swimming event

OM 30 June 2020

3.3 Undertake a signage review

• Undertake a signage review (directional / wayfinding, promotional) with key stakeholders & develop recommendations


3.4 Undertake contractual and governance reviews

• Undertake a formal Board performance review

• Undertake a formal review of Operational Management performance

• Review EO performance

EO

EO

Authority Board

31 Dec 2019

30 June 2019

31 July 2018

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Page 9 of 13

Goal 4: To act as a conduit for commercial and community

partnerships and collaboration


Measures

4.1 Stakeholder relationship development

• Identify and implement opportunities to promote FAC facilities and services in neighbouring council areas (outside of constituent Council area)

• Identify and implement opportunities for collaboration with commercial organisations that assist FAC to deliver on community needs and improve facilities, services and programs (in line with Charter objectives)

• Establish relationships with owners of similar aquatic centres in South Australia to share intelligence and learnings

OM / EO

OM

OM / EO

30 June 2020

30 June 2020

30 June 2020

• Number and results of initiatives implemented

• Year on year growth in FAC performance

Goal 5: To care for, protect and improve FAC in line with

changing community needs


Measures

5.1 Manage facilities and deliver services in line with relevant industry benchmark performance criteria

• Identify appropriate benchmarking criteria and competitive and data sets to assess current FAC performance and set targets

• Utilise FAC Operational Manager aquatic and recreation facility experience and comparative industry benchmarking to improve FAC performance

OM / EO

OM

30 June 2019

30 June 2020

• Services delivered in line with agreed Service Levels per Asset Management Plan

• Asset maintenance delivered in line with Preventative Maintenance Plan and Asset Management Plan


• Reduction in energy and water use over time

5.2 Manage and maintain facilities in line with requirements of the Asset Management Plan and the Authority Risk Management Framework

• Implement FAC Preventative Maintenance Plan

• Assess facility amenity utilisation to ensure the best use of each space, striving to accommodate community demand

• Implement 2018/19 capital expenditure plan

OM

OM

OM

Annually

30 June 2019

30 June 2019

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Goal 6: To, as far as possible, be financially self -sufficient


Measures

6.1 Reduce FAC energy consumption

Explore options to reduce electricity, water and chemical consumption costs and develop recommendations and business cases (as required) for Authority consideration


• Year on year growth in FAC performance

• New (profitable) revenue streams established

• Net financial benefit of efficiency and effectiveness measures implemented

• Reduced quantum of financial contributions required from constituent Councils

6.2 Drive innovation, business improvement and efficiency measures across all areas of FAC operations without compromising quality and service delivery standards

• Achieve or better the approved annual Authority / FAC operating budgets

• Proactively develop and implement initiatives to achieve and surpass agreed Operational Management Key Performance Indicators

• Research and recommend cost saving initiatives for Authority consideration; demonstrating value in a business case

• Maximise procurement savings

OM / EO

OM

OM / EO

OM

Annually

Ongoing

Ongoing

Ongoing

6.3 Develop initiatives that increase existing or develop new FAC / Authority revenue streams in line with Charter objectives

• Increase member secondary spend by expanding retail and cafe offering, implementing sales training,

• Identify opportunities to develop new revenue streams in line with Authority objectives including:

o new services and programs that improve FAC attendance and financial performance

o allied and complementary commercial arrangements / initiatives

o grant funding, sponsorship and philanthropic donations

EO / OM

OM

OM / EO

OM / EO

30 June 2020

Ongoing

Ongoing

Ongoing

6.4 Develop a FAC fees & charges pricing policy

Develop a FAC pricing policy that considers:

• Authority Charter objectives

• Local demographics and facilitating reasonable community accessibility

• Industry benchmarks for average fees and charges for similar centres

• Maintaining local industry competitiveness

EO / OM 30 June 2019

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SUMMARY OF PERFORMANCE MEASURES

A summary of the performance measurement and reporting framework is as follows:

Performance criteria Reporting frequency

Year on year growth in FAC performance: membership, swimming lessons, casual admittance and overall attendance

Monthly

Member / customer satisfaction surveys Ongoing

Operational safety and compliance audits Monthly

Disability Action Plan implementation Quarterly

Number and results of initiatives implemented that increase operating revenue, decrease expenses, improve FAC facilities, programs and services; and / or provide other community benefits

Annually

Services delivered in line with agreed Service Levels as set out in Asset Management Plan

Monthly

Asset maintenance, renewal and replacement programs delivered in line with agreed Maintenance Plan and Asset Management Plan

Annually

Reduction in energy and water use over time Annually

Reduced quantum of financial contributions required from constituent Councils Annually

Meeting of governance and financial management requirements per Authority Charter Annually

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REVIEW

The Authority Board will monitor progress against plan outcomes and the 3-year Business plan will be reviewed and updated annually such that it remains a dynamic and relevant document responding to community needs in a constantly changing competitive environment.

The annual budget will be subject to review three times during the financial year in accordance with the Local Government Act 1999 and Local Government (Financial Management) Regulations 2011.

AVAILABILITY OF 3-YEAR BUSINESS PLAN

This plan will be available online at www.fleurieuaquaticcentre.com.au or at the offices of the Constituent Councils.

Document History

VERSION DOCUMENT ACTION DATE

0.1 Draft Considered by Authority Audit & Risk Management Committee (as a draft)

22 March 2018

0.2 Draft Authority Board endorsement for the purposes of public consultation

20 April 2018

0.3 Final draft Authority Board endorsement 18 May 2018

1.0 Approved version 1.0 Alexandrina Council – Council endorsement

City of Victor Harbor – Council endorsement

HOW TO CONTACT US


Address | C/- PO Box 267, Angaston SA 5353 Phone | 0418 296 767 Email | [email protected]

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APPENDIX A – Fleurieu Aquatic Centre 2018/19 Business & Marketing Plan

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Fleurieu Aquatic Centre

52

Fleurieu Aquatic Centre | 2

2018–19 Business & Marketing Plan

Introduction The objective of the 2018-19 Business & Marketing Plan is to set the strategies for the coming year on a

local site level. Above and beyond day-to-day operations, this plan identifies site specific strategies to

maximise operational success in the coming year. These strategies provide a roadmap for the coming year,

informing budgets and staff work plans, ensuring staff alignment in working towards agreed objectives.

Background & Process

The YMCA has a long and successful history operating community focused recreation centres, delivering a

wide range of wellness and sporting opportunities. Part of this success is built upon the combined skill,

experience and efficiency of working as a larger state-wide team. By leveraging these economies of scale

and learnt best practice we operate health and fitness centres economically and to their fullest potential.

Based on this approach, YMCA South Australia completes part of the business planning process centrally,

establishing consistent Goals and Objectives across all recreation sites. These Goals and Objectives

establish a baseline of recreation centre management and operation and provide a starting framework for

each site to develop site specific strategies aligned to these Goals and Objectives.

The 2018-19 Business & Marketing Plan is purposefully succinct. Its creation acts as a catalyst to involve

the leadership and staff teams in setting the strategies for the coming year, producing a resource to keep

all staff headed in the right direction. Furthermore, the plan informs contract partners on a strategic level

of the planned approach for the year ahead.

The high-level strategies outlined in this plan are to be further defined in a separate site work plan.

Applying the SMART mnemonic (specific, measurable, attainable, relevant and time based), each strategy is

to be developed with clear staff accountabilities.

The best way to start the planning process for the coming year is to review the results from the previous

year. Celebrate the wins and success, but also review the challenges and opportunities moving forward.

The Business Snapshot section highlights results from 25 March 2017 through to November 30 2017. These

results, combined with a brief overview of our point of difference, target markets, and local competitor

analysis will inform the business and marketing strategies in the second half of this plan.

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Table of Contents

Page 3 – 6 Business Snapshot, 25 March 2017 – 30 November 2017

Page 7 – 10 Catchment, Target Market & Point of Difference

Page 11 Competitor Analysis

Page 12 SWOT Analysis

Page 13 – 16 2018 / 2019 Goals & Strategies

Page 17 – 21 2018 / 2019 Marketing Plan

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Understanding our Market & Members Understanding the population and demographics of our catchment area and existing membership helps

inform local need and demand, directly informing annual business strategies.

Catchment Area Location and proximity to a gym is the number one reason people join and stay with a gym. With this in

mind, gym catchment areas are generally defined as a 3km-5km radius (less than a 10-minute drive). Local

competition and metro versus regional location, impact the catchment radius; this has been extended to

15km for Fleurieu Aquatic Centre.

Swimming lesson and programming participants are often willing to travel greater distances than gym

members. This is largely due to decreased competition and a number of sites offering a comparable program.

Catchment Area Population Summary

Catchment (15km radius) South Australia %

2016 Population 25,071 -

# of Families with children <15Y 1,792 25.3% 36.2%

# of kids <10Y 2,085 8.3% 11.8%

% of Adults >50Y 14,985 59.9% 37.7%

Spatial Membership Mapping

Health & Fitness Members (all membership types) – 15km radius in red

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Swimming Lesson Members – 15km radius in red

Pin Membership Mapping

All Access (Gym) Members – LGA Boundary Overlay

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Swimming Lesson Members – LGA Boundary Overlay

Membership Mapping Analysis • As a regional location, both gym and swimming lesson members are spread much further than a

typical 3-5km radius of the centre. With significant membership numbers 10km+ from the centre,

the Fleu ieu A uati Ce t e eaks t pi al g at h e t a ea a d d i e ti e sta da ds. • There is no significant difference in catchment spread between gym and swim lesson members.

• Relatively even distribution between Victor Harbor and Alexandrina

Target Markets & Point of Difference While analysing catchment area and membership demographics, it is important to do so in context to our

point of difference and target markets. Combining these considerations helps inform annual strategies

complementary to business objectives.

Varying slightly between sites due to their amenities and location, our overriding point of difference is based

on the perceived value of having access to a variety of recreation amenities and services (pool, gym, aqua

fitness and allied health, disability and rehabilitation programming). Due to this perceived value, the YMCA

target markets are willing to pay a slight premium in comparison to a budget gym-only competitor.

Families / Youth Ou full-se i e app oa h o i ed ith ulti-amenity facilities, lead to an obvious target market of

families and youth. A dedicated Youth Membership and swimming lessons reinforce our link to children

and youth. Furthermore, complimentary child-minding and strong focus on group fitness tailor to a stay-at-

home parent.

Older Adults – 60Y+ A demographic with exponential growth and greatest discretionary income spend. The growth of this

target market is in part due to an increased awareness and acceptance of the benefits of physical activity in

overall wellness and preventive health. Older adults generally appreciate the full se i e app oa h: a

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Access to structured or semi-structured programming such as Strength for Life, A ess to a e pe t to answer questions, get them started, and keep them on track, c) pool access (low impact exercise), d)

opportunities for socialisation.

Atypical Fitness User With a community focus mandate accepting of all ages and abilities, FAC facilities provide an outlet for

those who do not fit the stereotypical gym profile portrayed by many franchise gym competitors. YMCA

managed facilities are positioned and marketed with this in mind, representing a wide cross-section of the

community. At pi al g use s a e also ofte u o fo ta le i ha ds-off g s, a e pote tiall de o ditio ed a d fa i g a ie s to physical activity participation.

People Living with a Disability In Australia, over 4 million people live with some form of disability. That s 1 i 5 people. As part of our

current Community Strengthening programs, we work closely with disability service providers to provide

support and care in the community. The National Disability Insurance Scheme (NDIS) represents a

transformational change in Australia for individuals living with a disability and their carers. This presents

the opportunity for expanding our impact on the community and a pathway for achieving our mission of

healthy and happy communities through the YMCA LEAP programs including one on one and group

swimming lessons and the development of the FAC Allied health model.

Partnerships With a variety of recreation amenities, charity status, and an environment welcoming to all, the YMCA is

extremely well positioned to leverage partnerships. Examples of potential partnerships include allied health

organisations, organisations catering to those with disabilities, government funded community health

i itiati es, edi al p es i ed fit ess p e e tati e health , a d usi ess i te ested i a o po ate g membership employee benefit suitable to a wide variety of employees.

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Competitor Matrix A competitor Analysis is completed annually to capture changes and review the offering and value proposition of the local competition. This exercise plays an important

role in reviewing where we sit in the local market in relation to our value proposition and informing annual price adjustments. The competitor matrix also helps identify the

volume of competition and which are our closest competitors.

GYM COMPETITORS Amenities

Facilities Est. # of

Members

Proximity

(km)

Membership

Price (p/wk) 24/7 Gym Cardio

Group

Fitness Pool Stadium

Child

Minding Cafe

Youth

Members

Senior

Members

CrossFit Victor Harbor 30 1.2km $23.80 N Y N Y N N N N N N

McCraken Country Club 100-150 4.1km $13.10 N Y Y N Y N N Y N N

ECH Victor Harbor Wellness 100 4.1km $14.75 N Y Y Y N N N N N Y

Anytime Fitness Victor Harbor 200-300 4.6km $18.00 Y Y Y N N N N N N N

Spa clubs Victor Harbor 250-350 5.8km $16.95 Y Y Y Y N N Y N N Y

F.I.T Goolwa Health and Fitness 250-350 11.9km $18.95 Y Y Y Y N N Y N Y Y

Aldinga Recreation Centre 150-200 43.6km $16.95 Y Y Y Y N Y N N Y Y

Ali Donaldson Fitness (casual freestyle

GF) 10-30 2km $7 casual N N N Y N N N N N N

SWIM LESSON COMPETITORS Amenities

Facilities Est. # of

Members

Proximity

(km)

Comparable

Price

(p/lesson)

Outside

Lesson

Access

Adult

Lessons Disability

Aqua

Fitness

Hot

Tub /

Sauna

Victor Harbor R7 School 150-200 3km $13 Y Y N Y N

McCracken Country Club n/a 4.1km N/A N/A Y N Y Y

Strathalbyn Outdoor Pool 25 43.4km $16.50 Y Y Y Y N

Sue Pryor Swim School 400-500 47.8km $19 Y Y y Y N

Noarlunga Leisure Centre 500-600 53.9km $17.50 Y Y y Y N

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SWOT Analysis STRENGTHS WEAKNESSES

• New, modern and exciting facility with exceptional

aquatic facilities combined with quality health club

equipment (holistic approach to wellness and

physical activity)

• Specialised aquatics areas create niche demand for

youth, families, swimming lessons, hydrotherapy,

disability etc.

• Facility design and offerings are attractive to older

adults, families and youth

• An inclusive and welcoming gym environment for all

community members (older adult segment does not

alig ith a o petito s g i age

• Gym instructors available for support (hands-on

approach), inclusive Member Induction Program

• Ability to partner and collaborate with Council and

Community groups to achieve improved outcomes

for the community

• Café and merchandise shop

• Membership includes Playclub (child minding)

• Staff (expertise and local employment)

• YMCA Not for profit charity status; community focus

• Variety of payment options and terms (Direct Debit,

Upfront Payment in Advance, Visit passes, Casual

Admission)

• Equitable and fair membership structure linked to

local price sensitivities: concession, family/mates

rates, and older adults price discounts

• Accessible facility and equipment provisions in both

Gym and Aquatic spaces

• Commencing 18/19 with 1000+ members and 450+

swim school enrolments

• Development of additional aquatic programs

including water polo, Synchro and Flippa ball

• Full-Se i e e eatio odel e uates to high

o e heads i o pa iso to udget g s

• Not 24/7 facility

• Limited space/ability to offer group fitness and/or

cycle classes

• Facility size to grow health and fitness member

base

• Poor public transport links

• High proportion of concession member base

lowering member yield

• Access control to the facility, turnstiles do not

provide appropriate traffic management to support

capture of visit split to swim and gym

OPPORTUNITIES THREATS • Facility amenities and Active Adults 60+ program very

well suited to older demographics and may create

many partnerships with aligned organisations

• Development of allied health model including

recruitment of Exercise Physiologists

• Separation of access through health club door swipe

• 24/7 health club access

• Addition of Les Mills classes to attract younger

demographics

• Competition from niche gyms and other budget

health clubs offering lower membership fees

• Lower socio-economic catchment may opt for

lower fees (budget gyms) versus full-service

approach

• High transient population (visitors and non-residing

rate payers) create peaks and troughs and will have

limited conversion to membership and swim lesson

enrolments.

Catchment area population has limited ability to

create a financially sustainable operating model

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2018–19 Goals & Strategies In pursuit of the creation of a vibrant community hub, Fleurieu Aquatic Centre operations are guided by four

strategic goals, each with corresponding objectives. On an annual basis the Centre s leadership and staff

teams set specific strategies aligned to the strategic goals and objectives.

The FAC operational 2018/19 Business Plan is also aligned with and supports the Fleurieu Regional Aquatic

Centre Authority Strategic Plan 2018/2027 core pillars and goals.

GOAL 1

Community Wellbeing & Participation

Deliver innovative programming and facilities linked to the

needs of the community

OBJECTIVES

Aquatic Venue – Become a venue of choice for local sporting organisations, for training and

competition

Marketing, Communication & Sales – Drive effective marketing campaigns which encourage

community participation utilising customer centric methodology and technology

Community Programming - Offer innovative programming linked to the physical, mental and

social needs of the local community

Community Connections - Actively encourage meaningful community connections, including

both commercial partnerships and community well-being initiatives

2018–19

STRATEGIES

1. Create stronger relationships with childcare facilities, pre and primary schools and

libraries within a 10 km radius of facility to enable marketing to students (i.e. poster

in centre, handouts, offers, presentations on the importance of learning how to

swim)

2. Better promote Birthday Party opportunities, enhancing marketing with clearly

articulated options in brochures and on website

3. Increase scope, reach and revenue from Holiday aquatic Sport Programs through

increases in efficiency of execution and better marketing (digital advertising)

4. Introduction of Les Mills programming to target younger demographic

5. Host and market two social events for members including morning teas and

members quiz night

6. Promote and market Exercise Physiology to existing members

7. Implementation and monitoring of Disability Action Plan (DAP)

8. Further develop the Suspended Swim program and commit to raising $5k in 18/19

through the program

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GOAL 2

People & Culture

Build a talented team dedicated to exceptional customer

service and building healthy communities

OBJECTIVES

Culture – Actively develop a healthy and happy workplace culture where staff are dedicated

to having a positive community impact

Attract, Recruit & Retain – Utilise best practice human resources to source a talented team,

and provide an inspiring and rewarding workplace to keep talent

Customer Service – Deliver an exceptional customer experience, supported by consistently

high standards of communication and interaction and fostering a customer-centric culture

2018–19

STRATEGIES

1. Increase staff engagement in annual business planning process, establishing clear

strategies incorporated into staff work plans

2. Upskill staff to better engage with members and customers, as well as multi-task

across various roles

3. Empower Leadership Team to identify staff with development potential by

rewarding those staff with projects and opportunities above and beyond their

standard role

4. Implement Ask Nicely customer feedback and survey software, holding Leadership

Team accountable to responses and actioning reviews and testimonial

5. Hold 2 staff events to build culture, utilising the opportunity to update staff on

organisation/centre updates and successes

6. Recruit locally and develop staff internally and develop career pathways

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GOAL 3

Facility, Safety & Quality

Deliver a clean, efficient and safe facility that is valued by the

community

OBJECTIVES

Facility Presentation – Ensure the facility and staff create an inviting, clean and professional

image at all times, and best utilise spaces to fulfil community programming and wellness

needs

Asset Management – Proactively operate facility efficiently, cost effectively, and aligned with

preventative maintenance best practice

Health, Safety & Security – Ensure a safe and secure facility at all times through sound risk

management

2018–19

STRATEGIES

1. Upgrade the sound system in the group fitness room/crèche to improve the group

fit ess expe ie e

2. Review opening hours (facility / playclub / swimming lesson times/days) to ensure

meeting of customer needs (whilst balancing financial impacts)

3. Deliver the Preventative Maintenance Plan following the defect period ensuring

alignment with overall Asset Management Plan

4. Increase member secondary spend by expanding retail and cafe offering, completing

specific sales and merchandise training, and improving the look of the café area

5. Research and recommend two cost saving initiatives to the Fleurieu Regional Aquatic

Centre Authority, demonstrating value in a business case

6. Continue to actively reduce the number of incidents through quality work health and

safety management system (WHSMS) training with Duty Managers

7. Assess facility amenity utilisation to ensure the best use of each space, striving to

accommodate community demand

8. Implement capital expenditure plan including addition of blinds on the windows in

the main pool hall and meeting room

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GOAL 4

Compliance & Capability

Successfully operate and manage the facility sustainably,

responsibly and aligned with stakeholder expectations and

requirements

OBJECTIVES

Sustainability – Operate and manage the facility efficiently and economically, demonstrating

financial acumen in the delivery of in-demand programs and services which balance revenue

generation with community utilisation and management of expenditure

Compliance – Fulfil legislative, regulatory, contractual and reporting obligations on time and

aligned with quality expectations, encouraging the development of healthy partnership

relationships based on trust and transparency

Integrity – Operate the facility with professionalism, continually striving for best practice in

clarity of communication, efficiency and transparency

2018–19

STRATEGIES

1. Achieve approved Centre budget, and proactively implement initiatives to achieve

and surpass agreed Key Performance Indicators (KPIs)

2. Better utilise the combined experience and expertise across YMCA sites by

establishing relationships amongst those in similar roles across the organisation

3. Utilise aquatic and recreation facility experience and comparative industry

benchmarking to improve the financial performance of the Centre

4. Utilise technology such as automated reporting and dashboards to more effectively

and efficiently report on Centre performance

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2018–19 Marketing Plan

INITIATIVE Spring & Summer Major Campaigns

Major membership and Swimming Lesson campaigns are held at two peak industry

sales periods, September and January. Limited time sign up offers are marketed

through a range of online and offline mediums. While primarily executed through

YMCA head office, the advertising spend is customised to maximise local impact and

opportunity. Marketing directs engagement towards the local website for more

information on the offer and encourages immediate online sign-up. The campaign is

geared to take advantage of a peak sales period (start of Spring and start of Summer)

and push those already in the sales funnel to the purchase phase.

MEDIUMS Internal and external posters/banners, website, digital advertising (social media,

display ads, AdWords, Electronic Direct Mail) and print (local newspaper /

publications / mailbox drops).

BUDGET $5,000 per campaign ($1,000 printing, $4,000 advertising pending which mediums

are utilised based on previous results and local conditions)

GOAL Member growth for each campaign, September/October 34 net gain and January 32

net gain

TIMING September (4 - 5 weeks) & January (4 – 5 weeks)

EXAMPLE COLLATERAL

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INITIATIVE Membership Promotion & Sales Funnel

In between bi-annual major campaigns, memberships and swimming lessons are

promoted through a variety of mediums utilising a consistent message and design

linked to the FAC point of difference (full service and multi-amenity). Marketing

effectiveness is further increased through collateral which is specifically designed to a

specific target market, highlighting perceived benefits specific to that target /

membership type.

Collateral is placed within the facility and at key catchment area locations. Centre

Manager and leadership team will also proactively identify and pursue local

opportunities to advertise. For example, older adult organisations are well suited to

the promotion of the Active Adults membership, and child care centres are well

suited to the promotion of swimming lessons.

The membership collateral and advertising sits at the top of the sales funnel

(awareness), driving interest to the website (landing page

www.fleurieuaquaticcentre.com.au ) with the call to action once this is activated

online, the prospect enters the CRM software which enables tracking towards

conversion and/or continued future efforts to convert.

MEDIUMS Internal & external posters/banners, Website (landing page), Digital advertising

(social media, display ads, AdWords, EDM) and Print (local newspaper / publications).

BUDGET $2,500 (spread over 12 months, includes printing, advertising and landing page

hosting and optimisation)

GOAL Achieve annual growth target in memberships of 12% as per the 18/19 budget

TIMING Ongoing, between major campaigns

EXAMPLE COLLATERAL

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INITIATIVE Electronic Direct Mail (EDM) & Online Accounts

Customer service plays a large role in the satisfaction and overall retention of

members. As a large component of customer service, the YMCA has invested in

technology to enable convenient and cost-effective communication and online

account convenience.

Our integrated EDM system talks directly with our facility and member software,

enabling both automated and ad-hoc communications. Examples of these

communications include:

• Ad-hoc notices regarding facility/service updates/changes/closures

• Automated emails marketing to prospects in the sales funnel and/or to a 7-

day pass holder to encourage and/or incentivise membership

• Automated emails to existing members informing of new program

opportunities, group fitness offerings and local events/initiatives

• Leverage existi g e e ship data ases to e ou age efe als a d sp ead the o d o p o otio s

Online accounts allow DIY 4/7 a ess to a ou t a age e t and sales. Example

functionality includes online membership purchases and swim lesson enrolments,

booking group fitness, checking payment history, updating payment details, and

reviewing skill progression for swimming lessons. Online accounts provide customers

with the convenience of on-demand access to information.

MEDIUMS Website (Active Carrot integration with Links)

BUDGET $2,000 annual website hosting & maintenance

$3,300 Active Carrot & Eblast subscription fees

GOAL Retention (average member length of stay over 11 months)

TIMING Ongoing

EXAMPLE COLLATERAL

71



INITIATIVE NPS & Proactive Feedback

Net Promoter Score (NPS) surveys are used to proactively gauge and benchmark

customer satisfaction and loyalty. A small number of surveys are sent each day to

active members which enables:

• Proactive feedback and the ability to immediately address/action feedback

before they grow to become larger issues

• Weekly/monthly/annual and site-to-site comparison to quickly identify

satisfaction issues at a particular site, within a particular membership type or

at a certain stage in the member lifecycle

• Auto ated e ails a e se t to P o oto s ati g 9 o e uesti g a Google or Facebook review (important marketing tool)

• Tracking of consistent issues and feedback to guide allocation of future

resources

MEDIUMS Auto ated a do sele tio of a ti e member emails

BUDGET $1,000 (annual Ask Nicely subscription & Links Integration)

GOAL • Retention (average member length of stay over 11 months)

• 4 Google or Facebook reviews per month (48 annually)

• Average Google review and Facebook review rating of over 4 stars

• Maintain monthly NPS score above 50

TIMING Ongoing

EXAMPLE COLLATERAL

72



INITIATIVE Local Initiatives, Programs & Services

As community leisure hubs, each centre deploys a suite of initiatives, programs and

services tailored to the local centre and community to drive utilisation. These services

a e positio ed as alue-add fo e e s o a additio al ea s of ge e ati g utilisation from the community. Initiatives are based on local demand and facilities,

leveraging the pooled expertise of all facilities and professional graphic design

assistance.

As part of a greater community driven strategy, local programs and services are what

set us apart from other gym providers as a vibrant community hub.

EXAMPLES Social media, birthday parties, boot camps / challenges, group fitness launches, give-

aways and participation prizes, squad training, exercise physiology, local sponsorship

opportunities, festivals/events

MEDIUMS Internal & external posters/banners, website and social media

BUDGET $6,000 annual to be spent on achieving the stated goals

GOAL Programming and services contributes to:

• 3% sales growth in recreational swimming

• 30% growth in swimming lesson revenue

• 86% growth in hild e s programs income (including Synchro, birthday parties,

Flippa Ball & water polo)

TIMING Ongoing

EXAMPLE COLLATERAL

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Page 1



Subject: FRACA Asset Management Plan 2018-2027 Meeting date: 22 March 2018 Item: 7.3 Reference(s): Local Government Act 1999

FRAC Authority Charter Consultation: Area Manager, YMCA SA Attachments: Draft Asset Management Plan 2018-2027

PURPOSE

The purpose of this report is to seek feedback from the Fleurieu Regional Aquatic Centre Authority

(FRACA) Audit & Risk Management Committee (ARMC) on the draft FRACA Asset Management Plan 2018-2027.

RECOMMENDATION

That the Committee:

1. Note the draft FRACA Asset Management Plan 2018-2027 and that the Executive Officer will update the plan in line with Committee feedback and final Long Term Financial Plan 2018-2027 data;

2. Recommend that the Fleurieu Regional Aquatic Centre Authority endorse the revised draft FRACA Asset Management Plan 2018-2027 for the purposes of public consultation.

INFORMATION


6 MANAGEMENT FRAMEWORK

6.1 Strategic Plan

Consistent with the Long Term Financial Plan set out above, the Authority must:

6.1.2 prepare an Asset Management Plan, with detailed financials for the first ten years;

The Authority Asset Accounting Policy provides:

8. Asset Management

When developing its Asset Management Plan, the following 4 (four) steps will be taken into consideration by

the Authority:

1) Know what assets the Authority owns and the service standards target for those assets. Then estimate the cost to maintain the assets to meet the level of standard of service.

2) Consider any increased demand and costs for services from development growth or the impact of a

declining population or other changes in population.

3) Prepare a lifecycle management plan for all assets. This will diminish the risk of unexpected expenditure when assets start failing.

4) Undertake risk and financial projections to determine which assets are most important to the community, its needs and safety.

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Page 2

DISCUSSION

The draft Asset Management Plan 2018-2027 is provided as an attachment to this report.

The draft plan was developed with the assistance of the City of Victor Harbor and was based on

original draft Long Term Financial Plan (LTFP) data. In some areas (noted in the plan), this data requires updating prior to presentation to the Authority Board.

Capital expenditure on renewal and replacement of assets is currently presented in the plan including

indexation applied by Rider Levett Bucknall in preparation of the Authority Asset Register. This will also be corrected in the revised plan to be provided to the Board such that all expenditure is stated in

2018 dollars i.e. no allowance made for inflation over the 10-year planning period. Please note, the LTFP does incorporate inflation factors.

Capital expenditure on new assets is proposed for 2018-19 only; with a zero-allocation applied

annually for the remaining period of the plan. Any future proposals for capital expenditure on new

assets will be considered on a case by case basis and the Asset Management Plan (AMP) and LTFP updated accordingly.

Levels of service have been based on the existing Fleurieu Aquatic Centre (FAC) offering; reflecting

the significant research undertaken in the development of the centre (Business Case and Prudential Report).

The AMP includes an improvement plan with the following key initiatives to be undertaken during the

life of the plan:

• Explore options to reduce energy, water and chemical consumption and costs

• Develop service agreements for proactive maintenance of plant and equipment

• Undertake customer satisfaction survey

• Reflect actual useful lives in next valuation of the associated infrastructure assets (desk top

review)

• Review Levels of Service

RISK ASSESSMENT

Governance - there is no direct risk with noting the report.

BUDGET IMPLICATION

Nil

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March 2018 ASSET MANAGEMENT PLAN 2018-27

DRAFT

76

- 2 -

Document History


0.1 Draft Considered by Authority Audit & Risk Management

Committee (as a draft)

22 March 2018

0.2 Draft Authority Board endorsement for the purposes of

public consultation

20 April 2018




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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY ......................................................................................................................... 4

1.1 The Purpose of the Plan ................................................................................................................. 4

1.2 Asset Description ........................................................................................................................... 4

1.3 Levels of Service ............................................................................................................................. 4

1.4 Future Demand .............................................................................................................................. 4

1.5 Lifecycle Management Plan ........................................................................................................... 4

1.6 Financial Summary ......................................................................................................................... 4

1.7 Asset Management Practices ......................................................................................................... 5

1.8 Monitoring and Improvement Program ......................................................................................... 6

2. INTRODUCTION .................................................................................................................................... 7

2.1 Background .................................................................................................................................. 7

2.2 Goals and Objectives of Asset Ownership ................................................................................... 7

2.3 Core and Advanced Asset Management ..................................................................................... 8

3. LEVELS OF SERVICE ............................................................................................................................... 8

3.1 Customer Research and Expectation ........................................................................................... 8

3.2 Strategic and Corporate Goals ..................................................................................................... 9

3.3 Legislative Requirements ........................................................................................................... 10

3.4 Customer Levels of Service ........................................................................................................ 10

3.5 Technical Levels of Service ........................................................................................................ 13

4. FUTURE DEMAND .............................................................................................................................. 15

4.1 Demand Drivers ......................................................................................................................... 15

4.2 Demand Forecasts ..................................................................................................................... 15

4.3 Demand Impact on Assets ......................................................................................................... 15

4.4 Demand Management Plan ....................................................................................................... 16

4.5 Asset Programs to meet Demand .............................................................................................. 17

5. LIFECYCLE MANAGEMENT PLAN ........................................................................................................ 17

5.1 Background Data ....................................................................................................................... 17

5.2 Operations and Maintenance Plan ............................................................................................ 18

5.3 Renewal/Replacement Plan....................................................................................................... 20

5.4 Creation/Acquisition/Upgrade Plan........................................................................................... 22

5.5 Disposal Plan .............................................................................................................................. 24

6. RISK MANAGEMENT PLAN ................................................................................................................. 24

6.1 Critical Assets ............................................................................................................................. 24

6.2 Risk Assessment ......................................................................................................................... 25

6.3 Infrastructure Resilience Approach ........................................................................................... 27

6.4 Service and Risk Trade-Offs ....................................................................................................... 28

7. FINANCIAL SUMMARY ........................................................................................................................ 28

7.1 Financial Statements and Projections ....................................................................................... 28

7.2 Funding Strategy ........................................................................................................................ 30

7.3 Valuation Forecasts ................................................................................................................... 30

7.4 Key Assumptions Made in Financial Forecasts .......................................................................... 30

7.5 Forecast Reliability and Confidence .......................................................................................... 31

8. PLAN IMPROVEMENT AND MONITORING ......................................................................................... 32

8.1 Status of Asset Management Practices ..................................................................................... 32

8.2 Improvement Plan ..................................................................................................................... 32

8.3 Monitoring and Review Procedures .......................................................................................... 33

8.4 Performance Measures ............................................................................................................. 33

9. REFERENCES ....................................................................................................................................... 33

10. APPENDICES ....................................................................................................................................... 34

Appendix A Projected 10-year Capital Renewal and Replacement Works Program ......................... 35

Appendix B Projected Upgrade/Exp/New 10-year Capital Works Program ...................................... 37

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1 EXECUTIVE SUMMARY

1.1 The Purpose of the Plan

Asset management planning is a comprehensive

process to ensure delivery of services from

infrastructure is provided in a financially sustainable

manner.

This asset management plan details information about

infrastructure assets including actions required to

provide an agreed level of service in the most cost-

effective manner whilst outlining associated risks. The

plan defines the services to be provided, how the

services are provided and what funds are required to

provide the services over a 10-year planning period.

This plan covers the infrastructure assets of the

Fleurieu Aquatic Centre (FAC) that provides Fleurieu

Peninsula communities with a modern aquatic and

recreation facility; enhancing the lifestyle and

wellbeing of the area. FAC provides an 8 lane 25m

swimming pool, multi-use program pool and

hydrotherapy pool, outdoor splash park, fitness facility

and child minding.

1.2 Asset Description

These assets include:

Asset category Written down value as at 30

June 2017

Buildings & other

structures

$12,302,737

Furniture & fittings $3,775,515

Plant & equipment $1,129,873

Infrastructure $3,666,703

Total $20,874,828

1.3 Levels of Service


5. Financials


5.2.1 The Constituent Councils will contribute

funds to the Authority as set out in the Budget

adopted by the Authority and approved by the

Constituent Councils.

5.2.2 The Constituent Councils may agree to

provide the Authority with additional funds at any

time on such terms and conditions, if any, as

determined by the Constituent Councils.

Based on the continued provision of financial

contributions from Constituent Councils, funding

levels will be sufficient to provide existing services at

current levels in the medium term.

1.4 Future Demand

The main demands for new services are created by:

• Customers

• Constituent Council requirements

These will be managed through a combination of

managing existing assets, upgrading of existing assets

and providing new assets to meet demand and

demand management. Demand management

practices include non-asset solutions, insuring against

risks and managing failures.

1.5 Lifecycle Management Plan

What does it Cost?

The projected outlays necessary to provide the

services covered by this Asset Management Plan

(AMP); including operations, maintenance, renewal

and upgrade of existing assets over the 10-year

planning period; is $6,993,000 or $699,000 on average

per year.

[Author note: Data to be updated in line with final LTFP

projections.

1.6 Financial Summary

What we will do

Estimated available funding for this period is

$6,981,000 or $698,000 on average per year as per

the Long Term Financial Plan (LTFP) or budget

forecast. This is 100% of the cost to sustain the current

level of service at the lowest lifecycle cost.


projections. Figures derived from same data and Councils

collectively meet any funding shortfall; therefore, figures

should be the same – confirm and update once LTFP figures

finalised]

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The infrastructure reality is that only what is funded in

the LTFP can be provided. The emphasis of the AMP is

to communicate the consequences that this will have

on the service provided and risks, so that decision

making is informed.

The allocated funding leaves a shortfall of $-1,000 on

average per year of the projected expenditure

required to provide services in the AMP compared

with planned expenditure currently included in the

LTFP. This is shown in the figure below.


projections. In line with comment above figure should be

zero]

Projected Operating and Capital Expenditure

[Author note: Graph to be updated with final LTFP data]

Figure Values are in current (real) dollars.

We plan to provide aquatic services for the following:

• Operation, maintenance, renewal and upgrade to

our assets to meet service levels set in annual

budgets.

• Carry out annual inspections to ensure that they

align with the condition assessments, renewal and

new/upgrade plans within the 10-year planning

period.

Quality

Buildi g assets ill e ai tai ed i a fit fo pu pose condition. Defects found or reported that are outside

of the service standard will be repaired.

Function

Building asset attributes will be maintained at a safe

level and associated signage and equipment will be

provided as needed to ensure public safety. The

following key functional objectives will be met:

• Building assets will be managed in an efficient

and cost-effective manner

• Facilities will be suitable for their intended

use and meet user requirements

• Annual budgets will be provided for asset

renewal in line with forecast rate of

consumption

Safety

The building is inspected regularly for remedial

maintenance and structural integrity.

The key objective is to be proactive in managing risks

and public liability.

What we cannot do

Works and services that cannot be provided under

present funding levels are:

• Create new services and provide new assets

without impacting on budgets

Managing the Risks

Our present funding levels are sufficient to continue to

manage risks in the medium term.

1.7 Asset Management Practices

Our systems to manage assets include:

• Information prepared by consultants Rider

Levett Bucknall 2017

• Asset register ongoing maintenance (in

Microsoft Excel)

Assets requiring renewal/replacement are identified

from one of three methods provided in the

E pe ditu e Te plate .

Method 1 uses Asset Register data to project the

renewal costs using acquisition year and useful life to

determine the renewal year; or

Method 2 uses capital renewal expenditure

projections from external condition modelling

systems; or

Method 3 uses a combination of average network

renewals plus defect repairs in the Renewal Plan and

Defect Repair Plan worksheets on the E pe ditu e te plate .

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Method 3 was used for this AMP.

1.8 Monitoring and Improvement

Program

The next steps resulting from this asset management

plan to improve asset management practices are:

• Develop long term financial targets cognisant

of the funding requirements of this plan

• Undertake improvements highlighted in table

8.1 of this plan

• Undertake further work as required to

quantify the desired levels of service

• Continue to explore options to reduce energy

consumption and costs.

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2. INTRODUCTION

2.1 Background

This AMP communicates the actions required for the responsive management of assets (and services provided from

assets), compliance with regulatory requirements, and funding needed to provide the required levels of service over a

10-year planning period.

The AMP is to be read in conjunction with the following Authority planning documents:

• Strategic Plan 2018-2027

• Long Term Financial Plan 2018-2027

• Asset Accounting Policy

• Disposal of Land & Assets Policy

• Three Year Business Plan

The assets covered by this AMP are shown in Table 2.1. These assets are used to provide the following services:

• Learn to swim

• Physical recreation activity to promote health and wellbeing

• Sports and competitive activity

• Leisure and play activity beneficial to families and children

• Recreation activity available to all ages and abilities

Table 2.1: Assets covered by this Plan

Asset Category Replacement Value Written Down Value 30 June 2017

Building & other structures $12,407,742 $12,302,737

Furniture & Fittings $3,818,733 $3,775,515

Plant & equipment $1,147,485 $1,129,873

Infrastructure $3,694,601 $3,666,703

TOTAL $21,068,561 $20,874,828

2.2 Goals and Objectives of Asset Ownership

Our goal in managing infrastructure assets is to meet the defined level of service (as amended from time to time) in

the most cost effective manner for present and future consumers. The key elements of infrastructure asset

management are:

• Providing a defined level of service and monitoring performance;

• Managing the impact of growth through demand management and infrastructure investment;

• Taking a lifecycle approach to developing cost-effective management strategies for the long-term that meet

the defined level of service;

• Identifying, assessing and appropriately controlling risks; and

• Linking to a LTFP which identifies required, affordable expenditure and how it will be allocated.

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2.3 Core and Advanced Asset Management

This AMP is prepared as a core AMP over a 10 year planning period in accordance with the International

Infrastructure Management Manual1. Core asset management is a top down approach where analysis is applied at

the system or network level. An advanced asset management approach uses a bottom up approach for gathering

detailed asset information for individual assets.

3. LEVELS OF SERVICE

3.1 Customer Research and Expectation

The construction of FAC was funded by the Constituent Councils with funding support from the Federal Government

a d the State Go e e t s Co u it , Re eatio a d Spo t Fa ilities P og a . The ai of the State Government

funding program is to support the strategic objective of increasing the proportion of South Australians participating in

sport or physical recreation at least once per week to 50% by 2020. The federal government funding was provided for

'the provision of an indoor aquatic centre to provide health, sport and recreation facilities for the growing communities

around Victor Harbor and Goolwa'.

The provision of an aquatic centre at or near the City of Victor Harbor had been supported in a number of studies

undertaken between 2001 and 2011. In summary, all reports resulting from these studies had identified the

establishment of an aquatic centre as a service which should be available to southern Fleurieu Peninsula communities.

A business case was undertaken by the Constituent Councils in 2013 in respect of establishing a regional aquatic

centre which incorporated a health and fitness studio. The business case examined population trends and anticipated

demand for a regional aquatics facility, the aquatic and health and fitness markets relevant to a regional aquatic

centre and the financial viability of a regional aquatic centre. The Business Case concluded that a regional aquatic

facility would operate at a loss in each of the first five years of operation and would require a subsidy from the

Constituent Councils. To meet their obligations under section 48 of the LG Act, the Constituent Councils commissioned

a prudential review in respect of the establishment of an aquatic centre.

Future revisions of the AMP will incorporate community consultation on service levels and costs of providing the

service. This will assist the Authority and stakeholders in matching the level of service required, service risks and

consequences with the community s ability and willingness to pay for the service.

Table 3.1: Community Satisfaction Survey Levels

Performance Measure Satisfaction Level

Very

Satisfied

Fairly

Satisfied

Satisfied Somewhat

satisfied

Not

satisfied

Number of customers satisfied with the

facilities

√

Number of customers satisfied with the

service provided

√

This a continuous measure of the offered facilities and service provided; over the next two years a higher degree of

results will be known.

1 IPWEA, 2015, IIMM.

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3.2 Strategic and Corporate Goals

This AMP is prepared line with the direction set by the Authority in its Strategic Plan 2018-2027.

Our vision: Fleurieu Aquatic Centre is an inclusive destination that contributes to a healthy regional community.

Our mission: We are an independent governing body that directs the delivery of a regional indoor aquatic centre.

Relevant Strategic Plan goals and outcomes and how these are addressed in this AMP are:

Table 3.2: Goals and how these are addressed in this Plan

Goal Outcomes How Goal and Outcomes are

addressed in AMP

To maintain community

participation and enthusiasm

for FAC

FAC is a valued and well utilised community

destination for users of all ages and abilities

FAC facilities, services and programs cater for and

promote healthy communities and active

lifestyles through social and recreational activity

By providing a sustainable

community facility aligned to

our annual budget and LTFP

To foster and maximise social

inclusion

FAC is managed to ensure user safety and caters

for the needs of the whole community

FAC is considerate of specific social and disability

needs

FAC is perceived by the community as a

el o i g a d safe o u it pla e' fo recreation and social interaction




To care for, protect and

improve FAC in line with

changing community needs

FAC is managed and maintained at agreed service

levels and in line with the Asset Management Plan

FAC facilities, services and programs meet the

needs of the community and expectations of

constituent Councils

FAC environmental impact is minimised




To, as far as possible, be

financially self-sufficient

Delivery of agreed levels of service to existing and

future FAC users in the most efficient and cost-

effective way




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3.3 Legislative Requirements

As a local government regional subsidiary, the Authority has to meet many statutory requirements of both National

and State legislation. These include:

Table 3.3: Legislative Requirements

Legislation Requirement

Local Government Act 1999 Sets out role, purpose, responsibilities and powers of local governments

including the preparation of a LTFP supported by Infrastructure and Asset

Management Plans for sustainable service delivery.

Development Act 1993 An Act that regulates development in South Australia in the design and use of

land and buildings.

Environmental Health Act An Act that regulates responsibilities in maintaining public health.

Environment Protection Act An Act that covers the protection of the environment

South Australia Work Health and

Safety Act 2012

South Australia Work Health and

Safety Regulations 2012

An Act and Regulations that provides for the Health, Safety and Welfare of

Workers.

Disability Discrimination Act 1992 An Act that provides for the non-discrimination of people based on a disability.

Electrical Wiring Code AS3000 States the management and maintenance of electrical installations.

Relevant Australian & International

Standards

International Standards

Other relevant standards applicable to buildings.

Building Code of Australia 2014 States the minimum requirements for the design, construction and

maintenance of buildings.

Royal Lifesaving – Guidelines for

Safe Pool Operation

Guideline for safe pool staffing and operations to ensure public safety.

SA Health Department Legislative requirements to manage water quality and safe food preparation.

SA Water Requirements for safe discharging and refilling of pool water and backwash

water.

Mutual Liability Scheme Sets out role, purpose, responsibilities of local government entities in

managing risk and liabilities.

Other relevant State and Federal

Acts and Regulations

As appropriate

3.4 Customer Levels of Service

Service levels are defined in two terms; customer levels of service and technical levels of service. These are

supplemented by organisational measures.

Customer Levels of Service measure how the customer receives the service and whether value to the customer is

provided.

Customer levels of service measures used in the AMP are:

Quality How good is the service … what is the condition or quality of the service?

Function Is it suitable fo its i te ded pu pose …. Is it the right service?

Capacity/Use Is the service over or under used … do we need more or less of these assets?

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The current and expected customer service levels are detailed in Tables 3.4 and 3.5. Table 3.4 shows the expected

levels of service based on resource levels in the current LTFP.

Organisational measures are measures of fact related to the service delivery outcome e.g. number of occasions when

service is not available, condition % s of Very Poor, Poor/Average/Good, Very good.

These Organisational measures provide a balance in comparison to the customer perception that may be more

subjective.

Table 3.4: Customer Level of Service

Expectation Performance

Measure Used

Current Performance Expected Position in

10 Years based on

the current budget.

Service Objective: Customer Satisfaction Survey

Quality • Facilities are maintained

properly

• Service provided to the

community meets

expectations

• Facilities are at a quality

or standard suitable for

their purpose

• Customer

Survey

• Customer

requests

• Number of

complaints

received

Yet to be measured.

Planned over the next

2 years

90% high to very

highly satisfied

Function • Facilities are suitable for

intended use

• Facilities meet the needs

of users and provide

opportunity for aquatic

based recreation

activities and learn to

swim programs

• Easy to access

• Fit for their use,

recreation or

competition

• Analysis of

Customer

Service

Requests

relating to

functionality

• Customer

Survey

Yet to be measured

Planned over the next

2 years

At least 85% of

respondents rate

their satisfaction

with facilities as fairly

satisfied or better, in

surveys of customers

Safety Safe, user and worker friendly

building and facilities

Incidents per

1000 visits

Facility Hazard

Inspections

Number of

reported injuries

with associated

insurance claims

Less than 1 incident

per 1000 visits

(reported monthly)

Facility Hazard

Inspection completed

monthly and any non-

conformances

addressed in a timely

manner

Less than 1 incident

per 1000 visits

Electronic audit

completed monthly;

report provided; any

non-conformances

addressed in a timely

manner

Building fire safety and

security systems maintained

Regular servicing

of firefighting

equipment,

emergency

lighting and

security systems

100% servicing

carried out in

accordance with

building standards

100% servicing

carried out in

accordance with

building standards

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Maintaining the quality of the

pool water

Regular servicing

and testing of

plant and water

quality

100% servicing

carried out in

accordance with

health regulations

and relevant

standards

100% servicing

carried out in

accordance with

health regulations

and relevant

standards

Capacity and

Use

Grow member numbers year

on year

Grow annual attendance

Number of

members

Annual

attendance

Membership as at 30

June 2017 was 770

Annual targets set

2017/18 targets:

• Membership 850

• Annual

attendance

187,259 visits

Responsiveness Adequately respond to

requests and complaints

Meet reasonable response

times

Respond to

complainant

within agreed

timeframe

95% of requests and

complaints

completed within

agreed timeframe

95% of requests and

complaints

completed within

agreed timeframe

Compliance Compliance with Building

Code of Australia and related

legislative/ technical

standards (structural

adequacy, access / egress,

firefighting, lighting &

ventilation.

All new work and

significant

refurbishment to

comply with

current standards

Water quality to

comply with

required

standards.

Work carried out in

accordance with

building standards

Water quality

compliant with health

regulations and

relevant standards

Development Act

approval and

compliance with

Building Code of

Australia

Accessibility Disability accessible facilities

provided

Complaints

received

Disability Action Plan

developed to address

any access issues

Less than five

complaints per year

Disability Action Plan

developed

Less than five

complaints per year

Signage and information

meets corporate standards

Regular survey of

signage

Annual review Annual review

Capacity/

Utilisation

Sufficient facilities available

for use for the number of

users

Not overused

Analysis of

Customer Service

Requests

Customer Survey

Yet to be measured At least 85% of

respondents rate

their satisfaction

with FAC facilities as

fairly satisfied or

better, in annual

surveys of customers

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3.5 Technical Levels of Service

Technical Levels of Service - Supporting the customer service levels are operational or technical measures of

performance. These technical measures relate to the allocation of resources to service activities to best achieve the

desired customer outcomes and demonstrate effective performance.

Technical service measures are linked to the activities and annual budgets covering:

• Operations – the regular activities to provide services (e.g. opening hours, cleaning, mowing grass, energy,

inspections, etc.)

• Maintenance – the activities necessary to retain an asset as near as practicable to an appropriate service

condition. Maintenance activities enable an asset to provide service for its planned life (e.g. building and

structure repairs)

• Renewal – the activities that return the service capability of an asset up to that which it had originally (e.g.

road resurfacing and pavement reconstruction, pipeline replacement and building component replacement)

• Upgrade/New – the activities to provide a higher level of service (e.g. replacing a pipeline with a larger size)

or a new service that did not exist previously.

Service and asset managers plan, implement and control technical service levels to influence the customer service

levels.2

Table 3.5 shows the technical levels of service expected to be provided under this AMP. The Desired position in the

table documents the position being recommended in this AMP.

Table 3.5: Technical Levels of Service

Service

Attribute

Service Activity

Objective

Activity Measure

Process

Current Performance * Desired for Optimum

Lifecycle Cost **

Legislative

compliance

Compliance Compliance Audit 100% Compliance 100% Compliance

Quality Building and

facilities

maintained at

least cost and

greatest usage

Condition

Assessment

Condition rating <1 Condition rating <2

Quantity Meet

community

needs within

limits of

affordability

Assess needs

against demand

and

ability to fund

High Standards Provided Adequate facilities within

budgetary constraints

Reliability /

availability

Asset condition

and fit-for-

purpose

Condition

Assessment

Condition assessment <1 Condition assessment <2

Function Facilities meet

user

requirements

Condition

Assessment

Customer Request

System

Condition assessment <1 Condition assessment <2

2 IPWEA, 2015, IIMM, p 2|28.

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Service

Attribute

Service Activity

Objective

Activity Measure

Process

Current Performance * Desired for Optimum

Lifecycle Cost **

Operations Inspections

Opening hours

Cleanliness

Provision of

power and

operational

services

Scheduled,

documented

record of

inspections

Any hazards

managed

Compliance with

regulations

Requirements per

Management Agreement

for Operational Managers

are being met

Requirements per

Management Agreement

for Operational Managers

are being met

Budget Asset Renewal

Funding Ratio 100%

Asset Renewal

Funding Ratio 100%

Maintenance Maintenance

and

Replacement

Programs

Compliance with

Industry Standard

Preventative Maintenance

Plan developed

Preventative Maintenance

Plan implemented

Budget Asset Renewal Funding

Ratio 100%

Asset Renewal Funding

Ratio 100%

Renewal Frequency

Identified

renewal works

can be

completed

Monitor Condition

Replace when

agreed standards

are not met

Replace at the age

determined to

meet minimum

service standard

Capital works program and

LTFP developed to deliver a

satisfactory service

standard.

Identified capital works

have been included in the

LTFP

Verification and

improvement of the Asset

Register

Assets renewed in line with

this plan and LTFP

Asset Register maintained

and accurate

Budget Asset Renewal Funding

Ratio 100%

Asset Renewal Funding

Ratio 100%

Upgrade/New

Upgrade / new

assets to

maintain service

levels

Budget Aligned with Asset

Management Plan and LTFP

Aligned with Asset

Management Plan and LTFP

Requests for upgrade / new

assets considered by

Authority Board and

constituent Councils on a

case by case basis

Note: * Current activities and costs (currently funded)

It is important to regularly monitor the service levels provided, as these will change. The current performance is

influenced by work efficiencies and technology, and customer priorities will change over time. Review and

establishment of the agreed position which achieves the best balance between service, risk and cost is essential.

Desired levels of service

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At present, indications of desired levels of service are obtained from various sources including feedback to Councils,

the Authority and centre staff, service requests and correspondence. The Authority has yet to quantify desired levels

of service. This will be done in future revisions of this Asset Management Plan.

4. FUTURE DEMAND

4.1 Demand Drivers

Drivers affecting demand include things such as population change, regulations, changes in demographics, seasonal

factors, consumer preferences and expectations, technological changes, economic factors, industry changes,

environmental awareness, etc.

4.2 Demand Forecasts

The present position and projections for demand drivers that may impact future service delivery and use of assets

were identified and are documented in Table 4.3.

Population growth generally leads to intensification of the use of existing facilities.

For FAC activity, the key drivers influencing growth and the demand are:

• community expectations (levels of service); and

• an increasing and ageing population.

The changing pattern of the demographics, particularly the ageing population, along with community expectations will

impact on use and management of FAC. The demand for informal recreation opportunities may increase over time.

With regards to aquatic activities, this may result in more emphasis on leisure and fun activities compared to

traditional lane swimming. Additional infrastructure may be required to cater for the ageing population.

It is intended to manage the facilities at FAC within the capability of the existing assets rather than cater for the

population growth. There are no growth-related projects included in the 10-year forecast.

4.3 Demand Impact on Assets

The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 4.3.

Table 4.3: Demand Drivers, Projections and Impact on Services

Demand factor Present position Projection Impact on services

Population City of Victor Harbor –

14176

Alexandrina Council

forecast 2018 - 27,316

City of Victor Harbor - 21,231 in 2031

Alexandrina Council - 32,668 in 20313

Increase in demand for

services

Demographics Increase in population

is expected to occur

mainly in the older

demographic of 65+

The increase in population is expected to

occur mainly in the older demographic of

65+

The infrastructure will

increasingly have to cater

for additional usage by

supplying new and

renewal of assets

Increasing Increased energy costs Increased concern regarding water usage Increased operational

3 https://forecast.id.com.au/alexandrina

90

https://forecast.id.com.au/alexandrina

- 16 -

utility costs through level of

consumption and cost

of supply

and electricity consumption. There is a need

to focus on ways to cost effectively improve

building assets to minimise power and water

usage. Expect to impact on operational

costs.

budgets.

Legislative

Change

Legislative compliance The Authority strives to meet the legislative

standards that apply to FAC. Increased

expenditure may be required to ensure

compliance with any change to the

regulations surrounding water quality

standards or health and safety legislation.

Increased operational

budgets.

4.4 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets, upgrading of existing

assets and providing new assets to meet demand and demand management. Demand management practices can

include non-asset solutions, insuring against risks and managing failures.

Opportunities identified to date for demand management are shown in Table 4.4. Further opportunities will be

developed in future revisions of this AMP.

Table 4.4: Demand Management Plan Summary

Demand Driver Impact on Services Demand Management Plan

Community group pool

hire

Reduced number of lanes

available to general public for

lane swimming

Manage usage levels and scheduling to ensure minimum

number of lanes available to public to meet needs

Allied health practitioner

pool hires

Potential congestion in

hydrotherapy pool

Manage usage levels and scheduling to ensure adequate

availability for public access to meet needs

Swim school Maximum capacity reached Review program and capabilities. Change configuration

of pool lane layout to create further opportunities

School pool hire Reduced number of lanes

available to general public for

lane swimming

Review hire agreements and pool space availability to

schools to enhance usage

Birthday parties Maximum capacity reached Increase capability of program through pool space

availability and adjusting times of program

Group fitness Maximum capacity reached Increase capability of program through pool / gym space

availability, addition of classes and adjusting times of

program

Gym Maximum capacity reached Monitor need for additional equipment to be added

(within space and group fitness program limitations)

Creche Maximum capacity reached Review program and capabilities

Regulation Increased cost to deliver

services

Health and Building Code requirements need to be met

Education Management of risk Education on pool safety

Expectation of the need

for new assets

Increased service level Utilisation and demand to be monitored. Requests for

upgrade / new assets (and resultant increase in service

levels) to be considered by the Authority Board on a case

by case basis

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- 17 -

4.5 Asset Programs to meet Demand

The new assets required to meet demand can be acquired, donated or constructed. Additional assets are discussed in

Section 5.5. The summary of the cumulative value of additional asset is shown in Figure 1.

Figure 1: Upgrade and New Assets to meet Demand – (Cumulative)


Acquiring these new assets will commit the organisation to fund ongoing operations, maintenance and renewal costs

for the period that the service provided from the assets is required. These future costs are identified and considered

in developing forecasts of future operations, maintenance.

5. LIFECYCLE MANAGEMENT PLAN

The lifecycle management plan details how the Authority plans to manage and operate the assets at the agreed levels

of service (defined in Section 3) while managing life cycle costs.

5.1 Background Data

5.1.1 Physical parameters

The assets covered by this AMP are shown in Table 2.1.

Asset Category Replacement Value Written Down Value 30 June 2017

Building & other structures $12,407,742 $12,302,737

Furniture & Fittings $3,818,733 $3,775,515

Plant & equipment $1,147,485 $1,129,873

Infrastructure $3,694,601 $3,666,703

TOTAL $21,068,561 $20,874,828

Construction of the Centre was completed on 14 March 2017.

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5.1.2 Asset capacity and performance

Assets are generally provided to meet design standards where these are available.

FAC is a newly constructed facility (completed in March 2017). Construction defects are being resolved with

contractors and any design challenges are being noted for potential future consideration if required.

There are currently no known deficiencies in service performance.

5.1.3 Asset condition

Condition is monitored in accordance with methods developed by IPWEA outlined in the International Infrastructure

Management Manual (IIMM).

As the centre was newly constructed in March 2017, all assets are considered to be in Condition Rating 1.

Condition is measured using a 1 – 5 grading system4 as detailed in Table 5.1.3.

Table 5.1.3: Simple Condition Grading Model

Condition

Grading

Description of Condition

1 Very Good: only planned maintenance required

2 Good: minor maintenance required plus planned maintenance

3 Fair: significant maintenance required

4 Poor: significant renewal/rehabilitation required

5 Very Poor: physically unsound and/or beyond rehabilitation

5.2 Operations and Maintenance Plan

FAC is operated under contract by YMCA SA which is responsible for ensuring the facilities are adequately maintained

and safely operated.

Operations include regular activities to provide services such as public health, safety and amenity, e.g. cleaning, pool

water management, utilities costs and lighting.

Routine maintenance is the regular on-going work that is necessary to keep assets operating, including instances

where portions of the asset fail and need immediate repair to make the asset operational again.

Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service

condition including regular ongoing day-to-day work necessary to keep assets operating.

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned

repair work carried out in response to service requests and management/supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system

(MMS). MMS activities include inspection, assessing the condition against failure/breakdown experience, prioritising,

scheduling, actioning the work and reporting what was done to develop a maintenance history and improve

maintenance and service delivery performance.

Cyclic maintenance is replacement of higher value components/sub-components of assets that is undertaken on a

regular cycle including repainting, building roof replacement, etc. This work generally falls below the

capital/maintenance threshold.

4 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80.

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- 19 -

Maintenance expenditure is shown in Table 5.2.1.

Table 5.2.1: Maintenance Expenditure Trends

Year Maintenance Budget $

2016-17 (Mar-Jun) $1,817

2017-18 $18,476

Planned maintenance work forms the majority of the maintenance budget. Being a new site, the reactive maintenance

is expected to be minimal in the forthcoming years. Maintenance expenditure levels are considered to be adequate to

meet required service levels.

Future revision of this AMP will include linking required maintenance expenditures with required service levels.

Assessment and prioritisation of reactive maintenance is undertaken by Centre staff and specialised contractors by

using experience and judgement.

Standards and specifications

Maintenance work is carried out in accordance with the Building Code of Australia, relevant standards and industry

practice. The Authority (via the contracted operational manager of the centre) also engages contractors to carry out

maintenance works under specific contract agreements.

Summary of future operations and maintenance expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the asset stock as shown

in Figure 4. Note that all costs are shown in current 2018 dollar values (i.e. real values).

Figure 4: Projected Operations and Maintenance Expenditure


94

- 20 -

Figure Values are in current (real) dollars

Maintenance is funded from the operating budget where available. This is further discussed in Section 7.

The YMCA asset management system includes –

• Internal audits

• Preventative and responsive maintenance strategies

• Reporting – site specific / organisational

Internal Audits - YMCA Maintenance Audit

The YMCA maintenance audit is a comprehensive assessment of the physical quality and condition of the facility and

its equipment. The audit is undertaken on a regular basis (six monthly), and documents the frequency for each

maintenance/equipment replacement item. It includes the maintenance responsibilities as described in the

Management Agreement, itemising the specific inspection required for each piece of equipment/area.

YMCA preventative maintenance schedule

The preventative maintenance schedule is driven primarily from the asset register. Within the register, assets required

to undergo routine preventative maintenance are marked and added to the preventative maintenance schedule. The

schedule includes monthly, quarterly, bi-annual and annual services as per asset requirements to ensure the longevity

of all items. All preventative maintenance schedules are signed off on a monthly basis by the Centre Manager.

YMCA corrective and responsive action program

This is a purpose built database that identifies items that are the responsibility of both the Authority and YMCA at the

facility. This database monitors and reports on improvement items as they arise. As a minimum, the database will

include improvement actions arising from:

• Non programmed maintenance requests

• Non-conformance items

• Outstanding items from monthly quality assurance audits

• Monthly hazard inspections

• Royal Life Saving Society audits.

As improvement actions arise, they are logged immediately into the database by FAC staff.

YMCA s ope o u i atio st ateg , i additio to the fo al epo ti g s hedule, ill e su e that the Autho it Executive Officer is aware of identified improvement issue(s) investigations and actions. Reports will be produced and

discussed at bi-monthly maintenance meetings or at contract monitoring meetings held between the Authority and

the YMCA. While monitoring, reporting and providing on time response to improvement items, the system also assists

in providing an audit trail to ensure items are reported as completed. Reports can be provided to demonstrate a

continuous improvement system is in place, rectifying issues as they arise.

5.3 Renewal/Replacement Plan

Renewal and replacement expenditure is major work which does not increase the asset s design capacity but restores,

rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an

asset to original service potential is considered to be an upgrade/expansion or new work expenditure resulting in

additional future operations and maintenance costs.

Assets e ui i g e e al/ epla e e t a e ide tified f o o e of th ee ethods p o ided i the E pe ditu e Te plate .

• Method 1 uses Asset Register data to project the renewal costs using acquisition year and useful life to

determine the renewal year, or

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- 21 -

• Method 2 uses capital renewal expenditure projections from external condition modelling systems (such as

Pavement Management Systems), or

• Method 3 uses a combination of average network renewals plus defect repairs in the Renewal Plan and

Defe t Repai Pla o ksheets o the E pe ditu e te plate .

Method 3 was used for this AMP.

5.3.1 Renewal ranking criteria

Asset renewal and replacement is typically undertaken to either:

• Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate, or

• To ensure the infrastructure is of sufficient quality to meet the service requirements.5

It is possible to get some indication of capital renewal and replacement priorities by identifying assets or asset groups

that:

• Have a high consequence of failure,

• Have high use and subsequent impact on users would be greatest,

• Have a total value representing the greatest net value,

• Have the highest average age relative to their expected lives,

• Are identified in the AMP as key cost factors,

• Have high operational or maintenance costs, and

• Have replacement with a modern equivalent asset that would provide the equivalent service at a savings.6

The ranking criteria used to determine priority of identified renewal and replacement proposals is detailed in Table

5.3.1.

Table 5.3.1: Renewal and Replacement Priority Ranking Criteria

Criteria Weighting

Structural defect/legislative requirement 50%

Condition of asset (good, fair,

poor)/Amenity (comfort/ aesthetic)

35%

Usage of building (high, medium, low) 15%

Total 100%

Re e al ill e u de take usi g lo - ost e e al ethods he e p a ti al. The ai of lo - ost e e als is to

restore the service potential or future economic benefits of the asset by renewing the assets at a cost less than

replacement cost.

5.3.2 Summary of future renewal and replacement expenditure

Projected future renewal and replacement expenditures are forecast to increase over time when the asset stock

increases. The expenditure required is shown in Fig 5. Note that all amounts are shown in current (real) dollars.

The projected capital renewal and replacement program is shown in Appendix B.

5 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 6 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97.

96

- 22 -

Fig 5: Projected Capital Renewal and Replacement Expenditure



Renewals and replacement expenditure in the capital works program will be accommodated in the LTFP. This is

further discussed in Section 7.

5.4 Creation/Acquisition/Upgrade Plan

New works are those that create a new asset that did not previously exist, or works which will upgrade or improve an

existing asset beyond its existing capacity. They may result from growth, social or environmental needs. Assets may

also be acquired at no cost. These additional assets are considered in Section 4.5.

Future new capital works will be considered on the ability to reduce operating expenditure for FAC or enhance user

experiences.

5.4.1 Selection criteria

New assets and upgrade/expansion of existing assets are identified from various sources such as community requests,

proposals identified by strategic plans or partnerships with others. Candidate proposals are inspected to verify need

and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and available funds and

scheduled in future works programs. The priority ranking criteria is detailed below.

Table 5.4.1: New Assets Priority Ranking Criteria

Criteria Weighting

Public need 30%

Risks (residual high or extreme risks) 20%

Utilisation 20%

Financial impact -whole of life costing analysis

considered

30%

Total 100%

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- 23 -

5.4.2 Summary of future upgrade/new assets expenditure

Projected upgrade/new asset expenditures are summarised in Fig 6. The projected upgrade/new capital works

program is shown in Appendix C. All amounts are shown in real values.

Fig 6: Projected Capital Upgrade/New Asset Expenditure



Expenditure on new assets and services in the capital works program will be accommodated in the LTFP but only to

the extent of the available funds.

5.4.3 Summary of asset expenditure requirements

The financial projections from this asset plan are shown in Fig 7 for projected operating (operations and maintenance)

and capital expenditure (renewal and upgrade/expansion/new assets). Note that all costs are shown in real values.

The bars in the graphs represent the anticipated budget needs required to achieve lowest lifecycle costs, the budget

line indicates what is currently available. The gap between these informs the discussion on achieving the balance

between services, costs and risk to achieve the best value outcome.

Fig 7: Projected Operating and Capital Expenditure

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- 24 -



5.5 Disposal Plan

There are no planned disposals in this plan.

6. RISK MANAGEMENT PLAN

The purpose of infrastructure risk management is to document the results and recommendations resulting from the

periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using

the fundamentals of International Standard ISO 31000:2009 Risk management – Principles and guidelines.

Risk Management is defined in ISO 31000:2009 as: coordinated activities to direct and control with regard to risk 7.

An assessment of risks associated with service delivery from infrastructure assets has identified critical risks that will

result in loss or reduction in service from infrastructure assets or a financial shock . The risk assessment process

identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, develops

a risk rating, evaluates the risk and develops a risk treatment plan for non-acceptable risks.

6.1 Critical Assets

Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of

service. Similarly, critical failure modes are those which have the highest consequences.

7 ISO 31000:2009, p 2

99

- 25 -

Critical assets have been identified and their typical failure mode and the impact on service delivery are as follows:

Table 6.1 Critical Assets

Critical Asset(s) Failure Mode Impact

Main building structure Structural failure to the building

and pools

Public safety risk, reduction in services,

financial cost

Heating, cooling and ventilation

systems for pool complex

Mechanical or electrical failure Reduction in services, increased

operating / capital spend

Water circulation pumps Mechanical or electrical, failure Reduction in services, increased


Chlorination system Mechanical or electrical, failure Reduction in services, increased


Information Technology systems

(Customer Relations Management

system, EFTPOS systems)

System failure including internet,

phone provider, third party IT

providers

Reduction in services, increased


Water supply (amenities, pool

systems)

Plumbing and associated services

failure

Financial Loss or reduction in services

Power supply Electrical failure Financial Loss or reduction in services

By identifying critical assets and failure modes investigative activities, condition inspection programs, maintenance

and capital expenditure plans can be targeted at the critical areas.

6.2 Risk Assessment

The risk management process used is shown in Figure 6.2 below.

It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment

plans and management actions to protect the community against unacceptable risks.

The process is based on the fundamentals of the ISO risk assessment standard ISO 31000:2009.

Fig 6.2 Risk Management Process – Abridged

TREAT RISKS

- Identify options- Assess options- Treatment plans

ANALYSE & EVALUATE RISKS

- Consequences- Likelihood - Level of Risk- Evaluate

IDENTIFY RISKS

- What can happen ?- When and why ?- How and why ?

The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences

should the event occur, develops a risk rating, evaluates the risk and develops a risk treatment plan for unacceptable

risks.

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An assessment of risks associated with service delivery from infrastructure assets has identified the critical risks that

will result in significant loss, financial sho k or a reduction in service.

Critical risks are those assessed with Very High (requiring immediate corrective action) and High (requiring

corrective action) risk ratings. The residual risk and treatment cost after the selected treatment plan is implemented

is shown in Table 6.2. These risks and costs are reported to the Authority Executive Officer and Board.

Table 6.2: Critical Risks and Treatment Plans

Service or Asset

at Risk

What can Happen Risk

Rating

(VH, H)

Risk Treatment Plan Residual

Risk *

Treatment Costs

Centre not to

standard

Centre does not

meet regulatory

standards

High Regularly inspect facilities to

monitor standard and address

any issues.

Monitor industry changes so

that potential changes to

regulatory standards can be

anticipated

Medium Within existing

operational

budgets

Centre does not

satisfactorily

meet user

requirements

Centre not

improved or

funded at a

sufficient level to

meet

requirements

High Council commitments per

Authority Charter ensure

operational funding to meet

service level requirements.

Improvements to FAC

considered on a case by case

basis

Low Within existing

operational

budgets

Main building

structure

Structural failure

to the building and

pools

High Inspections of building and

pools undertaken on regular

basis. Identified structural

failures are reported and

rectified


operational

budgets for

preventative and

reactive

maintenance;

major structural

failure would be

additional capital

expenditure

Electrical

equipment/

fixtures

Electrical

equipment/

fixtures failing

High Regular electrical tagging and

testing. Regular RCD testing.

Inspections of outlets and

switches.


operational

budgets for

preventative and

reactive

maintenance

Pools Pool water

contamination

High Undertake a daily water

testing and log results

Low Within existing

operational

budgets

Main building

structure

Fire High Regular servicing of fire

equipment and detection

systems, emergency lighting,

exit doors, path of travel to

exits. Building inspections

procedure. Fire evacuation

drills undertaken. Insurance in

place


operational

budgets for

preventative and

reactive

maintenance

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Service or Asset

at Risk

What can Happen Risk

Rating

(VH, H)

Risk Treatment Plan Residual

Risk *

Treatment Costs

Main building

structure

Inadequate

insurance cover for

buildings and

contents

High Insurance cover is reviewed

annually. Assets are valued for

insurance purposes every five

years

Low Within existing

operational

budgets

Main building

structure

Non-compliance

with DDA, in terms

of accessibility

Medium DDA Action plan for continual

improvement. DDA Internal

monitoring group meets on a

quarterly basis

Low Within existing

operational

budgets

Main building

structure

Security breach Medium Call-out system in place for

response. Security devices in

place (CCTV, monitored

alarms, access cards etc.)

Low Within existing

operational

budgets

Pools Management of

user groups

(casual, permits)

Medium Standard hire agreements.

Fees and charges register in

place

Low Within existing

operational

budgets

Note * The residual risk is the risk remaining after the selected risk treatment plan is operational.

6.3 Infrastructure Resilience Approach

The resilience of our critical infrastructure is vital to our customers and the services we provide. To adapt to changing

conditions and grow over time we need to understand our capacity to respond to possible disruptions and be

positioned to absorb disturbance and act effectively in a crisis to ensure continuity of service.

YMCA, as FAC operational managers, operate and manage the centre in line with the following risk management

documents and plans:

• WHS Risk Management Framework

• Work Health and Safety Policy

• WHS Management System

• Hazard Management Procedure

• Hazard identification, risk assessment & control protocol

• Business Continuity Plan

• Master Risk Control Plan

• Public Health and Safety Plan

• Evacuation, Emergency & Incident Procedures

In particular, the purpose of the YMCA Business Continuity Plan is to ensure the continuation of FAC business during

and following any critical incident that results in disruption to the normal operational capability. The Business

Continuity Plan is a key aspect of the YMCA governance and risk management strategy which focuses on business

continuity risks and responses in the event of a material threat to FAC assets and/or continuing operations

eventuating. The Business Continuity Plan identifies critical business functions, resources and infrastructure which, if

disrupted, would have a material impact on FAC s a ilit to deli e its se i es, as ell as impacting on assets and

operations.

Risks associated with users of FAC facilities are mitigated through compliance with standards and regular inspections

and assessment. The Autho it s risk management strategy in relation to FAC is:

• to maintain and ensure compliance with up to date Health and Safety Plans for all staff and contractors and

manage the contractors response to new Health & Safety issues;

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• to monitor the condition of FAC plant on a regular basis and maintain compliance with water quality

standards;

• that a regular maintenance program is delivered;

• to monitor potential hazards on a regular basis, and to take appropriate action to reduce possible risks by

eliminating, mitigating or isolating the hazard as soon as any potential hazard is identified;

• to monitor the structural aspects of the facility and ensure that they are maintained in a safe and sound

condition that complies with the Building Code of Australia 2014 where required; and

• to monitor the contractors performance against the operations contract.

6.4 Service and Risk Trade-Offs

The decisions made in adopting this AMP are based on the objective to achieve the optimum benefits from the

available resources.

6.4.1 What we cannot do

There are no known operations and maintenance activities and capital projects that are unable to be undertaken

within the next 10 years.

7. FINANCIAL SUMMARY

This section contains the financial requirements resulting from all the information presented in the previous sections

of this AMP. The financial projections will be improved as further information becomes available on desired levels of

service and current and projected future asset performance.

7.1 Financial Statements and Projections

7.1.1 Asset valuations

The best available estimate of the value of assets included in this AMP are shown below. Assets are valued at fair

value.

Gross Replacement Cost $21,068,561

Depreciable Amount $21,068,561

Depreciated Replacement Cost8 $20,874,282

Annual Average Asset Consumption $673,451

7.1.1 Sustainability of service delivery

Two key indicators for service delivery sustainability have been considered in the analysis of the services provided by

this asset category, these being the:

• asset renewal funding ratio 100%

• medium term budgeted expenditures/projected expenditure (over 10 years of the planning period).

8 Also reported as Written Down Value, Carrying or Net Book Value.

Residual Value

Depreciable Amount

Useful Life

Gross Replacement

Cost

End of reporting period 1

Annual Depreciation

Expense

End of reporting period 2

Accumulated Depreciation

Depreciated Replacement

Cost

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Asset Renewal Funding Ratio

Asset Renewal Funding Ratio9 100%

The Asset Renewal Funding Ratio is the most important indicator and indicates that over the next 10 years of the

forecasting that we expect to have 100% of the funds required for the optimal renewal and replacement of assets.

Medium term – 10 year financial planning period

This AMP identifies the projected operations, maintenance and capital renewal expenditures required to provide an

agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding

plans aimed at providing the required services in a sustainable manner.

These projected expenditures may be compared to budgeted expenditures in the 10 year period to identify any

funding shortfall. In a core AMP, a gap is generally due to increasing asset renewals for ageing assets.

The projected operations, maintenance and capital renewal expenditure required over the 10 year planning period is

$695,000 on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $693,000 on average per year giving a 10

year funding shortfall of $-1000 per year. This indicates 100% of the projected expenditures needed to provide the

services documented in the AMP. This excludes upgrade/new assets.

[Author note: To be updated with final LTFP data. These figures should be the same i.e. difference of zero]

Providing services from infrastructure in a sustainable manner requires the matching and managing of service levels,

risks, projected expenditures and financing to achieve a financial indicator of approximately 1.0 for the first years of

the AMP and ideally over the 10-year life of the LTFP.

7.1.2 Projected expenditures for LTFP

Table 7.1.2 shows the projected expenditures for the 10 year long term financial plan.

Expenditure projections are in 2018 real values.

Table 7.1.2: Projected Expenditures for LTFP ($000)

[Author note: To be updated with final LTFP data.]

Year Operations Maintenance Projected Capital

Disposals Capital Renewal Upgrade/New

2018 $650.00 $18.00 $0.00 $0.00 $0.00

2019 $600.00 $59.00 $2.00 $44.00 $0.00

2020 $569.23 $67.14 $0.00 $3.00 $0.00

2021 $577.31 $69.15 $2.00 $0.00 $0.00

2022 $572.31 $71.15 $36.00 $0.00 $0.00

2023 $574.31 $73.15 $17.00 $0.00 $0.00

2024 $577.31 $74.15 $70.00 $0.00 $0.00

2025 $581.31 $76.15 $144.00 $0.00 $0.00

2026 $588.31 $78.15 $0.00 $0.00 $0.00

2027 $592.31 $80.15 $126.00 $0.00 $0.00

2028 $588.51 $66.65 $39.70 $4.70 $0.00

2029 $588.64 $66.66 $39.70 $4.70 $0.00

2030 $588.77 $66.68 $39.70 $4.70 $0.00

2031 $588.90 $66.69 $39.70 $4.70 $0.00

9 AIFMM, 2015, Version 1.0, Financial Sustainability Indicator 3, Sec 2.6, p 9.

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2032 $589.03 $66.71 $39.70 $4.70 $0.00

2033 $589.17 $66.72 $39.70 $4.70 $0.00

2034 $589.30 $66.74 $39.70 $4.70 $0.00

2035 $589.43 $66.75 $39.70 $4.70 $0.00

2036 $589.56 $66.77 $39.70 $4.70 $0.00

2037 $589.69 $66.78 $39.70 $4.70 $0.00

7.2 Funding Strategy

Funding for assets is set out in the budget and LTFP.

The financial strategy of the Authority determines how funding will be provided, whereas the AMP communicates

how and when this will be spent, along with the service and risk consequences of differing options.

7.3 Valuation Forecasts

Asset values are forecast to decrease as additional assets are added.

Additional assets will generally add to the operations and maintenance needs in the longer term, as well as the need

for future renewal. Additional assets will also add to future depreciation forecasts.

7.4 Key Assumptions Made in Financial Forecasts

This section details the key assumptions made in presenting the information contained in this AMP. It is presented to

enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this AMP are:

Table 7.4: Key Assumptions and Risks of Change

Assumption

Type

Assumption Discussion

Financial

assumptions

That all expenditure has been stated

in 2018 dollar values and no allowance

has been made for inflation over the

10-year planning period.

The LTFP will incorporate inflation factors. This could

have a significant impact on the affordability of the plans

if inflation is higher than allowed for.

FRAC Assets will remain in Authority

ownership throughout the planning

period

No change to asset ownership is anticipated during the

planning period

Asset capital costs are based on

consultant assessment of renewals /

replacement needs.

Assumptions have been made with useful lives and

remaining lives of the asset groups based on consultant

assessment. These are based on straight line depreciation

methodology.

Changes in the desired level of service

and service standards from those

identified in this AMP

No change to service levels are anticipated during the

planning period

Asset data

knowledge

That the Authority has sufficient

knowledge of the assets and their

condition so that the planned renewal

work will allow the Authority to meet

its levels of service.

There are several areas where the Authority needs to

improve its knowledge and assessments but there is a low

risk that the improved knowledge will cause a significant

change to the level of expenditure required.

Funding That FAC will continue to be Constituent Councils acknowledge that FAC will require an

105

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sources subsidised by Constituent Councils. ongoing subsidy to ensure that the facilities are available

for public use at fees which are competitive with other

like facilities. Opportunities to reduce the level of subsidy

will continue to be explored by the Authority.

Changes in

legislation and

policy

That there will be no significant

changes in legislation or policy.

The risk of major change is moderate due to the changing

nature of government. If major changes occur it is likely

to have an impact on the required expenditure. The

Authority has not mitigated the effect of this.

Deprecation

Combined annual contributions from

constituent Councils. Figures exclude

depreciation.

Depreciation not included.

7.5 Forecast Reliability and Confidence

The expenditure and valuation projections in this AMP are based on best available data. Currency and accuracy of

data is critical to effective asset and financial management. Data confidence is classified on a 5 level scale10 in

accordance with Table 7.5.

Table 7.5: Data Confidence Grading System

Confidence

Grade

Description

A. Highly

Reliable

Data based on sound records, procedures, investigations and analysis, documented properly and

agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2%

B. Reliable Data based on sound records, procedures, investigations and analysis, documented properly but

has minor shortcomings, for example some of the data is old, some documentation is missing

and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and

estimated to be accurate ± 10%

C. Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete or

unsupported, or extrapolated from a limited sample for which grade A or B data are available.

Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ±

25%

D. Very

Uncertain

Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset

may not be fully complete and most data is estimated or extrapolated. Accuracy ± 40%

E. Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this AM Plan is considered to be Reliable.

10 IPWEA, 2015, IIMM, Table 2.4.6, p 2|71.

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8. PLAN IMPROVEMENT AND MONITORING

8.1 Status of Asset Management Practices11

8.1.1 Accounting and financial data sources

The Authority uses MYOB Account Right Accounting software.

The Australian Accounting Standards provide the benchmark against which the Authority reports on asset accounting.

Additions or replacements to the Building Stock are capitalised as follows:

• $1,000 for furniture, fittings and minor equipment; and

• $5,000 for plant, major equipment, buildings and infrastructure.

There are no changes to accounting systems as a resulting from this AMP.

8.1.2 Asset management data sources

The Authority does not have a separate Asset Management software system. Records are maintained in an Excel

spreadsheet and reconciled to MYOB Account Right Accounting software.

8.2 Improvement Plan

The asset management improvement plan generated from this AMP is shown in Table 8.

Table 8.1: Improvement Plan

Task

No

Task Responsibility Resources

Required

Timeline

1 Explore options to reduce energy consumption and

costs

Authority

Executive

Officer (EO) &

FAC Operational

Managers

Existing resources 30 June

2019

2 Explore options to reduce water consumption and

costs

Authority EO &

FAC Operational

Managers


2019

3 Explore options to reduce chemical use consumption

and costs

FAC Operational

Managers


2019

4 Develop service agreements for proactive

maintenance of plant and equipment

FAC Operational

Managers

Existing resources 31 Mar

2018

5 Undertake customer satisfaction survey FAC Operational

Managers


2019

6 Reflect actual useful lives in next valuation of the

associated infrastructure assets (desk top review)

Appropriately

qualified

contractor

To be determined 30 June

2023

7 Review Levels of Service Authority EO &

Operational

Managers


2020

11 ISO 55000 Refers to this the Asset Management System

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- 33 -

8 Continue to maintain and quality check the asset

register

Authority EO &

Operational

Managers

Existing resources Ongoing

8 LTFP & AMP are to align Authority EO Existing resources Ongoing

8.3 Monitoring and Review Procedures

This AMP will be reviewed during annual budget planning processes and amended to show any material changes in

service levels and/or resources available to provide those services as a result of budget decisions.

The AMP will be updated annually to ensure it represents the current service level, asset values, projected operations,

maintenance, capital renewal and replacement, capital upgrade/new and asset disposal expenditures and projected

expenditure values incorporated into the LTFP.

The AMP has a life of 10 years and is due for complete revision and updating within 2 years after endorsement.

8.4 Performance Measures

The effectiveness of the AMP can be measured in the following ways:

• The degree to which the required projected expenditures identified in this AMP are incorporated into the

LTFP

• The degree to which 1-5 year detailed works programs, budgets, business plans and corporate structures take

into account the global works program trends provided by the AMP

• The degree to which the existing and projected service levels and service consequences (what we cannot do),

risks and residual risks are incorporated into the Strategic Plan and associated plans

• The Asset Renewal Funding Ratio achieving the target of 100%.

9. REFERENCES

• IPWEA, 2006, International Infrastructure Management Manual , Institute of Public Works Engineering

Australasia, Sydney, www.ipwea.org/IIMM

• IPWEA, 2008, NAMS.PLUS Asset Management , Institute of Public Works Engineering Australasia, Sydney,

www.ipwea.org/namsplus.

• IPWEA, 2015, 2nd edn., Australian Infrastructure Financial Management Manual , Institute of Public Works

Engineering Australasia, Sydney, www.ipwea.org/AIFMM.

• IPWEA, 2015, 3rd edn., International Infrastructure Management Manual , Institute of Public Works

Engineering Australasia, Sydney, www.ipwea.org/IIMM

• IPWEA, 2012 LTFP Practice Note 6 PN Long Term Financial Plan, Institute of Public Works Engineering

Australasia, Sydney

• Strategic Plan 2018-2027

• Long Term Financial Plan 2018-2027

• Asset Accounting Policy

• Disposal of Land & Assets Policy

• Three Year Business Plan

108

http://www.lga.sa.gov.au/Downloads/www.ipwea.org/namsplus

http://www.ipwea.org/AIFMM

http://www.ipwea.org/IIMM

- 34 -

10. APPENDICES

Appendix A Projected 10 year Capital Renewal and Replacement Works Program

Appendix B Projected 10 year Capital Upgrade/New Works Program

Appendix C LTFP Budgeted Expenditures Accommodated in AM Plan

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- 35 -

Appendix A Projected 10-year Capital Renewal and Replacement Works Program

[Author note: Figures below include indexation. Indexation to be removed prior to presentation to Authority Board.]

Projected Capital Renewal Works Program - Fleurieu Regional Aquatic Centre

_S1_V1

($000)

Year Item Description Estimate

2018 Network Renewals $0

2018 Defect Repairs $0

2018 Total $0

2019 Network Renewals


2019 Total $0

($000)




2020 Total $0

2021 Network Renewals Estimate


2021 Total $0

($000)



1 1-5kg Medicine Ball & Rack $1

2 Oxy Resuscitation Kit $1

3 Spinal Injury Kit (Board, Straps & Collars) $2

4 Pace Clocks $2

5 Aquatic Dumbbells $3

6 Aflex Inflatable Pool Stay System $14

7 Dell Poweredge Server $8

8 Dell Latitude Laptop & Accessories $5


2022 Total $36


1 Filter to Water Test Stations-Dulcomarin 11 to 25m Pool/Rehab Pool/Program

Pool/Small External Water play $2

2 Ethernet Switch $9

3 HMI $2

4 PLC Rack Layout $2

5 PLC Processor $2


2023 Total $17

110

- 36 -

($000)



1 Kitchenette - Boiling Water & Chilled Water Unit $7

2 Staff Room - Boiling Water & Chilled Water Unit $7

3 Sony Handycam & Accessories $3

4 12-20Kg Rubber Dumbbell Set $2

5 22-30Kg Rubber Dumbbell Set $3

6 Escape 10 Pair Upright Oval Dumbbell $2

7 Lane Ropes 110x25m $6800 - Anti Mini 65 Lane Rope x 10m with 5 Hooks $2000 -

Lane Rope Reel $5200 $14

8 Mobile Aquatic Wheelchair - 136Kg $5

9 Multi-Purpose Trolley $2900 - Barisatic Submersible Plastic Wheelchair $4100 $7

10 Heavy Duty Rubber Floor Mat $1800 - Xspeed Godzilla Aerobic Step $2000 $20


2024 Total $70


1 Corner Band (Cold Joint) 25M Pool - Tiling $49

2 Corner Band (Cold Joint) Rehab Pool - Tiling $51

3 Corner Band (Cold Joint) Program/Splash Pool - Tiling $42

4 Life Jackets $2


2025 Total $144

($000)




2026 Total $0


1 Flat Band-25m Pool $8500 - Epoxy Coatings Balance Tank 25m Pool $6700 $15

2 Flat Band(construction joint) Rehab/WWP Pool $5

3 Epoxy Coatings Balance Tank Rehab/WWP Pool - Epoxy Coat Balance Tank External

Water play $11

4 Epoxy Coatings Balance Tank Prog/Splash Pool $10k - Dell Latitude Laptop &

Accessories $7k $17

5 Stack Lamp $1

6 Handheld Radios $3k - Aflex Inflatable Pool $17k - Dell Poweredge Server $9k $29

7 Signature B&R Flat Bench/Multi Adj/Series Smith Machine $26

8 1.5Kg Medicine Balls &Rack - Oxy Resuscitation Kit - Spinal Injury Kit (board, straps

& collars) $4

9 Portable PA System - Aquatic Dumbbells - Storage Trolley - Life Jackets - Pace Clocks $18


2027 Total $126

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- 37 -

Appendix B Projected Upgrade/Exp/New 10-year Capital Works Program

Projected Capital Upgrade/New Works Program - Fleurieu Regional Aquatic

Centre _S1_V1

($000)


2018 1 $0

2018 Total $0

($000)


2019 1 Group Fitness Equipment to Facilitate Les Mills Classes $8

2 Sound System for gym $4

3 Blinds - Program Pool, 25m Pool, Meeting Room $23

4 Additional swipe card security point – entry to gym $5

5 Digital Clock Poolside $2

2019 Total $42

($000)


2020 1

$0

2020 Total $0

($000)


2021 1

2021 Total $0

($000)


2022 1

2022 Total $0

($000)


2023 1

2023 Total $0

($000)


2024 1

2024 Total $0

($000)


2025 1

112

- 38 -

2025 Total $0

($000)


2026 1

2026 Total $0

($000)


2027 1

2027 Total $0

113

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Address |

C/- PO Box 267, Angaston SA 5353

Phone | 0418 296 767

Email | [email protected]

114



Page 1



Subject: FRACA Long Term Financial Plan 2018-2027 Meeting date: 22 March 2018 Item: 7.4 Reference(s): Local Government Act 1999

FRAC Authority Charter Consultation: Area Manager, YMCA SA Attachments: Draft Long Term Financial Plan 2018-2027

PURPOSE

The purpose of this report is to seek feedback from the Fleurieu Regional Aquatic Centre Authority

(FRACA) Audit & Risk Management Committee (ARMC) on the draft FRACA Long Term Financial Plan 2018-2027.

RECOMMENDATION

That the Committee:

1. Note the draft FRACA Long Term Financial Plan 2018-2027 and that the Executive

Officer will update the plan in line with Committee feedback;

2. Recommend that the Fleurieu Regional Aquatic Centre Authority endorse the draft

FRACA Long Term Financial Plan 2018-2027 for the purposes of public consultation.

INFORMATION


5.5 Long Term Financial Plan

5.5.1 The Authority must prepare and submit to the Constituent Councils for their approval a Long Term

Financial Plan covering a period of at least ten (10) years in a form and including such matters which, as

relevant, is consistent with Section 122 of the Act and the Local Government (Financial Management)

Regulations 2011 as if the Authority were a council.

5.5.2 The Authority may at any time review the Long Term Financial Plan but must undertake a review of

the Long Term Financial Plan as soon as practicable after the annual review of its Business Plan and

concurrently with any review of its Strategic Plan.

5.5.3 In any event, the Authority must undertake a comprehensive review of its Long Term Financial Plan

every four (4) years.

5.5.4 The Long Term Financial Plan will be taken to form part of the Authority's Strategic Plan.

6.1 Strategic Plan


115


Page 2

DISCUSSION

The draft Long Term Financial Plan 2018-2027 (LTFP) is provided as an attachment to this report.

The draft LTFP was prepared with assistance from the Authority contracted Management Accountant.

The proposed fees and charges for 2018-19 have been applied in development of the draft operational budget for the Authority for 2018-19. Indicative increases in fees for financial years 2019-20 and 2020-21 have also been applied in development of the draft LTFP.

Key financial indicators

The Local Government (Financial Management) Regulations 2011 Part 2, 5(1) requires that the

Authority LTFP includes estimates and target ranges adopted by the Authority for each year of the

LTFP with respect to an operating surplus ratio, a net financial liabilities ratio and an asset sustainability ratio.

Due to the nature of the Authority funding model, the net financial liabilities ratio is not relevant. This

is due to cash reserves (predominantly Depreciation Reserve) being significantly higher than projected liabilities for the life of the plan; and the resultant ratio not being a useful measurement of

financial performance for the Authority. Please note; ‘Cash & Cash Equivalents’ is forecast to reach

a balance of $7.45 million by 30 June 2027 in line with the forecast accumulated depreciation at that date.

Given the above, an alternate third financial sustainability ratio is proposed for use; that being the ‘Own Source Income Ratio’ (please refer below).

The Key Financial Indicators support a positive forward outlook and adherence over the longer term to the Authority’s financial sustainability.

Indicator Target Short Term (2019-2021)

Target Medium Term (2022-2024)

Target Short Term (2025-2028)

Operating Surplus/(Deficit) Ratio - % 0% 0% 0% Own Source Income Ratio 59-64% 64-65% 66-67% Asset Sustainability Ratio - % n/a 100% 100%

Operating Surplus / (Deficit) Ratio

The Operating Ratio measures the extent to which the Authority’s operating income meets its

operating expenditure. Due to the financial operating model for the Authority, the Operating

Surplus/(Deficit) Ratio will always be zero at budget however may be less or greater than zero at

year end should the operating result differ from the budget.

Own Source Income Ratio

This ratio is calculated as ‘income excluding Council contributions’ as a percentage of total Authority expenditure. The forecast ratio for 2018-2019 is 59%; the gradual increase in this ratio over the life of the LTFP will indicate improvement in the Authority’s financial self-sustainability.

Asset Sustainability Ratio

The Asset Sustainability Ratio is a measure of the Authority’s capital expenditure on renewal or

replacement of assets relative to the level of such expenditure proposed in the Authority’s Asset

Management Plan. The Asset Sustainability ratio indicates that the forecast expenditure on the

renewal and replacement of assets (based on the Asset Management Plan) and what the Authority’s proposes to spend on these assets (budgeted capital expenditure) are aligned. The

116


Page 3

Asset Sustainability Ratio is not applicable for years in which no expenditure on renewal and

replacement of assets is forecast; however, is forecast at 100% over the remaining years of the plan.

RISK ASSESSMENT

Governance - there is no direct risk with noting the report.

BUDGET IMPLICATION

Nil

117

20180314 LTFP 2018_2027 Draft Page 1 of 21

March 2018 LONG TERM FINANCIAL PLAN 2018-2027

DRAFT

118


1. Table of Contents

2. Background ................................................................................................................................................3

3. Overview ....................................................................................................................................................4

4. Planning framework ..................................................................................................................................4

5. Measuring our performance .....................................................................................................................6

Key financial indicators ..................................................................................................................................6

6. Financing the Plan .....................................................................................................................................7

7. Capital Works Program ..............................................................................................................................8

Asset Renewal ...............................................................................................................................................8

New or Upgraded Assets ...............................................................................................................................8

8. Assumptions ..............................................................................................................................................8

Operating Income ..........................................................................................................................................8

Operating Expenses .......................................................................................................................................9

Net Outlays on New and Existing Assets .................................................................................................... 10

Proceeds & Repayment of Borrowings ...................................................................................................... 10

Balance Sheet ............................................................................................................................................. 10

9. Planning for the Future .......................................................................................................................... 10

10. Financial Terms Glossary: ................................................................................................................... 11

Appendix A - Estimated Uniform Presentation of Finances ........................................................................... 15

Appendix B - Estimated Statement of Comprehensive Income ..................................................................... 16

Appendix C - Estimated Statement of Financial Position ............................................................................... 17

Appendix D - Estimated Statement of Cash Flows ......................................................................................... 18

Appendix E - Estimated Statement of Changes in Equity ............................................................................... 19

Appendix F - Estimated Key Financial Indicators ............................................................................................ 20

119


2. Background

The Fleurieu Aquatic Centre (FAC) is a joint initiative of the City of Victor Harbor and the

Alexandrina Council (Constituent Councils). The Fleurieu Regional Aquatic Centre Authority

(Authority) was established as a regional subsidiary in August 2015 by the Constituent Councils under section 43 of the Local Government Act 1999 (LG Act).

Charter

5.5 Long Term Financial Plan

5.5.1 The Authority must prepare and submit to the Constituent Councils for their approval a Long Term

Financial Plan covering a period of at least ten (10) years in a form and including such matters which, as

relevant, is consistent with Section 122 of the Act and the Local Government (Financial Management)

Regulations 2011 as if the Authority were a council.

5.5.2 The Authority may at any time review the Long Term Financial Plan but must undertake a review of

the Long Term Financial Plan as soon as practicable after the annual review of its Business Plan and

concurrently with any review of its Strategic Plan.

5.5.3 In any event, the Authority must undertake a comprehensive review of its Long Term Financial Plan

every four (4) years.

5.5.4 The Long Term Financial Plan will be taken to form part of the Authority's Strategic Plan.

6.1 Strategic Plan


Local Government Act 1999

In line with section 122 (1a) of the Local Government Act 1999 and its Charter, the Authority must, in

conjunction with its strategic management plans develop and adopt a Long Term Financial Plan for a period

of at least 10 years and an Infrastructure and Asset Management Plan.

Local Government Financial Management Regulations

5—Long-term financial plans

(1) A long-term financial plan developed and adopted for the purposes of section 122(1a)(a) of the Act must

include—

• a summary of proposed operating and capital investment activities presented in a manner

consistent with the note in the Model Financial Statements entitled Uniform Presentation of

Finances; and

• estimates and target ranges adopted by the council for each year of the long-term financial plan with

respect to an operating surplus ratio, a net financial liabilities ratio and an asset sustainability ratio

presented in a manner consistent with the note in the Model Financial Statements entitled Financial

Indicators.

(2) A long-term financial plan must be accompanied by a statement which sets out—

• the purpose of the long-term financial plan; and

• the basis on which it has been prepared; and

• the key conclusions which may be drawn from the estimates, proposals and other information in the

plan.

(3) A statement under sub regulation (2) must be expressed in plain English and must avoid unnecessary

technicality and excessive detail.

120


3. Overview

The Authority considers that its Long Term Financial Plan (LTFP) is a fundamental instrument of

accountability and projections for its planned activities over a ten-year timeframe. The key

objective of the LTFP is financial sustainability in the medium to longer term, while still achieving the Authority’s objectives as specified in its Charter and Strategic Plan.

The LTFP ensures that we understand the impact of decisions made today on our future. This

means ensuring the cost-effective delivery of services, and the appropriate maintenance and renewal of our significant asset (FAC) in a financially sustainable manner.

The purpose of this plan is not to provide specific detail about individual services. The LTFP

provides a decision-making tool that allows various assumptions to be applied that will indicate the ability of the Authority to deliver cost effective services to our community in the future in a financially sustainable manner.

The Authority Board has adopted a fee structure for services delivered at FAC based on market research, competitor analysis, recommendations from contracted operational managers YMCA SA

(based on its significant industry knowledge and experience); and application of pricing strategies

to support establishment of FAC as a greenfield site. The Authority aims to provide an affordable, competitive and equitable fee structure for FAC.

FAC’s primary catchment area of 23,157 residents is comprised of a higher than average over 50-

year-old population (13,193 or 57%) and lower than average under 15-year-old population (3,140).

The catchment area also has lower than average income levels. The weekly household income profile of the catchment area is comparatively lower than all other regions and the highest

proportion of low-income households. Specifically, the proportion of low-income households is 6% higher than regional South Australia and 10% higher than South Australia as a whole.

As such, the identified catchment has increased price sensitivities compared to state averages. In

line with local demographics, prices are set at the middle to lower end of the competitor pricing

continuum. To further address cost barriers, the Aquatic Centre offers discounted membership for

older community members and youth; and concession discounts for casual admissions, visit passes and memberships.

The Authority is proposing minimal capital works ($370,942) over the ten years of the plan in recognition of the age of the facility (construction completed in March 2017) and in line with the Authority Asset Management Plan.

4. Planning framework

This document presents the Long Term Financial Plan for the years 2017/18 to 2027/28. The basis of the LTFP is consistent with the Financial Statements 30 June 2017 and the 2017/18

Annual Business Plan and Budget adopted by the Authority and any authorised amendments. The

LTFP is informed by the Authority Strategic Plan 2018-2027, 3-Year Business Plan and any

authorised amendments; and the Asset Management Plan 2018-2027 projections for new, upgraded and renewal of assets for 2018 to 2027.

This is a fluid document, which will be updated and amended over time as circumstances change.

The Authority will review its LTFP twice each year; once during the review of its 3-Year Business Plan and preparation of its annual Budget; and again, following the financial year end. Other

updates are made to the LTFP, where it is considered appropriate. In addition, a full review is required at least every four years (per the Charter).

The 10-year LTFP is prepared based on a number of assumptions (please refer to page 8), with

regard to projected fees, charges and Constituent Council contributions and also includes

assumptions with regard to future operational and capital expenditure. Given that LTFPs are

derived from an estimate of future performance, it should be appreciated that actual results are

121


likely to vary from the information contained in the LTFP and at times these variations could be material.

It should also be noted that as FAC only commenced operations in March 2017, normalised income and expenditure levels are still to be determined.

The Authority has prepared an Asset Management Plan to assist in determining the funding

impact of maintaining and replacing our assets. These projections are based on the current understanding of asset management needs over the next ten years and ensure that assets are

maintained at a safe and functional standard that meet community expectations and cater for future growth and demographic changes.

The LTFP includes an allocation of approximately $371,000 for capital expenditure projects in line

with the Asset Management Plan. The Authority currently has no debt. Should any borrowings be

considered in the future, this debt will be regarded primarily as a tool to be used in a strategic

perspective towards renewal and replacement of assets. Should it be required, debt will be considered:

• in the context of the strategic objectives of the Authority

• in the context of long term financial forecasts and objectives

• as funding for long term infrastructure asset creation

• as a means of spreading the recovery of infrastructure costs over time

• as a mechanism to fund temporary cash shortfalls.

The construction of FAC was funded by the Constituent Councils with funding support from the

Federal Government and the South Australian Government’s Community, Recreation and Sport Facilities Program; and a generous land donation from Beyond Today. The aim of the State

Government funding program is to support the strategic objective of increasing the proportion of South Australians participating in sport or physical recreation at least once per week to 50% by

20201. The Australian Government funding was provided for 'the provision of an indoor aquatic

centre to provide health, sport and recreation facilities for the growing communities around Victor

Harbor and Goolwa'.

A business case was undertaken by the Constituent Councils in 2013 in respect of establishing a

regional aquatic centre which incorporated a health and fitness studio. The business case

examined population trends and anticipated demand for a regional aquatic facility, the aquatic and health and fitness markets relevant to a regional aquatic centre and the financial viability of a

regional aquatic centre. The Business Case concluded that a regional aquatic facility would

operate at a loss in each of the first five years of operation and would require a financial contribution from the Constituent Councils.

Operating cash surpluses will be generated as a result of the Constituent Council operating

contributions provided to the Authority including an allocation of funds in line with annual forecast

depreciation expense. These funds are invested with the Local Government Financing Authority and will be used to fund capital expenditure on renewal and replacement of assets.

To determine whether this LTFP ensures financial sustainability of the Authority’s operations over the long term, appropriate financial indicators have been endorsed by the Authority.

The LTFP is an evolving document that will be renewed over time as a result of changes to the

community and constituent Council expectations; changes to income and expenditure projections; and to remain directly linked to the Asset Management Plan. The Authority’s 3-Year Business Plan

and Annual Budget is prepared on the basis of the LTFP, taking into account any new information and economic factors at the time of preparation.

1 Target 83, Sport and Recreation, South Australian Strategic Plan (http://saplan.org.au/targets/83-sport-and-recreation)

122

http://saplan.org.au/targets/83-sport-and-recreation


The LTFP estimates are presented as a series of reports comprising the following:

• Estimated Uniform Presentation of Finances

• Estimated Statement of Comprehensive Income

• Estimated Statement of Financial Position

• Estimated Statement of Changes in Equity

• Estimated Statement of Cashflows

• Estimated Key Financial Indicators

Please refer to Appendices A to F.

5. Measuring our performance

Key financial indicators

Key Financial Indicators enable an assessment of the Authority’s long term financial performance

and position and will place the Authority on a path to deliver long term sustainability of operations

(based on the assumptions used in the modelling) and give it the flexibility to respond to anticipated future costs.

The Local Government (Financial Management) Regulations 2011 Part 2, 5(1) requires that the

Authority LTFP includes estimates and target ranges adopted by the Authority for each year of the LTFP with respect to an operating surplus ratio, a net financial liabilities ratio and an asset

sustainability ratio. Due to the nature of the Authority funding model, the net financial liabilities ratio

is not relevant. This is due to cash reserves (predominantly Depreciation Reserve) being

significantly higher than projected liabilities for the life of the plan; and the resultant ratio not being a useful measurement of financial performance for the Authority.

Given the above, an alternate third financial sustainability ratio is proposed for use; that being the ‘Own Source Income Ratio’ (please refer below).

The Key Financial Indicators support a positive forward outlook and adherence over the longer

term to the Authority’s financial sustainability. The Authority has set targets for its Key Financial

Indicators to guide revenue and expenditure decisions; overall budget strategies and future decision making.

Indicator Target Short

Term (2019-2021)

Target Medium

Term (2022-2024)

Target Short Term

(2025-2028)

Operating Surplus/(Deficit) Ratio -

%

0% 0% 0%

Own Source Income Ratio 59-64% 64-65% 66-67%

Asset Sustainability Ratio - % n/a 100% 100%

Operating Surplus / (Deficit) Ratio

The Operating Ratio measures the extent to which the Authority’s operating income meets its

operating expenditure. The Authority is funded by user-pays charges for services delivered at FAC

and by contributions from constituent Councils in line with the Authority Charter (please refer

below).



5.2.1 The Constituent Councils will contribute funds to the Authority as set out in the Budget adopted by

the Authority and approved by the Constituent Councils.

5.2.2 The Constituent Councils may agree to provide the Authority with additional funds at any time on

such terms and conditions, if any, as determined by the Constituent Councils.

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Constituent Council contributions to the Authority are forecast in annual budgets and in the LTFP

at amounts equivalent to the forecast operating deficit (including depreciation and excluding such

contributions). As such, until the Authority achieves financial self-sustainability (which is not

anticipated to occur during the term of this plan), the operating surplus ratio forecast in the LTFP

will be 0%.

Due to the financial operating model for the Authority, the Operating Surplus/(Deficit) Ratio will

always be zero at budget however may be less or greater than zero at year end should the operating result differ from the budget.


This ratio is calculated as ‘income excluding Council contributions’ as a percentage of total Authority expenditure. The forecast ratio for 2018-2019 is 59%; the gradual increase in this ratio over the life of the LTFP will indicate improvement in the Authority’s financial self-sustainability.


The Asset Sustainability Ratio is a measure of the Authority’s capital expenditure on renewal or replacement of assets relative to the level of such expenditure proposed in the Authority’s Asset Management Plan.

The Asset Sustainability ratio indicates that the forecast expenditure on the renewal and replacement of assets (based on the Asset Management Plan) and what the Authority’s proposes to spend on these assets (budgeted capital expenditure) are aligned. As such, the Asset

Sustainability Ratio is not applicable for years in which no expenditure on renewal and

replacement of assets is forecast; however, is forecast at 100% over the remaining years of the plan.

6. Financing the Plan

The table below shows the Authority’s estimated net lending/ (borrowing) result for the LTFP. The

data is drawn from the Authority’s Estimated Uniform Presentation of Finances (refer Appendix A). The Authority LTFP has a net lending result for the life of the plan.

BR2 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27


Operating Revenues 3,004,585

3,260,479

3,389,683

3,532,808

3,626,674

3,722,949

3,821,059

3,921,846

4,024,354 4,129,946

less Operating Expenses (3,004,585) (3,260,479) (3,389,683) (3,532,808) (3,626,674) (3,722,949) (3,821,059) (3,921,846) (4,024,354) (4,129,946)

Operating Surplus/ (Deficit) - - - - - - - - - -

CAPITAL ACTIVITIES less Net Outlays on Existing Assets Capital Expense on renewal and replacement of Existing Assets

-

-

-

-

32,086

13,207

61,748

125,169

- 96,892

less Depreciation, Amortisation and Impairment (673,452) (715,052) (730,017) (746,539) (763,264) (779,989) (796,299) (813,016) (829,034) (845,736)

Net Outlays on Existing Assets (673,452) (715,052) (730,017) (746,539) (731,178) (766,783) (734,551) (687,846) (829,034) (748,844)

Net Lending/ (Borrowing) for Financial Year 673,452 673,212 730,017 746,539 731,178 766,783 734,551 687,846 829,034 748,844

Financing transactions associated with the above net overall deficit, or applying the overall net funding surplus are as follows: (Increase)/Decrease in Cash and Investments (673,452) (611,052) (730,017) (746,539) (731,178) (766,783) (734,551) (687,846) (829,034) (748,844)

Financing Transactions (673,452) (611,052) (730,017) (746,539) (731,178) (766,783) (734,551) (687,846) (829,034) (748,844)

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7. Capital Works Program

Asset Renewal

Below is a list of the planned annual Asset Renewal expenditure requirements to maintain the

Authority’s assets to their current standards and service levels. These requirements are in

accordance with the Authority’s Asset Management Plan. The forecast expenditure on the renewal

and replacement of assets (based on the Authority’s Asset Management Plan) and what the Authority proposes to spend on these assets (budgeted expenditure) are aligned (with indexing of replacement costs reflected in the LTFP).

Year Expenditure

2018 $0

2019 $0

2020 $0

2021 $0

2022 $32,086

2023 $13,207

2024 $61,748

2025 $125,169

2026 $0

2027 $96,892

Total $329,102

New or Upgraded Assets

Below is a list of planned annual expenditure on New and Upgraded Assets. This includes spend

to upgrade or expand the Authority’s infrastructure to meet increasing demand and capacity requirements.

Year Expenditure

2018 $0

2019 $41,840

2020 $0

2021 $0

2022 $0

2023 $0

2024 $0

2025 $0

2026 $0

2027 $0

Total $41,840

8. Assumptions

Operating Income

User Charges

User charges relate to the recovery of service delivery costs through the charging of fees to users

of FAC. In preparing the FAC 2018-2019 Budget, YMCA and the Authority Executive Officer have

reviewed current fees and charges. The fees proposed for 2018-2019 reflect an overall increase of 2.4% on 2017-2018 prices and include new fees and charges for a range of fitness based allied

health services. A full year of new children’s programs (Flippa Ball & Synchro) and of Water Polo are reflected; as is increased casual group fitness income based on increased offering.

125


User charges for years 1 to 4 include a growth allocation based on projections by the FAC operational managers. Increases in user charges have been indexed by CPI for years 5 to 10 and

include no growth allocation. User Charges as a percentage of operating income is an average of 60% for the period of the plan.

Grants and Subsidies

Operating Grants are based on identified grants and include grants and subsidies from all sources

but excludes amounts specifically received for new/ upgraded assets (i.e. the acquisition or

enhancement of assets). Grants and subsidies as a percentage of operating income is an average of 0% for the period of the plan.

Council contributions

Contributions are received from constituent Councils in line with the Authority Charter (please refer

above). Constituent Council contributions to the Authority are forecast in annual budgets and in

the LTFP at amounts equivalent to the forecast operating deficit (including depreciation and excluding such contributions).

Investment Income

Investment income for each year is based on cash balances at the end of the previous year.

Amounts Specifically for New / Upgraded Assets

Income for New/ Upgraded Assets is based on funding received from Councils for new assets; subject to Council approval on a case by case basis.

A capital expenditure budget of $41,840 is proposed for 2018-2019 for new assets that action a number of operational challenges identified during the first year of operations and to support the expansion of

the group fitness program; with a forecast of $0 annually for the remaining life of the plan.

Operating Expenses

FAC operating expenses for years 1 to 4 include a growth allocation based on projections by the

FAC operational managers. Indexing of operating expenses for years 5 to 10 is based on the South Australian Consumer Price Index as forecast by ‘Deloitte Access Economics Business Outlook’ Edition December 2017. The following year CPI is applied to the preceding years expenditure – in essence calculating a cumulative effect.

The Local Government Price Index (LGPI) measures price movements faced by Local

Government in South Australia in respect of their purchases of goods and services. LGPI has not been applied to depreciation; the South Australian Consumer Price Index has been applied.

FAC Operational Management Fees:

The management fee for FAC operational management is fixed until 1 November 2019 with the

current Operational Management Agreement due to expire on 31 October 2019. The fee for

November 2019 onwards for the remaining life of the plan is currently based on the existing contract fee plus annual indexation. This will be reviewed following future contract negotiations.

Materials, Contracts & Other Expenses

Materials cover payments for physical goods including purchase of consumables, water and

energy. Contract services involve payments for the external provision of services. Over the period

of the plan, growth and CPI has been applied for indexation purposes. Materials, Contracts and Other Expenses as a percentage of operating expenditure is an average of 79% for the period of the plan.

126


Depreciation

Depreciation is an accounting measure, which records the consumption of the Authority’s infrastructure, property, plant and equipment and has been based on the Authority’s Asset

Management Plan. It reflects the combined effect of the impact of depreciable assets created by

capital expenditure on new/ upgraded assets, and the ongoing impact of regularly revaluing infrastructure assets on a ‘fair value’ basis. Depreciation expense as a percentage of operating expenditure is an average of 21% for the period of the plan.

Net Outlays on New and Existing Assets

Asset Renewals are based on the Authority’s Asset Management Plan, with allocations of $0.3

million over the ten years of the plan. New and Upgrade Assets have been based on the Authority’s Asset Management Plan. With allocations of $0.04 million over the ten years of the plan.

Indexing of asset purchases are based on the South Australian Consumer Price Index as forecast by ‘Deloitte Access Economics Business Outlook’ Edition December 2017. As expenditure occurs in future years – the CPI applied is the ‘cumulative years’ rate.

Proceeds & Repayment of Borrowings

The Authority has a Treasury Management Policy to ensure that it maximises the return on

surplus funds, taking into consideration the level of risk. Authority funds are preserved and

invested in accordance with its legislative and common law responsibilities ensuring that interest cost of borrowings is minimised. All investments and borrowings are to be made exercising the

care, diligence and skill that a prudent person of business would exercise in managing the affairs of other persons.

There are no forecast borrowings for the life of the plan.

Balance Sheet

Assets

Trade and Other Receivables are not expected to change significantly and therefore have been

based in accordance with the 2017 Financial Statements. Non-Current Assets reflect the

combined effect of all capital expenditure, the depreciation of existing assets, the book value of assets sold and the ongoing revaluation of infrastructure assets on a ‘fair value’ basis.

Liabilities

Trade, Other Payables and Provisions are not expected to change significantly throughout the life of the plan and have been forecast based on estimated accrual of expenses at year end.

Equity

Authority total equity is forecast to increase in 2019 by $41,040 reflecting capital expenditure on new assets and then be static for the remaining life of the plan.

9. Planning for the Future

The Authority has mandatory responsibilities under the Local Government Act and other relevant

legislation; as well as under its Charter. These include:

• setting fees and charges; preparing an annual budget; and determining longer-term

strategic management plans for FAC;

• management of infrastructure including the FAC facility, gardens, internal roads, footpaths,

lighting and storm-water drainage

FAC operates on a fee for service basis and provides important community benefits whilst also generating revenue to help deliver a value for money service.

127


10. Financial Terms Glossary:

Accrual Accounting An accounting approach by which expenses, revenue, assets and liabilities are

recognised in the reporting period to which they relate even though cash may

have exchanged hands in different periods. Accrual accounting recognises

expenses as they are incurred and revenue when it is earned.

Annual Budget An entity’s statement of: its intended operating expenses, revenue and capital expenditure that give effect to its annual business plan for the reporting period,

its cash inflows and outflows associated with intended operating, investing and

financing activities, and its projected financial position at the end of the

reporting period.

Annual Business Plan

(ABP)

An entity’s statement of its intended programs and outcomes for the year.

Annual Financial

Statements

The Statement of Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement prepared in accordance with

Australian Accounting Standards together with the notes and certification

statements as prescribed in the Model Financial Statements.

Annual Report A report prepared annually relating to the operations for the previous financial

year that contains the material set out in Schedule 4 of the Local Government

Act.

Assets Resources controlled by an entity the value of which can be reliably measured

and from which future economic benefits are expected to flow to the entity.

Asset Accounting

Policy

One or more policies that ensure compliance with any asset management

statutory requirements as well as achieving and maintaining standards that

reflect good administrative practices.

Asset Maintenance

Costs

Costs incurred in holding and operating an asset so that it is capable of

delivering service levels up to its design capacity over its useful life.

Asset Management

Plan (AMP)

Plan that projects the timing and level of cash flows associated with cost-

effectively optimising acquisition of replacement and new additional assets and

asset maintenance and disposal in order to be able to achieve desired service

levels from assets. The Authority is required to prepare such a document with a

planning period of at least ten years. The plan assists in determining the

Authority’s funding and financing needs and helps guide the content of the

Authority LTFP and Annual Budget.

Asset Renewal/

Replacement Costs

Costs associated with renewing or replacing an asset in order to maintain

existing service level capacity.

Asset Sustainability

Ratio

The ratio of the Authority’s capital expenditure on renewal or replacement of assets (net of proceeds from sale of replaced assets) relative to the level of

such expenditure proposed in the Authority’s Asset Management Plan.

Asset Systems Manual or computer-based data recording and algorithm processes by which

information about assets is analysed and predictions made for asset

management modelling and decision making.

Audit & Risk

Management

Committee

An Authority committee established pursuant to Schedule 2, Part 2 Clause 30

of the Act and Local Government (Financial Management) Regulations 2011.

Audited Statements The Annual Financial Statements prepared in accordance with Australian

Accounting Standards that have been audited by an external auditor.

Australian Accounting

Standards

Accounting Standards issued by the Australian Accounting Standards Board

that are equivalent to standards issued by the International Accounting

128


Standards Board. These standards are binding on South Australian Councils

and all other bodies established pursuant to the Local Government Act.

Balance Sheet A financial statement showing the Assets, Liabilities and Equity of an

organisation at the end of a reporting period. Also referred to as a Statement of

Financial Position.

Capital Expenditure Expenditure on items which will provide benefits that extend into future financial

periods. It includes expenditure to acquire or enhance existing assets to

provide expanded, or a higher level of, services.

Cash Advance

Debenture (CAD)

Variable rate borrowings used to assist in managing the Authority’s cash flow requirements.

Cash Flow Statement A financial statement showing the inflows and outflows of cash and cash

equivalents of an organisation during a reporting period. Cash flows are

classified as Operating, Investing and/ or Financing activities. Also referred to

as Statement of Cashflow.

Classes of Assets/

Asset Categories

A grouping of assets of a similar nature and use in an entity’s operations.

Community

Consultation

The process of seeking the views and input of a community or section of the

community.

Community

Engagement

Although often used interchangeably with community consultation, engagement

implies a mutual two-way process which can cover consultation, extension,

communication, education, public participation, participative democracy or

working in partnership.

Deloitte Access

Economics

An independently prepared financial publication providing facts, figures and

forecasts on Australian and world growth prospects, interest rates and

exchange rates, wages and prices, exports and imports, jobs and

unemployment, taxes and public-sector spending.

Depreciation Expenses The value of the assets of an entity consumed and systematically allocated as

an expense to a particular reporting period.

Financial Policies Policies that help guide strategies and activities and help ensure performance

outcomes are consistent with objectives.

Financial Sustainability Financial Sustainability occurs when expenditure, revenue raising and service

level decisions are made such that planned long-term service and

infrastructure levels and standards can be achieved without unplanned

increases in rates or disruptive cuts to services.

Forecast Operating

Expenses/ Revenue

An estimate of future expenses/ operating revenue for a reporting period as

shown in the Statement of Comprehensive Income. Operating expenses are

calculated on an accrual accounting basis and include depreciation but exclude

expenditure of a capital nature. Operating revenue excludes profit on disposal

of non–financial assets and amounts received specifically for new/ upgraded

infrastructure and other assets.

Income Statement Refer to Statement of Comprehensive Income.

Infrastructure A term used to describe physical assets such as internal roads, buildings and

stormwater drainage systems controlled by the Authority.

Key Financial

Indicators

Financial measures or ratios that are used in management plans, annual

reports and other internal and external reports to guide or assess the financial

performance and position of the Authority.

Local Government

Finance Authority

(LGFA)

Provides investment and loan services and works for the benefit of Councils

and other Local Government Bodies within Australia.

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Long-Term Financial

Plan (LTFP)

A Plan that projects a forecast of the Authority’s financial performance and position over a period of at least 10 years. It is one of a suite of documents that

collectively make up the Authority’s Strategic Management Plan and the Long Term Financial Plan should be consistent with, and express financially, actions

expressed or required to give effect to strategies proposed in these other

documents.

Model Financial

Statements

A template format for the presentation of Annual Financial Statements for

South Australian Councils and other bodies established pursuant to the Local

Government Act. The Model Financial Statements comply with Australian

Accounting Standards and additional requirements imposed under the Local

Government (Financial Management) Regulations and are updated annually by

the LGA.

Net Financial Liabilities Net financial liabilities represent what is owed to others less money held,

invested or owed to the Authority. Net financial liabilities is the most

comprehensive measure of the indebtedness of the Authority as it includes

items such as employee long service leave entitlements and other amounts

payable as well as taking account of the level of the Authority’s cash and investments. It is calculated as total liabilities of the Authority less its financial

assets (excluding equity accounted investments in Authority businesses).

Net Financial Liabilities

Ratio

The net financial liabilities ratio indicates the extent to which net financial

liabilities of the Authority at a point in time could be met by its annual operating

revenue. The ratio is calculated by expressing net financial liabilities at the end

of a reporting period as a percentage of the Authority’s operating revenue for the same reporting period.

Net Lending/

(Borrowing)

The Authority’s Net lending/ (borrowing) result in a financial year is calculated as the operating surplus/ (deficit), less capital expenditure on assets, plus

depreciation and sale of assets. A ‘net borrowing’ result therefore represents the extent to which operating expenses (less depreciation) and capital

expenditure exceeds funding provided by operating revenue and amounts

received specifically for new/ upgraded assets. A net borrowing result

increases the Authority’s accumulated level of net financial liabilities. A net lending result reduces the level of net financial liabilities.

One off Expenditure or income occurring only once. Operating The provision of

services to the Community and ongoing operation of the Authority.

Operating Surplus/

Deficit Ratio

The operating surplus ratio is calculated by expressing the operating surplus/

deficit shown in a Statement of Comprehensive Income as a percentage of

operating income. A negative ratio indicates the percentage increase in total

rates that would be required to achieve an operating break-even result (i.e.

income is equal to operating expenses).

Prudential

Requirements

The requirements set out in Section 48 of the Local Government Act that must

be satisfied prior to the Authority undertaking a significant project as defined in

Section 48(1).

Public Consultation

Policy

Policies outlining when public consultation is required and how such

consultation will be undertaken.

Recurrent/ Recurring Expenditure or income reoccurs every year for the duration of the service/

activity. The impact of these types of changes can affect all future years of the

LTFP.

Service Charge An additional charge for a specific service based on the cost of operating these

services.

Service Standards Levels of service prescribed for any service provided by the Authority.

Statement of Cash

Flow

Refer definition for Cash Flow Statement. Statement of Changes in Equity A

financial statement included in the Annual Financial Statements that shows

130


changes in an organisation’s equity between two reporting dates and reflects the increase or decrease in net assets during the period.

Statement of

Comprehensive

Income

A financial statement included in the Annual Financial Statements that shows

all revenue and operating expenses in the reporting period. It highlights the

operating surplus/ deficit result, being the extent to which revenue is sufficient

or insufficient to fund the cost of services.

Statement of Financial

Position

Refer definition for Balance Sheet. Summary Statement including Financing

Transactions A high level summary of both operating and capital investment

activities of the Authority prepared on a uniform and consistent basis. Amongst

other things, this enables meaningful comparisons of the Authority’s finances. It also enables financial performance data of the Local Government sector as a

whole to be assembled and reported.

Strategic Plan (SP) A strategic planning document which focuses on the community, rather than

the internal operations of the Authority. The Authority must develop and adopt

plans (which may take various forms) for the management of its area, to be

called collectively the Strategic Management Plans. Section 122 of the Local

Government Act specifies some requirements concerning the timing, content

and process for developing such plans (which include both LTFPs and AMPs).

Treasury Management

Policy

Establishes a decision framework to ensure that: funds are available as

required to support approved outlays; interest rate and other risks (e.g. liquidity

and investment credit risks) are acknowledged and responsibly managed; and

the net interest costs associated with borrowing and investing are reasonably

likely to be minimised on average over the longer term.

Whole of Life Cycle

Cost

Estimates Acquisition, maintenance and disposal costs/ receipts of an asset

over its useful life.

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Appendix A - Estimated Uniform Presentation of Finances

BR2

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27


Operating Revenues

3,004,585

3,260,479

3,389,683

3,532,808

3,626,674

3,722,949

3,821,059

3,921,846

4,024,354

4,129,946

less Operating Expenses

(3,004,585) (3,260,479) (3,389,683) (3,532,808) (3,626,674) (3,722,949) (3,821,059) (3,921,846) (4,024,354) (4,129,946)

Operating Surplus/ (Deficit)

- - - - - - - - - -

CAPITAL ACTIVITIES

less Net Outlays on Existing Assets

Capital Expense on renewal and replacement of Existing Assets

-

-

-

-

32,086

13,207

61,748

125,169

-

96,892

less Depreciation, Amortisation and Impairment

(673,452) (715,052) (730,017) (746,539) (763,264) (779,989) (796,299) (813,016) (829,034) (845,736)

Net Outlays on Existing Assets

(673,452) (715,052) (730,017) (746,539) (731,178) (766,783) (734,551) (687,846) (829,034) (748,844)

Net Lending/ (Borrowing) for Financial Year

673,452 673,212 730,017 746,539 731,178 766,783 734,551 687,846 829,034 748,844

Financing transactions associated with the above net overall deficit, or applying the overall net funding surplus are as follows:

(Increase)/Decrease in Cash and Investments

(673,452) (611,052) (730,017) (746,539) (731,178) (766,783) (734,551) (687,846) (829,034) (748,844)

Financing Transactions

(673,452) (611,052) (730,017) (746,539) (731,178) (766,783) (734,551) (687,846) (829,034) (748,844)

132


Appendix B - Estimated Statement of Comprehensive Income

BR2

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

INCOME

User Charges 1,628,521 1,910,037 2,056,053 2,185,306 2,239,310 2,294,620 2,351,280 2,409,360 2,468,870 2,529,850

Council Contributions 1,367,054 1,334,822 1,299,620 1,285,662 1,295,754 1,314,049 1,331,729 1,351,666 1,373,344 1,392,256

Investment Income 9,010 15,620 34,010 61,840 91,610 114,280 138,050 160,820 182,140 207,840

TOTAL INCOME 3,004,585 3,260,479 3,389,683 3,532,808 3,626,674 3,722,949 3,821,059 3,921,846 4,024,354 4,129,946

EXPENSES

Materials, contracts & other expenses 2,331,133 2,545,426 2,659,666 2,786,269 2,863,410 2,942,960 3,024,760 3,108,830 3,195,320 3,284,210

Depreciation, amortisation & impairments 673,452 715,052 730,017 746,539 763,264 779,989 796,299 813,016 829,034 845,736

TOTAL EXPENSES 3,004,585 3,260,479 3,389,683 3,532,808 3,626,674 3,722,949 3,821,059 3,921,846 4,024,354 4,129,946

TOTAL COMPREHENSIVE INCOME - - - - - - - - - -

133


Appendix C - Estimated Statement of Financial Position

BR2

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

ASSETS

Current Assets

Cash & Cash Equivalents 867,589 1,478,641 2,208,658 2,955,197 3,686,376 4,453,159 5,187,710 5,875,556 6,704,590 7,453,434

Trade & Other Receivables 100,101 100,101 100,101 100,101 100,101 100,101 100,101 100,101 100,101 100,101

TOTAL CURRENT ASSETS 967,690 1,578,742 2,308,759 3,055,298 3,786,477 4,553,260 5,287,811 5,975,657 6,804,691 7,553,535

Non-current Assets

Infrastructure, Property, Plant & Equipment 20,201,376 19,528,164 18,798,147 18,051,608 17,320,429 16,553,646 15,819,095 15,131,249 14,302,215 13,553,371

TOTAL NON-CURRENT ASSETS 20,201,376 19,528,164 18,798,147 18,051,608 17,320,429 16,553,646 15,819,095 15,131,249 14,302,215 13,553,371

Total Assets 21,169,066 21,106,906 21,106,906 21,106,906 21,106,906 21,106,906 21,106,906 21,106,906 21,106,906 21,106,906

LIABILITIES

Current Liabilities

Trade and Other Payables 170,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246

TOTAL CURRENT LIABILITIES 170,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246

Non-Current Liabilities

TOTAL NON-CURRENT LIABILITIES - - - - - - - - - -

Total Liabilities 170,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246 66,246

NET ASSETS 20,998,820 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660

EQUITY

Accumulated Surplus (69,741) (69,741) (69,741) (69,741) (69,741) (69,741) (69,741) (69,741) (69,741) (69,741)

Capital Contribution 21,068,561 21,110,401 21,110,401 21,110,401 21,110,401 21,110,401 21,110,401 21,110,401 21,110,401 21,110,401

TOTAL EQUITY 20,998,820 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660 21,040,660

134


Appendix D - Estimated Statement of Cash Flows

BR2

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 3,004,585 3,260,479 3,389,683 3,532,808 3,626,674 3,722,949 3,821,059 3,921,846 4,024,354 4,129,946

Payments (2,331,133) (2,649,426) (2,659,666) (2,786,269) (2,863,410) (2,942,960) (3,024,760) (3,108,830) (3,195,320) (3,284,210)

Net Cash provided by (or used in) Operating Activities 673,452 611,052 730,017 746,539 763,264 779,989 796,299 813,016 829,034 845,736

CASH FLOWS FROM INVESTMENT ACTIVITIES

Receipts

Amounts specifically for new or upgraded assets - 41,840 - - - - - - - -

Payments

Purchase of Renewal/Replacement Assets

- - - (32,086) (13,207) (61,748) (125,169) - (96,892)

Purchase of New/Expansion Assets

(41,840) - - - - - - - -

Net Cash provided by (or used in) Investing Activities - - - - (32,086) (13,207) (61,748) (125,169) - (96,892)

Net Increase (Decrease) in Cash Held 673,452 611,052 730,017 746,539 731,178 766,783 734,551 687,846 829,034 748,844

Cash & cash equivalents at beginning of period 194,137 867,589 1,478,641 2,208,658 2,955,197 3,686,376 4,453,159 5,187,710 5,875,556 6,704,590

Cash & cash equivalents at end of period 867,589 1,478,641 2,208,658 2,955,197 3,686,376 4,453,159 5,187,710 5,875,556 6,704,590 7,453,434

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Appendix E - Estimated Statement of Changes in Equity

BR2

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

Accumulated Surplus

Balance at Beginning of Period (69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

Balance at End of Period

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

(69,741)

Capital Contribution

Balance at Beginning of Period

21,068,561

21,068,561

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

Capital Contributions from Councils -

41,840

-

-

-

-

-

-

-

-

Balance at End of Period

21,068,561

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

21,110,401

TOTAL EQUITY AT END OF REPORTING PERIOD

20,998,820

21,040,660

21,040,660

21,040,660

21,040,660

21,040,660

21,040,660

21,040,660

21,040,660

21,040,660

136


Appendix F - Estimated Key Financial Indicators

BR1

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

Operating Surplus Ratio

Operating Surplus - - - - - - - - - -

Revenues 3,004,585 3,260,479 3,389,683 3,532,808 3,626,674 3,722,949 3,821,059 3,921,846 4,024,354 4,129,946

Operating Surplus Ratio - Indicator 1 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%


Income - excluding Council Contributions 1,637,531 1,925,657 2,090,063 2,247,146 2,330,920 2,408,900 2,489,330 2,570,180 2,651,010 2,737,690

Expenditure 3,004,585 3,260,479 3,389,683 3,532,808 3,626,674 3,722,949 3,821,059 3,921,846 4,024,354 4,129,946

Own Source Income Ratio - Indicator 2 55% 59% 62% 64% 64% 65% 65% 66% 66% 66%


Expenditure on renewal/replacement of assets - - - - 32,086 13,207 61,748 125,169 - 96,892

Sale of replaced assets - - - - - - - - - -

Net renewal/replacement of assets - - - - 32,086 13,207 61,748 125,169 - 96,892

Asset Management Plan amount 32,086 13,207 61,748 125,169 - 96,892

Asset Sustainability Ratio - Indicator 3 N/A N/A N/A N/A 100% 100% 100% 100% N/A 100%

137


Note on adoption: The Long Term Financial Plan 2018-2027 was adopted by the Authority on

[insert date], effective from that date. The Authority prepares its Annual Business Plan and Budget each year, taking into account its long term financial position.

Document History


0.1 Draft Considered by Authority Audit & Risk

Management Committee (as a draft)

22 March 2018

0.2 Draft Authority Board endorsement for the purposes

of public consultation

20 April 2018




HOW TO CONTACT US

Fleurieu Regional Aquatic Centre

Authority

Address |

C/- PO Box 267, Angaston SA 5353

Phone | 0418 296 767

Email | [email protected]

138



Page 1



Subject: Draft Operational Management Key Performance Indicators 2017/18

Meeting date: 22 March 2018 Item: 9.1

Reference(s): FRAC Authority Charter

Consultation: Area Manager, YMCA SA

Attachments: Nil

CONFIDENTIAL ITEM – Public agenda version

PURPOSE

The purpose of this report is to seek feedback from the Fleurieu Regional Aquatic Centre Authority (Authority) Audit & Risk Management Committee (Committee) on the draft Key Performance Indicators for YMCA South Australia for management and operations of the Fleurieu Aquatic Centre for 2018-2019.

RECOMMENDATIONS

That the Committee:

1) Under the provisions of Section 90(2) of the Local Government Act 1999 make an order that the public be excluded from the meeting, except for the Executive Officer, Ms Leonie Boothby; in order to consider in confidence a report relating to Section 90(3)(d) of the Local Government Act 1999:

(d) commercial information of a confidential nature (not being a trade secret) the disclosure of

which—

(i) could reasonably be expected to prejudice the commercial position of the person who supplied

the information, or to confer a commercial advantage on a third party; and

(ii) would, on balance, be contrary to the public interest;

relating to the consideration of draft Key Performance Indicators for YMCA South Australia for management and operations of the Fleurieu Aquatic Centre for 2018-2019, being information that must be considered in confidence in order to ensure that the Authority does not disclose commercial information of a confidential nature (not being a trade secret); and

2) Accordingly, on this basis, the Authority is satisfied that public interest in conducting meetings in a place open to the public has been outweighed by the need to keep the information and discussion confidential to prevent the disclosure of commercial information of a confidential nature (not being a trade secret).

Substantiation:

The matter of the agenda item being consideration of draft Key Performance Indicators for YMCA South Australia for management and operations of the Fleurieu Aquatic Centre for 2018-2019 pursuant to Section 90(3)(d) of the Local Government Act 1999 (“the Act”) being information that must be considered in confidence to ensure that commercial information of a confidential nature (not being a trade secret); is not divulged.

139


Page 2

There is strong public interest in enabling members of the public to observe the Authority’s transparent and informed decision-making. This helps to ensure accountability, maintain transparency of public expenditure, facilitate public participation, assist public awareness and allow for the scrutiny of information. Attendance at a meeting of the Authority is one means of satisfying this interest. The public will only be excluded from a meeting of the Authority when the need for confidentiality pursuant to Section 90(2) of the Act outweighs the public interest of open decision-making.

In this matter, the reasons that receipt, consideration or discussion of the information or matter in a meeting open to the public would be contrary to the public interest are that discussion will include discussion pertaining to the disclosure of commercial information of a confidential nature (not being a trade secret) that may prejudice the commercial position of the person who supplied the information or confer a commercial advantage on a third party.

On balance, the above reasons which support the need for confidentiality pursuant to Section 90(2) of the Act outweigh the factors in favour of the public interest of open decision making.

3) Having considered this matter in confidence under Section 90(2) and 90(3)(d) of the Local Government Act 1999, makes an order pursuant to Section 91(7) and (9), that the agenda report, associated documents and minutes in relation to the 22 March 2018 confidential item 9.1, Draft

Operational Management Key Performance Indicators 2018-2019, be kept confidential and not available for public inspection other than information required to be released in accordance with any relevant requirements of Section 91(8) of the Local Government Act 1999; and

In accordance with (3) above and Section 91(9)(c) of the Local Government Act 1999, authorises the Executive Officer to review and revoke the order.

140

Documents

Tuesday, 13 March 2018 Phone: 0418 296 767 Email: … · 2018-03-15 · Phone: 0418 296 767 Email: [email protected] Dear Member ... 7.2 Draft 3-Year Business Plan 2018-2021