NEW details have emerged about Mount Gambier City Council’s proposed $39.1m community and recreation hub after council released a comprehensive report this week.
The report – prepared by BRM Holdich – includes a financial model informed by an earlier feasibility study, as well as expected demand based on court use and swimming patronage (informed by the existing outdoor pool).
Based on a full year of operation, the hub is forecast to generate revenue of $1.563m with operational costs of $2.964m, producing a loss of $1.401 million (with $0.807m of this loss related to depreciation).
Council chief executive Mark McShane said the report was made available to the public after details were finalised.
“The financial modelling was informed by a feasibility study prepared by Simply Great Leisure, as well as an assessment of expected demand and benchmarking of comparable recreation centres in Victor Harbor, Campbelltown, the Barossa and Playford,” he said.
“The report was finalised last month by Mark Booth of BRM Holdich, who is a specialist in this field.
“He has extensive experience in working with local government and advising organisations on projects in both metropolitan and regional centres.”
The report outlines key revenue assumptions, including court hire rates, pool attendance rates, cafe and catering revenue and outsourced operation of a fitness/wellbeing area.
Staffing – including overtime and casual staff – ongoing maintenance and depreciation were highlighted as key expense assumptions.
The financial model assumes all six courts will be used between 3.30pm and 10pm Monday to Friday and on Saturday between 8am and 5pm.
Other community use for three courts between 10am and 1pm Monday to Friday is assumed, with overall court use of approximately 55pc.
Revenue per court (based on a bottom up budget approach) was estimated at $79.5k per year.
Court hire rates (including GST) were tabled at $49.50 during peak times, $38.50 shoulder and $27.50 off-peak.
Pool attendance (based on the SGL feasibility study) assumed 36,870 casual attendances per year, 20,000 school attendances and 26,560 learn to swim attendances.
Casual pool attendance rates (including GST) were tabled at $6.80 for adults, $5.80 for children and $5 for concession card holders.
It was assumed a fitness/wellbeing area would be outsourced to a private operator for $1000 per week.
Cafe and catering revenue was estimated at $10,000 per month.
The financial model allowed a $100,000 provision for overtime and casual staff and maintenance estimated at $80,000 per year, while utilities and chemicals will cost approximately $515,000 per year.
Administrative support is expected to cost council $50,000 each year, while the centre will depreciate by $807,000 every year based on useful life estimates.
