A report presented to council at last week’s monthly meeting shows that for the 2021/22 financial year, the centre will only achieve 68 per cent of the original budgeted income of $516,000 and will exceed original budget expenditure by $399,284.
In their application to IPART for the Special Rate Variation last year, council proposed that aquatic centre users would cover 47 per cent of the operating costs and ratepayers 53 per cent.
However, three quarters into the 2021/22 financial year, the centre only managed to recover 22 per cent of the operating costs from users, with ratepayers recovering the remaining 78 per cent.
Reasons for the financial blowout include lower admissions over the summer peak with the milder weather and COVID-19 impacting the tourism sector, and the uptake of memberships less than expected, believed to be because of COVID-19 and current economic pressures.
Other unforeseen costings include the substantial increase in the price of chemicals since the centre opened, rising by more than 30-40 per cent, and the cost of electricity to run the facility, with an energy audit recommended to determine any opportunities to reduce running costs.
Based on current budget performance, the average running cost is approximately $580 for every hour the centre is open. Wages account for 45 per cent of costs and utility costs a further 10 per cent. Together they make up over half of the total running costs.
At the monthly meeting of council last Tuesday, deputy mayor Shaun Whitechurch said while the loss wasn’t ideal, the achievements of the pool were to be commended.
“The biggest thing to come out of the report is the amount of learn to swim programs happening over there. It’s now somewhere we can send our children to from a very young age right through to adults in a senior program that would have had nowhere to learn to swim,” Cr Whitechurch said.
“Council is monitoring and working very hard to reduce costs… yes, it’s disappointing but… the pool will get utilised and it’s a great facility.”
Councillors’ Andrew Kennedy, Gail Law and Aaron Nicholls also remarked that potentially many lives have been saved as a result of having a secure place for children to learn to swim and that it met the needs of the community’s broader social, health and wellbeing objectives.
Mayor Pat Bourke said it was great to have delivered the $10.3m aquatic centre to the community, with a substantial amount of work put in to pursue the replacement of the former Corowa Swimming Pool built in 1956.
“I know it’s come at a cost to council but the 400 children that go through there a week is just incredible,” he said.
“The staff have done an enormous job getting the pool up and running and complaint.”
Mayor Bourke said it may be time to consider outsourcing the operation of the pool.
“Council staff are stuck with certain laws and certain conditions that other private enterprises don't have to abide by,” he said.
“I don’t know of any pools run at profit or even break-even but that’s not what a pool is about.”
Highlights to come out of the report include the launch of the learn to swim program in 2021 with 348 students currently enrolled and more than 100 students waiting to be enrolled. The learn to swim program is also generating more than $4,000 of income per week.
More than 1,500 participants have also participated in aqua aerobics and weekly physiotherapy sessions have been hailed a success.
Feedback from stakeholders have suggested the hosting of special events and activities such as movie nights, discos, and inflatables.
Council will operate the centre for a further 12 months to continue to establish baseline admission data and monitor budget performance and will make a review in 12 months’ time.
A draft business plan to improve on the centre’s current performance, identifying key performance measures to achieve cost savings and improve revenue has been formulated and is now on public exhibition for 28 days. Council is inviting the community to review the draft plan and provide any feedback by 5pm Monday, August 1,
