Brimbank Council Meeting No. 633 21 May 2024

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12.10

Discounts For Brimbank Residents At Brimbank Leisure Centres

12.10

Discounts for Brimbank Residents at Brimbank Leisure

Centres

Directorate

Community Wellbeing

Director

Lynley Dumble

Manager

Ashley Fleming

Attachment(s)

Nil

Purpose

For Council to consider a report providing advice on fee discounts for Brimbank residents

to attend Brimbank Aquatic and Wellness Centre and Sunshine Leisure Centre.

Officer Recommendation

That Council:

a. Notes this Report responds to a Notice of Motion from the Council

Meeting on 20 February 2024 in which Council resolved to receive a

report providing advice on fee discounts for Brimbank residents to attend

Brimbank Aquatic and Wellness Centre and Sunshine Leisure Centre.

b. Notes that significant benchmarking has been undertaken in the setting

of fees for Brimbank Aquatic and Wellness Centre and Sunshine Leisure

Centre on two previous occasions to ensure highly affordable fees are in

place to benefit Brimbank residents and they are highly affordable when

compared to other similar leisure centres in Melbourne’s north west

region and greater Melbourne.

c. Notes that discounting fees for local residents at leisure centres is not

common practice due to the high operating costs of these facilities and

need to ensure sufficient income to offset costs.

d. Notes that with rate capping, a growing asset base, increasing

operational costs, various competing priorities for funding and broader

ongoing financial challenges facing Council, the current fees remain to

ensure the financial sustainability of Brimbank Aquatic and Wellness

Centre and Sunshine Leisure Centre.

Background

Council owns and manages the Sunshine Leisure Centre (SLC) and Brimbank Aquatic and

Wellness Centre (BAWC) which was formerly the St Albans Leisure Centre (SALC).

Council opened BAWC on 12 September 2022 following an extensive design process,

demolition of SALC and construction over two years. As part of planning for the opening

of the facility, the membership categories and fees for both BAWC and SLC were

considered by Council at the 14 December 2021 Council Meeting, with Council adopting

the proposed membership structure and associated foundation and standard prices for

BAWC and Sunshine Leisure Centre.

These fees were recommended following extensive benchmarking of membership

structures and associated fees across many like facilities to inform the proposal. Many

factors needed to be considered in determining types of memberships and setting

appropriate fees that found a balance for pricing that was competitive, socially equitable,

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financially sustainable, customer friendly and maximises physical activity and access.

Brimbank’s unique demographics and health and wellbeing challenges were also

important considerations.

It was adopted that the SLC and BAWC membership prices were set at the existing

2021/22 SLC adopted fees until January 2023, as this was seen as fair as members only

using SLC would not be penalised financially by the new facility opening. The following

discounts were also adopted for all memberships:

•

A Concession discount of 20% for all Concession memberships (including

concession and seniors card holders).

•

A discount of 50% for all Youth memberships.

As part of the opening of the new BAWC, a one-off Foundation membership was adopted

to be made available until the end of December 2022. A further strategy to maintain

affordability was employed with the price increase being delayed from January 2023 to

July 2023, providing a further 6 months at the lower rate. In July 2023, an increase in

fees at BAWC was implemented to reflect the regional nature of the facility, with annual

fee increases to take place thereafter.

At the Council Meeting #609 20 September 2022, a Notice of Motion was raised and

carried requesting

A report was presented to Council Meeting #613 13 December 2022 responding to the

Notice of Motion that presented extensive benchmarking and confirmed the membership

fees were highly affordable when compared with other leisure centres in the North West

of Melbourne and similar Regional Level Leisure Centres across Metropolitan Melbourne.

As a result of the NOM, during the 2023/24 Council Annual Budget process there was an

increase to the casual entry fee discount from 15% to 20% for concession and from 20%

to 25% for children and families.

At the Council Meeting #629 20 February 2024, a Notice of Motion was raised and

carried requesting ‘That Council receives a report providing advice on fee discounts for

Brimbank residents to attend Brimbank Aquatic and Wellness Centre and Sunshine

Leisure Centre’.

Matters for Consideration

Options

A. Officer Recommendation

Following consideration of the benchmarking and significant negative financial impact of

providing discounts to Brimbank residents, Council does not provide discounts to

Brimbank residents for Brimbank Aquatic and Wellness Centre and Sunshine Leisure

Centre. This is on the basis that previous benchmarking has confirmed the fees charged

are highly affordable when compared to other leisure centres in the North West of

Melbourne and similar leisure centres across Metropolitan Melbourne. In addition, the

high operational costs of leisure centres for which income from patrons assist in

offsetting.

B. Not Recommended

That Council provides discounts to Brimbank residents to attend the Brimbank Aquatic

and Wellness Centre and Sunshine Leisure Centre.

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Analysis

Benchmarking

Across the leisure centre industry, it is not practice for discounts to be provided to

residents, which was confirmed with benchmarking with similar regional facilities across

Metro Melbourne and leisure centres in Melbourne’s North and West. This includes Aqua

Pulse (Werribee), Splash (Craigieburn), Keilor East Leisure Centre, Leisure Link

(Geelong), all South East Leisure facilities (Dandenong), Melton Waves and GSAC (Glen

Eira).

Analysis of memberships and financial impact of potential discounts

As of 12 April 2024, Council has a total of 11,086 members across BAWC and SLC with

82% or 9090 of these members living in Brimbank. At BAWC, the average membership

rate is $35.29 per fortnight across all members and at SLC it is $31.42. The following

modelling shows the financial impact of various resident discount rates on the expected

income:

Resident discount rate

Reduction in income

5%

$412,836

10%

$827,873

15%

$1,240,709

20%

$1,679,343

Analysis of casual visits and financial impact of potential discounts

Over the past 12 months, BAWC and SLC have recorded 229,815 casual visits across dry

and aquatic areas. Assuming that a similar percentage of casual visits are local as per

facility members, 183,852 visits would be allocated to local people. The below table

demonstrates the reduced income expected across a range of products with varied

discount options:

Resident discount rate

Reduction in income

5%

$67,892

10%

$135,784

15%

$203,676

20%

$271,568

Analysis of learn to swim membership and financial impact of potential discounts

BAWC and SLC currently provide lessons to 6,050 students. 76% of students or 4,598

are Brimbank residents. LTS students pay on average $15 per lesson and attend 40

classes annually. The following modelling shows the annual financial impact of various

resident discount rates on the expected income:

Resident discount rate

Reduction in income

5%

$137,940

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10%

$275,880

15%

$413,820

20%

$551,760

Financial impact summary

Resident

discount

rate

Memberships Casual

Swim School TOTAL

5%

$412,836

$67,892

$137,940

$618,668

10%

$827,873

$135,784

$275,880

$1,239,537

15%

$1,240,709

$203,676

$413,820

$1,858,205

20%

$1,679,343 $271,568

$551,760

$2,502,671

Councils financial position

Council has invested significant funds into the development of the recently opened

Regional Level BAWC and planned and completed upgrades at Sunshine Leisure Centre.

In addition, leisure centres have large operational expenses for utilities, staff and

services that need to be considered when setting fees and discounts. Additionally, as

BAWC come out of the 2-year Defect and Liability period and expensive equipment has

expiring warranties there will be increasing repairs and maintenance costs as BAWC.

Income from patrons visiting leisure centres is the main way Council can offset some of

these costs and reduces the need for Council to subsidise these facilities from other

sources such as rates. Income from visitors from outside of Brimbank, which make up

close to 20% of visits, is important as it helps offset costs to Council and Brimbank

residents in funding the ongoing operational costs of the facility. Any financial penalty for

non Brimbank residents attending the site is highly likely to reduce the attractiveness of

visiting the facility and result in a reduced income. Due to BAWC being a Regional level

facility, it attracts many visitors from outside of Brimbank, with these people

contributing to Brimbank’s broader economy through spending at other Brimbank

businesses. Council’s adopted ‘Council Plan - Together We are Brimbank’ Plan provides a

road map for making Brimbank an even better place to ‘live, work and play’ which

recognises the important role that those who live outside of contribute to Brimbank.

There is risk that other neighbouring facilities apply the same approach which may

prevent or limit access and ultimately increase costs for facilities.

Recent developments including rate capping has reduced Councils ability to generate

income, making it more important to ensure that current income streams are

maintained.

Implementation

Subject to Council decision, steps will be taken to implement any agreed changes to fees

and charges structure.

Community Engagement

Consultation was undertaken on the budget which included fees and charges.

Resource And Risk Implications

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Resource requirements can be met within the Annual Budget 2023/2024.

Community:

potential impact on community, including public trust and customer

service impact

• Yes –The main impact will be implementing fee differences for Brimbank residents and

the delay to be people being processed for entry and payment to the facilities. The

impact on residents paying casually would also needing to produce address prove each

visit. Reduced fees for residents would be welcomed by many Brimbank community

members however the resulting decreased income and stable expenditure would result in

Council having to fund the deficit from elsewhere. In addition, non Brimbank residents

will find the facility less attractive if they are penalised financially for visiting the facilities

due to them not residing in Brimbank.

Financial:

significant financial impacts

• Yes – Due to the majority of patrons at BAWC and SLC being Brimbank residents any

discounts provided for residents will have a significant impact on the income generated

by the facilities. Non Brimbank residents may also decide to not attend the facilities

resulting in a further decrease in income.

Regulatory:

legal, legislative or regulatory implications including the rights/obligations

of stakeholders

• Yes – The National Competition Policy must and has been considered in the setting of

fees for BAWC and SLC, any changes to the current compliant fees to reduce them

further needs to remain compliant with this policy to ensure competitive neutrality.

There are no Safety or Environmental risks.

Legislation/Council Plan/Policy Context

This report supports the Council Plan 2021-2025 strategic direction and objective of:

1. People and Community - A welcoming, safe and supported community - An

inclusive place for all

• Wellbeing and Belonging - Responsive services that support mental and physical

wellbeing

2. Places and Spaces - Liveable and connected neighbourhoods that support

healthy and sustainable futures - A green place for all

• Liveable and Connected - Inviting and liveable spaces and facilities, connected so

people can get around.

This report complies with

, Council Plan 2021-2025 and

Social Justice Charter 2018.

Council officers contributing to the preparation and approval of this report, have no

conflicts of interests to declare.