Te Puke Recreation and Aquatic Centre Feasibility Study

15.3 Income StreamsThe income streams for the preliminary operational budget have been developed based on the following keyassumptions:1. Programme development and delivery will be undertaken by the facility management.2. The ‘medium’ projections for pool, recreation centre, gym and function room usage have beenadopted.3. The facility will attract minimum funding grant income.4. The School will provide a subsidy of $50,000 per annum.5. WBPDC Council will provide a subsidy of $60,000 per annum (approximately the same as the existingsubsidy that WBPDC is providing to the School for the current Te Puke pool).6. The subsidy level from both the School and Council will need to be reviewed and negotiated so bothpartners are providing an adequate level of operational support in order to make the facilityfinancially viable.15.4 CostsThe costs for the operational plan have been developed based on benchmarking similar size facilities. Some ofthe key points are:15.4.1 Electricity / gas will be a significant cost due to the heating of the indoor pool area.15.4.2 There is the potential to significantly reduce the electricity / gas cost component if the proposedaquatic and recreation facility could utilise the Te Puke High School ‘bore’. There would be anadditional capital cost to utilise the school bore, but the long term operational saving for theproposed facility and the School facilities could justify the capital outlay.15.4.3 There are shared costs associated with:• Communications• Security• Bank / finance charges• Insurance (building)• Insurance (content)• Office / cleaning supplies• Professional Fees• Advertising / Marketing15.4.4 A contribution towards the depreciation costs of the building has been included within thepreliminary operational budget.62