DECLINING membership at LeisureFit Melville blew a $225,000 hole in the City’s 2015-16 budget, raising the prospect of cuts to programs and services offered at the facility.
Melville chief executive Shayne Silcox said membership income at LeisureFit Melville declined nearly $110,000 last financial year compared to 2014-15, falling well short of what was predicted in the budget.
Dr Silcox had previously stated the drop in demand was likely due to a proliferation of private health and fitness services such as 24-hour gyms, yoga and personal training studios.
The outlook for 2016-17 is not much better, with the City anticipating another hefty loss.
“Overall income is predicted to decline a further 5.25 per cent compared to actual income for the 2015-16 financial year,” Dr Silcox said.
“The City has forecast a similar overall financial performance at LeisureFit Melville (in 2016-17), which will be will be achieved through operational efficiency gains.”
LeisureFit Booragoon, which houses the City’s aquatic facilities, experienced an increase in demand but it was not enough to offset the losses at LeisureFit Melville.
“Across the two LeisureFit centres the City has forecast an approximate 3 per cent increase in financial performance compared to the 2015-16 financial year, as the result of a continued increase in demand for services at LeisureFit Booragoon,” Dr Silcox said.
“Although an improvement on the previous year, the 2016-17 forecast is for a net operating loss of approximately $190,000.”
Dr Silcox said the City was nearing completion of a strategic review of LeisureFit services.
“(The review) will provide strategic direction for LeisureFit services to improve their operating performance and respond to futures changes,” he said.
“The City is focused not only on LeisureFit centres, but also ensuring that programs and services in demand by our community as a whole are provided.
“Whether it be through the City’s own facilities where there are gaps in services or through facilitating opportunities for other providers to deliver them to our community.”