Working party to monitor Claudelands

A revised business plan for Claudelands will be put in place and its financial situation tracked monthly as Hamilton City Council works to overcome its budgetary shortfalls.

At its monthly meeting today, Council’s Finance and Monitoring Committee passed a resolution which also set up a new working party to monitor Claudelands’ performance. The working group comprises Mayor Julie Hardaker, Finance and Monitoring Committee Chairman Councillor Dave Macpherson, plus Councillors Ewan Wilson and Margaret Forsyth.

The committee has also asked for an independent peer review of Claudelands’ original business plan, with the cost and scope of the review to be reposted back to Council before it is commenced.

After the first quarter of the 2011/12 financial year, Claudelands has shown a shortfall of $740,138 on its financial target. Proposed remedial actions – including a shift in marketing priorities to target the higher yielding conference and functions market and a 5% improvement in cost efficiencies – should lessen the forecast variance to $1.1 million by the end of June 2012.

Lance Vervoort, Council’s Acting General Manager of Events and Economic Development, said difficult economic conditions and a competitive event and conference venue market meant Claudelands had not met its original revenue targets. Staff identified revenue and booking shortfalls within a few months of the facility opening, and advised Council of the need to reconfigure financial expectations for the facility.

Mr Vervoort said: “Councillors and staff are aware of the need to avoid significant ongoing budget deficits with this facility. The increased reporting and revised business plan aims to ensure realistic financial outcomes for Claudelands into the future.”