Eurobodalla Council’s Bay Pavilions arts and aquatic centre loses $1.2 million in first nine months

Reports published today have advised the Eurobodalla Shire Council’s Bay Pavilions arts and aquatic centre in the NSW south coast town of Batemans Bay has incurred an operating loss of $1.2 million in its first nine months with every visit to the facility the LGA more than $6.

The coverage, based on a report by financial consultant KPMG for Eurobodalla Shire Council, found the facility incurred the operating loss in the nine months following its opening in June 2022.

With depreciation, the facility is expected to record an operating deficit of more than $4.6 million in its first year of operation.

The $70 million project was made possible by an $8 million grant from the NSW government's Regional Cultural Fund in 2018 - the largest funding commitment from the scheme.

The KPMG has found the Council never properly researched community demand for the facility, and patronage was 12% lower than forecast.

The report stated that documents forecasting a loss of $3.4 million were given to the Council in July 2021, but there was no evidence it ever identified any plan to fund the shortfall.

The report also highlighted a fixed-payment management arrangement with Aligned Leisure, the third-party operator of the facility.

It found there were no contractual commercial incentives for Bay Pavilions to be operated in an efficient and sustainable manner.

Financial models showed the facility would continue to have both operating and total losses over the next 10 years.

The report said the council must consider scrapping other projects in the shire if it wished to keep funding the facility.

Eurobodalla Shire Mayor Mat Hatcher said the recommendation was made by a consultant and "doesn't mean that we will be cutting a service", telling the ABC “we're going to make sure that we're doing everything we can to save money … because nobody wants to go down the route of a special rate variation

"The money has to come from somewhere."

Mayor Hatcher said the Bay Pavilions was a problem he and his councillors inherited after taking office in 2022, but one he was determined to fix.”

During planning of the facility, community groups objected to lack of transparency of the project’s finances and expected running costs.

Images: Entrance to the Bay Pavilions arts and aquatic centre (top, credit: Eurobodalla Shire Council) and waterslides at the facllity (below, credit: Destination NSW).