Ratepayers supported Tauranga city's pools network to the tune of an unbudgeted $3.8 million in the last financial year, according to TCAL's annual report.

The report adopted by Tauranga City Council this week shows ‘grant revenue' at $4.4574 million, when the budgeted amount was $733,000.

Notes to the report state the extra is from a renewals grant funding for the hot pools emergency works project at $2.3 million. Grant funding for the hot pool redevelopment write off of costs to date at $1.101 million, additional renewals capital funding grant of $240,000 and an unbudgeted debt retirement revenue of $300,000.

While the city poured in millions, the pools network's operational revenue was $1.410 million under budget - $4.769 million, instead of $6.179 million. Last year's operational revenue was $5.235 million.

The operating revenue was $1.4 million below budget because of increased competition from other gyms, it is claimed in the notes.

Budget clubfit membership is down $700,000 because of increased competition, a lack of manager for four months and staffing changes ‘impacting the continuity of the sales team.'

The hot pools lost $304,000 because of the closure from July to September for emergency maintenance works. Bayswim targets were down $220,000, again because of competition. Cafe revenue was down $77,000.

In spite of this, TCAL spent $286,000 on new gym equipment during the year.

The budgeted operating deficit for the year was $1.331 million, while the actual was only $230,000 – a difference of $1.101 million, or the amount of the hot pool redevelopment costs write-off grant.

TCAL's net deficit for the year is $351,000, but the pools network comes out overall in surplus of $2.461 million because of an unexpected $3.893 million net gain from the revaluation of buildings and improvements.