Agenda item

For Cabinet to consider an amendment to the in-year budget framework and provide a loan to LeisureSK Ltd to finance the purchase of gym equipment at Bourne Leisure Centre.

Note:  Prior to consideration of item 36, Councillors Kelham Cooke and Rosemary Trollope-Bellew, and the Chief Executive and the Director of Growth and Culture declared an interest due to being board members of Leisure SK. They left the Council Chamber at this stage and took no part in the debate or the vote.

In the absence of the Leader of the Council, members moved, seconded, and appointed the Cabinet Member for Waste Service and Climate Change as the Chairman for this item only.

This item had been added to the Cabinet agenda as an urgent report and would not be subject to the call-in process.

Purpose of report

To consider an amendment to the in-year budget framework and provide a loan to LeisureSK Ltd to finance the purchase of gym equipment at Bourne Leisure Centre.

Decision

That Cabinet:

1.    Approves the addition of £137,000 to the capital budget for 2022/23 to provide a loan to LeisureSK Ltd to facilitate a refurbishment of the gym area and equipment at Bourne Leisure Centre.

2. Delegates to the Chief Finance Officer to agree the terms and conditions of the loan and sign the loan agreement on behalf of the Council.

Alternative options considered and rejected

The options for LeisureSK Ltd to either directly purchase the equipment or enter a lease arrangement had been fully considered. It had been established that it was financially beneficial for the Council to finance the cost of refurbishing the gym at Bourne Leisure Centre via a loan arrangement.

The option not to invest in the gym area at Bourne Leisure Centre had been discounted by the Board of Directors for LeisureSK Ltd. Without this investment, it would become increasingly difficult to attract and retain customers to the centre.

Reason for decision

At their September 2022 meeting, the Board of Directors for LeisureSK Ltd. considered a report concerning the equipment provision at Bourne Leisure Centre. It was thought that the age of the equipment in place there was more than 8 years old, beyond the accepted lifespan as advised by the leisure industry. Work had taken place with suppliers to identify the costs of providing new equipment; these costings would include the removal of the old equipment as well as installation of the replacement items. All servicing and maintenance costs for five years would also be covered. The most cost-effective solution for Bourne Leisure Centre would be the refurbishment of the gym equipment.

The Directors of LeisureSK Ltd. approved the proposal to undertake a replacement of the gym equipment at Bourne Leisure Centre. Work was carried out by SKDC’s finance team to assess the impact of SKDC providing a loan to help meet this proposal.

The resolutions within the report provided the optimal financial outcome for SKDC and the planned refurbishment of the gym at Bourne Leisure Centre would have a significant impact on improving income and aiding the recruitment and retention of customers.

The investment in new equipment for Bourne Leisure Centre demonstrated the Council’s ongoing commitment to ensuring there were opportunities for residents to improve their mental and physical wellbeing by adopting a healthy lifestyle. The new gym equipment would also support wider activity, including an extension of the GP Referral scheme, ensuring that residents with health conditions were supported and benefitted from improved health outcomes.

The following points were raised during discussion:

• December was traditionally a quiet period for leisure centres; therefore, it would be prudent to start the process of ordering equipment now so that the installation could take place during this quiet time.
• The results of the full conditions survey at the three operational leisure centres had been received by SKDC officers. The priority for Bourne Leisure Centre was health and safety. Building works had been scheduled for the roof, fire doors and boiler.