Agenda item

For the Culture and Leisure Overview and Scrutiny Committee to consider the level of management fee required to support LeisureSK Ltd for financial year 2024/2025.

One Member queried why certain Members of the Leisure SK Ltd Board were removed from the meeting, however, one Board Member remained in the meeting.

The Monitoring Officer clarified that the Chairman of the Board was presenting the report and answering any questions from Members. It was deemed necessary that any other Members of the Board leave the Chamber for this item.

The Chairman of Leisure SK Ltd presented the report which requested the Committee to secure the ongoing provision of leisure across the District. The Council was entering the annual process of budget setting.

The report provided the restructure and the significant changes in key income costs that were increasing (fitness, swimming, staffing and utilities). There were encouraging funding opportunities that had been actively sought in partnership with Council Officers and Members of Leisure SK Ltd.

Appendix 1 of the report provided the Committee with a full transparency of the budget proposal.

The Committee were reminded of the early notification that works were due to take place at Bourne Leisure Centre on the roof, which will result in further costs.

One Member noted the fact that Deepings Leisure Centre was losing out on £20,000 for central marketing and supply, despite being closed. It was queried whether that cost would be put back into the other three leisure centres.

It was confirmed that the document presented was an overtype of another document and there should have been pages removed from it, one of which related to Deepings Leisure Centre. The Chairman of Leisure SK Ltd was satisfied with the main part of the costs as presented in the report.

Concern was raised on the £1 per month increase on the swim school lessons from September 2025 being an extremely low increase.

The £1 per month increase on the swim school lessons was consulted with the Leisure SK Ltd Board. The Chairman of the Board was happy to reconsider the matter at a future Board meeting.

The Committee were reassured that there had been an underprice increase on monies that was agreed the previous year and therefore, had increased significantly in the last two years. As part of that agreement, the board were provided with benchmarking information to consider costs of swimming lessons regionally and locally.

Clarification was sought around the deficit monies proposal and the proposed budget.

The Chairman clarified that the proposed budget allocation of £454,422 was to support the trading operation of LeisureSK Ltd. Without the monies, the Council’s ability to provide leisure provision across the District would be compromised.

The Assistant Director of Culture and Leisure reassured the Committee that the contract between the Council and Leisure SK Ltd was set up in such a way that the Council fund the deficit via management fee payments. If the company moved to a surplus position, then the monies would be returned to the Council, in line with the contractual arrangements.

Responsibilities of the Council were highlighted in relation to repairs and maintenance and improving leisure facilities. The Council had previously undertaken condition surveys, which were being worked through on all three leisure facilities.

It was queried as to how much the condition surveys had cost.

The fully costed 30-year condition survey had been undertaken, with partnership working ongoing with Property colleagues to prioritise tasks needing to be completed. All tasks flagged as being ‘end of life/urgent’ had been completed.

One Member questioned whether the budget monitoring figures within the exempt appendix were up-to-date. For which the Chairman of Leisure SK Ltd confirmed they were.

It was proposed, seconded and AGREED that the exempt appendix be discussed in closed session (By virtue of paragraph(s) 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

Members discussed the recommendations set out in the report, alongside taking the exempt appendix into consideration. Members felt they were unable to make a decision on the management fees at this time, due to lack of information provided.

The Chairman of Leisure SK Ltd highlighted that the Committee had the correct figures available, however, comparisons from previous years would be brought back to the meeting in January. Members were urged to approve budget proposal, in order to be included within the budget. 

It was proposed, seconded and AGREED to postpone and defer the LeisureSK Limited Management Fee Request for 2024/2025 to the next Culture and Leisure Overview and Scrutiny Committee, being held on 9 January 2024.

It was proposed, seconded and AGREED:

That the Culture and Leisure Overview and Scrutiny Committee

1. Agree to receive and analyse the Business Plan for LeisureSK Ltd for financial year 2024/2025 at the scheduled meeting of the Overview and Scrutiny Committee on 9 January 2024.