Chorley Leisure Limited funding request
Decision Maker: Council
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
The Executive Member (Early Intervention), Councillor Beverley Murray, presented the report of the Director of Communities which sought additional funding from the council due to extraordinary and unbudgeted increases in energy and pay costs, and also due to an under achievement in anticipated income levels.
Members noted that leisure centres were struggling with these issues across the country, but supported the health and wellbeing benefits for residents in using the facilities.
Following discussions it was noted that a five year business plan and condition report would be considered prior to the budget being set in February 2023.
The Executive Member (Early Intervention), Councillor Beverley Murray, proposed and the Deputy Leader, Councillor Peter Wilson seconded and it was Resolved (unanimously)
1. To note the current forecast financial position and the requirement for additional funding.
2. To approve the request for additional resources of £88k on a recurring basis as part of the Council’s contract payment to Chorley Leisure Ltd, and payment of £681k on a non-recurring basis in 2022/23. These requests are to cover the financial impact of:
a. The increase in the cost of utilities of £263k – assumed to be a non-recurring cost at this point but to be reviewed for 2023/24 as part of the budget setting process;
b. The increase in the cost of the pay award - based on the current offer of £1,925 per FTE, it is estimated that the increase in cost, over and above the 2% budget provision, will be approximately £56k – this is a recurring cost;
c. The increase in the costs of the Service Level Agreement for services provided by the Council to the leisure company of £32k, which was understated in the original budget;
d. A significant reduction in the level of income compared to that included in the draft business plan and working budget for 2022/23, estimated at present to be £418k but to be reviewed for 2023/24 as part of the budget setting process.
Report author: Jennifer Mullin
Publication date: 17/11/2022
Date of decision: 15/11/2022
Decided at meeting: 15/11/2022 - Council