Councillors divided over $2.9 million Western Leisure Services start up costs
Wyndham City Councillors are reportedly divided over the funding of the $2.9 million start-up costs for the Council's Western Leisure Services (WLS) subsidiary.
WLS, the company established by Wyndham City Council established in April of last year to manage city’s three major leisure centres, is set to run at a loss in its first five years of operations.
Local newspaper the Wyndham Star Weekly has reported that Councillorsw were last week advised that the company, which will administer the redeveloped Wyndham Leisure and Events Centre and Werribee Sports and Fitness Centre, along with the Werribee Olympic Outdoor Pool, will require ongoing council funding until it establishes a positive cashflow.
As part of the formation of WLS, the Council purchased 500,000 $1 shares to enable initial costs to be met and has now approved a further $1.4 million in funding to cover the period from December last year to March this year – a decision that divided councillors.
According to the report, this funding will pay for development of policies and procedures, creation of occupational health and safety and risk mitigation systems, recruitment of operational staff to work in the centres, marketing and promotions, and IT equipment and maintenance.
Councillors were told WLS would require further start-up funds for April to June this year to provide for marketing, pre-opening membership sales, frontline staff and training.
WLS' 'winactive' website can be viewed at www.wynactive.com.au
Image shows promotion for the new Wyndham Leisure and Events Centre.
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