Wyndham council will invest more than $500,000 of ratepayer money in a new company that will manage the city’s recreation facilities.
The council announced plans to set up the company, known as Western Leisure Services, to run the Wyndham Leisure and Events Centre, the Werribee Outdoor Olympic Pool and the Werribee Sports and Fitness Centre (the “Rec”).
Belgravia Leisure currently manages the leisure centre and outdoor pool, while the Rec is run by the YMCA.
Wyndham chief executive Kerry Thompson said the initial establishment of the company would cost ratepayers about $30,000, with the council to provide $500,000 in start-up equity.
But she anticipated that the $500,000 would be returned to the council through dividends.
Ms Thompson would not reveal how much it would cost the council to run the centres, saying only that it had assessed a number of management models.
“It was found that over a 10-year period, the option of managing these facilities via Western Leisure Services is significantly better from a financial perspective than the alternatives,” she said.
“Council believes it’s important for operating profits to be recouped to off-set maintenance and asset renewal costs.”
The new company will operate at “arm’s length” from the council and will be overseen by a board of management that will appoint a chief executive.
Mayor Bob Fairclough said the new operating model would provide the best value for money for ratepayers and allow the council to cross-promote recreational programs and advocacy campaigns without going through third parties.