Meeting documents
Executive (I)
Tuesday, 18th February, 2014
| REPORT TO: | 65 |
| DECISION NUMBER: | PH/18/2014 |
| EARLIEST DATE FOR DECISION: | 18th February 2014 |
FEES AND CHARGES FOR LEISURE SERVICES AND CEMETERIES AND CREMATORIUM | |
| Matter for Consideration: The proposed Leisure and Operational Services Fees and Charges for Leisure Management and Cemetery and Crematorium for 2014/2015. | |
| Information: The Leisure and Operational Services Fees and Charges relates to the following services within the department: • Leisure Management • Cemeteries and Crematorium In relation to the review process of the Fees and Charges, each of the services operates within a framework underpinned by the following key principles: • Maximise income, particularly to support cross subsidy • Consideration of market forces • Concessionary pricing for vulnerable groups • Residents discounts apply to a range of activities • Free or discounted use to targeted groups. The Council’s Leisure Services section operates the Blackpool Leisure Card scheme that allows local residents easy access to sports facilities and provides reduced rates, ensuring that those residents in greatest need gain additional support in terms of standard concessionary charging rates. In excess of 60,000 people are registered, with the following groups receiving concessions: • Under 16 years of age • Over 60 years of age • Low / no income households • Disabled persons • Full time students. A range of groups and clubs are supported by concessionary charges, with the Polar Bears Disability Swimming Club and Blackpool Bears Disability Multi Sports Club given free use. In addition the service continues to offer free swimming to all juniors during school holiday periods. The most vulnerable young people who are in public care are issued with a Passport to Leisure card, which allows free use of sports facilities for pay on the day activities and up to 50% reduction on coach-led instructional activities. A benchmarking exercise has been carried out within the local market in relation to key leisure prices. Our prices have been considered against North West Local Authority areas; public facilities, private sector gyms and leisure trusts, to compare against average price and the price range to balance aim of maximising income against increasing physical activity levels. The Council’s Leisure Services section applies fees and charges to three distinct categories of customers; pay on day, memberships and via group block bookings. In addition, one off events for a range of sports are taken with fees calculated to reflect space required, staffing commitment and recover additional costs, such as hire of equipment, setting up costs and post event clearing or reinstatement works. The research undertaken via the benchmarking exercise indicates that our Pay on Day current pricing sits within a comparable range of prices charged by neighbouring local authorities and leisure trust operators. The recommended prices set out in Appendix 'A' reflect the level of sensitivity in the current economic conditions and the small reduction in patronage noted in some activity areas, e.g. casual swimming, indicates insufficient demand to allow significant price increases. These reductions have been compensated by the growth in numbers of customers who have chosen monthly and annual membership options. Pay on Day prices allow customers to start exercising, or take part in activities without commitment and is important not to discourage participation with high costs, therefore very small price increases, generally of 5 pence and 10 pence per activity are recommended. This does however provide the service with some additional income to offset costs of providing and maintaining facilities. The Council’s Leisure Services section offerS a range of membership options for individuals, couples and families who wish to use the leisure facilities on a regular basis. These memberships allow customers access to three fitness studios, two swimming pools and over 170 exercise classes per week. The current single adult membership price is £33.00 per month with a range of differing price tiers to offer couples, families, corporate users and concessionary categories appropriate rates. The concessionary group gives a reduced price option, currently £23.50 per month, for those customers on low/no income, registered disabled, students, young people or those aged over 60 years. 32% of members are concessionary members. Of the remaining 3,400 membership types taken out by customers, 29% of customers are corporate members, 12% are Active Blackpool members, who have joined via our health programmes following a referral from their GP and 27% are standard adult members. A review of membership prices across local authority/leisure trust gym facilities, both nationally and regionally, highlighted Blackpool at the upper end of the price scale with the average monthly membership in the North West at £26.14 compared to £33.00 in Blackpool. Nationally, the average monthly membership is £30.45. The performance management data indicates that the average commitment to a standard monthly membership is 9 months from date of joining. This is of concern as clearly long term health benefits will only be realised by ongoing participation in physical activity and also with regards income levels for the service. To increase levels of retention, which in turn impacts on health and income levels, a recommended drop of an average 8% in the monthly membership rate is proposed. The service will compensate for the short term drop in income levels across the full year by attracting more people to take up exercise at these cheaper rates and by retaining existing customers at rates which offers increased value for money. With regards to the new town centre gym facility, offering a gym and range of exercise classes, it is proposed that a single site price of £24.99 per month is introduced (for concessionary members on low/no income, registered disabled, students and over 60 years old, a rate of £19.99 per month would apply). Customers on a monthly membership at the existing sites will be able to access the facility at no extra cost. To encourage more young people to take part in regular physical activity a new membership category, specifically for young people (up to 16 years) is recommended at £15.00 per month. Cemetery fees and charges have been benchmarked against comparable service providers to assess our current position. Despite last years above inflation increases the service remains competitively priced particularly against both Wyre Borough Council and Lancaster City Council though higher than Fylde Borough Council. Carleton Crematorium has seen significant investment within the last 12 months with regards to the Chapel, including re-decoration, carpeting and new music system. The investment to modernise the cremator plant to meet environmental legislation to control mercury emissions will be completed during 2014, which the service is funding via Prudential Borrowing. Therefore, with the combination of savings targets and cost recovery, it is proposed that fees and charges increase by an average of 10% across all areas. To provide support to those families who have been struck by the tragic loss of a child or young person it is proposed to continue the current arrangements for burials and cremations at no charge for all under 16 year olds. In addition, the permit fee for erection of headstones in the baby section has been removed. The Carleton Cemetery 'Baby Section' has been created to care for lost children, up to 12 months old, in a dedicated area. Recent work with parents, from the Friends Group, has led to improvements in the overall appearance of the area as the service has provided each grave with a plinth free of charge to allow the families an 18" space to place items in remembrance. Families who do not wish to have a grave can have a memorial plaque on the remembrance wall free of charge for 25 years. | |
| Does the information submitted include any exempt information? | NO |
| Legal Considerations: None | |
| Personnel Considerations: The Council’s Leisure Services section operates a concessionary price scheme to ensure price is not a significant barrier to access. Bereavement Services have identified the most vulnerable users and have removed fees to provide support | |
| Financial Considerations: The Fees and Charges process required consideration of the following: • The department’s performance in terms of income generation in 2014/2015 against target; • The department’s indicative 2014/2015 Revenue Budget; • Benchmarking the proposed Fees and Charges within the market place. | |
| Performance Management Considerations: The Fees and Charges process consideration of 2013/14 performance and target setting for 2014/2015. Performance will continue to be monitored at close range. | |
| Risk Management Considerations: Increasing the current levels of patronage to meet Leisure Management's income generation targets. | |
| Relevant Officer: John Hawkin, Head of Leisure and Catering Services | |
| Relevant Cabinet Member: Councillor G. Cain | |
| Consultation Undertaken: A benchmarking exercise has been entered into with colleagues from other local authorities. | |
| Background Papers: | |
| Is this a key decision? | NO |
| Is the decision required in less than 5 days? | NO |
| Recommendations: To agree the Leisure and Operational Services proposed Fees and Charges for Leisure Management and Cemetery and Crematorium 2014/2015, which are detailed in Appendix A. | |
| Reasons for Recommendations: The Fees and Charges for 2014/2015 need to be approved in order to take account of business development, inflation, the budget, and the market. | |
| Is the recommendation contrary to a plan or strategy adopted or approved by the Council? | NO |
| Is the recommendation in accordance with the Council’s approved Budget? | YES |
| Other alternative options to be considered: A comprehensive analysis and assessment has been carried out in order to arrive at the proposed Fees and Charges. | |
| Policy, Overview, and Scrutiny Committee Chairman (where appropriate) Date Informed: N/A Date Approved: N/A | |
| DECLARATION(S) OF INTEREST (if applicable) None | |
| Decision: The Cabinet Member agreed the recommendation as outlined above namely: To agree the Leisure and Operational Services proposed Fees and Charges for Leisure Management and Cemetery and Crematorium 2014/2015, which are detailed in Appendix A. | |
| Date: | 18th February 2014 |
| Reason for Decision: The Fees and Charges for 2014/2015 need to be approved in order to take account of business development, inflation, the budget, and the market. | |
Date of Publication: | 18th February 2014 |
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