Users of Rossett Sports Centre are to be consulted on council proposals to withdraw funding and leave its management role at the hub.
Harrogate Council (HBC) first discussed terminating its joint-use contract at the centre at 2013 budgeting talks.
Currently, the centre is jointly managed by HBC, North Yorkshire County Council and Rossett School.
This allows HBC to operate it outside of school hours.
However, a review has revealed the way the centre operates and the level of local competition has changed.
Total revenue generated through coaching and children’s parties has fallen 35 per cent in 18 years, while revenue generated by hiring out facilities such as squash courts has risen 35 per cent.
HBC cabinet member for cultural services Pat Jones said: “The revenue generated is predominantly facility hire and there is no reason why this couldn’t be delivered by the school or another third party, bearing in mind the council does not own this facility.
“The proposal is simply about this council’s withdrawal from a management role and removal of the costs that go with that.”
Rossett School headteacher Pat Hunter said: “Everyone is aware of the financial pressures on the public sector and the council is no exception. We need to understand how any decision by the council to withdraw from the agreement would affect us before we can decide how to proceed.
“Ultimately, we want to reassure our pupils and parents that, whatever the council decides to do, it will not affect how we currently use the sports facilities for the school.”
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