Child's Play Nursery, a council-run unit attached to a leisure centre in Flint, Wales, was informed last month that Flint County Council was consulting on proposals for closure.
The nursery has 55 children on its roll and employs 16 staff, most of them full time.
The council claims that the nursery is losing 53,000 a year in salaries alone and that the financial position 'is now at a level which cannot be sustained'. A council report said, 'As other service providers have come into the market, we have been unable to fill all the vacant places.'
But parents and staff believe that various strategies could be employed to boost income levels and secure the nursery's future.
Nursery supervisor Linda Carroll said the leisure centre has a council-run out-of-school club, run separately from the nursery but using the same staff. Ms Carroll said that if the council was prepared to expand the building, the club could be incorporated into the nursery and it would gain more fees. 'The building can currently accommodate only nine children in the three-to-five age group. Numbers could be boosted if we could expand,'
she said.
Six-hundred new homes are being built in the area, creating more potential demand for childcare, said Ms Carroll.
Lisa Cutler, a member of the parents' committee, whose three-year-old son attends the nursery, said that if nursery fees are an issue, 'the majority of parents have said they would be prepared to pay more'. She added, 'The main concern for us is the welfare of our children. The children and staff have such a fantastic bond. It would be devastating to see this facility go.'
A spokesperson from the council said a number of options were being considered, including closure in consultation with stakeholders. The business plan will be presented to members of the council on 19 September.