East Lindsey District Council has repeated earlier assurances over the future of the Embassy Theatre and Pool.
They made the assurances after a full district council meeting heard the pool and theatre received a combined £483,000 subsidy between them.
According to a report, the annual subsidies to the pool and theatre are respectively £357,000 and £126,000.
Similar pool and fitness facilities in Horncastle, Louth and Mablethorpe are also dependent on substantial funding from the public purse.
In response to the concerns, ELDC has set up a scrutiny panel, under the chairmanship of Coun Steve O’Dare, to explore ways of addressing the financial challenges.
At a full meeting of the authority, council leader Coun Doreen Stephenson confirmed: “The services are excellent but we do need to reduce costs.”
Addressing fears that the panel might look to reduce or even close facilities, a spokesperson for ELDC told the Standard that the scrutiny panel were not looking to reduce hours or services, but protect the existing infrastructure.
They gave “assurances” that the panel was about getting “best value for money” only.