Northern Wyoming News - Serving the Big Horn Basin for over 100 years

By Zach Spadt

Staff Writer

WORLAND — The Worland Aquatic Center is faring better after the Federal Reserve raised interest rates Wednesday.

The Associated Press reports that the Federal Reserve increased interest rates by a quarter-point to a range of .25 percent to .5 percent.

When officials began planning to construct the Worland Aquatic Center, an endowment was established. Washakie County voters in 2010 approved establishing a 1 percent special purpose sales tax in order to fund the endowment. Of the endowment, $3.7 million was invested into securities to gain interest.

Half of the interest was to fund incidental maintenance costs at the aquatic center, with the other half going toward long-term improvement.

Washakie County School Dist. No. 1 oversees the endowment, and school district business manager Jack Stott said he expected the interest rate to have risen to 4 percent by now. Unfortunately for the aquatic center, that wasn’t the case.

Wednesday’s increase was the first time the Fed increased the interest rate in nearly a decade.

Struggling to stay afloat

Earlier this week, it was announced that the WAC is struggling to stay afloat financially, largely due to the low interest rates.

The WAC is managed by the WAC Joint Powers Board, which has members from the school board, Worland City Council and Washakie County Commission. There was debate between the three entities on how to resolve the issue.

Stott said the aquatic center operates on about a $270,000 per year budget, but Stott added a higher budget of up to $400,000 wouldn’t be extravagant.

Stott proposed loaning money from the endowment to the JPB to be paid back when interest rates increase.

In a letter to the school board, Stott wrote, “I would propose that under the loan option, the WAC JPB be authorized to borrow, interest free, from the endowment up to $25,000 each year for two years. Further, interest revenue distributions be capped at $40,000 until the loan is paid back.”

For every 1 percent increase in interest rates, the return from the endowment increases by $20,000, according to Stott.

Stott said he expects interest rates to increase by 1 percent during the next year. That 1 percent includes the .25 percent increase Wednesday.

Despite rate increases, Stott said he still endorses loaning money to the JPB.

“The loan is still on the table,” Stott said.

He added that after Wednesday’s rate increase, he is optimistic about the endowment, and by extension, the WAC’s future.

“I’ve always been optimistic,” Stott said.

During the coming years, Stott said he believes interest rates will continue to increase, and the investment return from the endowment will grow as a result. In 10 years, Stott hopes, the money will be there for major system repairs and upgrades.

“We have a beautiful facility,” Stott said.

Operating on a ‘shoestring budget’

Worland City Councilor Mandy Horath said Tuesday that the JPB has done everything that it can to cut operating costs. If the facility needs chemicals, JPB members will volunteer their resources and time to get them.

“If someone is going to Billings, we’ll ask them to pick it up (supplies),” Horath said, adding that in some cases that saves $300 in delivery costs.

Horath said that keeping the WAC open has not been cheap. It costs $4,500 per month for natural gas, $3,000 per month in electricity.

Stott said that the aquatic center has an annual payroll of about $120,000. While the number of employees fluctuates, the center employs David Villa as a fulltime director and an assistant. Numerous other employees include lifeguards and other staffs.

The facility also has numerous volunteers.

As the rates hopefully increase, Stott said, the center may be able to operate on a larger budget. Operating long term on $270,000 per year just isn’t realistic for Stott.

He added, “I’m optimistic for the aquatic center both short term and long term. I always have been.”