No loan for aquatic center

Both the Washakie County Commissioners and Worland City Council voted down a proposal for a no interest loan to help fund the Worland Aquatic Center at their respective meetings Tuesday. In the end after an hour-long discussion, the commissioners proposed the formation of a working group to find a solution all three entities (city, county and school district) involved in the center could accept.

Washakie County School District No. 1 Business Manager Jack Stott opened the discussion at the commissioner meeting Tuesday afternoon by stating, "To crystallize the situation, we need a few more bucks at the aquatic center. The $270,000 budget, we're struggling along pretty good."

He said the Worland Aquatic Center Joint Powers Board, Stott said, "ran into a situation over last six months, for a couple of reasons, that put us in a cash flow problem," in the amount of about $15,000. He said they WAC came out of last winter in pretty good shape but then incurred debt related to the contract with the previous manager, they came up short on estimated interest revenues and long on some expenses. He does not anticipate all those occurring again.

In regard to interest rates, he said they had estimated for a 4 percent return that would raise $80,000. In 2015, he said interest rates, which were just raised Dec. 16, were providing about $12,000 in interest revenue.

School board's loan proposal

Stott said the school board looked at options that would protect the principle of the endowment, balancing that with the need to get out of the cash flow problem.

The recommendation was a no interest loan solution, which Stott said would not add a ton of money into actual operations.

Stott said, "The loan solves the cash flow problem and protects the principle of endowment."

He added that a loan would "probably" make people more conscientious of how they spend money than if given the money outright.

Another proposal from the joint powers board was to utilize $300,000 of the endowment, the joint powers board would be able to utilize what it needed each year with the rest in a reserve account drawing interest. The $300,000 was proposed as half of additional funds the one-cent optional tax raised for the WAC.

Stott said the one-cent optional tax approved by voters in 2010 was to raise $3.7 million for the endowment. It raised $4.45 million, or an additional $750,000, not $600,000 as was originally factored in during the proposals. Half of the funds raised by the tax was for operations, have for major maintenance and/or renovations.

Worland City Councilor Dennis Koch asked if there is the additional money, then why not allow the joint powers board to use $20,000 to get buy this year and "not worry about a loan."

Commissioner Dale Wagner, prior to voting, said his concern was that the taxpayers voted for a tax to raise $3.7 million, not a tax plus a loan.

Commissioner Terry Wolf said he personally was would rather not see a loan associated with the endowment funds either. He said there are too many questions about what happens if interest revenues never increase and the loan cannot be paid back.

County Attorney John Worrall added his concern about a loan, including who would pay it back if the joint powers board disbanded.

Stott said the concern of the school board is if you allow use of $20,000 from the endowment "you open up that gate, where does it stop."

County Commission Chairman Aaron Anderson said he's heard concerns from constituents that perhaps the aquatic center is being run "too lean." He said the endowment is holding money for the future but there needs to be something for the people to enjoy today.

Stott said the center is open Monday through Friday 8 a.m. to 8 p.m. with two hours closed to the public. There are limited hours during the weekend because they were not seeing the usage when they were open 8 a.m. to 8 p.m.

$50,000 proposal

Prior to the commissioners taking a vote, attention turned to a proposal that had been submitted by Worland Mayor Dave Duffy, who was absent from both the commissioners and council meetings. Duffy proposed, according to Anderson, to allow the joint powers board to use $50,000 annually from the endowment, with small increases allowed annually. The proposal showed that based on 1 percent interest on current endowment it would take 21 years to get below the voter approved $3.7 million. At a straight $50,000 each year it would take more than 30 years to drop below that threshold.

Stott said his initial concern on the proposal is that it doesn't take into account that half of the endowment must be reserved for major maintenance and renovations.

Mandy Horath, city councilor and joint powers board member appearing via telephone said, "We're (JPB) not dumb people; we're only going to use what we need to, to keep the doors open at bare minimum."

She added that she agreed with Wolf, she does not support a loan. She said the JPB should be allowed to use $300,000 or $375,000 (half of the additional funds raised beyond voter approved $3.7 million) to get the cash flow back for the center.

"If interest rates come back up we won't have to touch all of it," Horath said.

Anderson said he favored a proposal like Duffy's because it gives the joint powers board some sustainable income, something they can count on each year.

He then proposed forming a working group of representatives from the three governing groups to bring forth a solution that each group would support.

The commissioners then voted on a motion to approve the school board proposal with no one in favor.

It was a similar outcome a few hours later in the council chambers with Jim Gill presiding and the council voting down a motion to approve the school board proposal.

Town Attorney Kent Richins said he felt a loan would complicate things, adding "We need to invest our money in our pool."

Horath agreed, noting that the $270,000 budget includes board members volunteering time to keep the slide open during the summer.

The council then appointed Horath and Michele Rideout to the working group. Horath said since the school board won't act on the council and county's decision until its Jan. 25 meeting, any meeting from the working group would likely be in February.

She said the center is able to pay its current bills.