Paying for a new city pool
By Lucas Walsh
Cheney Free Press
CHENEY — The council heard the first reading of Ordinance Y 45, Pool General Obligation Bond Ballot Proposition, at their regular meeting on April 11.
If successful, the city would be authorized to place a measure on the ballot. If the ballot is successful, the city would be authorized to issue bonds in the principal amount of up to $13 million for acquisition, construction and installation of a new outdoor aquatic center.
The estimated annual impact of this bond proposition for homes valued at $200,000 would be $106 which would be $8.83 per month, over 25 years and $212 annually, or $17.67 monthly, for homes valued at $400,000.
The city’s bond rating is AA-, which, for reference, is the fourth highest investment-grade rating, according to Standard and Poor’s tables. A higher bond rating makes it easier to get lower interest rates.
Debt factors, economy, financial performance, and management factors all impact ratings, according to the presentation given at council by Todd Ableman.
Other municipalities were cited as having given feedback on best practice for preparing for a ballot measure. If approved, this item would appear on the Aug 1 ballot.
“To be clear, the proposition authorizes the issuance of bonds up to $13 million, but that doesn’t take into account the bidding process or grant funding or any other factor that could bring the final total to a lower amount,” Ableman said.
“When applying for grants, if we have committed funds it helps our bond rating,” Ableman said.
Mayor Chris Grover said he guarantees that grants will be pursued, if available.
The council must now move forward with appointing committees to prepare statements both in favor of and against the ballot which must be submitted, along with all other relevant paperwork, by May 12. Council must also execute a public information campaign for the ballot also.
Corinna Donnerberg, a resident of the city, asked “Why did council go forward with the second option, and not the first?”
Councilman Paul Schmidt responded, “The voter gets to decide which project to finance. It’s a lot more expensive to build amenities later, and our surveys concluded that many of the amenities are popular among respondents. So most of this is based on the surveys and discussions we had. Let our voters decide, and if they vote no, then we’ll come back to the drawing board.”
Mechanical equipment of the current pool facility suffered a catastrophic failure in 2021. NAC Architecture was selected as the consultant to research new options.
Option two is the larger and more expensive of the two proposed options, and includes a flume slide; a climbing wall; a water walk; and a diving board.
After graphics showing these two options were shown, a representative from Ballard & King gave a business and operations analysis which covered business and operational expense projections.
Operational expenses as well as fee structures were presented and were based on an assumed minimum wage of $17.00 through 2025.
The entrance-fee structure projected daily, monthly, and season pass costs for individuals, youths, seniors, and families.
The projected operational expenses, based on fee structures and predicted costs, were about $470 thousand dollars per year for option one, and $539 thousand dollars for options two.
The report determined that revenues generated would not be able to cover operational costs of either option.
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