City set to subsidize community center
October 14, 2008
By Ed Farrell
The city of Snoqualmie is prepared to subsidize the YMCA up to $2 million over the course of 20 years if voters approve a $10 million bond to construct a community center on Snoqualmie Ridge.
The council voted unanimously Monday to approve a tentative “memorandum of understanding” that promises $100,000 to the YMCA annually for the first three years of the agreement, with the proceeds coming to the city from Snoqualmie Casino revenues, with the YMCA eligible to receive a like amount for the life of the contract, as long as gambling funds continue to the city.
The agreement states the city will “not be obligated” beyond the third year “if funds are not received” from tribal gaming revenues, but will continue making the payments to the YMCA so long as the Snoqualmie Tribe makes “human services mitigation payments” to the city over the full 20-year term of the deal.
City Attorney Pat Anderson told the council the agreement before them was merely a preliminary pact with the YMCA; a formal contract would not be presented until voter approval of the bond measure was attained.
Still, Anderson said, the particulars of the memorandum of understanding were those that would be included in the formal contract, including the promise to pay the YMCA $100,000 a year over the full 20 years of the agreement.
The council vote came, despite Councilman Bryan Holloway’s assertion that the deal was “a change” from what the council was earlier told would be the terms with the YMCA, who will manage the $14 million, 30,000-square-foot center that would be built at Snoqualmie Community Park on Snoqualmie Ridge.
Following the vote, Holloway initially issued a “no comment” as to why he voted in favor of the agreement if it was different than his expectations.
Holloway later said, however, that “sharing the risks” with the YMCA to the tune of $100,000 a year over the life of the contract was “acceptable” to him.
Holloway noted that the subsidy would be coming from tribal gambling proceeds, and not the city’s general fund, but acknowledged that as a non-profit agency, the YMCA would also be eligible to apply to the city for additional funding from a human sources fund established by the city that does include general fund contributions.
Holloway also acknowledged that committing the gaming revenues for the 20 year life of the agreement does remove such resources from other areas in the community to which it could be otherwise allocated, but said he hoped that should the YMCA’s membership prove to be self-sustaining, the tribal money could eventually be allocated elsewhere.
The vote was held, despite one citizen’s plea to delay the matter for two weeks to allow for greater study of the agreement.
“This is a boondoggle to build a country club on the Ridge, and for the five council members living on the Ridge,” said Gene Pollard, a frequent council critic, who lives on the outskirts of the city.
“This affects everybody and (this vote) should be tabled,” Pollard said.
According to city records, five council members – Holloway, Kingston Wall, Bob Jeans, Maria Henriksen and Jeff MacNichols – reside on Snoqualmie Ridge, as does Mayor Matt Larson. Former mayor Charles Peterson and Kathi Prewitt live in the downtown Snoqualmie area.
Two previous bond attempts have failed at the ballot box, largely because of opposition by downtown Snoqualmie residents. Ridge residents have overwhelmingly voted to approve the funding.
A super-majority of 60 percent is required to approve the bond measure.
Pollard acknowledged that, because he lives outside the actual city limits, he would not be allowed to vote on the bond question Nov. 4, but as his home is within the city’s Urban Growth Area and has already been identified for future annexation, the matter was of importance to him and his neighbors.
Rather than dun all city residents, Pollard suggested the council instead create a special tax district, whereby only those who benefit from a project are subject to paying for it.
“Let them build their own country club,” Pollard said.
The city money, according to the terms of the agreement, will be used to “subsidize the YMCA’s cost of maintenance, operation and repair.”
Mayor Larson said the subsidies were offered, in part, to give the YMCA “assurances” of city support.
Larson also noted the “YMCA didn’t want to commit” to certain maintenance and operations costs, such as HVAC and pool pumps, hence the subsidy was critical to securing the partnership with the non-profit group.
Councilwoman Henriksen said the subsidy would, in part, be used to defray the costs of using the center for low-income residents. But when asked by why the agreement did not specify the money would be used to provide such assistance, Henriksen said it was “not necessary” because the YMCA considered low-income assistance “as part of its operations.”
The council also balked at formalizing a last-minute agreement among themselves that would have guaranteed property owners that they would not begin seeing the bond payments on their property taxes until 2010.
The city has calculated that taxes on a $400,000 home would increase by $120 a year if the bond issue is approved. Given the current state of the economy, however, city officials admitted that trying to sell the bonds quickly, in a wildly fluctuating market, could cost the city higher interest rates, which could, in turn, mean higher annual payments by property owners.
YMCA officials have said it is their intent to waive “joining” or membership fees to city residents who will be subjected to the bond payments.
Waving membership fees amounts to a one-time savings of $25 for youths to as much as $125 for families.
All users of the Y will still pay dues, however, which run as much as $93 a month, or $1,116 a year for a family that intends on using the center regularly.
When combined with the additional property tax payment, a city of Snoqualmie family, living in a $400,000 home, would pay as much as $1,236 to use the facility on a regular basis, not including some programs which may have additional user fees.
In return, the YMCA has said it will offer such residents “discounts” in the form of Y-Bucks, of as much as $25 to $50 a year which can be applied to off-set costs.
Non-city residents would be subject to full membership and monthly dues, as well as any special program fees that might be applicable.
Comments
Got something to say?
