City Moving Forward With Aquatic Center

It appears Glenwood is finally going to get its aquatic center.

Following a public hearing Monday night at City Hall, the Glenwood City Council cleared the final financial hurdle by approving up to $600,000 in additional general obligation bond funding for construction of an 8,700 square-foot swimming center that will be built on land adjacent to a new gymnasium under construction at Glenwood Community High School.

The additional $600,000, along with $3.5 million in bond debt approved earlier this year by the city council, will be paid off over a 20-year period by Local Option Sales Tax (LOST) revenue.
Construction of the aquatic center is projected to be “substantially” completed in time for a July 1, 2016, opening.

During Monday night’s meeting, financial consultant Susanne Gerlach of Des Moines-based Public Financial Management, Inc., told the city council and members of the audience that based on her projections, the city will take in enough Local Option Sales Tax revenue from 2016-2035 to cover its annual bond debt and operations and management costs associated with the aquatic center. The funding plan also provides a Local Option Sales Tax reserve balance of more than $800,000 to cover major maintenance expenses at both the aquatic center and the Mills County YMCA.

Based on annual growth in Local Option Sales tax revenue of 1 percent, a percentage Gerlach calls conservative, the city will see its LOST revenue rise from $430,000 in 2016 to $509,000 in 2035. The city will need $380,000 annually during that time period to retire its bond debt, leaving the additional dollars for operational/management expenses.

Approving the additional bond debt was one of several aquatic center matters on the council’s agenda Monday night.

The council also approved Ericksen Construction’s base bid of $4.35 million. The city is projected to spend an additional $800,000 on the facility to cover engineering, bond issuance and utility relocation costs.

To keep the project within budget, the city council also approved over $212,000 in “deducts” Monday night, ranging from the removal of stainless steel lockers,  shade shelters and air conditioning in the bathhouse to a change in the facade. The brick on the exterior of the bathhouse / concessions building will be replaced with a “split-face, smooth-block” finish.

If the facility is not substantially completed July 1, 2016, the contractor will be assessed damages of $350 per day. If the final completion date of Oct. 1, 2016, isn’t met, the contractor will be assessed damages of $600 per day.

After a brief discussion during Monday’s meeting, the council took action to officially name the facility the Glenwood Aquatic Center.