March 29, 2024

'Realm of possibility'

It’s possible: City provides financial figures for potential recreation center

So, you’re saying there’s a chance?

“(With) the parks and recreation center, not every person is an athlete. So, we need to be thinking for quality of life for all Osceola citizens, from babies all the way to elderly people, and not only athletics,” said Mayor Thomas Kedley during an Osceola City Council meeting Tuesday, Feb. 2.

During previous council meetings, there has been talk of the possibility of Osceola having its own recreation center.

The parks and recreation board has spearheaded the project, but the city is also looking into how to proceed with it.

Finances

This time around, Ty Wheeler, city administrator/clerk, came to the table with some financial scenarios.

Wheeler said the city worked with D.A. Davidson for financial services and put together a mock debt-service schedule. Again, it was only a preliminary sketch.

A dollar figure of a $2 million general obligation bond with a 15-year term was chosen. Then, it was figured what a city’s debt service schedule would look like at that amount.

Wheeler said the total debt service could be between $157,000 and $160,000 a year.

Wheeler said that one-half of the hotel/motel tax, a portion of which is currently used to pay off the Osceola aquatic center, is close to being able to cover a finance such as a new recreation center.

“I think we can go forward with some comfort in knowing that revenue, which is dedicated to culture and recreation, we can’t take that and plug it into anything else. That’s the intended use by Iowa Code,” Wheeler said. “We can use those funds and come quite close to being able to support an issuance such as this.”

Wheeler also cautioned officials aren’t even close to talking about project costs yet. There is still a significant amount of planning to do.

“I think it’s good for the council to see that, in fact, this is something, at a certain level, that is attainable,” he said. “It is in the realm of possibility, within the next few years, when that pool is paid off.”

Local concerns

Councilman Doug Gay said his constituents have concerns about taking out a general obligation bond in a large amount. He said they are also concerned about the possibility of taxes being raised.

According to Wheeler, the scope of the project is still unknown, but if a recreation center project is more than $2 million, then things would have to be balanced or cut out to stay below that figure.

“You have to remember there are industries that have offered upwards of six figure contributions,” Kedley said. “I mean, that could be anywhere from $100,000 to ($999,999).”

This recreation center project has been an important issue for Osceola’s new mayor, and he said one of his main goals with it is to not raise taxes. However, all big projects do come with some sort of debt.

Parks and Rec work

Councilman Dan Hooper has been in communication with parks and recreation officials. He said that board will need to take some time, visit other towns Osceola’s size with recreation centers and examine what should go into a local recreation center.

“I think they’re pretty interested in doing this, but I think they (have) a long ways to go before they come to the council with some blueprints and some facts they can show the public,” Hooper said.

A lap swimming pool shouldn’t be put on the back burner with plans for a new recreation center, Hooper added.

“We’re just very much scratching the surface,” Wheeler said.