Parks may not need city loan for Wellness Center

Progress continues Friday, Aug. 5, 2016, on the planned Wellness Center on Lafayette Street. The elevated running track is visible from this Lafayette Street view. The building is on schedule to be completed by the end of January 2017.
Progress continues Friday, Aug. 5, 2016, on the planned Wellness Center on Lafayette Street. The elevated running track is visible from this Lafayette Street view. The building is on schedule to be completed by the end of January 2017.

Once thought to be a needed contribution to get the desired facility, the Jefferson City Parks, Recreation and Forestry Department says it may no longer need a $1.5 million loan from the city's general fund for the planned Wellness Center.

In December 2014, the Jefferson City Council approved a $1.5 million line of credit to the Parks department for construction of the Wellness Center on Lafayette Street, a joint project between Parks and Lincoln University.

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At the time, former Parks Director Bill Lockwood presented the option as a way to build a four-court facility, which had been deemed an important feature to attract outside tournaments. Without the loan, at that time, $10.1 million had been identified between Parks and Lincoln for a facility they knew would cost more than $11 million. (The contract with Sircal Contracting Inc. is for about $11.5 million.)

The line of credit was approved by the council, with one opposed and one abstaining, with no interest and the condition it be paid back within 25 years.

But current Parks Director Todd Spalding said that may no longer be necessary.

"Our budget is strong, and the department has done really well with saving money for just such an occasion," Spalding said.

Sales tax revenues have been increasing for the department, which typically operates on conservative budgets. In the 2014 fiscal year, which ended two months before the line of credit was approved by the council, the Parks department finished the year with more than $230,000 above projected sales tax revenues. In the 2015 fiscal year, that surplus jumped to more than $713,000. And this fiscal year, sales tax revenues have already come in roughly $231,000 ahead of projections, with five months left in the fiscal year.

The increased sales tax revenues combine to provide more than $1.1 million in added available revenues.

In addition to the increased revenue, Spalding said the department has kept expenditures below projections as well, which speaks to the expertise of Parks staff in managing their division budgets.

By not using the loan, Spalding said the department is really fulfilling the goal set in the City Charter, which established Parks as separate from other city departments and outlines its own set of finances.

"With the charter stating how the community wanted the Parks department to be a little separate, there's real value to that, I think," Spalding said. "We certainly don't want to be a burden to the general fund, so we think we can realistically accomplish this from our fund."

Spalding said he plans on speaking to the City Council about the loan when the department presents its budget, which could be as soon as Monday. (The city Budget Committee typically meets at 5:30 p.m. Mondays and Thursdays at City Hall.)

Mayor Carrie Tergin said approving the loan was important to help move the project forward at the desired size, but if that money is no longer needed, all the better.

"This financial commitment shows the city believes in the project, and we support the partnership between the city, Parks and Recreation, Lincoln University and the community," Tergin said. "We are especially pleased that all involved have managed this project well and may not need to use the city's advance funds."

As for the Wellness Center itself, construction has been proceeding smoothly. For the most part, Spalding said, weather has been cooperative, though the recent rains caused some issues for the bricklayers.

Spalding said he toured the construction site last week as the floor was being poured, and the size of the planned facility really began to take shape.

"It's just so big," Spalding said. "It's pretty cool to see it."

Spalding said the facility is on track to be complete at the end of January.