During its initial Budget Committee and regular Board of Directors meeting, both held on May 18, the Lebanon Aquatic District focused on expectations for pool renovations and increased revenue sources including, possibly, charging SDC fees.
LAD presented a $1.4 million proposed budget for the 2025-2026 fiscal year to the Budget Committee.
In her budget message, Aquatics Director Jill Smith said the district’s budget has been simplified by moving all activity to the general fund, emphasizing “careful control of expenditures and strategic efforts to increase revenues.”
The budget reflects an 11.67% increase over last year as the district anticipates increased program revenue, planned repairs and higher capital outlay for renovations and repairs.
The district’s goals reflected in the budget include maintaining consistent staffing, quality and expanded programming, affordable recreation, long-term financial stability and making pool renovations possible, she said.
With a 24-cents per $1,000 assessed value tax rate, the district expects to receive $653,622 in tax support for the pool. Smith said they hope to increase revenue in concessions and merchandise, as well as an increase in lessons and donations.
The district cut costs in materials and services, and more than doubled its building repair and maintenance costs (from $35,000 to $60,000). For its capital outlay, the LAD increased its anticipated pool renovation costs from $248,000 this year to $435,165, and other equipment needs from $12,000 this year to $50,000.
Budget Committee Member Terry Cadigan asked if the board is trying to rearrange the budget in order to increase the pool renovation fund.
“We are going to do the best we can to do that,” Smith said. “We are also looking at grants and, maybe, possible loans… We really are counting on increasing our revenue.”
Board Director Darla Bulmer added that the renovation fund is inflated in order to give them the flexibility to accomplish repairs, should it be possible to do so. She later briefly mentioned their goal is to make the pool self-sufficient so most of the tax revenue can be saved for future major expenses.
During the regular board meeting, Bulmer provided an update about plans to pursue some pool renovations this summer.
Since the Lebanon Community School District pulled its promise to help fund pool repairs due to a budget deficit, LAD found itself in a situation where it could lose the contracting bid already obtained through the school district, which means LAD would have to go through its own costly bid process and lose at least another year, Bulmer said, but the school district is trying to “smooth that over.”
If they are able to pursue those expected repairs this year in late August, LAD would like to replace the drain and relocate it to the shower. This would also be helpful if the pool can add more lanes in the future.
Bulmer also informed the board she learned LAD qualifies to charge system development fees (SDC) for new development within the district. That means developers pay the fee for new construction, but existing homeowners do not.
“This has actual hope for us having a new revenue source,” Bulmer said. “We had made the decision as a board not to go for a bond, not to increase the tax rate… We also looked at a few other options that are available to us; this is the only one that I can find that does not impact existing taxpayers in our district.”
The board’s ultimate hope, she said, is that general maintenance expenses would be paid from tax income, pool operations paid from program revenue, and expansion paid from SDCs.
Bulmer had already approached the city manager about the matter, hoping the city could help facilitate collection of the fees, to which he recommended she present the request to City Council.
“I need to go in front of City Council, which I had planned to do this month, but I wanted to make sure all of our board was aware of this before I suddenly show up at the City Council,” Bulmer said.
She answered a few concerns expressed by Board Director Ross Dewberry, including the need for sustainable revenue that can balance any expansion and, thus, increased costs of the pool.
“I completely agree,” Bulmer said. “If we cannot come up with sustainable revenue, there’s no point in expanding. But if we don’t expand, we’re gonna kill ourselves anyway because we can’t fit anymore people in the water at some point.”
The board approved a motion to form a SDC Fee Committee consisting of two board members, two staff members and two members of the public for the purpose of determining methodology and related matters for the proposed SDC fee.
In other business, the board tabled a discussion about changing Internet service providers, and Bulmer noted another potential revenue source from a grant through the Special Districts Association of Oregon.