PORT ANGELES — The William Shore Memorial Pool District will face a financial dilemma at the moment of its birth on Wednesday.
Jim Jones, Clallam County Administrator, thinks he knows how to nurse it to health.
The five-member pool district must solve the puzzle of paying for pool operations until revenue from a voter-approved tax levy steams in next April or May.
“They’ve got to operate, or pay someone else, in this case the city of Port Angeles, to operate the pool between now and then,” Jones said in Monday’s board of county commissioners work session.
$750,000 loan
Offering a solution, Jones broached the idea of Clallam County loaning the metropolitan park district $750,000 at a 3 percent interest rate over 10 years with a five-year cash out.
“That would give them five years of operating time,” Jones said.
“I think this would really help them get started because they’re going to have to pay a pretty high payment being brand new. To us, I don’t see it as being any risk at all, if they would accept the terms I’m thinking of.”
Jones, who had not drafted a formal proposal, wants the county to be allowed to take the annual payment out of the pool tax before the next year’s installment.
The money would likely come from the county’s $45 million general fund reserves, specifically treasurer’s cash, or from its opportunity fund, Jones said.
“I’m thinking it might be in our best interest to help to see the thing happen, offering the 3 percent loan. Right now, we’re not earning even half of that on our interest portfolio.”
The Port Angeles City Council and two Clallam County commissioners are expected to sign an interlocal agreement for the William Shore Memorial Pool District in their respective meetings today.
The six-page document, drafted by city attorney William Bloor, outlines the governance of the district. It will comprise two county commissioners, two Port Angeles City Council members and a fifth member to be determined by the other four.
Mike Doherty, the third county commissioner, is on business in Washington, D.C., this week and will not attend today’s board meeting.
Commissioners Mike Chapman and Doherty will likely represent the county on the park district.
Constituents within the boundaries of the Port Angeles School District approved a tax levy to fund the cash-strapped pool at 225 E. Fifth St. — the only pool in Port Angeles — by a 2-to-1 margin on May 19.
Clallam County Auditor Patty Rosand will certify the results of the election Wednesday.
At that time, the city will cease funding the pool and pass the baton to the pool district.
The district’s first meeting will be held Wednesday at 3:30 p.m. in the Port Angeles City Council Chambers.
Items on the agenda include the election of a chairman, vice chairman and board members. Other items are the consideration of a contract with the city to operate the pool for up to six months, budget development and potential loan sources.
For the latter, Jones said he would express the county’s interest in responding to a loan request.
“In my mind, it would be a win-win all the way around,” Jones said later Monday.
‘Astronomical’ rate
Since the pool district is a brand-new entity, the former banker said it would have to pay an “astronomical” rate for a loan.
The Save The Pool PA committee, which raised enough money to keep the pool operating this spring, has a proposed budget factoring in a $750,000 loan at 3 percent interest.
This loan would be paid through the 15 cent per $1,000 assessed valuation on property within the school district boundaries.
The owner of a $200,000 home — the median price within the district — will pay about $30 per year for the pool tax.
Commissioners Steve Tharinger and Chapman asked Jones if the $750,000 would cover the costs of paying a pool director, employees, utilities, maintenance and paying back the cost of the special election.
Jones said the loan would cover those costs and establish a $50,000 reserve for the pool.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
