New policy would allow cash advances for WAC

WORLAND — The Washakie County School District No. 1 Board of Trustees approved a “cash advanced” policy for the Worland Aquatic Center (WAC). The policy still needs approval from the Worland City Council and Washakie County commissioners.

The policy, officially titled “Operational financing; borrowing from operations and maintenance endowment,” was the work of a subcommittee according to board member Duane Whitlock. He said it also included council members Michelle Rideout and Mandy Horath and Commissioner Terry Wolfe.

The subcommittee was formed in late January to address use of the endowment funds and budget shortages for aquatic center. In late 2015, the WAC Joint Powers Board had approached the three entities about a no-interest loan, which the commissioners and council denied.

During the 2010 election, Washakie County voters approved a special 1 percent sales tax to raise about $3.7 million for an endowment and it raised $4.45 million, or an additional $750,000. Half of the funds raised by the tax was for operations, have for major maintenance and/or renovations. According to a WAC Joint Powers Board letter to the city council, county and school board, “The excess of funds over the $3.7 million is currently earmarked in such a way as to completely hamper this boards ability to use funds as it needs to.”

In order to find a long-term solution for the joint powers board to utilize the excess funds above the $3.7 million, the subcommittee was formed.

The new policy approved by the school board Monday and recommended by the subcommittee allows the Worland Aquatic Center Joint Powers Board to request from the school district board cash advances. Whitlock said the policy addresses the concerns of the city and county and builds in some safeguards.

The procedure outlined in the policy states that advances would be limited to $25,000 in any fiscal year and to an aggregate outstanding amount of $50,000.

The WAC Joint Powers Board will make “best efforts to repay the cash advances so that funds will be available for cash advances in the future, if necessary.” Repayment of the advance may be made in the form of reduced distributions from the Maintenance and Operation Endowment Fund to the WAC Joint Powers Board.

The school district will account for sums which have been advanced and which sums have been repaid.

One of the safeguards in place includes the statement “If the Maintenance and Operations Endowment Fund achieves an average investment return at or above 1.5 percent per month for a minimum of six consecutive months, then no further advances will be made and best efforts will be made to repay outstanding advancements.”

The school board adopted the policy unanimously Monday night. Whitlock said his understanding is that the city and county attorneys are reviewing the policy. Agendas were not set at press time for the city council and commissioners, which both meet Tuesday.