Jasper Council approves $34 million bond financing plan for Regional Wellness Center project
The Jasper City Council unanimously approved a resolution authorizing a $34 million bond financing plan for the Regional Wellness Center project at Wednesday’s regular meeting.
The financing structure mirrors the approach used for the city’s outdoor aquatic pool, using lease agreements between the Redevelopment Authority and the Redevelopment Commission to avoid exceeding the city’s constitutional debt limits. That lease agreement and funding formula were approved at the RDA meeting on Wednesday morning.
“(A lease) is not considered a direct obligation under the law, and that exempts those projects from impacting the debt limitations,” Matt Eckerle, principal with Baker Tilly Municipal Advisors, explained to the council Wednesday evening.
The project is estimated at $32-$33 million, with the $34 million authorization providing a conservative maximum to avoid requiring additional approvals if costs increase. Eckerle presented the financing plan to council members, emphasizing that the numbers represent maximum authorizations rather than expected final costs.
The financing plan incorporates multiple funding sources, including $15 million in donations raised through the YMCA’s Better Together capital campaign. Of this amount, approximately $3.8 million is expected to be available by the end of March 2026, with an additional $11.1 million pledged through February 2028.
To bridge the gap between pledged donations and immediate funding needs, the city will issue bond anticipation notes, a short-term financing tool that will be redeemed as donations are received during the construction period.
The bonds will be secured by the city’s general revenues, with food and beverage tax collections serving as the primary source of debt service payments. The city collected $755,000 in food and beverage tax revenue during calendar year 2025, significantly exceeding original estimates of about $495,000.
During Wednesday’s meeting, Councilman Chad Lueken asked how much the income from the Food and Beverage Tax would have to decline before they would have concerns about it covering the bond payments.
“It would have to go down by about $75,000,” Eckerle responded.
Council Kevin Manley emphasized the city’s commitment to avoiding property tax increases for the project, despite the bonds carrying a property tax backup, which makes them more attractive to the bond market and credit rating agencies.
“If we would drop 10%, we would never look at raising property taxes or taking money from property taxes to pay this off,” Manley said. “I think we’re conservative with our plan, and we’ve got more money in the background that is not allocated at this point in time.”
Council members discussed the city’s financial reserves and conservative approach to the project financing. The city maintains over $300,000 in the rainy-day fund, not allocated to the project, and has increased its reserve floor from $2 million to $3 million.
Councilman Lueken stated he was pleased with the financial stack designed to cover the project’s costs.
The bonds will carry a maximum term of approximately 20 years, tied to the statutory authorization of the food and beverage tax. The financing includes a typical no-call period of eight to 10 years, after which the city could begin prepaying principal if revenues exceed expectations.
The city expects to receive a guaranteed maximum price for the project sometime between mid-February and early March 2026, allowing for refinement of the final bond amounts before issuance.
The financing plan will proceed to S&P Global Ratings for credit evaluation in the coming weeks, with bond issuance targeted for March 2026.
At the Redevelopment Authority Meeting, Kabrick reported that the design team recently provided the first electronic walkthrough of the new facility, describing it as “very impressive” and “very cool.” The virtual tour should be available for public viewing within the next two weeks.
