Jasper Council Unanimously Approves $34M Bond Plan for Regional Wellness Center

The Jasper City Council voted unanimously to authorize a $34 million bond financing plan for the Regional Wellness Center, a measure designed to fund construction without triggering the city's constitutional debt limits. Council approval came after a morning Redevelopment Authority meeting in which the lease agreement and funding formula underpinning the financing were approved.

City officials structured the financing to mirror the approach used for Jasper’s outdoor aquatic pool, relying on lease agreements between the Redevelopment Authority and the Redevelopment Commission to keep the obligations off the city’s direct debt ledger. Matt Eckerle, principal with Baker Tilly Municipal Advisors, explained to council members that "(A lease) is not considered a direct obligation under the law, and that exempts those projects from impacting the debt limitations."

Project costs are estimated at $32 million to $33 million, and the $34 million authorization functions as a conservative cap to avoid additional approvals if construction costs rise. The plan combines multiple funding sources, most notably $15 million in gifts and pledges from the YMCA’s Better Together capital campaign. Of that amount, about $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 timing gap between pledged donations and construction cash needs, Jasper will issue bond anticipation notes that are intended to be redeemed as donations arrive during the build. The long-term bonds will be secured by the city’s general revenues, with food and beverage tax collections designated as the primary source of debt service payments. The city reported $755,000 in food and beverage tax revenue for calendar year 2025, well above earlier estimates of roughly $495,000.

Councilman Chad Lueken pressed for a stress test on the revenue stream, asking how much food and beverage tax income could decline before covering debt service became problematic. "It would have to go down by about $75,000," Eckerle responded. Councilman Kevin Manley reinforced the city’s intent not to raise property taxes for the project despite a property tax backup on the bonds. "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."

Financial safeguards include a rainy-day fund of more than $300,000 not earmarked for the project and an increased reserve floor from $2 million to $3 million. The bonds carry a maximum term of about 20 years, aligned with the statutory authorization of the food and beverage tax, and include an expected no-call period of eight to 10 years before prepayment becomes possible.

Officials expect a guaranteed maximum price from contractors between mid-February and early March 2026, which will refine final bond sizing. The financing plan will go to S&P Global Ratings for credit evaluation, with bond issuance targeted for March 2026. At the Redevelopment Authority meeting, Kabrick said the design team’s first electronic walkthrough was "very impressive" and "very cool," and officials plan to make the virtual tour available for public viewing within about two weeks.

For Jasper residents, the financing approach aims to deliver the Regional Wellness Center while limiting direct tax impacts; the next steps will be the S&P review, final project pricing, and public release of the virtual walkthrough as construction planning advances.