How much will it cost to have a Peru Pool? A look at the numbers.

Peru residents will be asked on the November ballot if they want to use the hotel/motel tax to fund a municipal pool, but what will a pool cost the city or its residents?

Questions have been raised whether using the hotel/motel tax funds to build a municipal pool will result in residents having to forfeit other activities or events, as well as if it is fiscally responsible to build and maintain a pool.

The question is non-binding, meaning it will serve to be advisory to the council in its decision making.

Shaw Local News Network took a comparative look at neighboring communities municipal pools and the city of Peru’s hotel motel tax reports. Here is what we found out.

How does the city spend its hotel/motel tax?

A concern raised about the municipal pool has been that if the hotel/motel taxes are used it may end up costing the taxpayers money or not allow the city to continue to make other investments; such as the Illinois Valley Pistol Shrimp baseball team, the TBM Avengers Air Show and summer programs.

In Peru the hotel/motel tax is a revenue source utilized in the general fund bank account, however, it’s a committed account. Committed funds allow a city to reserve funds for a future expense – if needed. Funds from the hotel/motel account only can be used for the specific purposes determined by a formal action of the City Council

According to treasurer reports nothing has been spent out of the account since June 2022, with the only expenditure coming out of the account for the past three years being the Midtown Road project. Prior historical projects have included the Splash Pad at Washington Park.

As of Aug. 20, the hotel/motel account balance is $2,079,534.75, according to monthly treasurer reports. The hotel/motel tax was increased in June 2022 from 4.7% to 7%.

However, budgeting discussions for the fiscal 2025 budget included a non-binding commitment of hotel/motel funds to cover costs in excess of grant revenues.

“There are two general fund grants attached to budgeted capital projects,” Finance Officer Tracy Mitchell said. “The ITEP grant for the pedestrian bridge and the OSLAD grant for the Washington Park improvements including chillers for the ice rink.”

According to the pool referendum flier, the revenue source would be allocated to the pool project for about 10 years. If the council didn’t want to use the entire revenue from this account the payoff period could be extended.

How do other cities fund a pool?

For comparison, Ottawa took out two general obligation bonds totaling $6,510,000 to pay for Riordan Pool. The first bond for $5,095,000 was taken out in October 2022 with 5.25% interest rate for 11.618 years with the second taken out in April 2023 for $1,415,000 with a 4.28 interest rate for 11.817 years. Ottawa officials previously told Shaw Media they would use tax revenue from Marijuana sales to pay the bonds, which typically brings in $30,000 per month. The bond ordinance states, the city’s pledged revenues would be tax revenue from cannabis dispensaries and other tax revenues.

However, even if the pool referendum passes and the council agrees to use the hotel/motel tax funds to build a municipal pool and take out a 10 to 20 year bond, the city would still be responsible for yearly maintenance, insurance and payroll.

In 2024, the city of La Salle spent a total of $119,837; $20,851 on pool maintenance, $8,190 on concessions, $85,604 on salaries, including overtime and $5,191 on pool supplies, Finance Director John Duncan said.

Duncan said the cost of personnel in regular salaries also is inclusive of some part time grass cutters in the parks so the cost in this expense isn’t 100% attributable to the pool, however, the majority of it is.

The total revenue brought in during 2024, including $3 entrance fee, pool party rental fee, passbooks,swim lessons and concessions was $68,98.

La Salle’s total loss for 2024 was $50,851.67. La Salle did pay to have it lined, however. Duncan said the project costs spanned over a couple of years an estimated around $175,000 – that cost is mostly shown in FY23 numbers.

Oglesby spent about $21,860 in supplies and outside maintenance last year, City Clerk Becky Clinard said and $77,811.49 in salaries for employees.

Clinard said the city’s total revenue for last year, the 4780 visits with a $2 admission fee and concessions, was $13,468.50.

This brings Oglesby’s total loss to $86,202.

Both Oglesby and La Salle said their insurance agreement for the pool is a part of the city’s general liability insurance and it’s difficult to ascertain the specific number allocated to just the pool.

“The carrier doesn’t break down their numbers for us to be able to determine an amount specific to the swimming pool,” Duncan said. “Instead the carrier groups premiums by department. The liability and property costs attributable to the Park & Rec Dept is just over $9,700.”

What’s next in pool discussion?

Peru Alderman Tom Payton set Monday a town hall meeting for Sept. 26 to discuss the swimming pool referendum.