FREQUENTLY ASKED QUESTIONS :: UPDATED 8.24.08
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What is the project?

The Sublette County Commissioners and the three incorporated towns (Big Piney, Marbleton, and Pinedale) have agreed to place two projects on the November ballot as one issue to be funded through a $60 million Specific Purpose Excise Tax (SPET) sales and use tax. The two projects are a Recreation Center for the Big Piney/Marbleton area and a Community Center for Pinedale and the surrounding communities. Both are projected to cost about $20 million dollars. Ten million dollars has been added to each project for an Endowment to help fund their Operation and Maintenance budgets in the future.

 

What is a SPET Tax?

A Specific Purpose Excise Tax (SPET) is a sales and use tax that is voted in for a specified amount for specific projects. When the stated amount of monies is accumulated the collection of the SPET will be terminated.

 

How much will it cost me?

The November ballot question will be a 1% sales & use tax, or 1 cent on a dollar. If you purchase $1,000 dollars worth of TAXABLE goods within the county you will pay an additional $10 dollars (1%) more in sale tax than what you currently do. During the most recent fiscal year (or 12 month period) 1 cent raised over $18 million. So, $60 million could easily be raised in 4 years or less. All of the tax monies collected stay in the county. 

 

Who’s going to pay for staffing and maintenance?

Both facilities will have Operation and Maintenance Endowment Funds established as part of the tax issues.  These funds will pay the majority of the operating costs but will not cover all of the costs. A joint powers board has been appointed to oversee each project.

 

What is an Endowment?

An Endowment Fund guarantees an income stream forever. It is an account from which the interest earned is used to fund a particular purpose. In this case, the interest generated by the Endowment Accounts will be used to support the operation and maintenance of the two facilities. The 10 million that is “endowed” for each project will generate between 4 and 6 percent each year.  That will range from $400,000 to $600,000 a year that can be used to offset expenses. This guarantees the facilities a certain amount of income forever.

 

Why doesn’t the county just pay for it?

Commissioner Bill Cramer said “The two projects proposed for the specific purpose excise sales and use tax, one a recreation center in Marbleton and the other a community and arts center in Pinedale, are very worthwhile projects that appear to have a lot of support from many county residents.  The specific purpose excise tax will be put forth as a means to pay for the construction and provide for an investment fund to provide operating costs in the future. 

In my mind these projects are not needs of the county in the traditional sense of providing services to the entire county population like say a library, the courthouse, fire protection, or the county road system.  In this sense these two projects are wants and not needs, yet they are as I mentioned, very worthwhile and will contribute significantly to the well-being and quality of life available to the residents of Sublette County and will provide an opportunity to help diversify the economy of our county. 

The vote scheduled for the Fall on these two projects is extremely important to get a sense from the citizens of Sublette County if there is an interest in having and using these facilities and the level of support they will give to these two facilities.”

 

Will it be free to use?

If the sales tax passes monies from everyone who pays the tax will be used for the construction and endowment of these facilities, but not all citizens will choose to use the facilities equally. Those who do use them will bear a greater percentage of the operating costs of the facility through sliding scale rental fees and user fees.

 

Why not?

The funds generated through the endowment for Operating and Maintenance will provide a substantial portion of the cost of operating the facilities but they will not cover the entire cost. The user fees and rental fees will be made reasonable by the endowment.

 

Who will benefit?

BIG PINEY/MARBLETON: The most immediate need that will be met is After School Programs. The Rec Center will provide a safe, positive, active environment for children who are currently in need of a facility with supervised activities. It will allow families to enjoy an activity out of the house whether it is bowling, a game of hoops or challenging each other to racket ball. Additionally, all local residents can enjoy indoor recreational activities throughout the year leading to an increase in physical fitness and greater health for the community as a whole. It will also stabilize Sublette County recreation in the Big Piney/Marbleton area by taking the responsibility of organizing extra curricular sports from the hands of parent volunteers into a unified entity with more resources.

PINEDALE: All citizens will have a place that can be used for family events, weddings, reunions and funerals. Children will have a home for After School Programs. Local organizations will have additional space for meetings and fund raisers. The community will be able to host small conventions, regional school events and related activities that diversify the local economy.

There will be a secure gallery space for local and traveling exhibits of all kinds. There will be additional space for daytime and evening special interest and work related classes. The facility can be used for student and adult dances. There will be space for visual arts classes for adults and students and a smaller theater space for community and school productions. There will be additional large and small meeting space for businesses.

 

Who is behind it?

Two local citizen’s groups - one on each end of the county - saw community needs that were not being addressed and took it upon themselves to address those needs.

 

Will this tax take away from the monies needed to pave county roads?

Road maintenance is a county responsibility and is covered by property taxes.  This is an optional SALES tax voted on to pay for specific projects and cannot be used for anything else.

 

Does the 1 cent sales tax apply to groceries and gasoline?

Groceries and gasoline will not be included as items that are taxed by the proposition.

 

Won’t this compete with private enterprises?

There are no similar private enterprise operations respective of each project in which the proposed facilities are planned.

Big Piney/Marbleton: Facilities such as the proposed Rec Center are not financially viable for private enterprise in small population areas. Therefore they are usually built by government entities or non-profit organizations.

PINEDALE: It is no longer economical in small population areas for private enterprise (hotels and motels are the usual businesses) to build large public spaces such as the proposed Community Center. Private business is better served if a government or nonprofit entity can provide the space. Private business can then provide the services to support use of the facilities.


Will we still have the need when oil and gas is done? 

The need for both facilities will continue long after the gas field development has finished and moved into the production phase. They will actually be perceived as assets by families looking to stay or relocate here after the gas companies move from development to production and revenues decrease in the county. They will be attractions in our communities as new businesses and families move into our area whether they are or are not associated with the gas industry.  

 

In addition to providing facilities for physical activities, the Big Piney/Marbleton Recreation Center will also promote lifelong habits of healthy living, fight child obesity, attract new businesses & residents and create family stability & satisfaction. In addition, the facility will also provide a safe place for families to have fun together, help reduce crime, improve emotional, social and physical needs as well as provide a much needed center for community functions.

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In Pinedale the Community Center can function as an economic development tool. It can become a destination for meetings and family functions. It can expand upon the existing tourism base which brings visitors into town for a few days throughout the year for meetings, family activities and vacationing when they can relax, stay in motels, eat in restaurants and visit the shops.

 

In the near future, as the bulk of baby boomers retire, the work force will be smaller and the competition for workers will be intense. As individuals make their decisions about where they would like to work, raise and educate their children and where they would like to spend their recreational time, facilities such as these within communities will be important factors in their decisions. Businesses are aware of this and in addition to our current strengths of small towns, beautiful scenery and good schools they will use these facilities as incentives to attract future workers and their families to come to our area.

What prevents this $60 million SPET tax from funding something else instead of going away?
This SPET tax is a 1 cent sales tax, not a property tax. To be placed on the ballot a SPET tax must be for a specific $ amount, $60 million for these projects. Two of the three Town Councils and the County Commissioners must vote to put the proposition on the ballot. When the $60 million is collected the tax can no longer exist. There is no legal way for it to be collected for any other purpose.

Who else has used a SPET Tax?
Fremont County built an addition to their library with a SPET tax. Platte County made additions to a Hospice Facility, and their fairgrounds, library and courthouse. Albany County built their Rec Center and Indoor Ice Rink.

What are the operating budgets for the facilities?
Based on a detailed budget developed with the help of similar facilities across the state the Big Piney/Marbleton Rec Center operating budget is projected to be $495,376. The operating budget for the Pinedale Community Center (also based on similar facilities across the state) is expected to run between $450,000 and $475,000 for the first year. It has been adjusted for local and future inflation.

How will THE OPERATING COSTS be paid?
A combination of the interest earned from each facilities’ $10 million Endowment and the user fees will cover each of the operating budgets.

How does an Endowment work with these projects?
For each project, $10 million will be set aside, or endowed, to help fund operation and maintenance budget. The initial $10 million will be invested and will earn interest which will be used to run the facilities. Both facilities will also collect membership fees to offset future large-scale repairs and expenses well after oil and gas revenues have declined.

 

 

 

 

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