City considering waiving military usage fees for new indoor pool, which is operating at a deficit since opening

Posted on March 31, 2025 by Jenn Rowell

City Commissioners will consider during their April 1 meeting whether to waive facility use fees for training conducted by the Montana Air National Guard and Malmstrom Air Force Base at the city’s indoor aquatic center.

The Sheels Aim High Big Sky Aquatics and Recreation Center opened last summer and was funded with $10 million from a U.S. Defense Department grant and a $10 million match from the city.

City adjusts pool hours at new facility due to usage

The city partnered with Malmstrom in 2020 to apply for the U.S. Defense Department grant of $10 million, but in city documents, discussions and stories by The Electric dating to 2020, the city consistently said the military would pay user fees, as would community users.

Earlier this year, Malmstrom’s commander requested that their training fees be waived when using the facility, according to City Manager Greg Doyon.

City Commission approves aquatic center change order [2024]

The Montana Air National Guard did not request a waiver, Doyon wrote in his staff report.

The military’s training requests so far have been minimal, according to the city:

Malmstrom: one lap lane four hours of use, up to twice per quarter
Montana Air National Guard: six-hour training day once per quarter, including classroom and pool use

The estimated annual revenue for the city is $4,000 to $8,000 for both military installations, which according to Doyon’s staff report, “is modest,” but contributes to the facilities operating costs.

Air Force, Northrop Grumman reach rocket motor milestone; Sentinel development continuing

The aquatics facility is currently running at a deficit of about $10,000 monthly, subsidized by taxpayers, Doyon wrote.

The DOD grant was awarded in September 2020.

Doyon wrote in his staff report that in an email dated Sept. 21, 2020, Timothy Roberts, the DOD grant administrator, wrote that the facility wasn’t subject to any condition requiring free use for military personnel and wrote, “the expectation is you will charge minimal fees for use in order to cover operating expenses and that these fees will not generate a profit. This is a public facility and should operate similarly to other Great Falls public facilities.”

City’s new aquatic facility open [2024]

Doyon wrote that Roberts’ guidance helped the city to plan to operate the facility primarily as a cost recovery model with fees while attempting to limit general fund subsidies since taxpayers are paying the debt on the facility. He wrote that the military is receiving discounts for training and recreational use of the facility.

In a memo to commissioners, Doyon wrote that military leaders were never told they would be able to use the facility for free, “they just assumed it.”

He wrote in his staff report that military leaders at Malmstrom “have expressed surprise at being charged for training access. This confusion appears rooted in assumptions made during the grant application process.”

City approves new recreation fees, including fees for new aquatics facility [2024]

In March 2024, commissioners adopted fees for the new indoor aquatic facility, which included fees for military training usage.

In a Feb. 28 memo to commissioners, Doyon wrote there was no formal promise to waive fees and retired Malmstrom commander Jennifer Reeves said the “issue likely ended up in the ‘assumption pile’ with military leadership believing the facility would be accessible without cost.”

Doyon wrote that city staff contacted two other facilities funded through the same DOD grant program in Rapid City, S.D. near Ellsworth AFB and the facility near Fort Drum in New York.

New aquatic facility set to open late June; city amending its budget, holding frog slide naming contest [2024]

Both charge user fees, including to military members, and both are operated by third party nonprofits, not municipal governments, according to Doyon’s memo.

In his February memo, Doyon wrote, “I’ll await further direction from the City Commission. If the commission desires to make a formal waiver (because it approves all fees), we’ll schedule it for formal action at a future regular commission meeting.”

Doyon is recommending maintaining some level of fee structure in the form of either discounted fees, a flat rate or a military-funded operational subsidy since there was no commitment made to waive fees, the city has reduced the military’s training costs by providing a local facility so they can avoid travel, the facility is “heavily subsidized by local taxpayers,” and fee equity across user groups is important to public facility management, according to his staff report.

Over the last few years, commissioners have discussed ways to cut costs or generate additional revenue to relieve pressure on the general fund in an effort to better support public safety needs.

City approves aquatic center change order, Nat demo payment; discusses funding for new facility [2024]

In recent months, Mayor Cory Reeves has asked to revisit commissioner/mayor salaries and commissioners voted unanimously to increase Doyon’s salary and extend his contract.

The city is currently fundraising to make up a roughly $389,000 shortfall for the Mansfield Theater seat replacement and ceiling restoration project.

Earlier this spring, the Park and Recreation adjusted the aquatic center’s pool hours based on usage in an effort to cut costs.

For background on the new aquatic facility, see our previous coverage:

City’s new aquatic center opening rescheduled for July 9

Opening of city’s new aquatic center postponed

New city aquatic center opening set

New aquatic facility set to open late June; city amending its budget, holding frog slide naming contest

City approves aquatic center change order, Nat demo payment; discusses funding for new facility

City Commission to consider aquatic center change order during April 16 meeting

City approves new recreation fees, including fees for new aquatics facility

City proposes fee structure for new aquatics center; planning June opening

Commission approves aquatic center change order