Members of the Frankfort (Kentucky) YMCA are awaiting board votes to determine if the organization will merge with the larger YMCA of Central Kentucky.
Representatives from both organizations discussed the terms of a merger at a Nov. 11 meeting, according to The State Journal.
If the groups combined, YMCA of Central Kentucky CEO David Martorano would take control of Frankfort. In the joint meeting, he said four of 36 seats on the Central Kentucky board of directors would be designated for Frankfort representatives. Frankfort's current board chair, John Bevington, would also be incorporated into Central Kentucky's executive committee.
In the meeting, it was established Frankfort's current endowments of over $1 million would stay with the local Y.
“This gives us the chance to share services and positively impact operational costs,” Bevington said, according to the Journal. “We would be able to share resources in a variety of ways, and that will hopefully allow even an expansion of services.”
The Frankfort Y reported $190,000 more in revenue than expenses and $2.4 million in net assets, according to tax records obtained by the Journal.
The Y of Central Kentucky reported $11,664,525 in total revenue and $32,924,930 in total assets in its 2015 annual report. It currently spans six locations.
No concrete plans are in place to alter Frankfort’s 49-year-old West Broadway Street facility, but executives indicated potential renovations are a large motivator for the merger.
“Frankly, forming an association with them, when they have executed the kinds of capital projects they have, was something we had to discuss,” Bevington told the Journal. “There is no doubt we have an older facility that needs a little TLC.”
If the merger goes through, Martorano said it would take most of 2017 to acclimate the two organizations. Most significantly, payroll and general fiduciary responsibilities would all fall under Central Kentucky, according to the Journal. Frankfort executives also indicated they would not expect any major staffing changes as a result of the integration.
A decision is expected by the end of 2016, but no hard date was given in the Nov. 11 meeting.