The Johnstown Town Council voted 4–3 Monday night to continue the town’s contract with the YMCA of Northern Colorado, following a lengthy public discussion and executive session related to the ongoing YMCA matter.
The vote came during the June 22 Town Council special meeting. After returning from executive session, council took public action on a motion to continue the town’s contract with the YMCA.
Councilmember Dianne Morris made the motion, which was seconded by Councilmember Damien Berg. Mayor Pro Tem Chad Young and Councilmembers Jesse Molinar Jr., Berg and Morris voted in favor. Mayor Michael P. Duncan and Councilmembers Dee Anne Menzies and Nick Bashford voted against it.
The motion also called for the town and YMCA to meet within 90 days to discuss outstanding financial issues surrounding the audit.
The narrow vote means the town’s contract with the YMCA will continue, despite recent questions surrounding the town’s relationship with the organization, a forensic audit and disputed repayment claims.
Discussion Came Before Executive Session
The council’s vote followed a lengthy public discussion focused on the Town of Johnstown’s relationship with the YMCA of Northern Colorado and the issues raised in recent audit-related materials.
The discussion centered on the town’s contract with the YMCA, disputed financial claims, audit findings, inventory and accountability questions, and what continuing the agreement would mean moving forward. Multiple speakers addressed council during the YMCA item, and council members asked questions before moving into executive session. Visual materials were also shown during the public portion of the meeting, including numbered images related to the YMCA matter.
After returning from executive session, council moved into “Action Following Executive Session,” where the motion to continue the contract was made and approved.
The vote marked the clearest outcome from Monday’s special meeting.
Councilmembers Weighed Contract Concerns Against Community Impact
Councilmembers also used the public discussion and closing comments to explain their positions on the YMCA contract, the audit-related dispute and how the town should move forward.
Councilmember Jesse Molinar Jr. pointed to confusing language in the existing contract and said the process had been made more difficult by rumors circulating on social media.
Councilmember Dianne Morris criticized the way parts of the dispute had unfolded publicly, including the use of the word “embezzlement.” Morris said consistency matters in how public comments and concerns are handled. She later referenced counterproductive “gotcha” moments during the process and said she wanted to foster continued communication with the YMCA.
Councilmember Nick Bashford pressed for clarification on the YMCA’s position after referencing language from a YMCA response letter to “call it even financially.” Bashford also said he would find it difficult to let roughly $100,000 in taxpayer dollars go unresolved.
Councilmember Damien Berg said he was tired of the finger-pointing and accusations, and said he believed everyone involved wanted what was best for the community. Berg also acknowledged that the contract language was confusing and said the town needed a reasonable, modified approach.
Councilmember Dee Anne Menzies raised concerns about equipment being moved from the Johnstown YMCA to other facilities and about damage at the Johnstown facility. She also said the issue was not about small accounting errors, but accountability for public funds.
“I strongly believe it’s time for a new partnership,” Menzies said.
Mayor Pro Tem Chad Young said he was disappointed in how the issue had been handled and called for transparency. He also criticized personal accusations made during the process.
Mayor Michael Duncan questioned whether trust between the town and the YMCA had been restored after the audit-related dispute.
“I have not heard enough tonight to restore that confidence,” Duncan said.
Those comments reflected the divide on council before the final 4–3 vote.
Financial Dispute Remains Unresolved Publicly
While the council voted to continue the YMCA contract, the public motion did not appear to fully resolve the broader financial dispute that led to the special meeting.
The council did not publicly vote to accept or reject the forensic audit findings, settle the disputed repayment claims, waive any repayment demand, approve a new agreement, or amend the existing contract during the final action portion of the meeting.
Instead, the motion continued the contract and called for the town and YMCA to meet within 90 days to discuss outstanding audit-related financial issues.
That distinction matters because the YMCA issue has involved several separate questions, including contract compliance, financial reporting, inventory, facility-related concerns and the town’s repayment claims. The YMCA has disputed portions of the town’s position in written responses.
Background
The YMCA matter has drawn public attention after the town reviewed audit-related materials connected to the Johnstown YMCA and raised questions about the organization’s obligations under its agreement with the town.
Prior town materials included a forensic audit, a cure letter, a memorandum of response and written responses from the YMCA of Northern Colorado. Those documents outlined disagreements between the town and the YMCA over financial records, contract requirements, inventory and repayment claims.
Monday’s special meeting gave council members another opportunity to discuss the matter publicly before entering executive session.
What Comes Next
The vote answered the immediate question of whether the YMCA contract would continue.
What remains to be seen is whether the town and YMCA can reach a separate understanding on the disputed repayment claims, audit findings, inventory issues, facility concerns or future reporting expectations.
Any additional resolution would likely need to be clarified through future public statements, meeting minutes, amended agreements or additional council action.
For now, the Town of Johnstown will continue its contract with the YMCA of Northern Colorado following a closely divided council vote.
Source: Town of Johnstown June 22, 2026 Town Council Special Meeting
