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Board hears plan to prepay officials via Arbiter; some members question 30% service fee
Summary
A representative for the local officiating association described switching to Arbiter/ArbiterPay to eliminate paper checks and prepay officials; the association charges a 30% administrative fee, prompting board members to question whether payroll or a lower fee would be possible.
A representative of the local sports-officials association (Weston) told the Belcourt School Board on June 2 that the association assigns and pre-pays referees, clock operators and other event officials, handles tax reporting and invoices the district monthly. Weston said the program assumes the cash-flow liability of paying officials immediately and is moving from paper checks to Arbiter/ArbiterPay to allow instant electronic payment.
Weston described the logistical benefit: officials sometimes cancel at the last minute and the association’s ability to prepay and provide immediate replacements has grown the pool to more than 200 officials. The association charges a service fee (described in the presentation as 30%) to cover administrative overhead, prepayment risk and tax reporting; Weston said the association assumes 100% of the cash-flow and tax paperwork and that officials receive 1099s when appropriate.
Several board members pushed back on the fee level. One board member said the district used to issue checks and suggested putting officials on payroll could reduce cost and audit exposure; another noted the district’s historic practice of punctual payment helped attract officials. Weston said some districts use payroll, but the association established the private-contractor model to avoid audit findings tied to blended rates on payroll and to reduce administrative strain on the business office.
Board members asked practical questions about timing and mechanics; Weston said officials are paid at the event’s completion (or immediately after) and explained how Arbiter will enable electronic transfers rather than rewriting checks. The board discussed contract length (annual with automatic renewal absent a 30-day notice) and whether neighboring districts use similar arrangements.
Next steps: the board took the presentation under consideration and discussed administrative fee levels and contract terms; no final contract award or revised fee was recorded during the meeting.
