The Garden City Telegram
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Voters to decide hospital issue
Published 9/19/2009 in Local News
By RACHAEL GRAY
SCOTT CITY — Voters in Scott County will decide Tuesday on a $24 million bond issue to fund a new building for the Scott County Hospital in Scott City.
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Laurie Sisk/Telegram — A motorist passes by a campaign sign on Main Street for the proposed new Scott County Hospital. A bond issue and sales tax increase is on the ballot Tuesday.
Scott County Hospital officials are asking for general obligation bonds and sales tax bonds, which include additional property taxes, a 1-percent increase in sales tax and an 11-percent annual contribution from hospital revenues.
Hospital officials say the property tax increase would breaks down to about a $7.25-per-month tax increase for homeowners of properties valued at $100,000, and $15.75-per-month tax increase for commercial property owners of properties valued at the same price. A $24 million bond issue at 5.25 percent interest for 30 years would result in an annual debt payment of $1.6 million dollars for the county.
Scott County Hospital CEO Mark Burnett said the hospital has retired about $3 million in debt over the last three years and has generated more than $15 million in revenue over the last year, putting the operation in a good position to help finance the project.
In July, Burnett said a faltering national economy, low construction costs and historically low interest rates have made the current economic climate the perfect time to build to secure the county's current and future health care needs.
Hospital administrators have said that they support the construction of a new building as opposed to the renovation of the current one, based on a feasibility study by Health Facilities Group LLC, an architectural design firm based in Wichita.
According to the firm's study, renovating the current building, bringing its mechanical and electrical systems and a storm shelter up to date and within federal fire code regulations, and other repairs could cost the hospital just a few million dollars shy of a new building: nearly $23 million.
The cost of renovating the same building would be great partly because the hospital lacks space around the building to expand, and there's a sanitary sewer line underneath that cannot be built over again and so would have to be relocated, according to Kansas Department of Health and Environment regulations.
"The feasibility study was done, the decision was made. The best option was for a new building," Burnett said. He said space was definitely an issue, in addition to the sewer line.
"We've outgrown the building. We're operating three other satellite buildings to accommodate."
As of Thursday, Burnett thought the hospital had good public support. He said while many small Kansas towns are shrinking, Scott County stays stable in the number of businesses and people in the area. He said Scott County is headed in the right direction and that voters will make what he thinks is the right decision Tuesday.
"This community is progressive and forward thinking. The building of this hospital is the last building block to obtain success in the community for the next half century," he said. "I'm hopeful and confident our tax payers will shoulder the small burden. The ultimate benefit is the county's future and our children."
Tracey Richmeier, Scott City resident, said she had heard both negative and positive reactions from the community on the possibility of building a new hospital. She said many were concerned with the tax increase.
"But it's something that's needed," she said. Richmeier said her mother broke her hip and the care at the hospital was wonderful, but the hospital needed more space.
Romelia Moncada, Scott City, shared Richmeier's opinion, saying in Spanish that she would vote "yes" on Tuesday to ensure the hospital has a better chance at offering improved services to Scott County residents.
Kate Macy, Scott City, said she had heard mostly pros about the project. She said a new facility is important because it shows Scott City stays vibrant and active as a community.
Not all Scott City residents are in favor of the issue.
Michael Heim, Scott City, thinks raising the taxes will cost families more than the hospital thinks. Heim has four kids, and he said because of the sales tax, his family's cost of living could go up about $3,000 to $5,000, he said.
"We've done the calculations. It's not the property tax that will be the burden, it's the sales tax," he said.
Polls are open 7 a.m. to 7 p.m. Tuesday in Scott City.
On the Web:
Hospital bond issue blog: http://scottcountyhospital.blogspot.com/
Scott County Hospital: www.scotthospital.net/
What do you think of the Scott County Hospital proposal? Talk about it at SWKTalk.com.
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