Proposed urban renewal plan for MHP brings questions from Supervisors

Tension grew during the discussion at Monday's special meeting with Mahaska County Supervisors

The proposed urban renewal plan and project for Mahaska Health Partnership is inching forward with their plans to gain the support and then bonding assistance of Mahaska County Supervisors.

The County Supervisors held a special meeting on Monday, November 29, 2010 at 5:15 p.m. in the Third Floor Conference Room of the Mahaska County Courthouse. This meeting was called to continue the process of having the current hospital designated urban renewal. The Oskaloosa City Council was there along with Oskaloosa Mayor Dave Krutzfeldt, Oskaloosa City Manager Michael Schrock Jr. and City Attorney Dave Dixon.

Chief Executive Officer Jay Christensen stated that, for Mahaska Health Partnership (MHP), this is just one of the required steps to have a consultative meeting so that everyone understands what risks and rewards there are for the project.

Retiring Supervisor Lawrence Rouw asked the Mayor and City Council of Oskaloosa what they had passed earlier in reference to their resolution of support for MHP. Oskaloosa City Manager read the recent resolution of support from the city in favor of the hospital’s urban renewal requests.

Local Council members and board members of the hospital were present to show support for the project. Many pointing to the potential savings of 15 to 16 million by having Mahaska County issue the General Obligation Bonds versus MHP issuing Revenue Bonds.

MHP states they are attempting to keep up with the needs of Mahaska County and the surrounding area by offering better facilities and services. These in turn help to attract more doctors and specialists to the area. The hospital board made the decision that the project was necessary and decided to go forward in those interests.

Rouw expressed concern as to the hospitals ability to repay the bonds. He stated that his findings, by looking over audits of the hospital, show losses from the years 2008 to present. These audits showed around $900,000 in loss in the latest report. “How would you be able to pay those bills?” was his question on the issue.

The hospital board countered that, by stating that increased revenues from the expansion would pay the bills. They also disputed claims that the hospital has been running in the red, considering tax collections to be added to the total. They stated they have helped keep taxes lower by keeping the asking at the same level, while assessed values have gone up.

Rouw asked them, “then that more patients, more dollars, but this area is not growing in number of people. As a matter of fact, Mahaska County has lost numbers in the last 30 to 40 years.” Rouw then asked “Where are you gonna get your extra patients?”

Christensen stated that by securing some of the market share with the enhanced facility in response to Rouw’s question. Christensen also went on to explain how Medicare payments will help the hospital meet its obligations.

Supervisor elect Ken Roozenboom stated, “We talked about saving the taxpayer money, and or patient money, is there a chance were just saving insurance companies money?”

Christensen stated that “If we’re saving the insurance companies money we’re also saving our employers money, that’s who those costs are going to be passed on to” He went on to say that his biggest goal with this is to not increase taxes, that with increased costs they will be passed on someplace. “In the end those costs end up coming back to the consumer.” stated Christensen.

Supervisor Greg Gordy brought up the question about a public vote on the proposed project of this size. He is concerned because it’s the property tax payers of Mahaska County that are the one’s that will have to pay the bonds back if the hospital were to default on payments. (Example of mom or dad co-signing on your first car.)

“Those are the people that put us in office, that’s what we’re here for”  “If we have to have them vote on every little thing we do” was a comment from the floor of officials in attendance.

Councilwoman Pam Blomgren, “The public always has an opportunity to have their voice heard, whether that’s through something we put on a ballot or whether they put on a ballot.”

Gordy then commented, “Then the measure would have no problem passing a public vote then.”

Supervisors stated that the comments they have gotten from the citizens of Mahaska so far have not been favorable on the bond issue, while earlier in the meeting, city officials and those from the hospital told of generally favorable responses to the expansion.

There seems to be some tension on the issue between the different local entities over the issue. Questioning of the timing, legal grounds for a public vote on the issue were all discussed. No vote by any group was taken at last night meeting, it was strictly for information purposes.

I think most everyone can agree that the more the public becomes aware of the upcoming public meeting on the issue the more representative this decision would be. If you have questions or comments, come to the meeting, speak with your elected officials and become more informed of the proposal.

The meeting will be December 6 at 6:30 in the 3rd floor conference room at the Mahaska County Courthouse. The Oskaloosa City Council will hold their meeting that evening as well.

Posted by on Nov 30 2010. Filed under Local News. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.

2 Comments for “Proposed urban renewal plan for MHP brings questions from Supervisors”

  1. […] more history on the subject, see our November 30th Article of the Public Hearing. […]

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