proposed bond issue solutions

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Local access to quality health care for Ottawa County residents has always been a priority as evidenced by the
support given throughout the years. It must continue as a priority. The Ottawa County Health Center is one of our area’s
largest employers, and the annual payroll of $2.8 million is a huge part of our local economy. Equally as important, the
hospital with its acute patient care, emergency room and long-term care facility, as well as the physician’s clinic are vital
parts of our quality of life in Ottawa County.
Nearly 50 years ago in 1965, residents of Ottawa County approved a bond issue to construct a hospital facility in
the county seat of Minneapolis. A year later, the Ottawa County Hospital was up and running as a new state-of-the-art
facility serving residents and visitors to our area. The building has served the area well for 5 decades, but time, much use,
and changes in modern healthcare require improvements to continue to serve our citizens.
Changing regulations in the medical system, advancements in medicine and services, and technology
improvements mandate necessary changes. Parts of our facility are substantially the same as they were when originally
designed and constructed, placing Ottawa County Health Center behind the times compared to other providers in our
area. In order to compete and continue to serve Ottawa County residents with quality care and service, an investment is
required. The proposed improvements would bring healthcare in Ottawa County into the 21st Century and provide for the
future.
After much study, thought, and input from many sources, the Ottawa County Health Center Board of Trustees
recommended consideration of a bond issue for needed improvements to the Ottawa County Commission. The
Commission agreed and approved a resolution scheduling an election for August 5th to request voter approval for no
more than $5 million in general obligation bonds to finance the improvements.
HEALTHCARE CHALLENGES
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Our physician’s clinic facility is off-site and located across town forcing doctors and patients to travel between
facilities. In addition to easier accessibility for patients, Medicare regulations for some hospital services require
immediate access to doctors for cost reimbursement.
Our community is fortunate to currently have the services of two physicians and two nurse practitioners. A third
physician is committed to join our staff in the fall of this year. The off-site clinic building is considered inadequate
in size and function to serve the staff and our area’s needs.
Two separate locations require duplications of equipment and services and thus additional costs.
The clinic facility is outdated and has challenges in the area of ADA compliance for handicap accessibility.
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The emergency room is essentially the same as when built in the 1960’s, lacking space and modern technology
required for today’s ER standards.
Our facility has no space for a needed CT scanner, requiring patients needing this type of diagnosis to travel to
other communities.
Existing areas for lab work and x-rays are outdated and inadequate to serve our patients’ needs.
Many of our hospital patient rooms are semi-private and require patients to share small bathrooms.
There are no showers in most of our hospital or long-term care rooms requiring all patients to be transferred from
their rooms to a common shower room down the hall, a patient privacy challenge.
Both hospital rooms and long-term care rooms are outdated and in need of upgrades for modern healthcare as
well as patient and visitor comfort.
Most HVAC, plumbing, and electrical systems are original, expensive to operate and maintain, and in need of
replacement for an improved environment and efficiency.
Some rooms need improvements in oxygen and medical gas services.
Business offices and support services are in separate locations, creating inefficiencies.
PROPOSED BOND ISSUE SOLUTIONS
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Construct and equip a new physician’s clinic facility of approximately 6,900 square feet connected to the Ottawa
County Health Center, allowing doctors easier access to patients and improved efficiency in services and a better
experience for our patients. This new, modern facility will have adequate space for growing staff and comply with
Medicare standards for improved cash flow due to reimbursement.
Update the emergency room to current standards with multiple bays and technology to meet the needs of
patients and medical providers.
Renovate and improve lab area and x-ray areas, including space for a needed CT scanner, a service that will keep
more patients in our county.
Renovate current hospital acute patient rooms into private rooms with private bathrooms (including individual
showers), handicap accessibility, updated technology and equipment, as well as improved oxygen and medical gas
resources.
Expand long-term care facility and update rooms to current standards including technology, oxygen and medical
gas resources, and modern bathroom facilities.
Update outdated mechanical (HVAC), electrical, and plumbing systems for an improved environment and
enhanced efficiency.
Update the ambulance drop-off area to give Emergency Medical Technicians better access to the facility.
Expand the business office area to relocate all administrative and support services to one area.
Improvements to modernize medical care and services in Ottawa County.
Improvements to make Ottawa County more attractive to families and businesses considering relocation.
Improvements to prove that Ottawa County is committed to quality health care for today and the future.
FINANCE—AN OPPORTUNE TIME
1. A $5 million bond issue to provide majority of estimated $5.1 million budget. Balance of costs from Ottawa County
Health Center resources.
2. The cost of inevitable needed improvements will undoubtedly increase with delay.
3. Interest rates, estimated at 3.75% for the 20-year bond, are near 50-year lows making cost of repayment more
affordable. Recent similar bond issues have sold at or below 3.25%.
4. The Ottawa County tax base has increased from $49,049,584 in 2000 to $71,122,229 in 2013—an increase of more
than $22 million in the past 13 years. This represents growth of 45% and average annual growth of 3.46%. To be
conservative in our Plan of Finance, we have assumed future growth of only 1/4th of 1% per year. Growth above
this estimate would result in a lower mill rate in future years.
5. A mill is $1 of tax on each $1,000 of assessed valuation of property in Ottawa County. Proposed bonds will require
a mill levy estimated at 4.95 mills (see below).
Estimated Tax Impact of $5,000,000 Bond Issue
$75,000 Home
$100,000 Home
160 Acres Dryland Farm
160 Acres Irrigated
160 Acres Pasture
$100,000 Commercial Property
Estimated Assess. Value
$ 8,625.00
$ 11,500.00
$ 9,696.00
$ 18,816.00
$ 2,784.00
$ 25,000.00
Yearly Tax
$ 42.69
$ 56.93
$ 48.00
$ 93.14
$ 13.78
$ 123.75
Monthly Tax
$ 3.56
$ 4.74
$ 4.00
$ 7.76
$ 1.15
$ 10.31
AN IMPORTANT DECISION
Healthcare affects everyone. At Ottawa County Health Center, we have an excellent, dedicated staff that provides
outstanding service and care to our patients and residents. The future for healthcare in Ottawa County is bright with a
third physician joining the clinic, and a local surgeon making plans for an outreach clinic at our hospital. With a growing
staff and increasing healthcare demands of an aging population, the Ottawa County Health Center has challenges. Our
hospital has served our community and area well for nearly 5 decades, but over time, changes in the area of healthcare
require an investment to bring healthcare services in our county into the 21st Century. Local healthcare is vital to our
future and our quality of life. Please take the time to know the facts, register to vote if necessary, and plan to vote on or
before August 5th, on this important question for the future of healthcare in Ottawa County.
CARING FOR YOUR HEALTH & FUTURE
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