Hospital asks to create new tax district

Boundary County voters may have a chance to adopt a hospital district, saving $123,000 in property taxes while boosting the county hospital’s bottom line.

The Boundary Community Hospital in Bonners Ferry submitted a petition in favor of the district to Boundary County commissioners, who will hold a hearing on it in the next four to six weeks. If approved, the proposed district could be voted on by Aug. 10.

With the recent Louisiana-Pacific sawmill closure putting 140 people out of work in an already slumped economy, the hospital has seen unpaid hospital care reach more than $450,000 a year. In addition, required upkeep on a 24-hour emergency room has kept funds thin.

“It’s not a new problem, but it’s getting worse,” said Craig Johnson, hospital chief executive officer. “Our community has been hit with some difficult situations.”

Grants and fund raising have helped recently to improve technology at the hospital. But the high operation costs and uninsured hospital visits sent the hospital board searching for some way to help with the burden, he said.

The hospital, in business since 1955, operates as a county hospital, which means it is a county department, and its board is appointed by county commissioners.

A bond levy set in 1993 for construction and expansion is costing county residents $494,000 a year, which is being paid out to bondholders. In addition, a county levy for hospital maintenance collects $64,000 a year. Taxpayers are picking up the tab at $98.60 a year for both levies on a home with a taxable value of $100,000. The bond levy expires September 2005, and the maintenance levy would be replaced by the new district fees, if passed by a majority vote.

The new district would assess .08 percent, or about $80 a year on a home with a taxable value of $100,000. It would bring an estimated $435,000 a year to the hospital and would cover a majority of uncompensated care costs, Johnson said.

The new district tax would kick in when the existing bond is paid off. The new tax would be $123,000 less than what taxpayers are paying out now on bond payments, and the funds would put money back into the hospital.

“That’s why we went down this road,” Johnson said.

A petition requiring more than 10 percent, or 553 voter signatures, was needed to put the proposal before county commissioners.

The hospital rounded up 775 signatures through storefront petitions, handouts and community meetings. Hospital staff took forms home and around to neighborhoods seeking names in support. Johnson said 620 names were verified as registered voters and property owners in Boundary County.

Elden Koon, chairman of the Boundary Community Hospital board, said community support has been strong since the board began pushing for the district in March.

“Most of them realize this hospital is an absolute necessity in the county,” Koon said.

The proposed district would cover all of Boundary County, and hospital board appointments would shift from commissioner control to a majority vote. Employment is anticipated to remain the same at the hospital, but the board will be reduced by two members.

“This way, this seven-member board will be focused on one thing: health care,” Johnson said. “That’s significant.”

The hospital includes a 14-bed critical access facility and an attached 46-bed extended care facility. It employs about 175 full- and part-time workers on an annual payroll of about $4.3 million.