Council compromises on hospital support

Iola City Council members indicated a willingness to find a compromise when it comes to financial support of Allen County Regional Hospital.

At issue is the annual $300,000 payment the city makes to the county, part of an agreement between the two entities to help facilitate the hospital’s construction in 2012 and 2013.

The payments, which come from sales tax revenues, are scheduled to expire at the end of this year, in line with the expiration of the city’s existing half-cent sales tax. 

That tax was renewed for another 10 years by Iola voters last fall, but with no stated obligation by city leaders to continue supporting the hospital.

And as Councilman Aaron Franklin explained, the city has its own financial difficulties to take into account.

“We’ve struggled to make ends meet,” he said, pointing to the consolidation of the city’s fire department with the countywide ambulance service, which has become substantially more expensive for the city to operate.

“I’d like to see us reallocate those (sales tax) funds,” Franklin said. “That said, I don’t think it’s a good idea for the hospital to do it all in one year. I’d like to have a conversation with the hospital, to get a program in place, to place as little amount of pain on them as possible.”

The issue emerged during a budget work session last week, after which City Administrator Sid Fleming said he spoke with hospital officials about the city’s financial straits and whether the county would continue to seek the city’s financial support.

Fleming’s suggestion — to give the county $300,000 again in 2020, and then pare it back to $150,000 in 2021 — would give both entities time to plan for the day when the city no longer has to contribute to ACRH, he said.

“”But I’m not a decision-maker,” he quickly added.

“That’s probably the smartest and kindest way to do it,” Councilwoman Nancy Ford agreed.

Councilman Chase Martin added that he “absolutely” favored a phaseout.

The only resistance to the suggestion at Monday’s Council meeting came from Councilman Gene Myrick, who said he favored seeing fewer city dollars going to the hospital.

“I’ve talked to a lot of citizens who called me and are against it,” Myrick said. “That money needs to come back to the city. I don’t want to put them in a hardship. I don’t know economics very well, but the city could do a hell of a lot with $300,000.

“But I’m like Sid,” Myrick continued. “If we can work out some sort of proposal, to phase it out over the next year or so, I’d be more apt to do that.”