Iola makes ACH offer — with strings

Iola commissioners agreed to dedicate a portion of the city’s sales taxes toward construction of a new Allen County Hospital.
Their announcement at an adjourned meeting late this morning came with a few strings attached, prominently the city’s insistence that Iola and Allen County “maintain an understanding regarding the operations of their ambulance services.”
Commissioners said the city will commit one-quarter of its existing 1-cent sales tax toward the hospital — as much as $350,000 annually — as long the city and county avoid any action that would “cause any disruption in the service of the other (ambulance) and the reasonable payment of funds for the services provided.”
In short, the city is asking the county to continue paying Iola its $80,000 ambulance subsidy.
The ambulance issue crept up in July when county commissioners originally voted to rescind an $80,000 payment to support Iola’s ambulance service, in an effort to reopen ambulance discussions.
The county commissioners reversed their decision a week later — saying they wanted to keep the hospital issue front and center — prior to approaching city commissioners about Iola’s assistance in generating working capital for the hospital.
Financial advisers have told the county that the hospital will earn enough revenue to pay for its construction, however, the county needs about $5 million in startup capital.
The county is preparing to ask voters for another quarter-cent sales tax increase, which is estimated to bring in about $400,000 annually — provided the city makes available another $350,000.
Without the city’s assistance, the county would have to ask for a one-half cent sales tax increase.
City commissioners huddled with City Attorney Chuck Apt for 25 minutes this morning prior to unanimously agreeing to help with the hospital.
Mayor Bill Maness, in reading from a press release, said the city also should review its commitment on an annual basis, and that if the hospital generated enough money on its own that the tax obligation could be reduced accordingly.