Found this in the Valley Hi Operating Board minutes for December 2nd:
Tax Levy Abatement and Potential Long Term Impact
[Tom] Annarella provided the Board with Valley Hi’s official position document that was shared with staff following the County Board’s vote to abate the Valley Hi tax levy in FY2016.
Mr. Austin spoke about the process that was followed by the County Board and some of the unknowns and challenges that would be encountered in FY2016 and as the budget was prepared for FY2017.
The implications of the tax levy abatement and the process and timeline to reinstate the tax levy before it was lost permanently were also discussed.
Mr. Annarella provided the Board with a simple fund balance utilization chart for review.
Mr. Annarella detailed some of his concerns for the Board noting:
- State Budget and resulting Medicaid rate cuts
- Potential loss of Medicare to Centegra when they build their proposed 90 bed rehab facility
- Rising costs to provide care and unfunded mandates
- Union contract negotiations and related increases in costs 5. Unforeseen expenses 6. Not having the levy re-instated in FY2017
Mr. Annarella explained to the Board that over the coming months, as discussions about finances occur, there would be some possible things that would need to be considered to preserve the reserves and the operation for as long as possible, including:
- Changing the case mix
- Changing the private pay resident rates
- Charging private pay residents for ancillary services and supplies
- Forgoing capital improvement plans
- Looking at alternative revenue streams
Mr. Annarella explained that in the short-term, he and management staff would be conducting the following:
- Start looking at all considerations and evaluating feasibility
- Start looking at cost savings measures
- Working with the County Board to ensure the levy was re-instated and that they knew the implications for failure to do so
- Working with the union to keep the new union contract reasonable Ms. Dreimann asked about the process to reinstate the levy.
Mr. Austin provided the Board with some information on the process. The Board indicated that they would like to review the capital improvement and asset preservation plan again at a future meeting.
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See County Board Forum comments on the $41.3 million sitting in Valley Hi’s bank account here.