Thoughts on the Proposed Valley Hi Nursing Home Fund Surplus Refund

Cary School Board President Scott Coffey weighs in on the $100 flat rate very partial rebate of money unneeded in the $40 million Valley Hi Nursing Home Fund:

Valley Hi Nursing Home fund’s cash on hand from FY 2006 through FY 2016 (projected). Over $41 million currently.

Should not the resolution of the question of how much fund balance Valley Hi SHOULD have, drive the amount of the refund and not the other way around?

It appears as though an arbitrary amount of $100 per household was selected, which will result in a fund balance draw down of approximately $8.8 million.

That will still leave $31+ million in fund balance (or more than 3 years of expense coverage).

$31 million is still an excessively high and unsupportable level given the current level of spending for this operation.

The Board should first decide what the correct level of fund balance should be.

I would suggest that six months of expense coverage may be an appropriate base target (approx $5 million), plus a slight allowance for any near-term CapEx programs, if any are needed.

The entire remaining excess balance of roughly $30-35 million should be returned to the taxpayers in a form to be decided by the Board.

The Board should fix this issue appropriately and in its entirety rather than take weak action which still leaves the problem of excessive fund balance still on the books.


Thoughts on the Proposed Valley Hi Nursing Home Fund Surplus Refund — 3 Comments

  1. Getting every Tom, Dick, and Harry’s opinion is pointless.

    It may be thought-provoking, but ultimately it doesn’t matter.

    What do the people on the county board, who will be the ones making the decision, think?

    Speak up.

    And we’d like to hear your recommendations on who should replace Wilcox on the county board too.

    Him being appointed to the senate didn’t exactly come out of nowhere; Althoff announced her resignation in late August. We pay you lots of money to think, so let’s see what’s going on in those big brains of yours.

    You can spill the beans now, or perhaps you’d prefer having a conversation with Ed Komenda.

  2. The County ‘Bored’ are, for the most part, little yapping pets of the Jackal.

    If they bark or hiss, they won’t get fed their milk and treats, and they sure as hell won’t be stroked by the FakeNews Northworst Herald.

    They are of no use to any one.

    they are dross.

  3. There are a number of problems with this proposal, as appealing on the surface as it may be.

    (1) The funds in the account are not really all from local property taxes. They represent the accumulated unused annual sums that weren’t needed because Tom Annarella was able to introduce better management and because a previous County Board decided to up the number of private pay and Medicare beds and not simply have Valley Hi be a Medicaid facility, without simultaneously reducing the annual tax levies. Therefore, the account balance represents a comingling of private, federal, state and local property tax dollars, so it is unclear if you can legally just take some of it and hand it back to local property owners.

    (2) As property taxes are not paid for the current year but rather for the past year, people who have sold their property will not be getting the refund, which will be sent to the current owners who did not pay taxes on the property previously.

    (3) Business and farms are apparently not included. This is a particular slap in the face of the farmers if that is the case.

    (4) It will cost $44K to send out the checks, as opposed to having credits applied on future tax bills. Of course the latter approach will not help as much with the upcoming elections.

    This needs to be thought through and not just rushed in time for the November election.

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