Nursing home hopes voters OK new roof

McCOOK, Neb. -- If a Sept. 27 special election is successful, Hillcrest Nursing Home in McCook will use the $254,480 raised to repair a roof plagued by roaming leaks and migrating drips, officials said.

"When it's not raining, we don't have a problem with the roof," nursing home administrator Colinda Nappa told a crowd of about 40 at the senior center Monday afternoon.

But McCook has recorded up to 8 inches of rain in the past two to three weeks. And the forecast calls for more rain this week. And Hillcrest's roof is flat. And crews installing and/or repairing air conditioning units have had to walk on that roof. None of these are good scenarios.

Nappa said ongoing roof leaks are costing Hillcrest $3,000 to $7,000 a month to repair. They get one leak fixed, only to discover another drip in another spot.

Nappa said they had been lucky that the leaks were not located in resident areas. However, two residents have now had to be moved out of their rooms because of ceiling leaks and the resulting repairs and new paint.

If Hillcrest can get the roof fixed, the money spent each month on repairs could be redirected to other expenses, Nappa said.

Nappa said that Hillcrest could use a USDA grant to pay for half of the roof repair costs. The other half, the matching funds required by the grant, would be the responsibility of Hillcrest and Red Willow County, which owns the nursing home.

The ballot -- mailed to registered voters last week -- asks whether voters want to allow Red Willow County to increase its "Budgeted Restricted Funds" (money raised by taxes) by 6 percent over the 2 1/2 percent annual allowable growth for the budget year 2016-17. The $254,480 raised would be earmarked for the operation and maintenance (roof repairs) of the county-owned nursing home.

Ballots must be returned to the courthouse by 5 p.m., Tuesday, Sept 27. They can be mailed or dropped off at the courthouse, at Hillcrest, at Community Hospital or at the Heritage Senior Center in McCook, or at the city offices in Bartley and Indianola, or at Frenchman-Valley Coop in Danbury.

Commissioner Earl McNutt said Monday morning, during the commissioners' weekly meeting, that a "FOR" election result would mean that the county's base of restricted funds would be increased one time by 6 percent. The county's tax levy for 2016-17 would increase by 2 cents -- from $.296453 to $.316453 (per $100 of property valuation). It does not, however, automatically add a 2 cent levy onto each future budget, McNutt said.

Dan Miller, the county's budget preparer, has explained that increasing the county's restricted funds base by $254,480 for 2016-17 would increase the county's restricted funds base by the same amount for each ensuing year. Each year, then, commissioners would have the opportunity to earmark that $254,480 to Hillcrest operations/maintenance -- if it's necessary.

Miller said that the 6 percent increase in the county's restricted funds does not mean the same amount of increase in a property owner's tax bill. If the ballot is successful, raising $254,480 would mean an increase in the county's levy of 2 cents (per $100 of property valuation), from $.296453 to $.316453. McNutt said that 1 cent in taxes raises approximately $120,000.

Restricted funds are money that is raised through taxes. To mandate a "spending limit," or "spending lid" for governmental entities that request taxes, the Nebraska's Legislature prohibits adopting a budget which contains restricted funds totaling more than the budgeted restricted funds for the previous year plus the allowable annual growth rate of 2 1/2 percent.

A taxing entity can, by a super-majority vote of its board, increase that annual allowable growth rate by an additional 1 percent, to 3 1/2 percent. In the case of the Red Willow county commission, the increase to 3 1/2 percent requires a unanimous vote of the three-member board.

With the approval of registered voters, a taxing entity can increase that annual allowable growth rate to a rate beyond the 3 1/2 percent. That is what the Sept. 27 special election is asking.

Red Willow County commissioners have traditionally approved the 1 percent allowable growth rate increase each year, and work hard each budget cycle to keep the county within compliance of the state-mandated lid on the growth of restricted funds. "We're a very conservative board," said commissioner Vesta Dack.

The total county budget for 2016-17 is $19,063,618, requesting $3,735,403 in taxes. Based on the county valuation of $1,260,031,821, the county's levy will be $.296453, up .15 of a cent over the 2015-16 tax levy of $.294979.

If the ballot question is successful, the levy will go up 2 cents, to $.316453, for 2016-17.

During their meeting Monday morning, commissioners approved accounts payable claims of $353,558.36, which includes $131,488.75 for a principle payment and interest on a Hillcrest construction bond. In 2015, to help Hillcrest with financial challenges, the county assumed payments on a 20-year, $2.3 million construction bond (through October 2031).