Montgomery County News

Nursing Home bonds paid off eight years early; one cent sales tax will go away February 28, 2007 - No reporter cited

In September, 2000, it would have been considered “against all odds” that a bond issue financing the construction of the new Montgomery County Nursing Home would be paid off eight years early. At that time, plans had been completed for a new 140 bed facility on its own seventy acre campus, replacing the thirty year old nursing home which had previously housed the county hospital.

The original bond issue amount for this new project was $3,950,000 which passed by a narrow margin. A special election held to approve a one-cent sales tax to fund the project was originally scheduled for payoff in 2015 with a total re-payment of $7,347,000.

Construction started in the fall of 2000 and was completed in the summer of 2001. It has been fully occupied with a waiting list since its grand opening.

The bond issue itself carried many clauses in its legal section. The ‘sunset clause’ stated that the one cent sales tax would end after the last bond payment in 2015. Another clause prohibited the County/Nursing Home from making any payments on the principal amount until five years had elapsed, in order to protect the investors who purchased the bonds.

From its inception, the Nursing Home financial plans included saving funds to ‘pay down’ the principal at the five year mark. This would reduce future interest payments and shorten the burden of the sales tax on local taxpayers.

In March of 2006, a principal payment was made by the Nursing Home which will allow the bonds to be fully paid on March 1, 2007.Paying off the bonds eight years early will save county taxpayers $1,930,000 in interest.

The elimination of the one cent sales and usage tax will lighten the load of household budgets and allow merchants to lower their sales tax on goods and services within Montgomery County.

In retrospect, it appears that the County’s investment has been a good one. After six years of continual use, the building has aged very little thanks to its well-functioning design and its caring employees and maintenance staff. It employs approximately 145 employees with an annual payroll of $2,650,000. Combined with other funds spent here, the Nursing Home has a local economic impact of over $3,000,000. These dollars ‘turnover’ four to five times before they leave the county. Of the 281 nursing homes in Arkansas, Montgomery County Nursing Home is one of only six county-owned, non-profit facilities.

With no additional tax burden to county residents, this senior living campus will also feature an Assisted Living nestled in the hillside adjacent to the Nursing Home. It will be the only county-owned facility of its kind in the state of Arkansas. The new residence is expected to open in June of 2007 and features thirty-two one bedroom apartments. It is expected to open with full occupancy. The Assisted Living is projected to employ 18 to 20 people.

With 37% of Americans over the age of sixty-five using some form of senior retirement service in their lifetime, Montgomery County is actively addressing the needs of its seniors.

Future plans on the campus include senior living apartments, an employee daycare combined with an adult daycare or respite care and providing land for a wellness center for the county. The Montgomery County Nursing Home Board, the County Judge and the Nursing Home Auxiliary have been tremendous assets to the vision and growth of what is by many considered the best nursing home in the State of Arkansas.

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