Election date set for PCH sales tax issue

Local voters will be asked to decide the fate of a one-cent sales tax issue this spring. If approved, the proceeds will benefit the continued operation of Piggott Community Hospital.
(Times file photo)

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"According to our city attorney, if we can have the second reading at the conclusion of that hearing we'll be able to get the issue on the ballot for the regular May 18 primary election," Mayor Gerald Morris explained. The hearing and subsequent meeting will be held at the Piggott Community Center.

The one-cent local sales tax issue was requested by the Piggott Health Care Facilities Board to offset a downturn in income at the local hospital and was endorsed by members of the city council at a Feb. 8 meeting. The measure, if approved by voters, will levy a one-cent local sales tax for a period of 36 months.

PCH administrator James L. Magee addressed the council on the matter and updated some of the information provided in their earlier gathering. "Since our first meeting we've had a chance for our auditors to review some numbers, and there are many positive aspects," Magee told the council. "We have compared what it costs our hospital to provide services for a patient and, when compared to our peer hospitals, our costs are actually around $300 a day less."

Magee said the hospital's home health agency is also a bright spot, recording the lowest costs and highest profit margin of any similar agency in the state.

"But as I told you before --- we absorbed about $1.5 million in bad debt last year and the ambulance service lost about $150,000," Magee told council members. "That means we have to make up over $1.65 million from other departments just to overcome those two items." He said the staff continues to look for cost saving at every turn, "we're looking at every purchase, down to how many pencils we use, in an effort to cut operating costs," he added.

Magee believes any misunderstandings could be cleared-up at the public hearing, but reminded the council that this is not a problem for just the Piggott hospital. "If you get on-line and look for stories about hospitals in distress, you'll find hundreds," he noted. "Recently there was even a story about problems at UAMS...it's a problem that is everywhere."

Responding to a question from alderman Carl Birmingham, Magee also clarified the misconception that the sales tax issue also would benefit the local clinic. "The clinic is solely owned by the doctors and there are no direct financial ties with the hospital," Magee explained. "We do support them, and they're an important part of Piggott, but there are no direct financial ties with the hospital and the sales tax issue would not benefit operations of the clinic."

City officials are encouraging all interested residents to attend the March 8 public hearing on the issue.

In other business the, council:

* Tabled the third reading of the Forestry Ordinance to the March meeting.

* Approved the bill for the city attorney.

* Heard that a check for $61,687.23 by been received from the Arkansas Department of Emergency Management to city general. The funds were reimbursements from last year's ice storm.

* Was also informed that a check for $285,000 had been received from FEMA, also on ice storm expenditures.

* Got an update from Morris on several meetings he attended during a recent trip to Little Rock.

* Discussed the use of natural gas at the power plant, and a request by Arkansas Western concerning the matter.

* Was informed by Morris that not much had transpired on the recent problems concerning the transmission of power.

* Heard that the city will be conducting a spring clean-up this year, likely to be held the weekend following the citywide yard sale.