CAMDEN -- The Ouachita County Quorum Court passed three ordinances this week approving a special election Feb. 10 for a sales-tax increase totaling 1 percentage point that would go toward sustaining and advancing the Ouachita County Medical Center.
Ouachita County Medical Center President/CEO Peggy Abbott visited the Quorum Court in October to request a special election in early 2015 to allow county residents to approve a sales-tax initiative to help with the maintenance and upkeep of the hospital.
At that meeting, Abbott said the hospital has seen a 16 percent growth in operations over the past 22 months. The hospital has also upgraded several areas with state-of-the-art equipment.
She said the hospital has been vital to local employment with its $500,000 bi-weekly payroll.
Abbott noted that the hospital had reserves and was not bankrupt but did need help to better serve the community in the future.
Attorney Ryan Bowman of Friday, Eldredge & Clark in Little Rock, and Jason Holsclaw, vice president of Stephens Inc.'s Little Rock office, were in attendance at Monday's Quorum Court meeting to answer questions regarding the three ordinances.
The two men worked with the county earlier this year to refinance bonds from the Ouachita County jail.
Bowman summarized that one ordinance concerned a half-percentage-point tax increase for five years; the second designated a half-percent sales tax to re-fund a bond; and the third ordinance would be another half-percentage-point tax increase intended for the improvement of the hospital.
Bowman and Holsclaw estimated that the last half-percentage-point increase would end by 2028 at the latest, and that it would not take effect until July 1 if passed.
"The most the tax will increase in the county if all three ordinances are approved is 1 cent," Bowman explained. "The taxes are not in a permanent nature. The first tax goes off after five years, and the second half-cent will go off when the bonds are fully retired."
The goal of the tax increase is to raise $6,975,000, said Abbott, explaining that the hospital has consulted with Polk, Stanley and Wilcox Architects, which has experience with hospital renovations -- including the hospital in Magnolia.
Abbott told the court that if the renovations went over the estimated price, then the hospital would determine a way to pay the excess cost.
Abbott attended this week's meeting with other hospital personnel.
"It is with heartfelt gratitude that I thank you for stepping forward and allowing the citizens of this county to vote on what I feel is one of the most important issues to sustain and stabilize even future economic growth for the community -- and that is the value of a strong stable hospital here," Abbott said.
"We will do our best to hold true to this community and to make you proud of the decision you've made tonight."
State Desk on 11/13/2014