Henry County Health Center proposes modest tax increase

A slight increase in the tax levy for the coming year was proposed to the Henry County Health Center board of trustees Tuesday due to increases in hospital payments to the Iowa Public Employees' Retirement System.

During the regular board meeting, hospital Chief Financial Officer David Muhs submitted the annual levy rate showing an increase from $1.61865 to $1.89651 per $1,000 of taxable valuation. It is projected the owner of a $100,000 home would see a property tax increase of about $15 per year. Muhs commented that even with the increase, the health center is only at 50 percent of its levying capacity.

'For the last two years we have had to increase the levy because of IPERS,” Muhs explained. 'IPERS increases every year.”

He said the hospital has about 300 employees who take the state run retirement benefit plan.

A public hearing on the new levy will be held during the board's next meeting, which will be held at noon Tuesday, Feb. 19.

Additionally, Muhs said the hospital has seen an increase in payroll tax of about $70,000 over the last year. Between the two factors, the health center has seen an increase in costs of about $245,000.

During the presentation of the new levy, board President Robert Meyer requested a workshop for the board to discuss increases in costs to the hospital. He hopes to be able to tell the public the board is addressing the issue rather than simply raising taxes every time there is an increase.

'From what I am hearing we really need to make some adjustments,” he said. 'It doesn't sound like it is anyone's fault, but if we close our eyes, we are going to wake up someday and it is going to be too late.”

CEO Robb Gardner agreed, saying he would prefer to plan for any changes in expense rather than simply respond to them.

'Are we in crisis next month - no.” Gardner said. 'If we wait five years from now, it will be 2025 and we could be wondering what happened.”

The workshop will be scheduled at a later time.