Kenai Peninsula Borough Assembly considers $38.5M hospital bond

The emergency and main entranceway to South Peninsula Hospital successful Homer, Alaska connected Tuesday, Aug. 22, 2023. (Jamie Diep/KBBI)

The Kenai Peninsula Borough Assembly is considering a awesome enslaved to money improvements and repairs astatine South Peninsula Hospital successful Homer.

The $38.5 cardinal enslaved includes backing for expanding nan hospital’s infusion session and much-needed attraction work. According to a memorandum related to nan bond, nan backing would prioritize replacing nan hospital’s emergency powerfulness plant, improving older accommodation and buying properties.

South Peninsula spokesperson Derotha Ferraro said nan infirmary has galore needs and unsocial barriers to addressing those needs. Expanding nan infirmary is simply a situation owed to its location and adjacent onshore availability.

“We person an aging facility. We person nan request to grow services for nan community. And we are decidedly benignant of landlocked, we person a large hillside down us, a creek and a park, beside america and backstage spot benignant of beneath and connected nan different side,” Ferraro said. “And truthful it makes it really challenging to grow services and do much for nan organization erstwhile we’re truthful locked in.”

The assembly besides approved an ordinance at its May 21 gathering that would put $13 cardinal from nan enslaved towards purchasing 3 buildings, 2 of which nan infirmary has leased for years.

Borough Mayor Peter Micciche said purchasing nan properties outright saves nan borough money and gives it power complete nan land.

“If you proceed to lease, you would salary betwixt 1 and 2 cardinal (dollars) much complete that magnitude of time, depending connected escalation successful nan future, and you would still conscionable beryllium leasing. You would still not beryllium capable to do nan imperishable improvements that you’d for illustration to do connected nan land,” he said. “(It would) beryllium very difficult to make nan improvements that nan infirmary needs to make successful bid to beryllium competitory and supply services for nan group of nan Southern Kenai.”

The resulting enslaved would adhd a spot taxation pinch a 0.67 mill complaint for group surviving successful nan South Peninsula Hospital Service Area, which runs from Ninilchik to confederate Kachemak Bay, excluding nan City of Seldovia. It besides extends crossed Cook Inlet into Kamishak Bay. That intends each $100,000 of assessed spot worth would beryllium taxed $67.

This was wished based connected assessed spot values for nan adjacent fiscal year, and that nan borough would salary astir $2 cardinal a twelvemonth including liking — $2,605,000 pinch 3.5% liking complete 20 years.

Borough Finance Director Brandi Harbaugh said during a finance committee gathering earlier this period that nan existent mill complaint is expected to driblet considerably complete nan adjacent mates years.

“There’ll beryllium a important diminution successful nan existent mill rates associated pinch nan hospital,” Harbaugh said. “And we spot nan extremity successful show for that, which frees up nan imaginable for mill rates to beryllium utilized to salary this indebtedness and to stay successful nan aforesaid scope of mill rates and taxation for nan folks successful nan area.”

Central Peninsula Hospital successful Soldotna passed a akin bond nearly 20 years ago 2003 to grow its services. Micciche says nan mill complaint for that enslaved decreased until nan infirmary yet forgave it pinch nan money it generated from expanding services.

“People don’t person to recreation for captious care. They tin enactment correct astatine home, which besides has a amended result connected betterment and much locally accessible treatment, little travels,” he said. “That brings nan costs down to those that are receiving those services, and nan full strategy benefits because of that.”

Micciche hopes to spot those benefits for South Peninsula Hospital arsenic well.

The Assembly will clasp a nationalist proceeding for nan ordinance connected Tuesday. If nan Assembly greenlights nan bond, voters successful nan infirmary work area will still request to o.k. it successful October.