Budget woes, bird flu fear halt progress on plans for new facility

By Misti Strader
Tribune-Courier News Editor
mstrader@tribunecourier.com

BENTON – After a year-long land acquisition process, the Marshall County Board of Health has voted to drop their option on the Frick property located adjacent to the county hospital’s new build site on Old Symsonia Road.

The decision comes after the latest round of reports suggesting that mitigation of issues associated with the property, such as a jurisdictional waterway and blue-line ditch, would result in additional expense.

In their last meeting, board members voted to hire Paducah-based engineering firm Florence & Hutcheson (F&H) to perform a cost analysis on the issues, showing interest in pursuing the acquisition if the land ssues were mitigable.

F&H’s report was completed and dated Feb. 22. Board Chairman Mike Miller noted, “Unfortunately, before I even got my preliminary report, the time had lapsed on our land-option extension.”

F&H Engineer Roger Colburn appeared at the meeting to discuss the report with the board, saying, “The total cost for mitigation ranges from $27,500 to $115,000. It is doable, but there are cost implications as stated.”

Although the board’s option on the property had officially expired, real estate representative for the Frick property, Sandy Wright, informed board members that the option was still available.

Miller said, “Knowing what we know now, is Mr. Frick willing to reduce the price? We’ve beat this horse a lot” he told the board. “I need direction on this.”

Board member Dr. Roger Lampkin said, “I don’t know if it is a viable option at this point, considering what we know about the land. We have land that we already own downtown, or there may be future properties available if we sit back and wait.

“I am pretty frugal, and I would rather set back money for services if it is going to be the same building either way. We can make the parking situation work. There are some old, dilapidated houses that we may be able to purchase in the future for an expansion of parking.”

Lampkin made a motion to drop proceedings with the Frick property. Miller clarified the motion by saying, “If I understand this, you are saying you want to hold on, see where the budget goes and then move on?”

The motion passed.

In addition to physical property concerns, the board’s vote also reflected funding issues brought forth by Kentucky Deputy Commissioner of Health Steve Davis.

He presented an overview to board members which explained how local health departments are funded and how that process could potentially be affected in the near future by state budget cuts.

“I can tell you that the ball-park figure of the initial budget includes a near $10 million dollar reduction in public health funds,” Davis said “and that will be translated down stream.”

Miller added, “We are looking in some areas of public health for as much as a 12 percent cut. That will not bode well for public health across the Commonwealth.”

Davis went on to say that he was “worried” about several counties and their ability to weather the potential financial losses to their local health departments, but said he felt confident about the financial condition of Marshall County’s department.

“When I looked at your balance sheet, I was very pleased to see that Marshall County has been very responsible, and I think you are in good shape to weather the next two-to-four years of some very lean times.”

Miller asked Davis to advise on whether he thought proceeding with the construction of a new facility was in the best interest of the community.

“I think right now, if I am giving advice, just like we would with our own personal checkbooks and given the concerns with the potential loss of revenue, we should tighten our belt and focus on making sure we are delivering those mandated core services that our people are depending on,” Davis said.

Board member Barbara Randall inquired as to the exact amount the department could lose should the maximum 12 percent decrease be enacted.

Davis said based on a 12 percent reduction, the loss to the Marshall County Health Department would be approximately $175,000 per year.

Other concerns were also addressed in relation to the timing of building a new facility. Health Department Director Larry Davis mentioned the potential for health care crisis situations, such as epidemics of the flu.

Steve Davis said in response, “This is not a scare tactic, but there is a lot of information that we receive daily from working with the center for disease control about the potential for pandemic flu or bird flu. That reality is very much on the table.

“If that were to happen, we would be turning to our county health departments and saying our brethren out here need help, let’s all pull together and help them. That’s why when I see those reserves out there, I think it’s a good thing.”

Miller also cited proposed legislation which would cut the health department workforce in Kentucky by 25 percent as a reason for the board to hold on to financial reserves.

Randall questioned Davis as to his specific recommendations for the board’s projected multi-million dollar revenue base.

“How much money do you think we need to build a new facility? If projections come out as they should, we will have $4.8 million in the bank at the end of this year and our building is projected to cost $3.2 million. So how much longer do we keep carrying this taxpayer money to have in reserve?”

Randall also addressed comments made at public health conferences relating to Marshall County “being one of the richest health departments around,” and how that could potentially affect the department’s ability to receive future funding from the state.

“We need to use this money wisely,” Randall said. “This is a great fiduciary responsibility, and we either need to get this building built or cut the citizens’ taxes back.”

In response, Dr. Davis said, “There is nothing like walking into a new health department, but if someone asked me right now as to what my recommendation would be on building a new facility, my recommendation would be to sit tight for a little bit.”

Davis went on to recommend that board members pursue federal bricks and mortar grants to pad their revenue base before building.

“This will sound bureaucratic, but I have to say this,” Davis said, “There is the potential of some federal grant dollars that comes into the state for bricks and mortar, and I am encouraging county health departments to work towards obtaining these grants instead of having to tap into their county reserves.”

Randall questioned that suggestion by saying, “I don’t know why anyone would give us a grant when we have over $4 million dollars in the bank. Looks like they would look at someone else who might be in more need of the money.”

Davis went on to say, “At the end of the day, I want to be very clear, I am just giving you an opinion.”
Miller concluded the meeting by saying, “I would love to see a new building, but our main focus and our main goal is providing public health services to the people of our community.”

In the last order of business, Larry Davis reported to the board that he recommended the rental of mobile space offices.

“We need more space,” Davis said. “There is no space for anyone. We had to move people around the other day just to make space for the new dietician that’s coming in.”

Miller asked Davis to provide the board with recommendations for the units at the next meeting.