Rock Island County has owned a nursing home since the 1800s, but the future of Hope Creek Care Center largely depends on voters who head to the polls Tuesday, November 4, 2014.
On the November ballot, Rock Island County voters will see a proposition asking whether they are "for" or "against" an additional tax to maintain Hope Creek.
The levy would increase from .1 percent to a maximum of .25 percent for the next four years. That would bring in nearly $3.2 million more each year for the care center. Currently, taxpayers spend about $2 million a year on the home.
If the referendum is successful, taxpayers could see about $50 in additional annual property taxes on a $100,000 home.
Buying Time
County Board members agree that passing the levy won't be a solution to Hope Creek's problems. However, many say it's a step.
"The County should look at restructuring Hope Creek's management style no matter what. As much as I believe this referendum needs to pass, it doesn't spell the end for Hope Creek if it doesn't," said Rock Island County Board member Steve Meersman.
Meersman chairs the county's Health and Human Services Committee. He's pushing for the levy increase to pass, saying it will buy desperately-needed time for the board to make changes to the way Hope Creek operates.
Meersman favors creating an operating board made up of community members with backgrounds in healthcare, insurance and marketing. That board would hire an outside management agency to run Hope Creek, while the county would maintain ownership of the home.
"We need to take politics out of running that nursing home. The citizens of Rock Island County need to own a nursing home. They need to know that they have a place when their assets run out, but we as politicians don't have the discipline or the knowledge to operate a nursing home," said Meersman.
Meersman said the Board has already trimmed $1.3 million from Hope Creek's projected deficit over the past year, and he believes that with more time and changes, a management company could even allow Hope Creek to run in the black.
"Yes, it is possible. We just have to work hard at it," said Meersman.
Considering a Sale
This fall, independent property advisers from real estate brokerage firm Marcus and Millichap put together a report on Hope Creek.
The company valued the home at $25 - 27.5 million, a number that surprised many county board members.
By selling Hope Creek at that price, Rock Island County could pay off the existing debt on the home, eliminate the tax levy altogether, and still have $5 - 8 million in proceeds. The report estimates that a private owner would also begin paying the county more than $215,000 in property taxes.
"I favor selling the nursing home to a private organization that would come in, take it and operate it," said board member Ron Oelke. "In this day and age, I don't think operating a nursing home is a business we should be in."
Oelke was the only one to vote against putting the Hope Creek tax referendum on ballot, and acknowledges that his opinion is unpopular among county board members.
"I think one of the things is they're afraid to make union workers mad, because generally, those union workers are the ones working for their election. To speak out, to talk about selling the home... I think they're afraid to do that, they're afraid of making union employees angry," said Oelke.
Negotiating contracts
Ahead of Tuesday's election, many voters have raised concerns that a vote to increase the tax levy will mean a raise for Hope Creek's AFSCME employees, who could take the opportunity to renegotiate their contract.
"If the referendum passes, I think union leadership sees that as an opportunity to come in and get a share of that, and I would be surprised if that doesn't happen," said Oelke.
Not all on the board agree.
"That's not necessarily true. It's called negotiations. It's give and take. The employees up there have come to the realization, just as us on the County Board, that we have to change this business model," said Meersman.
According to the Marcus and Millichap report, employee benefits at Hope Creek are one of the largest expenses, running $38.27 per patient day. That's $20 more than both the state and local competitors' average.
"I believe that because they're paid a little bit better, and they're given a little better benefits, they have a little bit more... I would say quite a bit more loyalty to the organization," said Brian Vyncke, a member of the Rock Island County Board.
Vyncke said he's skeptical of the report, which was performed by a real estate brokerage company that may be favorable towards a sale.
"The numbers that they came up with were... I don't know if they were inflated or not, but I don't want to be swayed by seeing dollar signs and having regrets down the road," said Vyncke.
Now, though, it's up to voters to see through those dollar signs -- and yard signs -- as they decide the future of Hope Creek.