There has been no fanfare or community celebrations, only some brief words of acknowledgement as a long-term burden on Adair County residents has come to an end.
On Monday, the Adair County Fiscal Court met to approve first reading of an amendment that increases the county budget by more than $686,000. It was a brief meeting to take care of business, but it was a big moment in Adair County history.
Those funds went to the county after the Adair County hospital taxing district fulfilled its obligation to pay back millions of dollars after a bankruptcy more than 13 years ago.
The obligation fell on local taxpayers after the hospital district faced $24 million in debt as far back as 2012.
The district operated Westlake Regional Hospital and several clinics. In the end, the district filed bankruptcy, and through legal negotiations ended up with a remaining debt of more than $12 million.
A court ruled that Adair County taxpayers must foot the bill, and a tax of 10 cents per $100 assessed value was put in place.
While many taxpayers still question why no criminal charges were filed during the controversy, several residents stepped up to make tough decisions to solve the problems.
Different board members have come and gone since then, but one – Neal Gold – has stayed steadfast, helping to navigate the legal challenges from the early years when the overwhelming debt was uncovered to making a final presentation to the court several months ago.
Gold has served as board chairman, and during the final years of the hospital’s operations more than a decade ago, he served as its CEO, determined to keep health care available to the community while addressing the debt.
Tammy Curry has also been on the frontlines, providing financial services by managing tax revenue as it came in and seeing to it that payments toward the debt were paid.
Adair County Judge Executive Larry Russell Bryant insisted Monday that the remaining funds be put in a separate account so taxpayers could see how it’s ultimately spent, but in reality, there are no stipulations for its use.
More than $323,000 will pay off a debt the county incumbered because of the hospital district’s failure. In 2012, the fiscal court voted to borrow $1.7 million to help the hospital district keep employee salaries paid and the doors open until properties could be sold. The district filed for Chapter 9 bankruptcy the following year and ultimately all facilities – still operational – were sold to T.J. Samson Community Hospital.
The tax burden will be lighter this year, and there will be one less line on tax bills. And today, local government is no longer in the hospital business. Instead, the county enjoys a local hospital and clinics that are part of a thriving and growing medical organization.
Much of the success came because of volunteers who stayed the course, mostly going unnoticed as they brought closure to a dark era for local taxpayers.
By Sharon Burton
snburton@adairvoice.com
