SALES TAX
On November 6, 2007 the residents of Franklin County will be given the opportunity to vote to improve the delivery of healthcare in Franklin County. In a special referendum, the voters of Franklin County will make their desires known regarding a one-cent sales tax that will be levied only on the same items that currently has a sales tax. Food, drugs and other items that are currently not taxed will not be taxed. All taxes will be collected at the time of purchase just as they currently are. The taxes will begin being collected January 1, 2008.
According to the Florida Department of revenue, a one cent sales tax for all of Franklin County will generate approximately two million dollars. The cities of Apalachicola and Carrabelle will have to sign an agreement with the County in order for the County to receive all of the proceeds from the tax. All plans for the use of the tax are based on the cities of Apalachicola and Carrabelle agreeing with the County.
A Healthcare Trust Fund will be set up to receive the tax proceeds. The Trust Fund will be maintained by the Franklin County Clerk of the Court under the direction of the Weems Hospital Board as authorized and directed by the Franklin County Board of County Commissioners. The limited purpose of this Trust Fund will be to operate, construct, and maintain healthcare facilities and programs serving Franklin County, FL.
For the past couple of years the County Commissioners have allocated over a million per year from advalorem taxes to help keep Weems Memorial Hospital and the ambulance service operational. In the County budget for the fiscal year 2007- 2008 another one million dollars has been allocated for the hospital and ambulance service. If the voters of Franklin County approve this one cent sales tax these advalorem taxes would stop going to the hospital. The hospital and ambulance service would be supported solely from the proceeds of the sales tax.
USE OF THE SALES TAX
According one County Commissioner, the proceeds of the sales tax should be used to, “Improve the delivery and quality of healthcare in Franklin County.” In order to accomplish this request it is necessary that this sales tax be used to provide both new facilities and new services. Based upon the healthcare needs of the county, the supporting demographics, and the financial data the following uses of the sales tax should be considered.
- The first use of the sales tax proceeds will be to develop a new Medical Complex in Carrabelle. Carrabelle and the surrounding eastern part of Franklin County is the most medically underserved area of the County. Given its distance from any type of emergent care and the large influx of active tourist an Urgent Care Center is being considered. An Urgent Care Center would have enough diagnostic equipment to determine the plan of treatment for a patient along with treatment areas to handle minor emergencies. The hours of operation would be extended in the evening and the clinic should be open for weekend accidents and medical emergencies. This is not a free standing Emergency Room and will not be open twenty four hours a day seven days a week.
The building being considered is approximately 6000 square feet and has the design to easily be added on to in the future if necessary. It can house two physicians and will have space for rotating specialist. In addition it will have rehab space and other areas designated for reoccurring services such as dialysis or chemo therapy. As proposed the facility cost should be approximately as follows:
| Building Construction Cost |
$600,000 |
| Site Prep & Utilities |
25,000 |
| Furnishings & Med. Equip. Allow. |
200,000 |
| Fees & Other Soft Cost |
140,000 |
| Estimated Total |
$965,000 |
Land cost is yet to be determined because a specific site has not been located.
Revenues to pay for the facility will be accumulated from the tax proceeds collected during the time of planning and construction. The project could be completed by the end of the year 2009. During that time approximately $1,660,000 would have been collected from one half cent of sales tax and be available to pay off a construction loan used to build the facility so that the facility could open with no debt.
- The second use of the sales tax proceeds will be a replacement facility for the current Weems Memorial Hospital. The replacement facility is planned to be built at the current location of the hospital. Given the cost of land and the site and utilities cost the current location allows the cost of the project to be within the budget of a one cent sales tax. Additionally, since the Federal Government has designated Weems Hospital as a Critical Access Hospital and endowed upon it the favorable reimbursement from Medicare and without this reimbursement it would not be financially feasible to do any capital healthcare improvements special consideration should be given to protect this status.
A new replacement hospital will be approximately 45,000 square feet. The hospital will maintain its current twenty five bed license with the ability to use all beds except the two proposed ICU beds as skilled swing beds. The planned patient services for the new hospital will include Emergency Services, Medical/ Surgical Nursing, Imaging Diagnostics, Surgery, Lab, Pharmacy, Sleep Center, Respiratory and Outpatient Care.
The timing of the replacement hospital is anticipated to be as follows:
| April 2008—September 2008 |
Design of Facility |
| September 2008—January 2009 |
Equipment Planning |
| January 2009—April 2009 |
Licensing & Plan Review |
| April 2009—July 2009 |
Financing |
| July 2009—January 2011 |
Construction |
| January 2011—April 2011 |
Equipment Installation |
| April 2011 |
Open |
- The third purpose of the sales tax will be for the ongoing support of the hospital and ambulance operations. As the county continues to develop and attract new visitors and families to the area additional ambulances will need to be put in locations to cover the growth. Right now full time ambulances are in Lanark and Eastpoint. During times of high visitor traffic an ambulance is located on St. George Island on weekends. Right now plans are being studied that would provide for another ambulance to be in the county when one of the existing two is on a long run. An excellent ambulance service is very important to a county such as Franklin County given its remoteness and configuration.
- Lastly the sales tax should be used to recruit new physicians to Franklin County. Both primary care physicians as well as specialist need to be brought to the area. Currently Weems is looking at working with teaching programs to provide a rural rotation for Family Practice residents. Tallahassee Memorial Hospital is working with Weems on telemedicine and rotating specialist. As TMH put it,”the relationship between our two hospitals is very important to all our patients within the area.”
- Additional clinical services, capital equipment replacement, advancing technologies and improving preventative care are some other items that will be looked at in the future. All of these will need some capital. This one cent sales tax can improve lifestyle and create an economic stimulus for the people of Franklin County.