ELLINWOOD – The Ellinwood Hospital and Clinic board has announced it has unanimously voted to accept the U.S. Department of Agriculture’s requirement to increase the hospital district’s mill levy to 45 mills.
Announcement of the decision was posted Monday to the EDHC website.
“Ellinwood Hospital and Clinic is saddened to share that, despite our best efforts and the advocacy of Senator Roger Marshall and Senator Jerry Moran, the USDA has denied our waiver request regarding the mill levy requirement.
“In response, the Ellinwood Hospital Board of Trustees voted unanimously to accept the USDA’s required mill levy increase. However, it remains the firm position of the board that this increase is excessive and unnecessary, as it exceeds the actual debt service needs of our facility.”
In preparation for its 2025 budget last July, the district filed an intent to exceed the Revenue Neutral Rate by an estimated 15%, to 28.515 mills, up from 24.457 the previous year. The 2025 budget authority was set at $2,035,000 with the 2024 ad velorum tax at $1,014,211.
No questions or comments were received by the board at the RNR hearing held Aug. 28.
The USDA, however, had requested that the district set its tax rate to the 45-mill maximum described in its loan contract. In July, the district submitted a formal request to set the levy at 35 mills, an amount which would have met the loan’s debt service and reserve requirements. That request was denied on Aug. 14, but the hospital was not notified of the denial until Aug. 25.
The denial was addressed in a Sept. 2 posting to the hospital website, noting that the board would be reaching out to U.S. Senators Jerry Moran and Dr. Roger Marshall for their assistance in obtaining a waiver.
The 45-mill rate adds $216.05 to the average district taxpayer’s payment amount. The proposed rate of 35 mills would have reduced the impact to $78.07 per taxpayer.
The resulting overage to the RNR could now reach more than $540,000.
The hospital board’s Monday message concluded with a commitment to keep securing a waiver as well as strengthening the hospital’s financial position.
The announcement added, “Hospital leadership and the board remain committed to pursuing every available avenue to strengthen our financial position and will continue working toward securing a waiver in the future. We are dedicated to protecting our community while ensuring access to the high-quality care you deserve.”
