County approves Maple Lawn loan with conditions

BRANCH COUNTY — County commissioners unanimously approved a resolution Tuesday for a $250,000 loan from its American Rescue Plan Act funds to Maple Lawn, the county-owned nursing home and rehabilitation facility.

Commissioners also agreed on how to split 911 radio consultant costs between a voter-approved surcharge and regular revenues.

Maple Lawn to repay loan

Jayne Sabaitis, Maple Lawn facility director, told the commission at its April 6 work session the $250,000 loan would get the Maple Lawn through the end of May or the first part of June.

With the state requiring payback of $874,976 for three years of Medicaid overpayments and three payrolls in April, the nursing center faced a current cash flow shortage. 

The commission agreed to the possible loan last August but first put a .99 mill tax on the November ballot to ease financial problems. The millage vote failed by a 3-2 margin.

Prior story Maple Lawn official asks county for $250K loan

After Sabaitis learned last summer the county-owned facility would qualify for federal COVID-19 Employee Retention Credits, in October, accountants Plant-Moran filed for the $3.6 million in grants.

IRS officials report it could take until next summer for a decision on the ERC grant.

Commission Chairman Tim Stoll wanted to ensure the resolution required Maple Lawn to repay the county loan by May 1, 2024, even if the ERC money is not awarded.  

As a condition of receiving the loan, the commission also required Maple Lawn to prepare a two to five-year business plan to maintain a positive cash balance to continue the successful operation of the nursing facility.

The Maple Lawn board must approve the agreement to receive the money when it meets on April 27.

911 radio consultant costs

In a 3-1 vote, with Stoll objecting, the commission agreed to let the 911 central dispatch board pay consultant ADC Telcom $191,521 from funds generated by the telephone surcharge used to build the new 800 MHz radio system.

The bill occurred after the county accepted the radio system from J&K Communication. Then glitches arose with the system. The consultant reviewed and helped resolve the problems.

Stoll wanted 911 to pay the extra costs from its regular portion of the surcharge or tax millage.

"The question was whether this was actually intended to be part of the project to begin with. I don't think that we've got an answer that says clearly that that was the intent," Stoll said.

A 2020 voter approved telephone surcharge funds the $9 million-plus project. The increase began in July 2021. The surcharge took the state-authorized 42 cents to $2.96 monthly on each phone number billed to county addresses. The surcharge is approved for six years but can end when the loan is paid. Stoll wants to end the surcharge early.

The amount collected increases as more people add phones or communications devices.

Commissioners ensured the $51,230 paid to ADC Telcom before the project was approved from other 911 revenues, not the surcharge.

At the request of the 911 board, ADC Telcom will remain under contract to help review and examine issues that may arise with the radio system for up to another five years. That potential $196,176 cost will come from central dispatch revenues and fund balance reserves.

Jim Swick, the 911 director, said increased costs from five new towers to expand the system coverage reduced the fund balance and will continue to do so.

The $1.2 million budget showed a $5.3 million fund balance in 2022. The fund balance now is $4.7 million.

Stoll said the fund balance has enough funds to handle the extra costs and should come from something other than the additional surcharge approved for construction.

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Swick said the central dispatch needs significant upgrades and repairs in addition to the increased operational costs. In addition, 911 was not fully staffed over the past two years.

---Contact Don Reid: dReid@Gannett.com. Follow him on Twitter: @DReidTDR

This article originally appeared on Coldwater Daily Reporter: County approves Maple Lawn loan with conditions