Final OK sought for kids’ hospital

Adrienne Packer

Wednesday, Jan. 31, 2001 | 11:26 a.m.

A controversial proposal to use taxpayers' money to construct a $92 million children's hospital will face its last hurdle Thursday when it is pitched to the Clark County's Debt Management Commission.

Thursday's meeting is the last stage of a lengthy process in which a proposed free-standing public children's hospital has been beaten down by critics and resurrected by proponents -- particularly Clark County Commissioner Erin Kenny.

Kenny, backed by various feasibility studies and 62,000 signatures on a petition, finally convinced the majority of her colleagues an $80 million bond question should be put to voters.

Now the 11-member debt management board -- which includes representatives from various government agencies and organizations -- must determine whether Clark County can afford to build, operate and maintain the hospital.

Debates about whether children are adequately served by the existing children's wings in private hospitals or how many children are sent out of state for treatment will be cast aside.

"The statute is specific as to what we can consider; it's not about need or priority," said debt management board member Carole Vilardo, president of the Nevada Taxpayers' Association. "We can only consider the financial aspect."

After poring over financial projections and payment schedules produced by the public accounting firm Arthur Andersen, Vilardo said she believes the project is viable.

The construction and operation of the 152-bed, 225,840-square-foot hospital would be funded by tax-neutral bonds if it is approved by voters during the upcoming municipal election.

Property taxes would not be raised to service the bond, but residents would not receive tax cuts they might otherwise see as a result of other bonds expiring during the 20-year life of the hospital bond.

The tax reduction for residents during the next two decades averages out to $5.60 a year for a $150,000 home, according to the county finance division.

"This is standard operation for any debt that is incurred," Vilardo said. "Voters will make the ultimate determination. It's up to them to perceive the public need and their willingness to commit property tax dollars to the issue."

Clark County Finance Director George Stevens said the county's total debt service related to bonds funded by property taxes would rise to nearly $25 million in 2008 before other bonds for capital projects expire.

The debt service drops to below $8 million in 2018 when the $120 million bond that is funding the new Regional Justice Center expires. By the time the hospital bonds expire in 2021, some $142 million, including interest, will have been spent on the children's hospital.

Stevens said Arthur Andersen's report shows a children's hospital can be profitable. A hospital task force that included medical experts and county officials and the county commission agreed the report was valid.

Stevens added if the hospital doesn't meet projections, homeowners still wouldn't see a bump in property taxes to fund it.

"The county would have to somehow subsidize the operation," Stevens said. "Revenue we're already collecting would have to be used for that purpose. After reading the study, I really don't think that's going to happen."

The proposed children's hospital, which would be operated by the University Medical Center, would treat all patients regardless of their insurance status. The hospital would include six operating rooms, 11 radiology exam rooms and 29 emergency exam rooms. The facility would take four to five years to complete.