Archived Story

Controversial tax decision made on hospital district

Published 11:23am Wednesday, October 9, 2013

After a yearly tax levy of $90,000 since 2010, the Pelican Valley Hospital District will not tax cities or townships in its jurisdiction next year.

The hospital district includes the cities of Pelican Rapids and Erhard and the townships of Dunn, Scrambler, Pelican, Erhards Grove, Maplewood, Norwegian Grove and Lida.

These taxes have been controversial in the past. Dunn and Scrambler townships attempted to withdraw from the hospital district beginning in 2011 because officials believed expansion projects would result in rising costs.

The need for a tax levy from the district decreased with revenue from the Good Samaritan Center and a generally favorable long-term financial outlook in the valley. In the past, the district has issued a levy as high as $362,000, which came in 1997.

The Good Samaritan facility is not yet profitable, but that is mostly due to costly one-time expenditures. With those paid, the facility should be in good shape in the near future. The Pelican Valley Hospital District was expected to finish the fiscal year with more than $3 million in revenue.

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