HomeMy WebLinkAbout1994.03.07 RESO 1994-0004CITY OF HUGO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION NO. 1994-4
A RESOLUTION SUPPORTING THE CONTINUING EXISTENCE OF THE FOREST LAKE
DISTRICT MEMORIAL HOSPITAL
WHEREAS, the City of Hugo is one of the municipalities that
participated in the creation of the Forest Lake Memorial Hospital
District and is included within the Hospital District's political
boundaries; and,
WHEREAS, the City Council finds that some of the citizens of
Hugo have been adequately served by their taxpayer supported
hospital; and,
WHEREAS, the City Council finds that it is appropriate to
offer its continuing support to the lawful efforts of the Governing
Board of the District Memorial Hospital as that Board addresses the
future of the hospital.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF HUGO, WASHINGTON COUNTY, MINNESOTA:
1. The City Council hereby expresses its willingness to act
in cooperation with the Governing Board of the District Memorial
Hospital, as an advisor, as a community fact finder, as a partner,
or in whatever capacity the Governing Board deems appropriate, to
aid the Governing Board in its process of coming to a decision
about the future of District Memorial Hospital.
2. If the Governing Board finally chooses to sell the
hospital assets, the City's position is that the Hospital
District's real property and personal property assets should be
sold at commercially reasonable values, that the revenues should
be rebated to the taxpayers, and the district should then be
statutorily dissolved.
3. If the Governing Board chooses to join an integrated
service network, it is the position of the City that these
guidelines be followed:
a. The Governing Board should enter into legal
arrangements with other health care providers in a
manner which preserves the statutory authority and
responsibility of the Governing Board to govern the
district hospital.
b. If the Governing Board finds it necessary to enter
into a legal arrangement which removes the Governing
Board of the Hospital from decisions about the
administration of the hospital and the delivery of
hospital services, then the Hospital District should
no longer be taxing its constituent taxpayers for
general revenue support.of the hospital.
C. If the Governing Board of the Hospital remains in
control of decisions about the administration of the
hospital and the delivery of hospital services, then
it is appropriate for the tax levies to continue in
order to provide general revenue support of the
hospital. (Subject to the City's concerns expressed
below.)
d. In addition to the leasing concepts which have been
scrutinized recently, the Governing Board should
consider other legal relationships with health care
providers. The hospital could be operated under a
management contract, under partnership, as a joint
venture with a health care corporation, or under a
joint -powers agreement with other community hospital
districts.
4. The Governing Board of the District Memorial Hospital is
encouraged to vigorously pursue participation in an integrated
service network with other health care providers.
5. The City requests that the Governing Board provide copies
of documents and a reasonable review -and -comment period at each
stage of its negotiations and prior to the signing of any documents
which affect the Hospital District's assets or which affect the
Governing Board's ability to govern the hospital. It may be
appropriate for the Governing Board to consider informational
meetings in each of its constituent communities.
6. The City encourages the Governing Board of the District
Memorial Hospital to find a way to continue the existence of the
hospital in this community and to do this in a way which preserves
these taxpayer -supported assets and which preserves the authority
of the Governing Board to govern the hospital.
7. The City is concerned that the hospital provides services
to only a relatively small number of Hugo residents. Specifically,
the City's statistics show that only approximately fifteen (15)
percent of Hugo residents have used the hospital in the last three
years.
8. The City is also concerned that while the entire City is
located within the hospital's taxing district, only a fraction of
the City is located within the hospital's primary ambulance service
area. Furthermore, most, if not all, of the hospital's taxing has
been done to support the ambulance service.
9. The City does not wish for its residents to be saddled
with taxes for services that they do not receive. The City
encourages the hospital to explore mechanisms that will bring an
end to the unfair taxing system that currently exists. For
example, the hospital could seek to amend its district boundaries
to include communities that are currently included within the
hospital's primary ambulance service area but pay no taxes.
Similarly, communities, or portions of communities, that do not
receive full services should be eliminated from the taxing
district. If the hospital does not find a way to eliminate the
unfair taxing exposure the City residents face, the City may, in
the future, consider taking steps to formally withdraw from the
hospital district.
Adopted by the City Council this day of , 1994.
CITY OF HUGO, WASHINGTON
COUNTY, MINNESOTA
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