Regular 3.
Regular City Council Meeting
- Meeting Date:
- 12/14/2015
- TITLE
- Approval of $50,000 to RiverStone Health Clinic Expansion
- PRESENTED BY:
- Tina Volek
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City Council created an initiative at its Oct. 26, 2015, business session to allocate $50,000 from General Fund reserves to a RIverStone Health clinic expansion and remodeling. The 25,000-square-foot addition will provide space for six additional care providers, 48 exam rooms, larger waiting areas, counseling and education rooms and integrated behavioral health space.
Nearly 21,000 patients were served by RiverStone in 2014 at a sliding scale cost. Many of them work at jobs that do not provide benefits. Almost one in five Montana residents is uninsured. Services include primary care, preventative health, mental health, dental and cancer screenings.
The construction and renovation project is estimated to cost $11 million, of which $6 million already is in hand or available. The project is expected to begin in 2016.
Nearly 21,000 patients were served by RiverStone in 2014 at a sliding scale cost. Many of them work at jobs that do not provide benefits. Almost one in five Montana residents is uninsured. Services include primary care, preventative health, mental health, dental and cancer screenings.
The construction and renovation project is estimated to cost $11 million, of which $6 million already is in hand or available. The project is expected to begin in 2016.
ALTERNATIVES ANALYZED
RiverStone Health has requested a $50,000 contribution, which may be spread over two years. City Council may:
- Approve a 1-time, $50,000 donation from General Fund reserves for Fiscal Year (FY) 2016, or;
- Approve a $25,000 donation from FY 16 General Fund reserves, and direct staff to prepare a supplemental budget request for the additional $25,000 in FY 17; or
- Not approve a contribution.
FINANCIAL IMPACT
The RiverStone Health allocation is one of several competing requests for use of the City's General Fund, which currently has about $14.9 million in unbudgeted reserves.. Yellowstone County has agreed to contribute $25,000 a year for the next two years to the project. However, the current City Council may not bind the spending of future Councils, so the RiverStone request will need to either be approved for the entire $50,000 in Fiscal Year (FY) 2016, or funded for $25,000 with direction to the staff to include the additional $25,000 as a supplemental budget request for FY 2017.
Much of the current unbudgeted reserve has been developed to sustain Public Safety services for the next 4-5 years. Additional, previously unanticipated reserves have been received in FY 16 from the Montana Department of Revenue settling commercial property tax appeals and from the Montana Legislature's decision to immediately use tax year 2015 reappraisal values and shorten the reappraisal cycle, resulting in increased property valuations in the City. To reduce the impact on property owners, the Council previously agreed to reduce the 2016 City mill levy by 10 mills and to devote some of the increased revenue to fund 14 new Public Safety positions.
Among other projects that have been suggested as needing funding from the remaining reserves are additional staffing in other General Fund departments, including Code Enforcement; additional contributions to programs such as the Community Innovations project; which addresses homelessness; and construction of additional City facilities, including a Police Department evidence center expansion, a City Administration Building to consolidate departments and relieve overcrowding in current facilities, a new fire station for the expanding Heights population; and a Parks and Recreation community center.
Much of the current unbudgeted reserve has been developed to sustain Public Safety services for the next 4-5 years. Additional, previously unanticipated reserves have been received in FY 16 from the Montana Department of Revenue settling commercial property tax appeals and from the Montana Legislature's decision to immediately use tax year 2015 reappraisal values and shorten the reappraisal cycle, resulting in increased property valuations in the City. To reduce the impact on property owners, the Council previously agreed to reduce the 2016 City mill levy by 10 mills and to devote some of the increased revenue to fund 14 new Public Safety positions.
Among other projects that have been suggested as needing funding from the remaining reserves are additional staffing in other General Fund departments, including Code Enforcement; additional contributions to programs such as the Community Innovations project; which addresses homelessness; and construction of additional City facilities, including a Police Department evidence center expansion, a City Administration Building to consolidate departments and relieve overcrowding in current facilities, a new fire station for the expanding Heights population; and a Parks and Recreation community center.
RECOMMENDATION
If the Council wishes to proceed with the RiverStone Health contribution, the staff recommends that the entire $50,000 be allocated in FY 2016, so a supplemental budget request will not be necessary in FY 17.