Nursing home lease too short, say bidders

Wednesday, March 25, 2009
By John I. Carney

Companies interested in leasing Bedford County Nursing Home have indicated that a two-year agreement may be too short, County Finance Director Robert Daniel told Bedford County Financial Management Committee during the committee's regular meeting Tuesday night.

The commission voted earlier this month to issue a request for proposals from companies interested in leasing the facility. Some commissioners see this as a first step toward possibly selling the nursing home, while others are opposed to a sale but willing to accept a lease.

The county has advertised the RFP, and officials said that County Attorney John T. Bobo is working to draft a lease agreement. But Daniel said some companies would like longer than a two-year term, saying that the two-year term barely gives them a chance to make changes or improvements.

J.D. "Bo" Wilson
"Five years is fine with me," responded committee member J.D. "Bo" Wilson.

No specific proposal was voted on Tuesday night. Daniel reported that the county-owned facility still has a cash flow problem; its financial reports have shown a profit, but Daniel said the facility is behind in its payments to some vendors as the result of a lawsuit against the facility and regulatory problems last year.

The committee recommended various amendments to the county budget Tuesday night. Budget amendments are used by a government to bring the budget in line with actual spending, accounting for unexpected revenues or expenses, as required by state auditors.

The amendments include:

School system general fund, $424,877 increase. Key components included $275,000 in increased electrical costs and $56,480 in principal performance contracts. School Superintendent Ed Gray said the state now requires both incentives and consequences for principals based on their schools' performance. He added that Bedford County has low principal salaries compared to its neighbors. The county also received $30,975 in safe schools grant funding.

Highway/public works, $355,000 increase. This includes reimbursement for work done for other government agencies. The highway department is allowed to do site work for government agencies, but it must be reimbursed for the costs incurred. The amendment also includes some road projects that had been deferred from a previous budget year due to high asphalt costs but were completed this year when those costs dropped.

County general fund, $313,506 increase. Auditors required that $89,921 in free care provided for jail inmates by Heritage Medical Center under an agreement between the county and the hospital be accounted for in the budget. Also included in the budget amendment was a $25,000 contribution to The Celebration, which had been approved in April 2007 by commissioners but never actually accounted for in the budget.

School system child nutrition, $139,188 increase. This accounts for insurance reimbursement and an $119,436 food service grant.

Special purpose fund/capital assets, $126,500 increase. This adjusts the beginning fund balance in the fund, which includes the operation of the Medical Arts Building.

General debt service, $40,000 increase. This is an adjustment to reflect actual payments on some variable-interest rate borrowing.

County special purpose fund, $38,898 increase. This includes $30,000 in grants and $1,306 in donations to Bedford County Animal Control.

Agriculture center fund, $21,000 increase. The center is using some of its rental revenue to purchase a tractor.

County drug control fund, $18,579 increase. This includes additional fines received from offenders.