Pratt commissioners apply sales tax proceeds as rent credit for Pratt Regional Medical Center
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Summary
The board approved Resolution 09-15-2025 to apply certain sales-tax proceeds toward PRMC rent for one year; bond counsel said doing so would still leave an estimated surplus in the bond trustee account and would likely not extend overall bond tenure beyond current projections by more than a few years.
The Pratt County commission voted to approve a resolution applying a portion of sales-tax proceeds as a rent credit for Pratt Regional Medical Center (PRMC) for one year.
Kevin Cowen, bond counsel with Gilmore & Bell in Wichita, told the commission the resolution is similar to what the county approved the prior year and would apply just over $1 million a year in sales-tax proceeds that otherwise would be available for bond debt service. “It’s for a year, which is what you did last year, sort of cover the next fiscal year of PRMC and talk about it again, in a year to see how they’re doing,” Cowen said.
Cowen reviewed recent trustee-account figures. He said the trustee’s current funds held about $2,164,000 (based on a three‑week snapshot), that an escrow payment of roughly $38,000 will occur, and that a December bond payment is expected. After accounting for scheduled payments and estimated collections to December, Cowen said the trustee would have “about $581,000 more than is needed” at the next payment and projected that by December the excess could be “more than a million 8” (about $1.8 million) even if the rent credit is applied.
Cowen said projections still indicate the sales tax could be retired earlier than originally scheduled (he and staff discussed an early retirement perhaps three or so years ahead of the latest projection), assuming current collection levels hold. He emphasized that the sales-tax proceeds are restricted to bond purposes and cannot be spent for other county needs.
Commissioners adopted Resolution 09-15-2025 by voice vote, 3–0. The resolution authorizes applying certain sales-tax proceeds toward PRMC rent under the amended lease and related documents and directs staff to take related procedural steps with the bond trustee.
Cowen said he would send a letter of direction to the trustee that mirrors the county’s action and offered to answer follow-up questions; county staff indicated they will provide the trustee with direction consistent with the adopted resolution. Commissioners and counsel discussed that if PRMC’s billing or collections performance changed materially in the future, there are document provisions addressing short-term repayment but not an indefinite obligation to repay these credits.