Stephenson County committee authorizes $225,000 tax advance for nursing facility, delegates prioritized vendor payments
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Summary
The finance committee approved a resolution to capture $225,000 from the nursing-facility real estate tax levy, and voted to prioritize vendor settlements—delegating the administrator, finance director and treasurer authority to execute payments while retaining $34,004.40 for a CMS civil money penalty.
The Stephenson County Finance Committee on Jan. 26 approved a resolution authorizing a multiyear property-tax advance to the county nursing facility and set a prioritized plan to pay outstanding vendor claims.
The committee voted to capture up to $225,000 from the nursing-facility real estate tax levy (presented as $75,000 per year over three years) to pay vendors and relieve accrued balances. Finance Director Adam said state practice limits external tax-anticipation loans to 85%, but "since this loan is internal, we can go for the full 100%," and the county state's attorney reviewed and did not object.
Why it matters: Committee members said the step will help pay backlog bills at the nursing center and reduce interest and fees owed to outside vendors. Presenters and members repeatedly returned to the urgency of lowering carrying costs and prioritizing vendors who offered negotiated settlements.
During extended discussion, staff recommended prioritizing vendors that had presented settlement agreements (those were marked on the circulated spreadsheet). The chair proposed and the committee approved a motion directing the administrator, the finance director (Adam) and the treasurer to use the spreadsheet as guidance, to prioritize negotiated settlements first to "save the county, in this case, at least $80,000," and to pay as many bills as available funds allow while leaving a minimum balance of $34,004.40 in the account to cover a CMS civil money penalty. The motion carried by voice vote.
Committee members asked for ongoing reporting; the chair said staff should return a list showing which invoices were paid and amounts paid so the committee can track progress.
What was not specified: The motion and vote were recorded as carried by voice but no roll-call tally was provided, and the names of the motion mover and seconder were not specified on the record. Specific vendor-level payment timing and any formal repayment schedule from the nursing facility were also not specified.
Next steps: Staff will execute prioritized payments and report back to the committee with a payment log and remaining balances. The committee retained oversight authority and asked staff to continue outreach to vendors for settlement offers.
