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Red Willow County pursues bond refunding and votes to place Hillcrest tax question on special ballot
Summary
County officials approved refunding steps for Hillcrest Nursing Home bonds and later voted to put a mail special election on Sept. 27, 2016, asking voters to exceed allowable growth to support Hillcrest operations after months of financial shortfalls and missed vendor payments.
Red Willow County commissioners moved in June to refund debt tied to Hillcrest Nursing Home and later took steps to ask voters for additional operating revenue.
The board adopted Resolution No. 1271 calling for early redemption of the county’s Nursing Home Building Bonds, Series 2011, and Resolution No. 1272 authorizing issuance of Nursing Home Refunding Bonds, Series 2016, not to exceed $1.9 million. County officials and Hillcrest trustees told commissioners the home was struggling to meet obligations and faced large vendor arrears as it approached multiple bond principal and interest payments. Hillcrest Administrator Colinda Nappa and board member Randy Dean briefed the board on cash-flow shortfalls and the need for both short-term refinancing and longer-term operating solutions.
Commissioners said preliminary options included refinancing the 2011 bonds and, for a longer-term fix, placing a levy question before county voters. The board directed county representatives to pursue refinancing negotiations with local banks and municipal underwriters; First National Capital Markets and D.A. Davidson later advised on potential refunding terms and pricing.
On Aug. 1 the board approved language to call a special mail election for Sept. 27, 2016. The ballot question asked whether Red Willow County should be allowed to increase its “Budgeted Restricted Funds” beyond the statutory allowable growth percentage by an amount approximately equal to $254,480 for the 2016-17 fiscal year to support operation and maintenance of Hillcrest Nursing Home. The motion to move forward with the election was made after Hillcrest representatives confirmed outstanding obligations and recommended refinancing avenues.
The county’s actions combined formal financing steps (calling bonds for refunding and authorizing refunding bonds) with a voter-facing tax-authority request to address recurring operational deficits. The board also authorized execution of required financing documents — paying-agent and registrar agreements, bond purchase and escrow documents — as part of the refunding resolution package.
Next steps included finalizing underwriting terms for the refunding bonds, completing any required escrow arrangements to retire the 2011 bonds, and complying with election notification and ballot-timing rules for the special mail ballot. Commissioners said they would continue discussion with Hillcrest officials and financial advisers on both near-term liquidity and the broader operational model for the nursing home.
