Board votes to end Sunnycrest operating lease, transfers operations to trustees

The Dubuque County Board of Supervisors voted to end the county's long-standing operating lease for Sunnycrest Manor and return operational control to the Sunnycrest Board of Trustees, a change supervisors said will streamline management but will shift how Sunnycrest's funding appears on property tax bills.

Sunnycrest administrator Dani (speaker 3) told the board the change is intended to remove an extra layer of county government and allow the trustees to oversee both operations and grounds in one place. "This is not being sold. No services will change for our residents or our families," she said, adding that employees would remain county employees for the transition and continue to receive IPERS and current insurance benefits.

Emily, Sunnycrest's finance manager (speaker 14), presented the facility's fiscal picture. She said the facility budgets roughly $14.6 million in Medicare and Medicaid revenue next year and that, historically, Sunnycrest has relied on county levy support to cover an annual shortfall. Her initial estimate for the portion of funding that would move from county collection to Sunnycrest trustees was an approximate 42-cent levy shift; after re-estimates she said the amount could be lower in the coming year.

Trustee chairman Sheila Frank (speaker 10) told supervisors the trustees' goal is operational autonomy: "We will put the operations budget and the maintenance budget together and have one allocation," she said, noting initial costs to stand up independent payroll, HR and IT but expressing confidence in the trustees' experience.

Multiple supervisors pressed for additional financial detail and transition assurances. One supervisor said the change should not be framed as an operating shortfall but as a reallocation of funds that have historically supported Sunnycrest. Board members and Sunnycrest staff discussed timing: trustees plan to set the levy for trustee-collected funding in the spring schedule and the county's levy-setting timeline will reflect any agreed transition mechanics.

After discussion, a motion to approve a resolution ending the operating lease and authorizing the transfer of operational responsibilities to the Board of Trustees carried in the meeting. The board recorded the motion, second and a roll-call voice vote; the resolution passed with supervisors voting in the majority.

What happens next: staff will finalize a written transition checklist, Sunnycrest will seek competitive quotes for separate IT and payroll services as needed, trustees will prepare their FY27 levy submittal and the county and trustees will coordinate on insurance, payroll carve-outs and any interfund reimbursements during the transition period.