In 2010, Allen County voters put their money where their health was, overwhelmingly approving a sales tax with a big promise: a new hospital of their own. On Thursday night, that promise again took center stage as residents gathered at the Dr. John Silas Bass North Community Building to discuss the importance of keeping that quarter-cent tax alive.
Moderated by Tim Stauffer, managing editor of The Iola Register, the forum brought together hospital leaders, county officials, and community advocates to reflect on what the tax has built — and what might be lost if it lapses — ahead of the Nov. 4 renewal vote.
Panelists for the discussion included hospital administrator Pat Patton, County Commissioner John Brocker, Dr. Chuck Wanker of CHCSEK, Camille Lavon of Thrive Allen County, and Patti Boyd, a former hospital board member and current municipal court judge.
THE QUARTER-CENT sales tax funded construction of Allen County Regional Hospital on North Kentucky Street. The tax generates roughly $740,000 annually, helping maintain both the hospital and the nearby Medical Arts Building. Voters last extended the tax in August 2020 by a 2-to-1 margin, and the current proposal would continue it through 2031.
Boyd, who helped guide the hospital’s creation as an original board member, recalled how the sales tax was born out of a desire to avoid property tax increases.
“The county didn’t want to build a hospital and pay with property taxes,” Boyd said. “At the time, the hospital was leased by a for-profit corporation that didn’t want to build it either. The city and county partnered to put a sales tax before voters, and about 72% said yes. That’s almost unheard of.”
The 30-year bond issue that followed totaled about $30 million, Boyd said, covering both construction and initial operating costs. “The sales tax was determined to be the best way to do that,” she said, “and it’s what allowed Allen County to take ownership of its future in health care.”
Stauffer then asked Commissioner Brocker what might happen if the measure were to fail this year. “When this was last in front of voters in 2020, this was a walk in the park,” Stauffer said. “Voters overwhelmingly supported this. But suppose in a month from now that this fails — then what do we do? Are you and the commission saying we’d have to hike property taxes?”
Brocker didn’t hesitate in his response. “It would have to come out of property taxes,” he said. “We’ll have to charge to maintain the property. That was our agreement with St. Luke’s in the first place. We must have that money — it’s part of our lease agreement. So, if the sales tax fails, it’s going on the property taxes. I hate to tell you that, I don’t want to tell you that. But it’s the only other option.”
BROCKER, who now chairs the hospital’s facilities board, noted that the tax continues to fund upkeep rather than operations.
“As things get older, you have to maintain them,” Brocker said. “That’s why we call ourselves a facilities board.”
The facilities board currently manages about $2.5 million in hospital reserve funds, but Brocker said major expenses — including roof work — are on the horizon. He added that the hospital’s bonds are “obligated out to 2036,” meaning the county remains responsible for those payments, even beyond its lease with St. Luke’s Health System.
Lavon added data to the point that Allen County has more at stake in its hospital than just buildings. “The hospital is also one of the major employers in Allen County,” she said. “They employ about 149 individuals — we call those direct jobs. From those, you sustain what we call indirect jobs.”
Lavon noted that the hospital benefits other local businesses through creation of these indirect jobs. “You’re talking about the corner coffee shop, restaurants — all those businesses benefit,” she said. “Usually when you run the numbers, those 149 direct jobs support about 100 additional jobs. So in total, you’re looking at over 200 unique jobs created and sustained by the hospital.”
Lavon also noted that Allen County remains competitive on sales tax rates. “We don’t always feel that way, but that is the case,” she said. “There are communities with sales taxes over 11% in southeast Kansas. We actually measure up very well when it comes to sales tax, especially when industries are deciding whether to expand here.” Allen County’s sales tax, when paired with the state’s 6.5% sales tax, is a total of 7.75%.
PATTON, who also oversees St. Luke’s Anderson County Hospital in Garnett, praised St. Luke’s commitment to rural health care.
