Memorandum
Date: November 5, 2024
To: The Honorable Lake County Board of Supervisors
From: Benjamin Rickelman, Deputy County Administrative Officer Public
Subject: 11:00 A.M - PUBLIC HEARING - Hearing for the Lake County Hospital Improvement District
Executive Summary:
The Lake County Hospital Improvement District (LCHID) would be a business-based assessment of the two hospitals in Lake County - Sutter Lakeside Hospital and Adventist Health Clear Lake (Hospitals). If another general acute care hospital were established in Lake County it would also be part of the LCHID. These two Hospitals petitioned the County to form the LCHID by utilizing the Property and Business Improvement Law of 1994. If approved, the initial term of the LCHID would be five years and renewals could be up to ten years. The County would retain a fee of 1% of the collected assessment to cover the administration costs of the LCHID. Attached is the Management District Plan with language from the Treasurer-Tax Collector on the County’s administrative fee for the LCHID. The Hospitals anticipate the assessment would boost their Federal Financial Participation (“FFP”) reimbursement from the Federal Government for Medi-Cal patients. The Hospitals plan to utilize the increase in FFP for both financial stability and increase in services.
The establishment of a business-based assessment district requires a resolution of intention, then a public meeting, then a public hearing, and finally a resolution of formation. The Board of Supervisors passed a resolution of intention on September 10, 2024, a public meeting was held on October 22, 2024, and it is anticipated that the resolution of formation will be considered by the Board of Supervisors on November 19, 2024. Attached is a draft annual report template for the LCHID. The Hospitals would provide the Board of Supervisors an annual report for the LCHID reporting how much assessment was collected and how the funds were employed.
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Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
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Recommended Action: No Board action is required at this moment.