Quincy hospital bonds to be paid off sooner than projected

QUINCY — The collection rate for the bonds sold to build the new Quincy Valley Medical Center may be lower than originally anticipated. The sale of the second set of bonds, which will generate about $9 million in revenue, is set for late June. 

Jim Nelson, managing director of DA Davidson, Seattle, said the estimated levy rate included in the bond proposal put before district voters was 48 cents per $1,000 of assessed property value. But because Quincy and the surrounding area are growing and property values are going up, the assessment rate for both sets of bonds probably will be closer to 37 to 38 cents per $1,000 of assessed value. 

“Right now today, with the current interest rate, you’ll be coming in at 37 cents,” Nelson said. “So we’re optimistic that (the assessment rate) will come in pretty close to that. If not, you’ll be at 38 cents.”

In addition, hospital officials want to sell the second set of bonds to be paid off at the same time as the first set. That’s earlier than anticipated when the bond proposal went to voters. 

Both sets of bonds are scheduled to be paid off in December 2044. The title of the ballot measure approved by district voters in 2022 assumed a 30-year payback period.

Glenda Bishop, QVMC chief executive officer, said district officials determined during the first bond sale that the payback would take less than 30 years.
“Even when we closed on our first bond, it was 22 years (to pay back),” Bishop said. 

The first set of bonds generated $46 million in revenue, for a total amount of $55 million approved by voters. 

Nelson reviewed the bond sale procedure for the QVMC board Monday. 

In answer to a question from board member Anthony Gonzalez, Nelson said the levy assessment rate would continue to go down if the assessed valuation of the district continues to go up. There is a limit on the amount of money the district can collect in any given year.

The steel framing is up on the new hospital and the roof is on the second floor. Kayla Van Lieshout said that as of the end of March construction was on schedule and the project was on budget. The maximum for the construction is $40.16 million, which is for construction only. The remaining money goes for expenses and items to furnish the new space, from diagnostic imaging equipment to hospital beds.

Some of that new equipment has already been purchased, Bishop said.

“We have new hospital beds,” Bishop said. 

Nor is that all.

“Wheelchairs,” she said. “I don’t know if you have had to ride in one of our other wheelchairs lately, but suffice it to say it was time, and (new ones) are here.”

Construction started and is continuing, even though a backlog at the Washington Department of Health caused a delay in DOH review of the project. Project manager Joe Kunkel said in an earlier meeting that continuing the project without DOH review could mean the hospital will be required to rework portions of the project if it doesn’t meet DOH requirements.

Van Lieshout said the project managers answered the questions included in the first DOH review. The backlog means there could be a delay in the next round of questions from DOH, but Van Lieshout said she expected the agency’s reply in the next couple of weeks.

Cheryl Schweizer can be reached via email at cschweizer@columbiabasinherald.com.