Facts and Figures about the Sale of Gracedale

Only the facts please:

·    Between 2005 and 2009 Gracedale has returned $4.82 million to the county in PROFIT (This includes losses in 2009 of $4.62 million and over that same time period it was predicted Gracedale would lose $36.33 million

·    The PROFIT was taken by Northampton County and used to balance the budget shortfalls.

·    The Gracedale Operational Assessment Report (Gracedale Study) was conducted by a company that buys and sells nursing homes as part of their business

·    The company that conducted the Gracedale Study also ”informally” polled members of council to ask what they wanted to do with the property.

·    Even if the sale of Gracedale brings in $30 million there will be costs:

$2 million in buyout for sick and vacation time

$4 million payment to CCAP for outstanding loan

$2.4 million in costs allocated back the county

$.6 million in legal cos

$1 million in fees and other expenses

·    ONLY $20 million in net profit.

·    The county even after a potential sale still has a $4 million dollar shortfall.

·    Adding in the additional $2.4 million in cost ongoing from Gracedale that makes $6.4 million in deficits each year.

·    This means that by 2013 or 2014 the county will be faced with the same problem and this time Gracedale will not be there to bail us out.

·    The Gracedale pension has suffered losses which are not the fault of its employees. No Gracedale employees have a say or vote on the Northampton County Pension Board. Mr. Angle and Mr. Stoffa are both members of that board and have made the investment decisions that have cost the losses to the pension funds.

·    Simple Management efficiencies could help make Gracedale profitable again. Small investments in advertising from savings suggested by a management consultant will lead to an increased census, the return to profitability and good paying JOBS for the residence of Northampton County.

·    Gracedale will not cost the taxpayers a 20% tax increase. A 20% tax increase would raise the county $16 million in revenue. Gracedale’s alleged shortfall is only $6 million

·    We also know that Mr. Stoffa put a budget on the table that provided for Gracedale’s operation for one year with no tax increase, so why does Mr. Angle continue to insist that we have to increase taxes by 20%?

·    The tax payers have recently invested millions in building upgrades and window replacement cost, which will not be recovered if the building is sold in this depressed real estate market.

·    Northampton County will have to continue to pay for benefits for Gracedale employees beyond the sale of the property. The Other Post Employee Benefits (OPEB) needs to be funded for the employees that lose their jobs and meet the requirements to qualify. This could cost taxpayer millions of dollars over several years.

·    And let us not forget about the swaption that has the potential of costing the tax payers anywhere from 14 to 22 million dollars in 2012. A tremendous waste of tax payer funds with nothing to show for it.

·    Ultimately…Gracedale properly managed, beginning with County Council, can and will be self sustaining, costing the tax payers absolutely nothing to operate, but continue to provide the entire county the greatest of  services.

Let us make history at the polls.