Petitioners Takeaways From the Van Diest Medical Center Tax Levy Appeal Decision
Viewpoint:
On behalf of the more than 400 Hamilton County residents who signed the petition challenging the Van Diest Medical Center property tax levy, we are disappointed by the State Appeal Board’s decision not to reduce the requested levy. While we respect the Board’s decision, we believe the hearing raised important issues that deserve continued public discussion.
Our petition was based on two fundamental concerns.
First, we believe the property tax levy is not necessary for Van Diest Medical Center to continue operating successfully. Based on the hospital’s financial information presented during the appeal, current operating cash flows are sufficient to cover expenses while also generating financial profits for the hospital. In our view, taxpayers should not be asked to provide additional property tax revenue unless a clear financial need has been demonstrated.
Second, we remain concerned that the VDMC Board of Trustees and Management have not established or communicated an objective methodology for determining the annual property tax levy. During the appeal, we did not hear a formula, financial benchmark, reserve target, or other measurable standard explaining if a tax levy is needed or how the levy amount is calculated. We believe taxpayers deserve a transparent, data-driven process that clearly explains not only how much is being requested, but why.
Although we disagree with the outcome of the appeal, two comments made by members of the State Appeal Board should resonate with everyone in Hamilton County.
Iowa Treasurer Roby Smith stated:
“Regardless of how we vote on this appeal, I believe this process has highlighted a broader concern regarding transparency. Moving forward, the Hospital Board needs to provide the public with clearer explanations of how levy decisions are made, how reserve balances are being considered, and why the chosen levy amounts are necessary.”
Iowa Auditor Rob Sand immediately responded:
“AMEN!”
Those comments reinforce exactly what our petition sought to accomplish. They demonstrate the need for the VDMC Board and Management to be more transparent and provide the public with a clear explanation of how a tax need is determined and how the amounts of annual property tax levy are calculated.
This effort was never about opposing our community hospital. Van Diest Medical Center is an important asset to Hamilton County, and we all want it to remain financially strong. Our concern has always been ensuring that property taxes are levied only when they are demonstrably necessary and that the amount requested is supported by objective financial criteria.
As petitioners, we are not simply raising concerns–we are offering to help. We would welcome the opportunity to work with the VDMC Board and Management to develop objective financial metrics and a transparent methodology for determining when a property tax levy is needed and how much should be requested. Establishing measurable standards would provide greater accountability, strengthen public confidence, and reduce uncertainty for both taxpayers and the hospital.
We would all much prefer finding common ground through collaboration than meeting before the State Appeal Board again next year. We hope the Board will view Treasurer Smith’s comments–and Auditor Sand’s emphatic agreement–not as criticism, but as an invitation to improve transparency, build trust, and work together for the benefit of both Van Diest Medical Center and the taxpayers of Hamilton County.
Sincerely,
Dave Taylor & Jake Van Diest
On behalf of the +400 Hamilton County Petitioners
