Election 2008: Central City, Valley County bonds pass

Six months after a bond election for a new performing arts center failed by just 16 votes, the Central City project's supporters endured another nail-biter Tuesday.

But this time they came out on top.

The measure passed, 741 to 724, thanks to a 15-vote difference among the district's patrons in Hamilton County.

"When the two votes came in, we were a little unsure," school board member Kent Malm said, referring to the two-vote difference on the bond among Merrick County voters. "But the final tally really makes everyone happy."

The bond issue was one of two in Central Nebraska that passed on Tuesday, joining a bond for a new hospital in Valley County. A proposed new elementary school in Broken Bow failed by a wide margin.

Malm said the passage of the bond reflected years of work by the school district's performing arts committee, which helped raise a $1.5 million endowment to ensure the center's upkeep.

He praised the committee's effort to educate the public on the need for the 520-seat, $4.6 million center.

"Central City's always been a community that's looked to the future, and I think that's been proven with the passage of the performing arts center," said Malm, a member of the committee.

About 80 supporters of the Valley County Health System's proposed 67,000-square-foot, $21.2 million new hospital rejoiced at the announcement that the county's voters had approved the project, 1,138 to 969.

"I'm a little bit at a loss of words right now," said Larry Schrage, the hospital's chief executive officer. "It's a very exciting time."

Schrage commended voters for recognizing the need for quality health care in the area.

Hospital officials do not plan to use tax dollars to repay the bond.

Federal reimbursement through Medicare's critical-access program would cover about 70 percent of the hospital's costs at current levels. Schrage expects that annual growth and the increased revenue from a new hospital would cover the rest.

He said that, with the project's passage, the hospital and the federal government both need to do their due diligence to ensure that local tax dollars aren't in fact used for the project.

"We're doing the absolute best thing for health care," Schrage said. "Now we simply need to deliver on our promises, so now the real work begins."

In Broken Bow, a $9.4 million bond issue that would have paid for a new elementary school failed, 437 to 1,315.

A levy override for the district that would have added 15 cents per $100 of taxable valuation to build up cash reserves also fell well short of approval, 500 to 1,252.

School board member Kevin Cooksley said he believed that much of the negative sentiment was a result of gas prices and fears of economic recession -- both factors outside the district's control.

He hoped the vote had drawn voters' attention to the district's problems and would spark a continued discussion.

"This isn't just about the money," Cooksley said. "We're going to have to have a serious discussion about what the community wants, and we will live with what the community tells us they want."

Dave Haumont, chairman of the local group opposing the bond, said Tuesday night he believed the school should now focus on fixing its current elementary schools, rather than building new.

"I think we've got good buildings," Haumont said. "With a declining student population, it just doesn't seem like it makes sense to build new buildings right now.”