Maverick County Hospital District Board approves 2014-2015 Budget but not tax rate
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Maverick County Hospital District (MCHD) Board of Directors approved its proposed 2014-2015 fiscal year budget of $8,306,367 with a projected deficit of $536,908, which will require the use of of the District’s reserves to balance the budget, under the assumption of a one cent tax rate increase from seven cents per $100 valuation to eight cents per $100 at their August 29, 2014 special board meeting. However, the MCHD Board of Directors did not adopt the proposed eight cents per $100 valuation tax rate at the August 29th special meeting, requiring another special meeting on Tuesday, September 2nd.
At the August 29th Board meeting, Board member Joaquin L. Rodriguez made the motion to approve the proposed $8,306,367 budget, which includes a three percent decrease from the previous proposed budget, and the Board approved the motion on a split 4-1 vote with Board member Ricardo E. Calderon opposing it due to the $536,908 deficit. Calderon recommended the Board review the proposed budget line item by line item to find additional reductions but the Board majority refused. Calderon stated that he will not accept a deficit budget which taps into the District’s reserves to balance it. Board President Juan Manuel “Chuco” Farias, Vice-President and Maverick County Treasurer Rito J. Valdez, III, Humberto Duran and Joaquin L. Rodriguez voted in favor of the proposed 2014-2015 budget with the half-a-million dollar deficit.
When the discussion with possible action to adopt the proposed 2014-2015 tax rate agenda item was taken up, the MCHD Board majority of Farias, Valdez, Duran, and Rodriguez could not agree on the proposed tax increase for 2014-2014 with discussions ranging from increasing it to eight cents per $100 valuation, ten cents per $100 valuation, and 11.237 cents per $100 valuation. Board member Calderon remained steadfast that he did not believe in raising the taxes while Board member Humberto Duran concurred in not wanting to raise taxes.
Board President Farias requested Chief Executive Officer Terri Contreras for Administration’s recommendation and she replied a tax increase of three cents up to 10.268 cents per $100 valuation would balance the budget. Board President Farias, Vice-President Valdez, and Rodriguez did not want to be the ones to make the motion to increase the tax rate. Board President Farias requested Calderon to make the motion to increase the taxes, but Calderon replied he does not believe in having to raise the tax rate to balance the budget. Without a majority consensus, Board member Duran motioned to table the tax rate agenda item for the September 2nd special meeting.
At the September 2nd Board special meeting, the MCHD Board once again failed to approve a new proposed property tax rate for 2014-2015, tabling the item for their September 24th regular board meeting. Neither Farias, Valdez, Duran, and Rodriguez could reach an agreement as Board member Calderon was absent due to a scheduling conflict out of town.
The MCHD Board has until September 29th to adopt and approve a tax rate for 2014-2015 in order for Maverick County Tax Assessor-Collector Isamari Sanchez Villarreal to send out the tax notices by October 1st to Maverick County taxpayers. Any tax increase greater than the previously publicly announced eight cents per $100 valuation will not meet the public notice requirements before September 29th. It appears that the MCHD Board may be stuck with the one cent tax increase rate to eight cents per $100 valuation due to their indecisiveness.
