Maverick County Hospital District Board proposes One Cent Tax Rate Increase for 2015-2016 Fiscal Year

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015

The Maverick County Hospital District (MCHD) Board of Directors approved a proposed one cent tax rate increase from the current .08 cents per $100 valuation to the proposed .09 cents per $100 valuation for 2015-2016 Fiscal year as well as the Maverick County Hospital District Operating and Capital Budget Fiscal Year 2015-2016 in a split 3 to 1 vote at a special meeting held on Tuesday, September 1, 2015 in Eagle Pass, Texas.

The MCHD Board previously failed to adopt a proposed budget for fiscal year 2015-2016 during its August 25, 2015 meeting, establishing a precedent of starting a new fiscal year without an approved budget.

The MCHD Board first approved Agenda Item No. IV regarding the adoption of the Maverick County Hospital District Strategic Plan and the Operating and Capital Budget FYE September 1, 2015 through August 31, 2015 in a split vote of 3 to 1 with Board member Dr. Ronald Hixson making the motion to approve the $7,734,397 ($7.734 Million) budget with a deficit of $578,409 and seconded by self-appointed  Acting Chairman Juan Manuel Farias and supported by Board Secretary and Treasurer Humberto Duran while Board member Ricardo E. Calderon was the lone vote against the proposed deficit budget.  The Board reviewed four proposed budgets, all with deficits, before voting to adopt the $7,734,397 budget .  Calderon noted that he opposed approving deficit budgets which required the Hospital District to use its reserve funds or increase the tax rate on Maverick County taxpayers to balance the budget.

The MCHD Board next addressed Agenda Item No. V calling for possible action to propose the 2015-2016 tax rate for Maintenance and Operations of the Maverick County Hospital District.  Having earlier voted to adopt a $7,734,397 budget for fiscal year 2015-2016 with a deficit of $578,409, the Board considered proposing the tax rate for the Hospital District for 2015-2016 reviewing at least seven proposed tax rates, including retaining the current .08 cents per $100 valuation, a tax roll back rate of .086675, a .09 cents per $100 valuation, a .095056 cents per $100 valuation, a .097990 cents per $100 valuation, a .102809 cents per $100 valuation, and a .114360 per $100 valuation.

After discussion, the MCHD Board approved to propose a one cent tax rate increase from .08 cents to .09 cents per $100 valuation for fiscal year 2015-2016 by a split vote of 3 to 1 with Dr. Ronald Hixson making the motion, seconded by Juan Manuel Farias, and agreed to by Humberto Duran while Ricardo E. Calderon voted against the proposed tax rate increase of one cent per $100 valuation.  Calderon stated that he opposed raising the tax rate of Maverick County taxpayers and the District needed to make further reductions in its operating budget and implement aggressive, innovative marketing programs by collaborating with all local governmental entities and private businesses to obtain more insured patients be treated at the District’s Physician Specialty Group Clinic.  Calderon added these programs would increase the District’s revenues precluding having to raise the tax rate and/or use the reserve funds to balance the budget, noting that the Hospital District had failed to implement these programs nor yet met with any local governmental entities and private businesses to apprise them of the physician specialty services available to their insured employees at the District’s Physician Specialty Clinic.

MCHD Chief Financial Officer Nestor Bonilla advised the Board that with the proposed tax rate increase of one cent from .08 to .09 cents per $100 valuation, the proposed tax rate exceeded the maximum eight percent increase allowed by state law without being subject to a taxpayers roll back election and would raise an additional approximate amount of $343,908 in revenues, thus decreasing the budget deficit to $234,501, which would require the use of District reserve funds in order to balance the 2015-2016 fiscal year budget.

The MCHD will have to hold two public hearings in September before formally adopting the tax rate increase of one cent from .08 to .09 cents per $100 valuation.  Maverick County taxpayers may recall the tax rate increase after its approval if 10 percent of the total number of registered voters of Maverick County are able to sign a petition requesting a recall election of the tax rate increase and a majority approves the recall of the one cent tax rate increase.