Hospital to adjust budget due to mineral value error

Image
Body

The Scurry County Hospital District budget was cut by $250,000 this week because of a miscalculation in setting mineral values.

Chief Financial Officer John Everett said since the district has not learned the outcome of an errors and omissions claim from T.Y. Pickett, the company hired by the Scurry County Appraisal District to set mineral values, he said decreasing the budget was the only option.

Last week, the Western Texas College board of trustees was updated on the situation. Chief Financial Officer Patricia Claxton said a decision on what to do will need to be made as early as April. The miscalculation cost the college at least $277,000 in projected revenue.

The hospital district, college, Snyder ISD and Scurry County were the only entities affected by the mineral value error for Occidental Permian.

Snyder ISD pulled $159,697 from its reserves to cover the mistake and the county increased its tax rate to cover the $333,024 projected in lost revenue. 

The county was the only entity to learn of the mistake before setting their tax rate.

T.Y. Pickett officials have said the company has taken steps to prevent that type of mistake from happening again.