Today’s Scurry County Hospital District board of directors public hearing was canceled after questions about the agenda arose earlier this week.
The public hearing was one of two that were required by state law because of the district’s proposed tax increase.
Chief Financial Officer John Everett said the administration has decided to use the effective tax rate, which brings in the same amount as ad valorem taxes as the current budget year, for the 2020 budget. The effective tax rate is 24.21 cents per $100 property valuation.
Last month, the board approved a proposed tax rate of 24.7 cents, which is down from the current 29.34-cent rate.
By using the effective rate, Everett said the district’s $37 million budget will still be adequately funded despite losing about $60,000 in ad valorem taxes.
The 2020 budget is up from $33 million from the current year. Everett said part of the increase is due to the construction loan and federal government reimbursement payments not being scheduled during the budget year.
The budget includes $600,000 in capital needs, including rehab equipment, parking lot renovations, computer server upgrades, medical equipment and a transport van.
The biggest expense for the hospital in 2020 will be salaries of more than $18.9 million. The 2019 budget had salaries totaling more than $17 million.
By using the effective rate, which means not raising taxes, the district will not have to hold public hearings. Everett said the board will vote on adopting the effective rate and budget during an Aug. 28 meeting.
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