MCHD BOARD LOWERS TAX RATE FOR 17th CONSECUTIVE YEAR
MCHD BOARD LOWERS TAX RATE FOR 17th CONSECUTIVE YEAR
September 11, 2019
The Montgomery County Hospital District Board of Directors voted to drop the tax rate for the 17th consecutive year. By adopting a rate of $0.0589 per $100 valuation for Fiscal Year 2020, tax revenue is budgeted to be $34,623,604.00, which is an increase of 5.1% compared to Fiscal Year 2019.
The fees charged for use of MCHD EMS were reduced in Fiscal Year 2017 to 150% of Medicare, which represented a decrease of approximately 47% in charges. Currently and into Fiscal Year 2020, MCHD maintains the 2017 price structure of 150% of Medicare, which lowers the out-of-pocket cost of those using the service.
Budgeted revenue over expenses is expected to be a deficit of $4,699,689.
MCHD Chief Financial Officer Brett Allen said, “MCHD has built reserves in recent years to plan against unexpected events. In addition to those reserves, MCHD strives to maintain a minimum of three months of operating reserves; however, more is currently on hand. This is the second year in a row that MCHD has adopted a deficit budget. That means we’ll be using tax revenue collected in the past to pay for next year’s expenses.”
MCHD Board Chairman Mark Cole thinks this is a step in the right direction.
“The board has a longstanding objective of lowering the tax rate every year, though in some years we lower it more than others,” he said. “But we feel that by lowering the tax rate while passing a budget which controls spending and which judiciously reduces reserves, we have charted a strong and sustainable course for the future of the hospital district, the services it provides, and the taxpayers of Montgomery County.”
Montgomery County Hospital District’s mission is to care for the indigent and provide EMS services while protecting the interest of taxpayers and ensuring long-term stability through fund development. For more information about the Montgomery County Hospital District please go to www.mchd-tx.org.