Dr. John M. Weed III, board chairman, said directors in a regular meeting Monday “voted for the time being to reduce the property tax to zero,” although formal action on setting a tax rate of nothing will be taken at a future meeting. At one point, the tax rate was set at 48 cents per $100 valuation, which drew outcry from hospital district residents. In recent years, as the hospital’s financial condition improved, directors have lowered the rate.
J.T. Talley, Rockdale councilman for the East Ward, said “This side of town welcomes the news. It’s an elderly group and no taxes on some of the property would help them considerably. I am in favor of that. I think the hospital is doing pretty good now, and we need some relief on taxes.”
The Rockdale Hospital District became a voter-authorized taxing entity in 1994 to aid the financially ailing Richards Memorial Hospital. The district will continue to levy a half-cent sales and use tax, which generates about $200,000 a year, Weed said.
The hospital’s economic condition has improves dramatically in the past three years. Last fall, the hospital district board contracted with Blackhawk Healthcare System of Austin, which plans to finance building programs and implement new services for the Rockdale medical center. The hospital will continue to carry the name Richards Memorial Hospital, but medical services will be conducted under the new name: Little River Health Care System. The system will also include the 24-Hour Clinic, Little River Medical Clinics in Rockdale and Cameron, and the Specialty Clinic in Cameron.
“We had already planned to reduce it significantly because we had a very good cost report,’ Weed said. “We have done well on a month-to-month basis with the arrangements with Blackhawk Health Care. We’ve made a pretty big statement that for the long term we can do without it.”
Additionally, the board has learned that the hospital district has lost its tax-exempt status by contracting with Blackhawk Health Care, Weed said. The district is expected to appeal the Milam County Appraisal District’s decision, he said.
Also, the board decided that future construction projects will be on current hospital property, Weed said.
jwilliams@temple-telegram.com
