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MCHD Board lowers the tax rate for sixteenth consecutive year

September 12, 2018

For Immediate RELEASE

 

DATE:  September 12, 2018

MCHD Board lowers the tax rate for sixteenth consecutive year

CONROE – The Montgomery County Hospital District (MCHD) Board of Directors votes unanimously to drop the tax rate for the sixteenth consecutive year.  By adopting a rate of $0.0599 per $100 valuation for Fiscal Year 2019, tax revenue is budgeted to be $32,935,208.00, which is a decrease of 4.1% compared to Fiscal Year 2018.  This equates to a savings of approximately $1.4 million for tax payers compared to last year.

The fees charged for use of MCHD Emergency Medical Services (EMS) were reduced in Fiscal Year 2017 to 150% of Medicare, which represented a decrease of approximately 47% in charges.  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 $8,508,424 or a decrease of 138.8% compared to last year’s budget.  Brett Allen, CFO states “In recent years, MCHD has built reserves and committed funds to plan against catastrophic events, uncertainty in the healthcare market place, and for capital infrastructure and replacement. MCHD prudently tries to maintain operating reserves of 25% to 33% of the annual budget; however, that target is currently exceeded.  This deficit budget serves to reduce the excess reserves.”

The budget for Fiscal Year 2019 advances the District’s mission to care for the indigent and provide EMS services while protecting the interest of taxpayers and ensuring long-term stability through fund development.