VOTERS TO DECIDE future of hospital mill levy
New software and hardware for scanning patients’ hearts; $1.5 million in energy efficiency upgrades – expected to save many more millions; a new ultrasound machine; a new digital X-ray machine; and many thousands of dollars in repairs to an aging facility.
These are among a much longer list of improvements Holy Cross Medical Center has made to its health care
systems using a 1 mill property tax Taos County voters approved in 2016, which brought in nearly $4 million to the rural hospital before it expired at the end of June.
Of all the weighty decisions voters across the country have on their shoulders this election season, Taos County residents have another: deciding whether that mill levy funding will continue for another four years.
Still navigating a pandemic whose end date remains out of sight, the
hospital’s chief executive officer Bill Patten says continued mill levy support is even more important than it was a year ago, when his board first approached the
Taos County Board of Commissioners for additional public funding.
“In spite of the losses that we experienced, Holy Cross has provided a variety of essential services to the community throughout this pandemic,” Patten said. “In addition, Holy Cross did not lay off or furlough any employees during the pandemic. And we have honored our commitment regarding how the mill levy money would be used. All of these support the idea that Holy Cross needs this tax support to continue to meet the needs of the local community; we are prepared and will be here when you need us.”
Last year, Holy Cross board members asked that the mill be maxed out – from 1 to 4.25 – over an eight-year period. They also proposed that the issue be put to a vote in a special election that would have cost the county around $65,000, an idea that was met with opposition in a series of often contentious meetings that discussed the state of the hospital.
In March commissioners agreed to dedicate a 3/16 gross receipts tax to the hospital, which started collecting on July 1 and should bring in an estimated $1.35 million each year. Holy Cross Chief Financial Officer Steve Rozenboom said the hospital has received around $122,000 from the GRT tax to date. If voters decide to renew the 1 mill, Holy Cross should receive an additional $1.47 million, for a combined total of around $2.8 million annually.
But some Taos County residents still say the hospital has not provided enough detailed information about their finances to justify a request for additional tax support.
“I do know they have not been transparent,” said Bea Balsamo, a physician’s assistant who has worked in the emergency room at Holy Cross. Balsamo attended
If voters decide to renew the 1 mill, Holy Cross should receive an additional $1.47 million, for a combined total of around $2.8 million annually.
many of the public discussions about the hospital’s proposal. “I think that before they ask the community for more money they need to let people know what they’ve gotten from the government, the CARES Act, small business loans and other places and let us know what their finances are.”
Rozenboom provides quarterly financial video updates posted to the Holy Cross website, but actual financial reports aren’t available for the public to view past 2017.
Part of the reason the public remains wary is because the hospital experienced a serious cash shortage in early 2018 that made covering payroll expenses nearly impossible.
But since then Patten and his team have been preparing for another downturn, like the one
caused by the pandemic. Rozenboom said they have hung onto $1,764,251 from the expired mill levy as a financial cushion.
A steep decline in patient volumes and a suspension of nonessential services contributed to an unaudited loss of $1.9 million at Holy Cross by the end of September. The hospital has since resumed its full range of services, including elective procedures, but many people remain skittish about going to the facility while hundreds of new infections across the state are still being reported daily by the New Mexico Department of Health.
Patten said they have also pursued every form of financial support made available to hospitals that have lost significant revenue during the pandemic, but didn’t have an exact dollar amount for how much they had received as of press time Wednesday (Oct. 7).
Even if the mill levy vote goes their way, there will be a significant lag before the hospital sees funds from the property tax begin to flow again.
“Assuming the mill levy that is on the Nov. 3 ballot is approved,
we will not see any additional mill levy money for at least 12 months, possibly as long as 18 months,” Patten said. “As such, we are planning to use the $2 million to help us continue to purchase needed medical equipment or make repairs to the building until the new mill levy becomes effective.”
So how would the mil levy be used over the next four years?
A tentative budget provided by Holy Cross shows dozens of entries, such as for new clinical equipment for the intensive care unit and surgery department, rebranding for the building, updates for patient rooms and many other infrastructural improvements. There’s also a section marked for a contingency fund with an estimated amount of $474,000.
Patten said this week that the hospital will continue to honor its commitment to reserve mill levy funds for capital expenses, while GRT revenue may be used for both capital projects and operations, which includes salaries and executive compensation.
Early voting began on Oct. 6. Election day is Nov. 3.