Note: Two more important meetings are coming up related to the Hospital Tax - see details at the end of this article. We also list the contact info for the Hospital Board members.
Last night, after waiting 8 months, the North Lake County (FL) Hospital Taxing District Board voted 5 to 1 to continue the consistent, rubber stamp practice of approving a 1 mill property tax ( i.e $100 tax on every $100,000 property value) on North Lake property owners. The tax collections total about $11-million and they are split between the two local hospitals (LRMC & Waterman) without any deliverables or conditions other than supplying audited financial statements. Additionally, Lifestream Behavioral Center gets 5% of the funds from each hospital.
For the first time in the memory of many, the 4+ hours tax hearing was held in the large County Commission Chambers with about 150+ hospital employees supporting the tax, and local property tax reform activists opposing it. In the past, the meetings were held, the tax approved in 15 minutes without most taxpayers even understanding what the tax was for.
Although the 6-member Board did listen stoically to both tax opponents and tax supporters who spoke without time limits, the 5 hospital tax supporting Board members refused to even provide seconds on motions requested by tax reform Activist and Board Member Marilyn Bainter. They also provided the Hospital management time for multi-person presentations as part of the agenda without offering the same right to tax opponents. They didn't even provide a second to her request to video tape the meeting, and didn't even provide a second (for discussion purposes) to her later request for an Amendment to a resolution. Additionally, near the end of the meeting, the Board hardly discussed any merits of either side of the case, and after Marilyn read a statement they voted without any discussion defending why they made the decision.
It is clear that five members of the Board are closely aligned with the hospitals and continued taxes, without stating their reasons, and acted arrogantly by not allowing discussion on Marilyns proposals or verbally describing WHY they supported the tax. They also would not even discuss the merits of public proposals that they hire a forensic accountant to investigate data provided by the hospitals.
Additionally, it was clear the Hospital leadership (LRMC & Waterman) had told their employees there were hardly any profits when my review of the recent years financials indicated that even with the "losses" claimed for indigent care, bad debt, etc. they still made significant "profits" (labeled as "Excess of revenue and gains over expenses" on their financials).
At the end, one Board member requested the LRMC hospital CFO to explain whether the "profits" for the two hospitals in 2008 reported by Marilyn in a schedule were actually $28-million for both hospitals. The CFO clearly tried to snow the crowd and Board by using the figure "Income from Operations" which excluded various investment income and gains that led to the $14-million "Excess of revenue and gains over expenses" (which we call "profit" for non-profit organizations ) for LRMC's portion of the combined two hospital "profits". As one observer said, "do you think they IRS would only let me pay income taxes on my part time job, but not on $2-million in investment income?" All of it should be counted in defining annual income.
The constant thread of arguments submitted by hospital employees and supporters for the tax were either emotional arguments (the sky is falling and "people will die if my department isn't funded", or a focus on "losses" from indigent care, etc. The did that without acknowledging that EVEN WITH those "losses", and high payments to executives , they still had the significant reported profits.
I didn't see any financial merit to the arguments. It is clear the tax is subsidizing asset accumulation and perhaps areas such as overspending on equipment or deferred compensation (retirement pay). They could not defend against the issue that 57 Florida counties and their hospitals manage to operate without such Hospital tax districts, which only exist in 10 Counties.
Additionally, the way the legislation is worded, Lifestream receives 5% of the tax revenues indirectly from the hospitals, thus they do not have to provide their financials to the Board or justify why they get the funds.
As a consequence, I still believe a voter referendum is needed to continue the tax, or the District and tax should be eliminated. After 45+ years of receiving the automatic tax, the voters should get another chance to decide the merits of the tax in public dialog and a referendum.
FUTURE Important Meetings - we will post more details in future postings as we get them
Sept. 17th - 4:30pm: The Board will have another meeting on NEXT Thursday, Sept. 17th at the same location as last night, at the County Commission Chambers at 5:15 pm. However, last night, many hosptial employees were waiting at the doors at 4:30 pm, so get to the meeting early. This is the final vote on the tax and selection of a new CPA firm to audit the District financials. (not the hospital financials).
Sept. 30th - 1pm (get there by 12:15), the Lake County legislator's delegation (four representatives and one FL Senator) will host a hearing where Marilyn Bainter and supporters request modification of the current NLCHD legislation to allow the Board to select ANY tax rate between 0 and 1 mill, rather than the current law which only allows choosing 0 or 1 mill. The meeting will be held at the auditorium (NOT the conference center) of Lake Sumter Community College at 1pm (get there early). The Lake County legislation delegation includes Rep. Alan Hayes, Rep Marlene O'Toole, State Senator Carey Baker, Rep. Charles E. Van Zant & Rep. Stephen Precourt. State Senator Paula Dockery is also part of the delegation, but she rarely attends delegation meetings. IMPORTANT: You can't just walk in and provide public input. You have to contact FL Rep Marlene O'Toole, the delegation Chairperson's office, at 352-315-4445, and get on the list to speak.
Want to know more about the Hospital District? Click here to see our separate page with lots of background data:
- (http://webworks.typepad.com/lakecountyfiscalrangers/north-lake-county-hospital-district-issues-where-does-that-12million-go.html)
Board Member Contact Info:
If you want to express your opinion before the above meetings, here is the contact info for the NLCHD Board members:
William Bowersox work (787-3202)
Term ends 2010;
505 W. Gibson Street,
Frank Gaylord, Chairman work
(589-1731) Term ends 2010;
PO Drawer
2047,
Eustis, FL 32727
PO Box 490817
Leesburg, FL 34748
Kenneth W. Carpenter, Vice-Chairman,
(589-7579) Term ends 2012 [email protected]
1504 Fahnstock Street
Eustis, FL 32726
Roger A. Beyers, Secretary,
(787-4343) Term ends 2012
1307 S. 9th Street
Leesburg, FL 34748
Marilyn Bainter (483-0770) Term
ends 2012
36811 N.
CR44A
Eustis, FL 32736
Meredith Kirste, board attorney 326-3455 <<< located in Leesburg in small firm
Patricia
A Sykes-Amos, CPA - CPA for the Board
Greenlee, Kurras, Rice &
Brown PA CPA’s
PO Box 8
Mount Dora, FL 32756
TEL: 
352 383-6300
FAX: 352 383-6356
