The Daily Commercial today published a brief article about the recent lawsuit filed against the Board of the North Lake County Hospital District. They also published an editorial that basically said the lawsuit should be dropped, and voters should wait for Board elections the change issues. The article and the editorial are at the bottom of this document using the link below.
HERE is where you can find a list of our blog postings on the North Lake County Hospital District
Here is my response which I posted on their website today:
The Daily Commercial seems to think that it is ok for the existing Board of the North Lake County Hospital Tax District to continue a process of paying $11-million in tax funds to three local hospitals without ANY restrictions or guidelines on exactly how the funds are to be spent, and without defining how to measure success for the spending. Instead,
the current "law" that is followed is vague and the Board basically gives the $11-million to the Hospital leadership and says "we trust you to spend the money on something that is good...".
Egads - would they do that if they spent $11-million of their own funds for the construction of a new building and did not have ANY specifications in a contract other than "spend it on a building" without specifying size, floors, material quality, etc? That is what the Daily Commercial seems to think is ok for the Board to continue doing until the voters can muster the funds to run candidates who are well funded by Hospital supporters.
So, if you think earmarks are only for the Federal government, here we have a situation where the current board supports the local Hospitals without detailed oversight, and continues doing it year after year.
There are three Board members up for election this year - they should drop out of the race, and the Hospitals should enact a hands off policy to allow objective Board members to be elected.
Additionally, the current Board should NOW implement strict spending guidelines and require direct audit trails to ensure funds are only spent on goals defined in public hearings.
The Board should also file a request with the County's State legislative delegation to create a local law revising the current 1-mill tax to be a range between 0-1 mill.
Local taxpayer activists have tried to enact all the above, but have been rebuffed by the Board, so the lawsuit might get their attention.
More information on this issue is at www.FiscalRangers.com in the Lake County blog - click on the category in the right column for "North Lake County Hospital District."
Vance Jochim
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Here is the news article, and they even mention this blog as a source for the lawsuit information. The editorial is below it.
Hospital taxing district facing lawsuit
LARRY ELL
Staff Writer - Dated Jan. 27, 2010 - from HERE
A lawsuit has been filed against the North Lake County Hospital District contesting its legitimacy. And the individual who filed the suit is also a member of the District's board.
According to board member Roger Beyers, the suit has been brought by fellow board member Marilyn Bainter and her husband, former State Representative Stan Bainter. The suit alleges that the tax district is not based upon proper legal processes and therefore the taxes it levies are not legal.
Beyers says since this development is relatively new, the full scope of the board's response hasn't been formulated yet.
"We had a scheduled meeting last Thursday and the board at that time voted to basically engage attorneys," Beyers said. "The way the lawsuit is worded, the board has 40 days to respond and that hasn't expired yet."
According to an email from an organization called The Fiscal Rangers, the lawsuit was distributed to the Hospital Tax
District on Monday by the Board's Attorney and names the following defendants: The North Lake Hospital District, Lake County Tax Collector Bob McKee, Lake County Property Appraiser Ed Havill, Leesburg Regional Hospital District, Inc., Florida Hospital Waterman, Inc. and Lifestream Behavioral Center, Inc.
Said Beyers on where this process is headed, "I think we're in the very, very early stages and don't fully appreciate how this will play out or how long it's going to take to do so."
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Here is the Daily Commercial Editorial from HEREDated Jan. 27, 2010
Our voice: A taxing matter
A lawsuit has been filed against the North Lake County Hospital District contending the district board lacks the constitutional right to levy taxes.
The suit claims the district does not rest on solid legal ground, therefore the district lacks the authority to tax and to exist.
The 40-year-old taxing district levies $1 on every $1,000 in taxable property to help pay for medical services in north Lake County -- specifically, Leesburg Regional Medical Center and Florida Hospital Waterman.
Supportors of the suit, including former board member Marilyn Bainter, claim the district lacks accountability on how it spends the money.
Both hospitals undergo financial audits to determine how the tax money is spent. But supporters of the suit argue that current auditing processes are insufficient, because there's not adequate provisions detailing how exactly the board distributes the money. They also say the tax should be a flexible rate established in law.
Some suggest eliminating the tax or establishing more strident regulations.
The district board has six elected board members called trustees. They must go before voters to make their campaign pitch.
If voters are unhappy with the direction or policies of the board, they may choose other trustees or run for the board themselves.
The same applies to the state Legislature. If lawmakers are deemed inattentive to their regulatory nuances, voters have the opportunity every two years to find more responsive representatives.
The hospital board oversees millions of dollars in tax money that goes to provide medical services to thousands of local residents. The money helps pay for life-saving service to those who rely on indigent care.
Without access to financial help, many patients would face severe restrictions for medical treatment.
Nonprofit hospitals -- such as Leesburg Regional and Florida Waterman -- must monitor their expenses closely. With double-digit percent increases in indigent care in the last few years, watching expenses becomes more crucial.
Losing a share of the $10.5 million in tax money is cause for concern.
Opponents to the taxing district's policies and procedures have a recourse -- and that's through the elective process, not the courts.
This tax is vital. Please reconsider your objections.