The Board of Commissioners of the South Broward Hospital District, which oversees the operations for Memorial Healthcare System, has voted to adopt the lowest millage rate in the history of the District. The new rate of 0.7500 represents a 41.1 decrease from last year’s rate of 1.2732.
The historic measure, passed on September 26, coupled with Memorial’s successful strategic vision over the past few years, has resulted in a new trend for the District. Fiscal year 2012 will mark the second year in a row in which the District minimizes its reliance on tax revenue and absorbs 100 percent of the uncompensated care delivered in all its hospitals. Tax revenue will fund uncompensated care solely at the District’s South Broward Community Health Services primary care centers and Memorial Manor nursing home.
Uncompensated care provided by the District in fiscal year 2012 is projected to reach nearly $1 billion. The approved rate will net approximately $22.4 million in tax revenue, representing only 1.5 percent of total budgeted net revenue for the District.
“For the past decade, the South Broward Hospital District has been on a path to reduce the millage rate with the aim of providing relief to taxpayers who annually face numerous economic challenges,” said Frank V. Sacco, president and CEO, Memorial Healthcare System. “This historic vote is the culmination of years of fiscal responsibility and strategic management that will further solidify our mission of providing healthcare to all south Broward residents.”
The Board of Commissioners commended Memorial’s executive team for its tenacity and courage in managing the healthcare system in a responsible financial manner that led to Monday’s historic vote.
“To be part of a record-setting millage rate is something special,” said Vice Chairman Alfredo Avalos.
Hobel Florido, who serves as the Board’s secretary/treasurer, also praised Memorial’s leadership and took the opportunity to compliment his colleagues.
“I am proud to be a member of this board,” Florido said. “The team and culture that have been instilled at Memorial is phenomenal. I commend your team.”
For homeowners, the commissioners’ vote helps to provide relief in property taxes. Here are two common examples:
· A south Broward County homeowner whose home’s taxable value after homestead exemption is $250,000 would pay $187.50 under the new millage rate, versus $318.30 in property taxes last year – provided the taxable value remained the same from 2010.
· Accounting for the most recent “Save our Homes” annual increase, which shows that If the home’s taxable value after homestead exemptions went up 1.5 percent (from $246,000 in 2010 to $250,000 in 2011), then the homeowner would have paid to the District $313.21 in property taxes in 2010 (at the 1.2732 millage rate) and would pay $187.50 in 2011 (at the 0.7500 millage rate).
