Hospital Tax Proceeds

Published 12:00 am Tuesday, December 8, 2009

Supervisors told of proceeds coming from hospital taxes

By Billy Davis

Panola supervisors learned Monday the county will receive $326,043 as its share of property taxes for Tri-Lakes Medical Center.

“We are happy to have this done,” said board attorney Bill McKenzie, who announced the payment to the county board.

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The City of Batesville and South Panola School District are also receiving a portion of the tax proceeds.

Batesville is set to receive $211,455. South Panola will receive just over $332,000.

The tax proceeds come after a bankruptcy judge ruled the non-profit hospital must pay the property taxes, The Panolian has reported in past months.

Non-profits are normally exempt from property taxes, but winning bidder Physicians and Surgeons Group had included payment of taxes as part of its bid for the then-public-owned hospital.

The hospital is now in the hands of Alliance Health Partners following Physician’s bankruptcy in 2007.

The Board of Supervisors has been anticipating its share of the tax proceeds, but supervisors have not openly discussed how to spend the funds.

Board president Gary Thompson, reached after Monday’s meeting, said supervisors have not discussed the matter among themselves.

Thompson did say he asked County Administrator Kelley Magee on Monday to review county revenues, following up on an agreement among supervisors.

The county board, after nixing a pay raise for employees in the current budget, had agreed to review the county’s finances during the first quarter. The fiscal year began October 1.

County employees have not received a pay raise for two years.

A plan to review county revenues and expenditures had already been decided before the county learned Monday of the tax proceeds, said the board president  

“We said we’d do that anyway,” Thompson said.

In other county business, supervisors discussed taking legal action against businessman Roland Butler, owner of the yet-to-open Rolando Curtis Foods plant in Crenshaw.

McKenzie, citing the county contract with Butler, advised the county can declare Rolando in default and start a foreclosure. But supervisors must weigh that action against the cost of a legal fight, he said.

The board attorney added that supervisors “have got another mortgage owner in front of you.”

Public records show a lien on the property for $1.6 million, Chancery Clerk Jim Pitcock reminded the board.

“It was a six-month loan and there’s no release on file,” Pitcock said.

Crenshaw resident Bob Bryant kicked off discussion of Rolando, when he reminded supervisors that Butler had promised in July that the plant would open within 90 days.

Three and a half years have passed since Panola County government gave Butler the empty building and adjoining land, Bryant said.

Magee, answering a question from Bryant, said she has not received financial statements that were requested at the July meeting.

The county board asked McKenzie to review the contract and report back on the possible cost of a court battle.