Teague Hospital District calls election to increase tax Cap Rate

The Board of Directors of the Teague Hospital District has called an election to be held May 1 for the purpose of increasing the cap rate or maximum annual tax rate the District is allowed to charge from the current rate .05 per $100 evaluation to the maximum of .12 per $100 evaluation.

The primary purpose of the hospital tax is to provide ambulance service to the citizens of the District with qualified and experienced personnel through the Teague Hospital District/EMS.

Board President Jim Lawrence says the Board of Directors have and plan to continue operating in a conservative manner and to keep any tax increase to a minimum. The Cap Rate increase does not mean that your taxes will go up to .12 per $100. This will only give the District flexibility if the tax base were to go down or to keep pace with government requirements. This flexibility will allow the Teague area to maintain an excellent ambulance swervice control and operated by local taxpayers of the District through a local Board of Directors.

The Teague Hospital District was established by the Texas Legislature and approved by the voters of the District in order to give financial support to the Teague General Hospital. This tax enabled the hospital to survive for several years but the hospital continued to struggle financially and the Teague General Hospital closed in 1988. The district had debt to the Federal Government that had to be paid and the tax base was the only source for repayment. The Board negotiated with the government to pay the debt by offering indigent helathcare to residents of the District. The District continues to offer indigent care on a limited basis to qualifying residents of the Districts.

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