South Broward Hospital District Breaks Its Own Record Once Again By Adopting the Lowest Millage Rate in Its History

Rate of 0.4000 Provides Relief in Property Taxes with Tax Revenue Only Supporting the District’s Primary Care Clinics  

Thursday, September 26, 2013 3:37 pm EDT

Dateline:

Hollywood, Fla.
"Memorial’s successful strategic vision over the past few years and its strong financial position have paved the way for this historic trend to continue, while also supporting our mission of providing outstanding healthcare to the communities we serve"

The Board of Commissioners of the South Broward Hospital District voted on Wednesday to adopt the millage rate of 0.4000 – making this millage rate the smallest one ever adopted by the District.

The new rate of 0.4000 represents a 33.33 percent decrease from last year’s rate of 0.6000, yielding $15.5 million in total District tax receipts. Of these tax receipts, the District disburses $7.7 million to cover the required state funds for the Medicaid match program, as well as support community redevelopment agencies in several municipalities and pay for property appraiser fees. The remaining $7.8 million in net tax revenue collected from property taxes goes to support only the primary care clinics operated by the District for the uninsured residents of the District. The total net tax revenue represents only 0.5 percent of $1.56 billion in total budgeted net revenue for the District.

Since 2010/2011 fiscal year, the District has not used tax dollars to fund uncompensated care delivered in any of its hospitals. Uncompensated care provided by the District in fiscal year 2014 is projected to exceed $1 billion.

“Memorial’s successful strategic vision over the past few years and its strong financial position have paved the way for this historic trend to continue, while also supporting our mission of providing outstanding healthcare to the communities we serve,” said Frank V. Sacco, president and CEO, Memorial Healthcare System.

The Board of Commissioners commended Memorial’s executive team for its work in managing the healthcare system in a responsible financial manner.  

“It’s quite the achievement for Memorial to maintain such a strong financial position, particularly during these challenging times in healthcare,” said Hobel Florido, chairman, South Broward Hospital District Board of Commissioners. “We are pleased to have the opportunity to pass on the savings to residents of the South Broward Hospital District.”

For homeowners, the commissioners’ vote helps to provide relief in property taxes. Here is one common example:

  • Assuming the assessed value of a home increased by the maximum allowed under the “Save our Homes” limitations, (i.e. 3 percent, per year), the assessed value of a home after homestead exemption went up from $147,000 in 2012 to $150,000 in 2013, the homeowner would have paid to the District $88.20 in property taxes in 2012 at the 0.6000 millage rate and would pay $60.00 in 2013 at the 0.4000 millage rate. This represents a $28.20 or a 32% reduction in the homeowner’s tax bill from the District.  

To appreciate the impact that the District has made in lowering its millage rate in the last decade, here is another example: 

  • Assuming a home had an assessed value of $136,000 in 2003 and that home’s assessed value increased by the maximum allowed under the “Save our Homes” limitations, (i.e. 3 percent, per year), to $150,000 in 2013; the homeowner would have paid the district $235.77 in 2003 at the 1.7336 millage rate set that year, and would pay $60.00 in 2013 at the current 0.4000 millage rate. This represents a $175.77 or a 74.6% reduction in the homeowner’s tax bill from the District.

Memorial Healthcare System is the second-largest public healthcare system in the country. It is a national leader in quality care and patient satisfaction and has been ranked in Modern Healthcare magazine’s list of Best Places to Work in Healthcare. Its facilities include Memorial Regional Hospital, Memorial Regional Hospital South, Joe DiMaggio Children’s Hospital, Memorial Hospital West, Memorial Hospital Miramar, Memorial Hospital Pembroke and Memorial Manor nursing home. For more information, visit mhs.net.