A public hearing has been scheduled for noon Thursday, Sept. 5 to discuss the Coahoma County Board of Supervisors’ proposal of a four-mill property tax increase for the 2019-20 fiscal year.
The idea of a tax increase was brought up as the county wrestles with putting together its 2019-20 budget. The fiscal year begins Oct. 1 and citizens will have a chance to voice questions and concerns at the Sept. 5 hearing.
The Supervisors agreed to have a hearing during the Wednesday, Aug. 14 meeting.
“We would vote on it that day (Sept. 5),” said County Administrator Morgan Wood.
Wood and Board of Supervisors President Paul Pearson both confirmed four mills is the maximum property tax increase the Supervisors would be able to pass without an election.
Pearson explained as property values decline, the dollars raised by ad valorem taxes goes down. He said the numbers indicate land and homes being sold are not worth as much as they once were.
According to Pearson, one mill raises about $175,000 in county revenue.
How much each individual’s taxes would increase has not been determined, but it is based on the value of the home they live on.
The other cause of a potential mill increase are issues regarding Northwest Mississippi Regional Medical Center.
Curae Health Inc. was running the hospital, but declared bankruptcy in 2018. Community Health Systems, which ran the hospital before Curae and was still on lease, made a deal in the Nashville bankruptcy court to run the hospital until the Board of Supervisors finds a buyer.
However, the County may still have to make a lease payment of $500,000 and pay the hospital’s property taxes of around $300,000.
“It’s a possibility,” Pearson said. “There are a lot of variables. That’s something we could count on every year.”
The original plan was for CHS to give Supervisors one year from the time the deal was made to find a buyer for the hospital. CHS began running the hospital in November 2018, but reaching a deal for purchasing hospital supplies still had to be worked out in bankruptcy court in Nashville in May.
When CHS took over the hospital, part of the deal was it would purchase the supplies and equipment in the facility from ServisFirst Bank, which financed Curae. A settlement was reached in court for CHS to pay ServisFirst $1,250,000 for everything.
That delayed the process of finding a buyer, but the county will meet with Trilogy Consulting, LLC in late August to discuss the next step.
“We won’t know anything until we meet with Trilogy at the end of this month,” Pearson said.
Dist. 4 Supervisor Johnny Newson asked how much revenue was projected to come in for the upcoming fiscal year and if the increase in mills would make up for any losses.
“I know we’re trying to cut back, but we need a line item to see where we are,” Newson said.
Wood was not sure if the mills would make up for lost revenue, but she did say necessary adjustments would be made.
“You have $150 a week, you can’t spend $170 a week,” Pearson said.
Newson also said two of the four mills would go to pay for the new Coahoma County Jail currently being constructed on Highway 49.
Board Attorney Tom Ross also clarified that not all of the property taxes go to the County.
“Some of that (property tax) goes to the city,” he said.
