Members of the Houston City Council unanimously gave first-round approval Monday to a temporary taxing district to aid the community’s top employer and okayed an on-site review to judge the town’s readiness to recruit industry.
The council endorsed the creation of Community Improvement District to allow Texas County Memorial Hospital to complete a surgical wing that is seen as critical by TCMH to expanding services and improving its financial health after recently adding a second staff surgeon.
If given final approval at a Nov. 19 meeting, the district would result in a temporary quarter-cent sales tax to collect funds. The boundaries include property owners in and around the hospital who have already approved their inclusion and four businesses that collect sales tax — Houston Walmart, Houston Do-it Center, Orscheln and General Dollar.
Wes Murray, the 16-year CEO of the county-owned hospital that employs about 400, told council members the hospital’s board is proposing using the short-term funding mechanism to help toward the cost of replacing the 40-year-old surgical wing.
Under a draft plan, retailers in the CID would collect about $675,000 that would be earmarked for the surgery center project.
Upon reaching the cap, the sales tax would end in an estimated five or six years. The plan, which is used in other communities in the state, is unique in that it is usually tapped by private developers to pay for infrastructure in their own investments, which has drawn scrutiny from the state auditor’s office. In this case, the funds have a defined use at a public institution that is known before its creation, and the sales tax would end when the hospital’s new surgical wing is funded. The hospital said it is committed to transparency in the funding, the last piece in financing the project — including the city receiving the tax money, overseeing its distribution to vendors and working with the city on the creation of an oversight board. The only other funding mechanism available to the hospital would be a county-wide property tax.
Leading the opposition to the district at the 45-minute public hearing was George Sholtz of Upton, who dissected the petition with a slideshow. Joining him with doubts were two local business owners, Richard Wood, who opposes the taxation without a vote, and Gary Parish, who thought all of the county should share in the financing.
The discussion brought support from the Houston Area Chamber of Commerce and two local physicians — Drs. Matthew Brown and Linda Milholen –– as well as John Hammons Jr., a Springfield attorney who represents TCMH and whose practice specializes in healthcare.
He said he has witnessed the challenges of rural hospitals, including at Kennett, which recently closed. Local chamber representatives talking to colleagues in the Bootheel said the healthcare and economic hit is already occurring.
COUNCIL OKs INDUSTRY ASSESSMENT
The council also okayed participation in the Missouri Partnership Assessment through the Missouri Department of Economic Development. Houston will be among five communities in the state that participate in the program that simulates an actual industry inquiry and the town’s readiness to compete.
Rob Harrington, Houston’s economic development director, said the process will include the city completing a request for proposals for a prospect, an on-site visit and a grade card on Houston’s performance.
“It sets us up for success down the road,” Harrington said.
The cost is $2,000. It’s anticipated the process will start in February or March.
SPECIAL STUDY SESSION ON FINANCING FIRE TRUCK
Members will hold a special meeting Friday to study potential funding mechanisms for a fire truck purchase. One of the town’s trucks is out of service awaiting a computer to diagnose mechanical issues. No timetable is known. It recently returned to Houston after being stored at Cabool at a repair shop. The council heard that a used truck has been found – 10 years newer than the one out of service – that is estimated to cost $225,000. An on-site visit by the fire department would be required to insure that the truck meets specifications, and there is no assurance how long the truck might be available. Earlier, a new fire truck was estimated to cost about $755,000.
The financial review, at the urging of Mayor Don Tottingham, would study whether the city could afford such a purchase.
STUDY OK’D FOR TWEED PROPERTY
Members approved participation in archaeological review of the historic Tweed House on Airport Drive following a recommendation by the Lynch-Tweed Civil War Home Preservation Society. Roger Lindsey, representing the organization, said the unique partnership with the U.S. Forest Service would aid in learning more about the property and involve students at the school district doing historical research.
Phase I involves a survey of the site, digging sample holes and searching for artifacts, which could result in learning more about the property. Phase II would include any excavation for findings in the first stage. The society would log any artifacts, preserving and curating them.
Greg Swallow, assistant zone archaeologist with the U.S. Forest Service, would lead the effort, if approved.
INSURANCE TO REMAIN LOCAL
The council turned back a recommendation by City Administrator Tona Bowen to move the city’s general liability insurance coverage to an association comprised of municipalities. The change would have reversed a long-time process of awarding the contract to a local business and placed the city instead in a cheaper self-insurance pool operated by the Missouri Intergovernmental Risk Management Association, which is based in Columbia. Alderwoman Kim Bittle moved to transfer the city’s business to the association, which was seconded by Alderman Kevin Stilley. Member Chalky Wells joined them. After a 3-3 vote, Tottingham voted to keep the business locally through Mitchell Insurance Agency LLC, which he said had performed admirably in handling any claims.
The decision came after a representative of the current insurance carrier raised concerns about the MIRMA’s coverages and the financial risks that might be incurred by city government and taxpayers. That was countered by the association. In other matters, members:
• Awarded a one-year contract to KPM of Springfield for auditing services. The firm currently performs the city’s annual financial review.
• Approved United Healthcare to provide health insurance coverage to city employees in the upcoming year. The firm includes plans for Cox-Health, Mercy and TCMH.
• Adjourned into a closed session to discuss personnel, legal matters and real estate.