After discussion, board decides against reducing annual assessment

Property owners in the West Side Healthcare District will continue to pay the maximum tax authorized through a voter-approved measure more than 25 years ago.

A proposal by board member George Schmidt to reduce the Measure A assessment for the coming year did not gain the support of fellow directors - who said they like the idea of cutting taxes but feel the district faces too many uncertainties to do so at this time.

The district operates West Side Community Ambulance and is subsidized by proceeds from Measure A, which was enacted in 1984. Each year, the district board sets the tax rate within the parameters established in the original measure - and Schmidt was pushing for a reduction this year given the financial health of the agency.

Even with a 25 percent reduction in Measure A tax rates, Schmidt noted, the district would still have reserves of nearly $1 million at year’s end.

“We are over $1 million in our total deposits, and we’re well over what we were three years ago,” he pointed out.

The district is not planning to buy a new ambulance this year, and its collections are up, said Schmidt, who suggested that the principle of a tax cut might even outweigh the few dollars that would be shaved from most property tax bills.

A 25 percent cut, for example, would reduce the annual assessment on a home from $40 to $30.

“My concern is that if we stay at the maximum then we’re liable to get a little sloppy watching our expenses,” Schmidt stated. “I would prefer to be a little leaner and save the taxpayers some money for a year or two if we can. The people I represent would appreciate a reduction in their taxes.”

So would everybody else, board members agreed, but even with a million dollars in the bank the district cannot feel too comfortable financially.

Ambulance crews have not received cost-of-living increases in recent years and are currently attempting to negotiate their first union contract with the district.

“We don’t know where we’re going to be with this contract,” said Board President David Varnell. “I would like to put (a tax rate cut) off a year.”

Board member Rick Daniel said continuing declines in Medicare and Medi-Cal reimbursements are still another concern.

“A million dollars looks like a bunch of money, but it won’t take long to burn through it,” he said. “Not knowing what is going to happen, I’d like to see us hold off at least one more year. The next year or two will tell us a lot.”

Brent Tanner, who oversees the district’s finances, said a 25 percent cut would result in almost $100,000 less in revenue during the coming year. The district would basically break even at that level of tax support - but that assumes no major, unexpected expenses crop up.

The board eventually voted, with Schmidt dissenting, to keep the Measure A rate at its current level, which is the maximum authorized by voters.

The Measure A assessment is $40 a year for residential units, 10 cents an acre for ag land, $95 for commercial properties and $250 for industrial properties.

Riggs contract approved

Directors last week also gave their approval to a new agreement under which they will continue to operate as a sub-contractor to Riggs Ambulance Service, which holds the Merced County contract for ambulance service.

Directors also asked that the district look into the possibility of purchasing a rental home in which West Side’s Santa Nella unit is currently based. The home is on the market with an asking price of $128,000.