SMH board approves city’s tax waiver request, updates contract approval policy

During its recent meeting, the Stephens Memorial Hospital Board of Directors reviewed a formal request from the City of Breckenridge to waive delinquent property taxes on five parcels now under city ownership. The properties, previously held by private owners, were transferred to the city to be demolished and put into future use.

Once sold or repurposed, the properties will return to the tax roll. The five properties are: 205 W. 3rd Street, 601 N. Harvey Street, 1305 W. 1st Street, 919 N. Breckenridge Avenue and 1005 E. Elm Street.

“The previous owners of said properties do not have the financial stability to demolish the structures themselves, and so deeded the properties to the city to avoid enforcement by the city for the substandard structures,” City Manager Cynthia Northrop said in a letter to SMH CEO Gena Speer. “It has come to the city’s attention that certain properties acquired by the city in this manner have delinquent property taxes.”

Some of the properties have been sold by the city and the new property owners are receiving delinquent tax mailings from the Stephens County Appraisal District, while others are still owned by the city with intention of putting them up for sale in the future, according to the letter from Northrop.

“We request that the Stephens Memorial Hospital District’s Board of Directors take formal action to waive these taxes, in exchange for the city’s efforts to clean up these properties and improve the tax base for all taxing entities in Stephens County,” the letter concluded.

The board approved the city’s request, and as part of the motion also approved waiving delinquent taxes on a Stephens County-owned property, adjacent to the substation where the county keeps materials.

The board also reviewed internal policies related to contract approvals and financial delegation. The proposed update establishing thresholds for approval passed unanimously by the board. Those thresholds are: contracts up to $25,000 may be approved without board involvement (CEO approval), contracts between $25,001 and $75,000 require board chair approval, contracts exceeding $75,000 must be approved by the full board and emergency contracts up to $150,000 may be approved by the board president. Any contract that exceeds $150,000 will require a special meeting.

These changes addressed a longstanding gap in hospital policy, streamlining approvals and reducing the need to bring every contract before the board.

Renewals would be permitted automatically if annual increases remain within 10%, and a semiannual report will be introduced to keep the board informed of upcoming renewals and new agreements.