Minutes August 10, 1987City Council Minutes
August 10, 19~7
The Council convened into an Emergency Meeting at 7:30 a.m. in
the City Council Chambers.
PRES ENT:
Mayor Stephens; Mayor Pro Tem McAdams; Council
Members Ayer, Gorton, and Hopkins.
ABSENT:
Council Members Alexander and Boyd.
1. The Council held a discussion and determined possible
action to be taken with respect to the future of Flow ~emorial
Hospital.
Mayor Stephens stated that the election had not gone as the
Council hoped and it was now necessary to consider possible
future actions to institute as far as the Denton City Council
was concerned. The people had spoken on the matter and the
majority had opposed the creation of a hospital district. Yhe
Council Members had a draft of a letter to the Commissioners
Court in which there were suggestions as to what the Council's
next possible action might be. Stephens asked for suggestions
concerning the draft letter.
Council Member Alexander joinea the meeting.
Council Member Hopkins stated t~]at she was in agreement with
the major intent of the letter but did not think that the
Council should start out discussions Dy being too restrictive
on the County. She asked if the Attorney General would agree
to a transfer of the asset. _
Debra Drayovitch, City Attorney, replied that there was no way
of knowing) as no discussions had been held yet on the
transfer. However, since the Attorney General's office had
agreed to a long term lease, it did seem quite possible that
they would agree to a transfer to another governmental entity.
Mayor Stephens stated that the draft suggestion before the
Council was to have the City of Denton transfer its ownership
of the Hospital to the County of Denton so that there would be
a single owner. But at the same time, the City needed
guarantees that the Hospital would continue to exist as a
public hospital and that the various community programs now
operated by the Hospital would be retained.
Council Member Ayer stated that he was in agreement With t~le
concept. He felt that there was a difference of opinion
concerning the meaning of the vote, was it a vote of no
confidence in a public hospital. He ~elt that the preservation
of Flow Hospital as a not-for-profit public facility was
essential to the welfare of the people of Denton County ~or Doth
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214
City of Denton City Council Minutes
August 10, 1987
Page 2
economic reasons and health reasons. Therefore, he was
prepared to consider all possibilities for the preservation of
Flow Hospital. The one represented in the letter was perhaps
the most viable and he had no objection to negotiate with the
County but hoped that minds would not be closed to any other
possible alternatives. He agreed that if the facility was
transferred, the City must 'have some 9uarantees that the
Hospital would continue as a public facility. He suggested
that the Council consider pursuing the idea of transmitting the
letter to the County.
Mayor Pro Tem McAdams supported Council Member Ayer and felt
that it was important that when the Council started to talk
about a possible transfer, to be aware that in previous
conversations with the Attorney General's office about the
possibility of a transfer, they were emphatic about the City
continuing to shoulder the responsibility for providing health
care in the community no matter what Kind of transfer or lease
took place. For that reason, the Council needed to be
concerned about, in the event of such a transfer, that there
had to be a guarantee that the hospital would continue to
operate as a public hospital. Because by transferring the
hospital, the City would not necessarily be relieved of that
responsibility. Senate Bill I seemed to suggest that the City
as a governmental entity had a financial responsibility for
indigent care which placed a significant burden on the City as
a taxing entity. Somehow the City had to insure that the
facility it now had, if transferred, in some way continued to
satisfy the responsibility it had. In beginning to pursue the
possibility of discussions with the Commissioners Court about
the transfer, it was important to note that the Council nad to
look at the budget with an eye towar~ increasing taxes in the
event that the Count decision was that the City was responsible
for indigent care. Having lost revenue sharing, having aad
other federal funds cut and having had a significant decrease
in the amount of sales tax revenue that the City ha~ been
receiving, the City was in a position of trying to cover at
least the same level of services with Local funds that ~t once
was able to cover with some outside funds. That meant that
there was no extra money to try and cover the additional
indigent care which the City might find itself responsible for
by the Court. Some funds were necessary in the budget that
would be used for that need.
Mayor Stephens stated that the draft letter was an invitation
to begin negotiations with the County Commissioners Court if
the Court was interested in the idea of being the sole owner
with guarantees for continued health care being given.
City of Denton City Council Minutes
August 10, 1987
Page 3
215
Council Member Gorton pointed out that even in the event that
any entity chose to try and decrease the number of services
provided by Flow Hospital or to try and close it down, there
was a 90 day period of notification with subsequent public
hearings. That would allow the public one more time to perhaps
clarify the issue of whether the vote was a vote against
taxation or a vote against the Hospital. He also agreed with
entering into discussions with the County as to the possibility
of transferring the City's assets and agreed with Mayor Pro Tem
McAdams to continue to look at the budget. Taxes could be
raised $.01 and still be exempt under S.B. 1 which would raise
approximately $200,000. The fund reserve was still a
possibility for extra money for Flow as was an increase in
taxes which might subject the City to a rollbacK. He wanted to
continue to work for the viability of Flow Memorial Hospital so
that the staff of the Hospital would not resign.
Council Member Alexander agreed with Council ~ember Ayer that
it was difficult to interpret the meaning of the election
results. He felt that a great number o~ people were in £avor
of Flow Hospital but were against the establishment o~ a
hospital taxin9 district. He felt ~or that reason, the Council
should provide every opportunity available to maintain Flow as
a viable public hospital within that context. ~ne Council
needed to express its willingness to negotiate all possible
alternatives toward the solution of the problem. ~e urged that
the Council ~ollow through with the draft letter.
Mayor Pro Tem McAdams added that it was important to understand
that even when it was talked about transferring the asset to
the County, it was needed to recognize that the proposed budget
to the upcoming year requested by Flow was ~1,U00,000 each from
the County and the City. It did tare a significant amount of
money for an institution such as a hospital to operate and that
by transferring the Hospital did not diminish the need ~or
money. Did the citizens not want a separate taxing entity or
were they unwilling to provide the tax dollars to support a
public hospital? Either the City or the County would have to
provide tax dollar to support the Hospital.
McAdams motion, Gorton second to transmit the letter
immediately to the County Commissioners Court for their
consideration. On roll call vote, McAdams "aye," Alexander
"aye," Hopkins "aye," Gorton "aye,' Ayer "aye," Boyd "aye," ana
Mayor Stephens "aye." Motion carried unanimously.
City of Denton City Council Minutes
August 10, 1987
Page 4
Council Member Gorton urged that a copy of the letter be sent
to the Hospital Board of Directors.
Gorton motion, McAdams second for adjournment. Motion carried
unanimously.
JENNIFER ~LTERS
CI~ SECR~;fARY
CITY OF DENTON, TEXAS
2724C