Archives for March 2008

COLLEGE STATION – Rising feed and transportation costs continue to keep retail beef prices edging higher, a Texas AgriLife Extension Service economist said.

“One of the big stories this year as we start 2008 is we’re seeing higher prices for consumer beef, whether it’s at the grocery store or restaurants,” said Dr. David Anderson, AgriLife Extension Service livestock marketing economist.

The annual average retail beef price for 2007 was $4.16 per pound, which was 5 percent higher than 2006 and exceeded the previous 2005 record of $4.09 per pound, according to U.S. Department of Agriculture-Economic Research Service data. Factoring into the high beef prices is record-priced crude oil, which is increasing transportation costs for many beef suppliers, he said.

“There are higher costs of getting it to the store,” Anderson said. “When we talk about $100 per barrel oil, it ripples through the economy. Everything you get at a restaurant or grocery store, we have to get it from somewhere else.”

Another reason is a leveling of beef production across the U.S., Anderson said. With fewer cows and calves in national inventory and increased export demand for U.S. beef, “that’s keeping pressure on beef prices,” he said.

Meanwhile, profit margins have also been tough for stocker producers. Recent USDA data indicated there were fewer calves on wheat pasture.

“There were not a lot of calves on wheat pasture this year, so what is a seasonal low may hold up, and we could see some moderation in the springtime that we usually don’t see. Consequently, we could see some heavier calf weight prices over the next couple of months simply because there’s not that much supply.”

The deadline is fast approaching for self-employed individuals in Donley County to file for a refund of the 2007 personal property taxes on their vehicles.

Thanks to action taken by Texas voters last fall, some self-employed taxpayers are able to exempt their vehicle from being subject to personal property taxes. Taxes already paid for 2007 may be eligible for a refund.

Citizens must fill out an application to receive the exemption, and people who want that exemption to apply for the 2007 tax year must fill out the form at the Donley Appraisal District office by April 1, 2008.

The law allows for one vehicle tax exemption per individual, so appraisal district officials say a husband and wife who both work for their own small business could exempt two vehicles total.

Certain situations are not eligible. People who used their vehicle to commute to and from work are not eligible. A retired person with no production of income is not eligible. A vehicle that is registered in a business’ name and is used exclusively for business is not eligible.

People who fill out an approved exemption form for 2007 and who have already paid their 2007 taxes will be issued a refund of that portion of their taxes in about 30 days.

For taxing years 2008 and beyond, exemption applications must be filed between January 1 and April 30 each year. It is not automatically renewed.

Application forms are available at the appraisal district office at 307 S. Sully Street in Clarendon.

Half a dozen citizens attended last Tuesday’s meeting of the Donley County Hospital Board, seeking more information about the pending sale of the Medical Center Nursing Home.

Board Chairman Alan Fletcher welcomed those in attendance and noted that the occasion marked only the second time in two years that someone had shown up to address the board on this issue. He also said the board was glad to have any questions.

“We don’t want there to be any unanswered questions about this sale,” Fletcher said.

Jim Philley of Clarendon led the questions and began by asking who the real estate firm is that is representing the buyer of the property.

The board said there is no real estate firm representing the buyer. Clarendon Realty, LTD, is the buyer according to the contract, but that is not a real estate firm of any kind. It is the name under which Community Care Management Services of Denton is doing business in Clarendon, Texas.

Philley also asked about the term of the agreement with the nursing home broker in Houston, to which the hospital district will pay a commission when the sale is completed. Fletcher responded that the agreement is still in place because the district never terminated the agreement. Therefore, the commission must be paid.

The refunding of $190,000 of the purchase price was the subject of Philley’s next question. He said he understood the buyer needed that money to operate on initially, but he asked if the money was going to be returned to the hospital district at some point.

Fletcher said it would not be returned to the hospital district and explained how the contract figure of $1.25 million was derived.

“Our asking price was one million sixty thousand,” Fletcher said. “It was their idea to add the extra money for operating funds.” This, he said, saved the buyer from having to get two loans – one to buy the property and one for operating capital.

Philly then inquired about the financial health of the nursing home, noting that the district paid $90,000 cash for a new roof and is paying $400,000 cash for the new addition.

“We had $490,000 on hand, but we were told the nursing home was in trouble,” Philley said.

“The nursing home is in trouble,” Fletcher responded.

Board member Mark C. White said MCNH has a projected budget surplus of $5,000 this fiscal year. However, an increase in the federal minimum wage will drive up all wages and cost MCNH about $50,000 in the next two years, plus other expenses are expected to rise about three percent.

“Our $5,000 surplus is going to become a $95,000 deficit in two years,” White said.

Billie Shaffer asked how the district could borrow its way out of debt. Fletcher said on April 1 the hospital district will lose about $1 million worth of debt for the public. White said the proceeds of the sale will be placed in a trust with enough extra money (about $375,000 in borrowed money) and set up so that the interest earned will offset the interest owed on the bonds, and the bonds will be called and paid off in 2011.

“My personal goal is to be debt free in 2011 and reduce hospital district taxes by about 30 percent,” White said.

(Editor’s Note: In late breaking news this week, White says it now appears the district will not have to borrow any money to put in the trust and that the district will be debt free in 2011 and possibly have about $150,000 in the bank.)

Philley said he would like to see the hospital district abolished once it is debt free.

White said the district should not be abolished; it should be kept intact to pay for indigent care and to continue to operate a top-notch ambulance service. He also cautioned that taxpayers could actually end up paying more in taxes if the county took up those responsibilities.

Dr. Richard Sheppard, who operates a dentistry office in Clarendon but lives in Booker and serves on the hospital board there, said he understands the board’s situation regarding the financial future of MCNH. But he said he felt the board had made a mistake selling the nursing home and that quality of care would suffer. Sheppard also said he was concerned about what the sale of the professional services building would mean to him personally after his lease in the facility runs out.

Jean Stavenhagen also addressed the board about quality of care concerns.

New administrator Billy Ray Johnston said maintaining the high quality of care at MCNH was his chief priority.

In other business, the board canceled the district’s May election as all races are uncontested.

The board also heard a report from ambulance service director Anna Howard, who addressed the area-wide shortage of paramedics and how that was impacting the Associated Ambulance Authority. Openings are available even in Amarillo, and the shortage in the workforce is driving wages higher.

Area ambulance services are paying higher wages and offering benefits, and the hospital district will have to deal with that as time goes by. Two fully staffed ambulances are essential to serving Donley County, Howard said.

Early voting for three local boards begins next Monday and continues through May 6.

Voters in the City of Clarendon and the Clarendon Consolidated Independent School District can cast early ballots at the Donley County Courthouse Annex between the hours of 8 a.m. and 5 p.m.

Incumbent City Aldermen Tommy Hill and Chris Ford are joined on the ballot by Jim R. Philley, Billy Ray Johnston, and Kyle Davis in an election for three positions.

Two positions are up for election this year on the Clarendon school board. Incumbents Weldon Sears and Lance Thornberry are challenged by Travis Wilson.

Extended voting hours for city and CISD polling will be held on April 29 and May 1 from 7 a.m. to 7 p.m.

Applications for ballots by mail must be submitted to Early Voting Clerk Fay Vargas at PO Drawer U, Clarendon, TX 79226, no later than the close of business on May 2, 2008.

Voters in the Hedley Consolidated Independent School District can cast early ballots at the HISD Business Office between the hours of 8 a.m. and 4 p.m.

Incumbents Kelly Patton, Blain Burton, and Rex Morris will be joined on the ballot by challengers James Potts, Bonnie Walsh, and Tonja Ruthardt. Three positions are available this year.

Applications for ballots by mail must be received by May 2 at the HISD Business Office.

Elections for city and school offices will be held Saturday, May 10.