County might boost property taxes to help ailing UMC

Clark County commissioners are considering a proposal to increase the county’s property tax to generate as much as $45 million more in annual revenue to support University Medical Center.

The commission directed staff to start working on the suggestion after hearing a report on projected UMC shortfalls Wednesday.

It would be a 20 percent increase in the county’s property tax rate. For a homeowner of a residence valued at $200,000, this would be an annual increase of about $63, according to county estimates.

Commissioners also heard a presentation by UMC Chief Executive Officer Brian Brannman about the public hospital’s financial future. Its net operating loss of $43.7 million for fiscal year 2014 is expected to increase to $121.6 million four years later, in part because of changes from the federal Patient Protection and Affordable Care Act.

Commissioners have varied opinions about raising property taxes.

Commissioner Chris Giunchigliani said the additional revenue could go directly to the hospital, helping the overall budget.

But Commission Chairman Steve Sisolak said he doesn’t support the proposed tax increase.

“I am vehemently opposed to raising property taxes,” he said. “In the economic climate we’re in right now, I do not see the upside of raising property taxes.”

Commissioner Lawrence Weekly said he wants to see the final proposal from staff and hear from taxpayers before making a decision.

“I’m not going to rule out anything right now,” Weekly said.

The potential increase doesn’t mean that the overall total property tax bills residents pay would go up by 20 percent. That is because total property tax bills include multiple taxes from other entities such as cities and the Clark County School District, which wouldn’t be affected by any county tax increase.

The county’s property tax generates about $239 million each year.

Because the increase would apply to an existing property tax, the county isn’t required to get voter approval. But under state law, the total property taxes a homeowner pays on a primary residence cannot increase by more than 3 percent a year.

While opinions vary about raising property taxes, county officials agree that UMC’s long-term future — financial and otherwise — needs attention.

As the federal health care reforms go into effect, Sisolak noted that UMC patients will have more options, including other hospitals to go to.

As a result, it’s important to invest in quality medical equipment to provide a high level of service, he said.

“I don’t see that as being optional,” Sisolak said.

Getting the property tax increase will take two votes from commissioners. First, they will vote May 7 on whether to put the increase in the proposed budget for the next fiscal year, which starts July 1. The property tax change would then placed in the final budget, which the commission will consider on May 20.

Contact reporter Ben Botkin at bbotkin@reviewjournal. com or 702-455-4519.