Paying interest and extending due date on 2 loans from Interbank.
Reynolds. Due to us receiving only 1/2 of our payment from Luminant on the property taxes. We think that the worst case is we'll get rest of money in May so bank willing to extend due date till May.
Harper If we get the check in May, you will think that this will tide us over from now till May to keep our operations running.
Reynolds No we have other funds that we will be receiving, IGT for UC 1115 money we expect to receive by the end of February, about 775,000
Harper What if they appeal the decision? Woult they have to pay right then or could they delay the decision to when the actual appeal is heard?
Reynolds This is based on assumption that they'll appeal. The trial is set for the 15th of this month. If the judge makes a decision and it is agreed to by both parties to pay us within 21 days.If they appeal it our best estimate is it would be settled by May, reason we came up with that May date. That's not an absolute certainty, that's the information we received from our attorneys... I understand it will be heard in Waco.
Hankins. This'll have to be expedited. ...
Reynolds And they are required to pay interest, not sure what the interest rate is..... 1.9 billion, any value received about that would be unbudgeted funds. We're a long ways apart
Hankins. The number we were , I guess I've gone over this before, that number one point whatever based on what we thought they were going to claim
Harrison: Our budget's based on that number
Reynolds CAD board and 2.4 value
Hankins Nobody had an idea that they were going to come up with this 800 whatever
Reynolds. No, we understood that they had the best case. They handed 1.6 to the appraisal review board, we were under the impressoin that they had to pay on 1.6 but they paid a much lower amount.
Harper: Which are the 2 loans, because there's four right?
Reynolds: Loan for the computer equipment originally financed with First Financial, loan for improvements in our (claim?) building, those are being paid on a monthly basis. Those are due on due date, we financed them for about 18 months with a balloon. This board can't obligate the next board. The other are loans we borrowed for operation, one was for $500,000 the other approximately 300,000
Harper: The 200,00 for the IGT we expect to get enough money to cover that.
Reynolds: We're getting a whole lot more money from the IGT program than we originally thought
Harper: So when we get that back, are we going to pay off that loan?
Reynolds: Our plan is to, because we only got half from Luminant, that we'll use the ITT money we get back in February for operations to get us till May
Harper: So these loans will still be outstanding. So the clinic renovations that were approved twelve months ago ..
Reynolds: What they have offered to us on that and there hasn't been any decision made, is to take both those loans and consolidate them, add the renovation to Pecan and add the equipment for Pecan, both for the doctor's offices and for the therapy, re-amortize those and set that up as one payment so that our total payment is approximately what we're paying now. Ya'll haven't approved us doing that, that loan has not been completed.
Harper: Once that loan is tied in with this, that would be like 1.6 million before any other loans.
Whitsett: 1.6, you're talking ...
Harper. it's 1.377 now but if you add in the 225 for the other, comes to about 1.6 .. are we set up to make payments if we get the money from the Luminant payment?
Reynolds: One of them we'll continue to make monthly payments on the equipment loans, monthly payment about 13 or 14,000. The 500,000 and 300,000 we pay those off in May whenever we receive the balance of the Luminant dollars. We've done a cash flow statement that shows we have the ability to do that.
Harrison: We have roughly 1.2 million dollars from Luminant, and haven't received the bulk of tax money from average taxpayer in Somervell county, fixing to send out (588) to 1115 funding and when we make our bond payment, the bond payment amount is 630. Adding comes out to about 1.2 million, leaves us $30,000 change, not a days worth of operations. 1.2 milion fixing to spend 1.189 but we're going to get 1.3 million on the 28th. Your tv goes out and you put it on your credit card till the end of the month. We aren't going to pay the 500 because we don't have it we're going to pay the interest
Reynolds We have the bond payment we have to make on the 16th. We had IGT last week, it's a timing issue.
Harrison: On discussions Ray and I have had about this, I think the county has some responsibility for those bonds, I don't know, I"m not a lawyer. With that being said, it's a bill and we're going to have to pay it.
On the bond.
First clip JUST of the discussion of the bond is how, according to Ray Reynolds, he was approached by Somervell County (ie, Brian Watts) regarding the bond payment. There is some discussion, including a really ignorant comment by Chip Harrison, that he thinks the county ought to be responsible for the bond payment. (oh, but he's no attorney. Yup). If Somervell County had believed themselves, as an entity, to be responsible for the bond payment, they would have had a meeting and approved doing it. They didn't. Why? Because, at the time that the hospital district was created, although the bonds remained in the name of Somervell County, the county did an "Asset Transfer Agreement" which specified that the hospital district was responsible to make the payments. Who knows why they didn't just put them in the hospital's name at that time? I'm guessing they weren't transferrable and the county was stuck. But nonetheless, Daddy was not on the hook to make Junior's bond payments and it's really too bad that Harrison doesn't understand this. Somervell County commissioners court and judge were prudent in trying to make sure, with budget cuts, that they were reacting properly to an unknown situation with Luminant, UNLIKE the Somervell County Hospital district, which decided to give some employees raises, and take out not one but TWO loans for Pecan Family Medical Clinic, which isn't even in our own hospital district. Can you imagine the stink that would have occurred if then the Waw-We're Broke hospital district got to dip into the reserve of the county? As a friend of mine says, that's like double dipping on the taxes. I went in to Danny Chambers to express my opinion and said "Well, if the hospital district can't seem to stay afloat without trying to ask another governmental subdivision for help, maybe the county ought to take it back" which HORRIFIED Chambers. hah. Pretend for a moment that the hospital was fiscally responsible and perhaps scaled down operations FOR OUR OWN DISTRICT instead of constantly taking out loans and especially for rich people who don't even live here.
Notice the sleight of hand here, which I almost don't feel I should have to point out, but I will anyway. Somehow the county, in the person of Brian Watts, decided, according to Ray Reynolds, to reach out to the hospital district regarding the mandatory bond payment that must be made on February 16. (Reminder that this was done without benefit of an open meeting either for the hospital NOR the county) Brian actually polled the Somervell County commissioners to find out if they would be good with the county making a loan to the hospital for $315,000. Let me repeat that, $315,000 FOR BOND PAYMENT. In fact, Brian's letter to Ray Reynolds and Michael Honea explicitly says "This amount represents the principal portion of the payment due on February 15th." Now look up to see what the amount is being talked about here... $315,000. So what's the issue? The BANK CANNOT, according to Ray Reynolds, do a loan for the hospital UNLESS it's for operations. Therefore, Harrison STRESSES that this is not for the bond. Hah. Right. Watch this chop. Have to ask why it's so