NEW CONSTRUCTION BY EAST TEXAS Medical Center is adding a medical clinic/ office, upper left center, and expanding the emergency room, bottom. An older clinic has been razed to make room for for the clinic/office. Fairfield Hospital District board members took a preliminary look at the 2010-11 operating budget in which expenses and revenue are expected to be lower than the current year.

The budget peek was taken at a meeting held last Thursday in the East Texas Medical Center board room.

FHS administrative assistant Larry Ivy prepared the figures based on expected costs and using the 2009 property tax rate.

He notes that property valuations have fallen seven percent this year throughout the district, which would cut tax revenue about $62,000 if the board leaves the tax rate at 3.659 cents per $100 assessed valuation.

Tax revenue this year would be $870,526 compared to $932,218.

The board could decide to let the tax levy rise to the effective rate, or the rate required to raise the same revenue as was generated in the prior year.

Ivy’s revenue figures are based on preliminary numbers compiled by Freestone Central Appraisal District. A tax rate decision cannot be made until after the FCAD certifies values later this month.

Total revenue for the district was budgeted at $1.5 million this year and is estimated at $962,326 for fiscal year 2010-11.

In addition to a possible drop in tax revenue, if the current tax rate is held, Ivy took out $495,296 that the district transfered from reserves to fund expenses.

Estimated expenses are $962,326, down from $1.06 million.

Major changes in the expense column are halving purchases of hospital equipment to $75,000, putting $350,000 into emergency operations/maintenance/c onstruction reserve, dropping grant participation from $1 million to $300,000 and raising indigent care expenses by half the east side of the courthouse fourth floor, will be added to the district clerk space.

Judge Grant points out that many of the district court records kept on the courthouse storage area have been moved to the county records storage building on E. Main Street in Fairfield.

Contract to remodel the space was let to Housewright Construction for $22,050. Housewright, who has contracted most of the courthouse remodeling projects over the years, was the lone bidder.