This notice concerns 2006 property tax rates for Jackson County Hospital District. It

presents information about three tax rates. Last year's tax rate is the actual rate the

taxing unit used to determine property taxes last year. This year's effective tax rate

would impose the same total taxes as last year if you compare properties taxed in

both years. This year's rollback tax rate is the highest tax rate the taxing unit can set

before taxpayers can start tax rollback procedures. In each case these rates are found

by dividing the total amount of taxes by the tax base (the total value of taxable

property) with adjustments as required by state law. The rates are given per $100 of

property value.

Last year's tax rate:

Last year's operating taxes

Last year's debt taxes

Last year's total taxes

Last year's tax base

Last year's total tax rate

This year's effective tax rate:

Last year's adjusted taxes

(after subtracting taxes on lost property)

÷ This year's adjusted tax base

(after subtracting value of new property)

= This year's effective tax rate

(Maximum rate unless unit publishes notices and holds hearings.)

This year's rollback tax rate:

Last year's adjusted operating taxes (after

subtracting taxes on lost property and adjusting

for any transferred function, tax increment

financing, and/or enhanced indigent health care

expenditures)

÷ This year's adjusted tax base

= This year's effective operating rate

x 1.08 = this year's maximum operating rate

+ This year's debt rate

= This year's total rollback rate

Statement of Increase/Decrease

If Jackson County Hospital District adopts a 2006 tax rate equal to the effective tax

rate of $0.2270 per $100 of value, taxes would increase compared to 2005 taxes by

$18,716.

Schedule A - Unencumbered Fund Balances

The following estimated balances will be left in the unit's property tax accounts at the

end of the fiscal year. These balances are not encumbered by a corresponding debt

obligation.

Type of Property Tax Fund

Maintenance & Operations

Schedule B - 2006 Debt Service

The unit plans to pay the following amounts for long-term debts that are secured by

property taxes. These amounts will be paid from property tax revenues (or additional

sales tax revenues, if applicable).

Description

of Debt

Principal or

Contract Payment

to be Paid from

Property Taxes

Interest to be

Paid from

Property

Taxes

Other

Amounts

to be Paid

Total Required for 2006 Debt Service

- Amount (if any) paid from funds listed in Schedule A

+ Amount added in anticipation that the unit will

collect only 100.00% of its taxes in 2006

= Total to be paid from taxes in 2006

- Excess collections last year

- Amount (if any) paid from other resources

The Jackson County Hospital District spent $98,438 from 07.01.05 to 06.30.06 on

enhanced indigent health care at the increased minimum eligibility standards, less the

amount of state assistance. For the current tax year, the amount of increase above last

year's enhanced indigent health care expenditures is $48,451.

This notice contains a summary of actual effective and rollback tax rates' calculations.

You can inspect a copy of the full calculations at 115 W. Main, Room 102, Edna, Texas

77957.