Llano City Council received an update on a change in state intergovernmental transfer (IGT) calculations that lowers the expected one‑time reimbursement tied to a prior budget amendment but does not eliminate the hospital authority’s need for funds.

The council was briefed that the city previously authorized $678,809.25 for a second tranche of hospital funding to support an IGT transaction. Pat McDowell introduced the item and said the city had planned to send funds to the hospital authority under an IGT arrangement. Council members were told the state’s treatment of the hospital’s public/private status has changed or been recorded differently, which alters the IGT outcome compared with earlier estimates.

David (identified in the meeting only by first name) explained the financial effect: an earlier estimate suggested the hospital would receive about $1,235,000 from the transfer; after the rule/recording change the expected return is about $749,000 — roughly $485,000 less than previously forecast. He told the council the hospital inherited a recoupment obligation from the prior Midcoast affiliation (a $1,283,000 recoupment referenced by the speaker) and that the reduction in expected IGT funds would affect the hospital authority’s cash plan for satisfying that obligation this year.

David also told the council the hospital faces unplanned capital and equipment costs: the emergency room air‑conditioner had failed, business‑office HVAC compressors needed replacement, and there may be other equipment surprises. The authority said those operating and one‑time needs are why the previously approved reserve draw remains necessary despite the IGT change.

Pat McDowell and David characterized the item as an informational update to explain that the design and timing of the IGT had shifted and that the authority still requires the city‑approved funds. Council did not take a separate, new expenditure action on the item at the meeting; the presentation was informational and intended to provide transparency on how the previously authorized funds are expected to be used.

Council members who spoke thanked the presenters and asked clarifying questions about the amounts and next steps. The council did not change the previously approved budget amendment during the discussion.

The city’s presentation cited the hospital’s transition from Midcoast to the current authority structure and described state recordkeeping — and the public/private classification used by the state — as the proximate cause of the lower IGT outcome. City staff and authority representatives recommended continuing to make the funds available to the hospital authority to address both the recoupment exposure and immediate capital repairs.