Llano City Council on Tuesday ratified a Llano Economic Development Corporation (LEDC) budget amendment that allocates $678,000 from LEDC reserves to support local hospital operations and approved the LEDC's proposed FY2025-26 projects and budget.

The move was presented to the council as an emergency support measure to stabilize hospital operations while staff pursue a Texas Health and Human Services Commission program that, according to presenters, multiplies local investment through an intergovernmental transfer (IGT) mechanism. "If we have those two things, we can get everything where it needs to be," said Linda Walker, who introduced herself as the hospital's new chief executive officer.

Why it matters: LEDC leaders and hospital officials told the council the EDC funds are intended mainly to cover near-term operating expenses so the hospital can participate in a July IGT submission. David Willman, addressing the council, described the program this way: "Every dollar you put into this, they will send back it's either 2 and a quarter to $2.50." Willman said an illustrative submission of about $500,000 would return roughly $1.25 million to the hospital, with additional smaller payments expected in subsequent months.

Council members were presented with the LEDC's prior actions: an earlier budget amendment (discussed at the beginning of the year) of $668,000 and the new reserve draw of $678,000 that LEDC voted to approve before asking the council to ratify the action. Pat McDowell and other LEDC members summarized the board's reasoning and stressed the hours volunteers and staff have spent stabilizing hospital governance and finances after a transition away from the previous operator, MidCoast. "We have brand new signage up today," Walker said, describing operational changes since June 1 when the hospital authority regained control of bank accounts previously managed by MidCoast.

Council members asked for details about timing and risk. Walker and Willman told the council the IGT program has specific deadlines and that the initial return would be expected by August 1, with another payment in September. Willman said some debt left by MidCoast must be repaid in order for the hospital to remain eligible for future program participation.

The council also heard a broader LEDC FY25-26 budget presentation that keeps the hospital as the top priority and allocates remaining sales tax funds to bond payments, administration, advertising, business retention and development, and a modest set-aside for housing-related initiatives. LEDC members described possible uses for housing funds (infrastructure upgrades or grant-matched development assistance) but said the board will avoid direct developer incentives that would single out individual builders.

Action: A council motion to ratify the LEDC's budget amendment and to approve the LEDC FY25-26 project list passed on voice vote. The council record shows "Aye" and the mayor declared the motion carried.

Speakers and attribution: Quotes and details in this article come from Linda Walker (hospital CEO), David Willman (LEDC/hospital presenter), Pat McDowell (LEDC board), Ron Cunningham (county representative), Marty (city staff), Alan (LEDC), and Mayor Laura Almond. Subsequent references use last names.

Context and next steps: Officials described the funding as contingent on using local dollars to trigger state program multipliers; LEDC and the hospital will continue to pursue state and private sources while the council has ratified the LEDC's reserve draw. The LEDC indicated housing and infrastructure support remain secondary priorities while the hospital is stabilized.