(a) The board shall hold a public hearing on the proposed annual budget.
(b) At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c) Any district resident is entitled to be present and participate at the hearing.
(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that, in the board’s sole judgment and discretion:
(1) applicable federal and state law warrants and allows; and
(2) the interest of district residents requires in furtherance of hospital purposes.