After nearly two years of speculation, the mystery of who donated $300,000 that allowed Bedford to reopen its public library last year has been solved.

HealthMarkets of North Richland Hills came up with the cash after Bedford's bitter property-tax-cut election forced a shutdown of some city services, HealthMarkets' president and chief executive said Monday.

William Gedwed said he was worried about the effect of the cuts on some of the company's 1,300 employees who live in Bedford and other local communities.

The city temporarily closed the library and eliminated some other services after residents voted in March 2005 to reduce the tax rate from 49 cents per $100 of assessed property value to 40 cents.

The Star-Telegram had sought the source of the money since the City Council accepted the donation in April 2005. A tip finally pointed to HealthMarkets.

The tax-cut issue sharply divided Bedford. Residents angrily debated the issue at public meetings, posted signs and wrote letters to the editor. Backers of the tax cut said the council went too far when it raised the tax rate 27 percent in one year. Opponents said that cutting taxes would hobble city services.

Gedwed said the company requested anonymity to avoid becoming involved in the tax-cut controversy.

"I didn't want to be in the middle of a political battle," he said in an interview at company headquarters.

After reading about Bedford's budget problems, Gedwed said he asked city officials if his company could help. City officials did not approach the company seeking money, he said.

Gedwed said HealthMarkets has never done business with the city of Bedford and has no plans to do so. HealthMarkets sells low-cost health plans with limited benefits to self-employed people and their families in 44 states.

Tom Ross, director of administrative services for Bedford, confirmed that HealthMarkets provides no services to the city.

Two former Bedford officials -- then-City Manager Chuck Barnett and then-Deputy City Manager Steve Bass -- met with company officials April 7 and 11, 2005, at HealthMarkets headquarters to discuss the donation, company spokeswoman Donna Ledbetter said in an e-mail Monday.

The city received the check April 12, she said.