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speak regarding the financing methods For hospital renovation. No one present spoke
for or against the financing.
Chairman Troutman said during the meeting with the hospital board (a public
meeting at the hospital), it was the consensus of the board of commissioners that
Alternate 3 would be perhaps the best way to go at this time. Alternate 3 is 120,000
s. f. of new construction, a five -floor addition at a cost of $14.3 million for
construction, of which since these figures were presented, there has been a little
change. Now the cost would probably be $11.5 million in bond issues and $5.6
million or $5.7 million in hospital contributions.
This would require no county tax money; there will be no county tax rate
increase. This will be done by the issuance of revenue bonds.
Mr. Troutman said because of the changes in the things mentioned earlier in the
meeting and in order to "start the wheels turning," to go to bid and make this a
reality, the board of commissioners has to adopt a resolution of intent to issue
revenue bonds for certain improvements at Iredell Memorial Hospital. He asked if
any of the other county commissioners wished to comment.
Commissioner Mills addressed the board and the audience as the representative
from the county commissioners to the long range planning commission for Iredell
Memorial Hospital. He said he did not want to spend money for "pie in the sky," a
term that was used by some folks during the general obligation bond referendum in
the fall. He said the rooms were the top priority of needs. The commissioners will
not use their taxing authority to levy taxes to pay off the revenue bonds. The
bonds will be repaid through revenues from the hospital. Mr. Mills recommended
Alternative #3 as the financing method.
Chairman Troutman emphasized that should the board pass the resolution for the
revenue bonds, the county is not liable for the repayment of the bonds, rather the
hospital is liable for the repayment. He said Iredell Memorial Hospital, a county -
owned hospital, in recent years has been run with top efficiency. From a financial
standpoint Iredell Memorial has done extremely well and has both the capability of
retiring the general obligation bonds and the revenue bonds. The board of
commissioners in looking at the hospital from its administrative standpoint and
financial information believe that now would be a good time to undertake this pro-
ject and to become more improved in about 18 to 24 months and continue to provide
the level of service that they do now.
PUBLIC HEARING ADJOURNED. REGULAR MEETING RESUMED.
MOTION from Commissioner Mills to adopt the following resolution of intent as
prepared and use alternate 3, with the change mentioned by the chairman. (NOTE:
Change mentioned was the amount of money needed for revenue bonds which may be a
lower amount due to changes in interest rates.)
RESOLUTION OF a,TENT TO ISSUE REVENUE BONDS FOR
CERTAIN IMPROVEMENTS AT IREDELL MEMORIAL HOSPITAL
WHEREAS, the County of Iredell, North Carolina, owns Iredell Memorial Hospital,
,
a public general hospital, leased to and operated by a non-profit corporation; and
WHEREAS, Iredell Memorial Hospital is urgently in need of certain additions
and improvements; and