Finance committee backs sending Ascension $25 million bond request to full board

Rutherford County Finance Committee members voted to recommend that the Rutherford County Board proceed with a bond financing request from Ascension Health Alliance that committee members were told would bring about $25,000,000 to the Murfreesboro hospital.

Senator Bolden, identifying himself as a vice mayor and alderman from Murfreesboro, told the committee the request is part of a larger, multi-state 501(c)(3) financing arrangement in which a single issuer is used to reduce costs. "It's a cost savings to Ascension, basically," Bolden said. He said the local portion "involves the ICU and the emergency department" and that "there's no liability to the city, the county, any officers or directors. None."

The committee's recommendation will be forwarded to the full Rutherford County Board for a final vote next Tuesday. Bolden moved the recommendation; a finance committee member seconded the motion. Following a voice vote, the motion carried.

Committee members were given limited detail about the local project’s scope. Bolden described the local investment as "about $25,000,000" and said he did not have further specifics. He also told the committee there would be no expense to the city or county and no legal liability for local officers or directors arising from the financing.

According to Bolden, the structure — common in nonprofit hospital financings — uses a single issuer for multiple projects in different municipalities, which the presenter described as producing cost savings for Ascension. The memorandum referenced at the meeting (provided to committee members before the discussion) reportedly outlines the arrangement; committee members did not request additional detail during the brief discussion.

The committee’s approval was a recommendation only; final authorization requires action by the Rutherford County Board at its next meeting. The committee did not record a roll-call tally in the transcript; the approval was announced after a voice vote. No amendments or conditions were recorded in the committee discussion.

The item was the only substantive matter discussed before the committee adjourned.