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Public hearing held; commissioners OK use of proceeds from Allen County-issued bonds for Mercy Health projects in Butler County
Summary
Butler County commissioners held a public hearing and approved authorizing use of proceeds from bonds to benefit Bon Secours Mercy Health facilities in Butler County, allowing Allen County to issue tax-exempt hospital revenue bonds with up to $52 million of proceeds to be spent locally.
The Butler County Board of Commissioners opened and closed a statutorily required public hearing and authorized the county’s elected representative to approve the use of proceeds from a private-activity, tax-exempt hospital revenue bond issue that will be issued by Allen County for the benefit of Bon Secours Mercy Health-affiliated hospitals.
Bond counsel/representative Michael told the board that Allen County, Ohio, will be the issuer and that Butler County’s approval is required only as part of federal regulations governing private-activity tax-exempt bonds. "Allen County will be the issuer of these bonds," Michael said, explaining that the county’s action would permit a portion of the bond proceeds to be used in Butler County.
Michael said the aggregate bond issue would be about $950 million, with up to $52,000,000 of proceeds available for projects in Butler County; he identified two Butler County facilities that could benefit: Fairfield Hospital and Fairfield Family Medicine on Wessel Drive in Fairfield. Michael also said an indemnification agreement exists under a participating public hospital agencies agreement entered in February 2008; that agreement indemnifies participating counties for costs arising from the arrangement.
On the commissioners’ agenda the related item (ID 21574) would authorize Butler County to act as the applicable elected representative and approve the use of proceeds; the agenda language cited a maximum principal amount for the underlying bond issuance (the agenda referenced $942,000,000 as a maximum principal amount). The bond representative’s verbal figure of about $950 million and the agenda maximum of $942 million were both stated during the meeting.
No members of the public spoke in favor or opposition during the hearing. Commissioners moved to close the hearing and then approved the authorization for the county to consent to the Allen County-issued bonds for Mercy Health projects. Finance and legal staff noted that the county would be a conduit only and that the county assumes no obligation for the hospitals’ debt under the presented agreement and federal code requirements.
Actions on this item included a motion to open and close the public hearing and a motion to authorize the administrator to execute documents, with the administrator to coordinate execution with the prosecutor’s office as needed. The motions passed on recorded votes.
