El Paso County Commissioners Court voted Monday to authorize the El Paso County Hospital District to proceed with a general obligation bond issue not to exceed $275 million to fund a first tranche of hospital capital projects.

Jacob (UMC representative) and Michael Núñez, district chief financial officer for the El Paso County Hospital District, presented a financing plan that splits bond proceeds into an equipment portion (amortized over 10 years) and a bricks‑and‑mortar portion (amortized over 30 years). The presenters said the district plans a two‑tranche approach because IRS rules require most bond proceeds to be spent within 36 months.

Key financing details presented included an estimated first‑issue par near $267.5 million, an equipment component of roughly $78.7 million and a longer‑term capital component of about $189 million. Presenters estimated aggregate annual debt service near $22.7 million for the first 10 years, then approximately $12.5 million thereafter. Because market rates have been volatile, the hospital district and its advisors recommended a conservative ‘‘not‑to‑exceed’’ interest rate cap (the court was advised to set a 7% cap for authorizing the order).

Why it matters: The bond proceeds would finance clinic and hospital expansions intended to increase local capacity for trauma and specialty care. District officials said projects include a burn center, a comprehensive cancer center expansion (phase two), roughly 20–25 additional critical care beds, more endoscopy rooms, off‑campus surgical centers and a geriatric clinic, among other upgrades.

Court action and oversight: County Judge Samaniego moved to approve the bond order with Commissioner Stout seconding the motion. The court recorded the motion as carrying; one commissioner was absent. County legal staff offered to review bond counsel materials at the court’s direction. Michael Núñez and district staff said they will return with final pricing information after the anticipated June bond sale and will report back to the court on final interest rates and project allocations.

Next steps: The district will proceed with preparatory steps — rating‑agency presentations, a preliminary official statement and a priced bond sale targeted for early June — and plans to bring final bond pricing and project budgets back to the court after the sale.