Trumbull County holds public hearing on Salem hospital facilities revenue bonds for Shepherd of the Valley

Trumbull County commissioners opened a public hearing on proposed hospital facilities revenue bonds to be issued by the City of Salem, Ohio, to refinance projects associated with Shepherd of the Valley. Blake Beachler, bond counsel to Trumbull County, said the hearing was held to satisfy the Internal Revenue Code’s public-comment requirement for medical facility financings.

The hearing matters because federal tax rules require public notice and comment for certain tax-exempt financings and the board must record that opportunity before consenting to the financing arrangements. Beachler said the bonds would be issued by Salem and that repayment would be an obligation of Shepherd of the Valley, not Trumbull County.

"This is a simple public hearing, regarding the issuance, by the city of Salem, Ohio of hospital facilities revenue bonds," Beachler said. He added, "this is not a debt of the county. It is a solely, debt of the city of Salem, and the obligation of Shepherd of the Valley, to pay debt service solely pressed with that." Beachler also told the commissioners a resolution on the agenda would allow Salem to issue the debt and would authorize a public hospital agencies agreement that memorializes the arrangements and provides for payment of bond counsel fees by Shepherd of the Valley.

A representative who identified himself as Tony Brewer described local facilities and employment and said the organization serves about 280 residents and operates assisted-living units on multiple campuses. "We have 3 unit assisted living. But, 280 residents," Brewer said, and later described potential future use of property on the Liberty and Holland campuses.

No members of the public voiced opposition during the hearing. After the presentation and brief discussion, a commissioner moved to take the hearing under advisement; the motion was seconded and recorded as approved with Commissioners Malloy, Bernard and Hernandez voting yes. The record shows the board then moved and voted to adjourn.

Beachler told the commissioners the county would not be responsible for paying his fees and that Shepherd of the Valley would be billed for those costs.

The hearing provides the public opportunity required by the Internal Revenue Code; it does not itself authorize the bond issuance. The transcript indicates a resolution authorizing Salem to issue the debt and a public hospitals agencies agreement were on the meeting agenda, but the record here shows only that the hearing was held and taken under advisement.

Minutes or subsequent agenda items will be needed to confirm any formal county action to consent to the financing or to approve related documents.