Commission approves TEFRA resolution clearing path for Renown to issue up to $310 million in hospital revenue bonds

The Washoe County Board of County Commissioners unanimously approved a TEFRA public hearing resolution on June 24 allowing the Public Finance Authority of Wisconsin to issue up to $310,000,000 in hospital revenue bonds on behalf of Renown Regional Medical Center.

The action, taken after a short staff explanation and without public comment, authorizes the county to conduct the Tax Equity and Fiscal Responsibility Act (TEFRA) hearing required by federal tax rules for certain tax-exempt private-activity bonds. Michael Large, Deputy District Attorney, told the board the vote is a procedural step: the bonds "are not a debt or obligation of the county" and the county bears no financial or reputational risk; Renown provided a letter of indemnification prepared by the borrower's bond counsel.

The resolution says bond proceeds may be used to finance and refinance acquisition, construction, renovation, improvement, equipping and furnishing of hospital and related facilities of Renown and affiliates located or to be located in Washoe County, and to pay certain costs of issuance. The staff report and the ordinance language presented to the board described the issue as potentially including private-activity bonds and qualified 501(c)(3) bonds under the Internal Revenue Code. The board did not take public comment on the item.

Commissioner Andriella moved to approve the resolution "as presented in the staff report," and Commissioner Garcia seconded. The motion passed unanimously.

The board's approval does not itself authorize issuance of bonds; instead it fulfills a federal procedural requirement that the applicable local governmental body hold a public hearing and approve the issuance under TEFRA. Renown, its affiliates and the Public Finance Authority will complete the financing through their chosen bond counsel and underwriters.