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Novant Health requests county TEFRA public hearing on up to $855 million in tax‑exempt bonds
Summary
A Novant Health representative told the Forsyth County Board on April 21 that the National Finance Authority and Novant request a TEFRA public hearing and board approval in principle for up to $855 million in health‑care facility revenue and refunding bonds; counsel emphasized the bonds would not be county obligations.
At an April 21 briefing Charles Boyer, representing Novant Health and bond counsel, asked the Forsyth County Board of Commissioners to hold a public hearing and approve in principle the issuance of tax‑exempt health‑care facility revenue and refunding bonds of up to $855 million to benefit Novant Health.
What was presented Boyer said the National Finance Authority will act as issuer and Novant and its affiliates are the borrowing entities. The request is a TEFRA (federal tax) public hearing and approval under Section 147(f) of the Internal Revenue Code and the applicable National Finance Authority rules because some of the facilities that will benefit from bond proceeds are located in jurisdictions within the county's legal boundaries.
Key assurance Boyer and bond counsel emphasized the county's action on the TEFRA hearing is procedural: "the bonds will not constitute a debt of the county nor will the county have any obligation to repay," Boyer told commissioners. He said the county's approval is required to satisfy federal TEFRA procedural requirements before issuance and that parallel hearings were being held in nine other jurisdictions across North Carolina and South Carolina for other facilities in the financing.
Next steps The April 24 agenda included the TEFRA public hearing and a resolution approving the request in principle. County staff and bond counsel said that, if the board grants the TEFRA approval, it does not create county liability and is a step in the federal tax‑exempt bond process.
Clarifying details - Statutory reference: Section 147(f) of the Internal Revenue Code was cited by counsel as the authority for the county's TEFRA hearing role. - County liability: Counsel reiterated the bonds would not be county debt nor subject the county to repayment obligations.
Ending The Novant presentation was brief and staff said the TEFRA hearing and resolution would appear on the April 24 agenda for formal action.
