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Board approves TEFRA hearing for $80M tax‑exempt bond to support NorthBay/HealthCorps Vacaville expansion
Summary
The board held a TEFRA hearing and approved a resolution allowing the California Municipal Finance Authority to issue up to $80 million in tax‑exempt revenue bonds for HealthCorps Vacaville/NorthBay Health Advantage to finance facility improvements, including a 4,000‑sq‑ft oncology expansion; county staff said the county bears no liability.
The Solano County Board of Supervisors on Dec. 21 conducted the required TEFRA public hearing and approved a resolution that clears the way for the California Municipal Finance Authority to issue tax‑exempt revenue bonds of up to $80 million for the benefit of HealthCorps Vacaville (the borrower) and NorthBay Health Advantage.
Denise Dix, assistant treasurer-tax collector and county clerk, explained that the county is not the issuer, will not be financially liable for repayment and is acting as the required public forum for comment under the Tax and Equity Fiscal Responsibility Act (TEFRA). Borrower representatives said bond proceeds will be used to finance acquisition, construction and improvements at an existing healthcare facility in Vacaville (1020 Nut Tree Road), including a 4,000‑square‑foot expansion of the oncology department and replacement or upgrade of key equipment.
NorthBay representatives said the new funds will improve capacity for cancer treatment and lower the facility’s overall financing costs, strengthening its financial position and ability to serve patients outside the NorthBay system. Supervisors asked about contingency planning if the borrower’s finances change; NorthBay said the financing should strengthen the hospital’s operations and that closing prior smaller offerings had proceeded as planned.
The board adopted the TEFRA resolution by unanimous vote. County staff noted the bonds will be issued by the California Municipal Finance Authority and the county will have no legal or fiscal obligation for the project or repayments.
