Adena Health seeks county approval for up to $26 million in conduit refunding bonds; commissioners approve

Ally Kimboer, an attorney representing Adena Health System's financing team, told the commission that federal tax rules require a public hearing when a political subdivision serves as conduit issuer for tax-exempt hospital facilities bonds. She described a proposed adjustable-rate demand refunding issuance not to exceed $26,000,000; proceeds would refinance a taxable loan taken to refund the 2021 bonds and pay issuance costs.

"The bonds are not debt or general obligations of the county," Kimboer said. "By having Ross County serve as the issuer, Adena Health can receive tax-exempt treatment; Adena is solely responsible for repayment." She added that the county's role would be administrative and that there would be no county debt exposure under the proposed structure.

Commissioners asked clarifying questions about the buildings covered and the prior 2021 issuance. Presenters said the 2021 series financed two buildings, including a medical office building acquired to attach to Adena's main campus; the taxable line of credit used after May 1 will be refinanced under the proposed 2026 issuance. The commission moved, seconded and approved the resolution by voice vote with all present answering "aye." Staff noted that the signature pages could be returned by mail later in the week.

The hearing was conducted to meet Internal Revenue Service public-notice requirements for conduit bond issuances and to allow public comment; no public objections were recorded during the meeting. The bond approval authorizes the county to act as conduit issuer; Adena Health System will remain responsible for repayment and for all costs and liabilities associated with the bonds.