County solicitor seeks TEFRA resolution for $94 million Geisinger/St. Luke’s financing

Attorney Marty Cerullo asked the Schuylkill County Board of Commissioners on May 21 to adopt a TEFRA resolution that would clear the way for a tax-exempt financing issued by the Lehigh County General Purpose Authority. The financing request includes an estimated $94,000,000 in new money tied to Geisinger Health’s acquisition of membership interest in Geisinger / St. Luke’s Hospital and related campus expansion in Orwigsburg.

Cerullo, appearing on behalf of the Schuylkill County Industrial Development Authority, said the TEFRA approval is required by federal tax rules for certain tax-exempt bonds and emphasized the county would not incur borrowing or financial responsibility by adopting the resolution. The proposed use of proceeds described in the request includes acquisition of the membership interest, purchase of medical equipment, expansion of the emergency department and development of a medical office building on the Orwigsburg campus.

The item was presented as a solicitor’s office request and no county vote on the TEFRA resolution is recorded in the meeting transcript. Commissioners heard the explanation and placed the request on the record; the transcript does not show a formal approval, denial or further action in that session.

If adopted by the necessary authorities, the financing would be administered through the Lehigh County authority; the resolution before the county is procedural and is intended to meet federal requirements for issuing tax-exempt obligations. The county solicitor’s notation that the action "does not represent any borrowing or financial commitment or responsibility of Schuylkill County" was recorded in the minutes.

Next steps: the transcript shows the TEFRA request was presented to the board for consideration; the record does not indicate when the matter will return for final action by the commissioners.