City of South Miami health authority approves up to $500 million in bonds for Baptist Health affiliates; chair recuses

The City of South Miami Health Facilities Authority voted unanimously Monday to authorize the issuance and sale of hospital revenue bonds totaling up to $500,000,000 for the Baptist Health South Florida obligated group, the authority’s vice chair said.

Vice Chair Reynold Martin Senior, serving as hearing officer while the authority’s chair recused, opened a TEFRA public hearing required under section 147(f) of the Internal Revenue Code and read the notice describing the proposed bonds and the list of facilities to be financed. The hearing record shows no members of the public attended and no written statements were submitted. "The purpose of this hearing is to permit the public to express their views in person or in writing regarding a proposed plan by the City of South Miami's Health Facilities Authority to issue its hospital revenue bonds in the aggregate principal amount not to exceed 500,000,000," he said.

Chair Lisandra Santos identified herself and disclosed a conflict of interest, saying she is an employee of Baptist Health and would "step out" and not participate in voting on items C1 and C22. She named her employment and recusal on the record before the vice chair presided.

After the TEFRA hearing was closed, the authority considered a resolution (item C2) authorizing the bonds, which described permissible uses of the proceeds, including financing, refinancing, working capital, and funding a debt service reserve. The resolution also states that the bonds would be limited obligations of the authority, payable solely from pledged revenues and not a pledge of the City of South Miami's faith and credit.

A committee member raised the authority fee previously set at $250,000 and asked whether it could be increased to $300,000 to direct additional funds for local needs, including easing pressure on the South Miami emergency room. "Maybe we ask for, instead of $250,000 maybe an ask of $300,000," the member said. Bond counsel for Baptist Health South Florida responded that the $250,000 fee is "actually higher than most other authorities in the state," citing Palm Beach County’s approach of 1.5 basis points (about $75,000 on a $500 million deal) as an example.

The vice chair moved to adopt the resolution and a board member seconded; a roll-call vote was taken and the resolution passed 4-0. The transcript records the tally as "it passes 4 0." The transcript does not map each individual yes vote to a named member; the vice chair, who presided, voted in favor.

Members asked about the disposition of the $250,000 fee and when the authority might meet again to decide how to allocate those funds. Staff said the next regular meeting is the annual meeting in March 2026 but that the authority could call a special meeting sooner. A staff member cited Florida statutory language that such money must be used for nonprofit human health service agencies. Staff and Baptist representatives said they would research prior uses of similar fees and report back. One participant stated the account currently holds no funds.

The authority tentatively agreed to schedule a special meeting in about three months to discuss eligible agencies and possible allocations of the fee proceeds. With no further business, the meeting was adjourned.

What happens next: The bonds’ issuance will proceed according to the terms in the adopted resolution and any market and underwriting steps; the authority plans to reconvene in a special meeting to consider the disposition of the authority fee and staff will report back with details on prior uses and statutory constraints.