HomeMy WebLinkAboutA047 - Council Action Form dated April 12, 2016 ITEM # 19
DATE: 04-12-16
COUNCIL ACTION FORM
SUBJECT: ISSUANCE OF HOSPITAL REVENUE REFUNDING BONDS FOR
MARY GREELEY MEDICAL CENTER
BACKGROUND:
Mary Greeley Medical Center (MGMC) has an opportunity for savings by refunding
outstanding Series 2011 bonds. Summary information on the refunding is included in an
attachment prepared by the MGMC financial advisor.
The Municipal Code section that provides for the duties and authorities of the hospital
trustees does not delegate activities related to the issuance and sale of revenue bonds.
Therefore, City Council approval is required to issue revenue bonds for the hospital.
The issuance of revenue refunding bonds by MGMC does not create a financial
obligation or pledge of credit or taxing authority for the City of Ames. Only revenues
from MGMC will be used to pay back the bonds.
Issuance of these bonds requires that a public hearing be held.
ALTERNATIVES:
1. EstablisK,April 26, 2016, as the date to hold a public hearing and take action to
authorize the issuance of Hospital Revenue Refunding Bonds, Mary Greeley
Medical Center Series 2016, in an amount not to exceed $68,000,000.
2. Delay the hearing on the issuance of Hospital Revenue Refunding Bonds.
MANAGER'S RECOMMENDED ACTION:
Mary Greeley Medical Center provides quality medical services to Ames and the
surrounding area, and is a major economic contributor to the community. Issuance of
refunding bonds will provide savings by refunding outstanding bonds. Issuance of the
bonds involves no financial obligation on the part of Ames property tax payers.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1 as described above.
1