HomeMy WebLinkAboutA007 - Council Action Form dated August 9, 2011 ITEM # 22
DATE: 08-09-11
COUNCIL ACTION FORM
SUBJECT: SETTING SEPTEMBER 13, 2011, AS THE DATE OF PUBLIC HEARING
FOR AUTHORIZATION TO ISSUE HOSPITAL REVENUE BONDS,
MARY GREELEY MEDICAL CENTER SERIES 2011, IN AN AMOUNT
NOT TO EXCEED $65,000,000
BACKGROUND:
Mary Greeley Medical Center (MGMC) is in the process of implementing a major facility
expansion to continue to provide quality regional medical services. 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,
Council action is required to issue revenue bonds for the hospital.
The issuance of revenue 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 bonds requires that a public hearing be held.
ALTERNATIVES:
1. Establish September 13, 2011, as the date to hold a public hearing and take action
to authorize the issuance of Hospital Revenue Bonds, Mary Greeley Medical Center
Series 2011, in an amount not to exceed $65,000,000.
2. Delay the hearing on the issuance of Hospital Revenue Bonds.
MANAGER'S RECOMMENDED ACTION:
Mary Greeley Medical Center provides quality medical services to both Ames and a
large surrounding area, and is a major economic contributor to the community.
Issuance of these bonds is required to provide funding for the Medical Center's planned
facility expansion. Issuance of these 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 therebyestablishing September 13 2011 as the date to hold a public
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hearing and take action to authorize the issuance of Hospital Revenue Bonds, Mary
Greeley Medical Center Series 2011, in an amount not to exceed $65,000,000.
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