The Gage County Board of Supervisors approved the required public hearing to allow for the issuance of revenue bonds for a new Beatrice Community Hospital and Health Center during the its regular meeting Wednesday.
The bonds will be issued by Hospital Authority No. 1 of Gage County.
Michael Rogers, of Baird Holm L.L.P. of Omaha, spoke on the hospital’s behalf to the board about the reason for approving the bonds during a public hearing — a requirement by Section 147(f) of the Internal Revenue Code.
“In the early 1980s, Congress decided it would be appropriate for borrowers who take advantage of tax exempt financing to be required to have a public hearing prior to such borrowing and have the borrowing approved by an elected official or elected body,” Rogers said.
The Hospital Authority, the issuer of the bonds, is an appointed body and therefore unable hold the public hearing, Rogers said.
The revenue bonds or notes will have a maximum aggregate principal amount of $45 million to finance the cost of replacement hospital facilities.
Beatrice Community Hospital and Health Center recently broke ground on what will be a 133,000 square foot facility located approximately 660 feet southwest of the intersection of U.S. Highway 77 and Hickory Road on the north side of Beatrice.
Rogers added that revenue bond financing is done by hospitals nationwide and was done by the Beatrice Community Hospital in the late 1970s, as well as 1994 and 1999.
“Another thing to note regarding this financing is that it will not be an obligation of the county, it will not be an obligation of the city,” Rogers said. “None of the taxpayers of the county or the city will be obligated on this tax exempt financing.
“It will be payable from the revenues of the hospital and the property owned by the hospital,” he added.
There is no tax support for these bonds, this hearing is simply a requirement of the Internal Revenue Code before the hospital can move forward.
In other board action:
n Approval was given to change order 11 for the courthouse renovation project. Change order 11 includes $230 towards a longitudinal diffuser of the District Courtroom ceiling.
Supervisor Ron Fleecs said the item was received damaged and sent back and a different size was received, dropping the cost of the item from $910 to $230.
The second part of the change order, an additional hydronic system that required penetration of a wall in the west basement of the courthouse for the geothermal system. The motion carried 6-1 with board member Gary Barnard opposed.
n The board approved a motion inviting informal quotes for upgrading the security system in the Gage County Courthouse and other county-owned properties 7-0. The current system, described by board members as “obsolete,” was installed eight years ago.
n The board approved Resolution 09-49 to transfer $200,000 from the general fund to the Highway Department for operation of that department 7-0.
n A resolution for combined consultant selection, NEPA, Uniform Act and the signing of the Financial Management Systems Certification was approved 7-0.