Meeting Type: BCC Regular Meeting
Meeting Date: 4/16/2024
Item Status: New
From: Roger H. Rendleman, County Administrator
Submitted by: Anu Gary, Administrative Services Manager
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ITEM TITLE
Title
TEFRA Resolution #2024-087 - Approval of Bonds Issued by Infirmary Health System for Certain Capital Improvements for Facilities Located in Baldwin County, Alabama
Body
STAFF RECOMMENDATION
Recommendation
Adopt Resolution #2024-087 pursuant to Section 147 of the Internal Revenue Code, which consents and approves the bonds issued by Infirmary Health System Special Care Facilities Financing Authority of Mobile for capital improvements or expenditures of the Infirmary Health System, Inc. with the potential project sites in Baldwin County being in Fairhope, Daphne, and Bay Minette.
End
BACKGROUND INFORMATION
Previous Commission action/date: August 17, 2021 and January 5, 2016 - Previous TEFRA approvals by BCC for IHS.
Background: A representative of Infirmary Health System, Inc. (IHS) will be present during the April 16, 2024, Commission work session to answer any questions.
IHS is requesting the Baldwin County Commission to approve the issuance of bonds for certain capital improvements by IHS located in Baldwin County.
A public telephone hearing was conducted by Infirmary Health on April 3, 2024, at 11:00 a.m. concerning the issuance of bonds. County Administrator Rendleman participated in the hearing via telephone. The hearing was held as required by TEFRA regulations providing an opportunity for citizens to express their views on the projects to be located in their community. The potential project sites in Baldwin County are Fairhope, Daphne, and Bay Minette.
TEFRA requires public approval of a project by a governmental unit in which that project will be located. Infirmary Health System is requesting the Baldwin County Commission to adopt a resolution approving the IHS bond financing.
The process (TEFRA approval) is required by the federal tax rules (the Tax Equity and Fiscal Responsibility Act of 1982). Compliance with TEFRA is a prerequisite to issuing tax-exempt debt for 501(c)(3) nonprofit entities like IHS.
The County will not be responsible for the payment of the Bonds in any way. The Bonds will strictly be an obligation of IHS and its affiliates.
FINANCIAL IMPACT
Total cost of recommendation: N/A
Budget line item(s) to be used: N/A
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
Yes.
Reviewed/approved by: Approved by County Attorney 04/08/2024 akg
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? Yes. Infirmary Health is responsible for all required advertising. Public Notice was posted on the County website public notices and public hearings pages on March 27, 2024.
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: N/A
Individual(s) responsible for follow up: N/A
Action required (list contact persons/addresses if documents are to be mailed or emailed): Administration - Correspondence and fully executed copy of the resolution to:
Infirmary Health System
ATTN: Mr. Scott A. Browning
General Counsel
Post Office Box 2226
Mobile, Alabama 36652
scott.browning@infirmaryhealth.org
cc: Kevin Beatty, Maynard Nexen - kbeatty@MaynardNexsen.com
Roger Rendleman
Aislinn Stone
Christie Bezoari
Beth Hodges
Additional instructions/notes: N/A