VALDOSTA — County officials will meet with the Hospital Authority 8:30 a.m. Friday, Aug. 9, to approve refunding South Georgia Medical Center's revenue certificates.
Two special called meetings have been scheduled to be held jointly between the Lowndes County Commission and the Hospital Authority of Valdosta and Lowndes County on the second floor of the administrative building, in the overflow room, which is right next to the commission chambers, according to a county statement.
The purpose of the meeting is for Lowndes County to help refinance some of the Hospital Authority’s bond debt, which will create a significant savings for the hospital, the county statement said.
In 2011, the Hospital Authority issued revenue certificates, which are similar to bonds, and entered into an intergovernmental contract with the county providing additional security for the 2011 certificates.
To refinance the 2011 certificates, the authority is issuing refunding revenue certificates. This means the hospital will pay a lower interest rate.
At a county meeting in late July, commissioners approved a preliminary resolution for the refunding.
Friday, commissioners will have two items they will need to approve.
First, a supplemental resolution that approves the final version of the intergovernmental contract between the county and hospital preliminarily approved in July.
Under this resolution, the county will make the authority's principal and interest payments under the new certificates if the authority cannot, which means if the hospital fails to meet its obligations, the county will have to make up those payments.
The second item is a Tax Equity and Fiscal Responsibility Act resolution authorizing the issuance of the series 2019A certificates by the Hospital Authority. This resolution is routinely approved following the issuing of bonds where the proceeds will be used by a facility inside the county's jurisdiction.
Thomas Lynn is a government and education reporter for The Valdosta Daily Times. He can be reached at (229)244-3400 ext. 1256