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Calexico Hospital board to get detailed numbers of new bond issuance

July 02, 2001|By AARON CLAVERIE, Staff Writer

CALEXICO — The final numbers should be in.

When the Heffernan Memorial Hospital District trustees meet Tuesday night they will receive a "financial update" from board attorney Eduardo Rivera that should include specific numbers — to the penny — that detail how many millions of dollars of bonds were issued and sold by the district/city's "joint powers authority" and how much it cost to pay for that bond issuance and sale.

"I don't have the numbers now but I will have them by Tuesday," Rivera said this morning.

The authority is an independent public entity made up of two City Council members and two hospital district trustees.

It was created in 1996 to sell and manage a $9.35 million bond issuance and sale that used the city's half-cent sales tax revenue as collateral.

That half-cent sales tax was approved by Calexico voters in 1992 to offset the hospital's losses from providing indigent care at Calexico Hospital.


The 1996 bond issuance was made to pull the hospital district out from under a pile of debt.

The 2001 bond issuance was made to pull the hospital district out from under a pile of debt as well but it was done to take advantage of lower interest rates.

While the hospital district board had no say in the authority's bond issuance, some of the board members were involved with the approval of the 2001 issuance in their capacity as joint powers authority board members.

On June 22, hospital board Trustee David Ouzan stepped away from his authority seat instead of signing off on the deal because he had some concerns with the fees to be charged for the issuance and sale of the bonds.

At Tuesday's meeting the district board will appoint a new member to the authority board to replace Ouzan. The board also will hear from Rivera on how the district's recent request for medical service proposals has played out.

For the past few weeks the board has promoted the availability of the hospital building in publications throughout Southern California.

The board has recieved four offers from various medical service providers but has yet to shore up anything solid.

Staff Writer Aaron Claverie can be reached at 337-3419.

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