Thursday, March 28, 2024

LCCHC Board of Commissioners sign delegation authorization

Interim CEO Patonai and CFO Bodle to decide bond levy target

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CHELAN – By unanimous decision the Lake Chelan Community Hospital and Clinics Board of Commissioners voted on a Delegation Authorization for Interim Chief Executive Officer Steve Patonai and Chief Financial Officer Vickie Bodle to make a final decision on the bond levy target on behalf of the Board.

At the Nov. 27 meeting, the Board heard bond updates from Jim Nelson of D.A. Davidson. “Today we released what we called a preliminary official statement … it describes the district, the commissioners, the terms, the finances of the district, the terms of the bond … that goes out to local investors to insurance companies,” informed Nelson.

The next step will be a preliminary pricing conference call, “that would be on Dec. 10 and then on Dec. 11 we would set the final restraints to the bond,” said Nelson.

Towards the end of December the hospital will receive $20,000,000, which will go into the county’s treasure account into a restricted fund.

The bond money will finance a portion of the cost for the new hospital facility. The rest of the funding comes from the USDA financing.

Nelson also talked about the different forms of payment options. “The voters approved the bond on the amount of $20,000,000 for a term of 30 years or less … the goal is come in at .35 cents or less and also financing the bond for a term less than 30 years,” he said.

Nelson presented the following levy rates for a $300,000 home to the Board:

    •    28 years has a levy rate of .32 cents with a monthly cost of $8.06
    •    27 years has a levy rate of .33 cents with a monthly cost of $8.25
    •    26 years has a levy rate of .34 cents with a monthly cost of $8.48
    •    25 years has a levy rate of .35 cents with a monthly cost of $8.67

“For each year reduce it from 28 years then lowers your interest cost by approximately $940,000,” reported Nelson.

In case interest rates creep up Nelson suggest that the best way to go is the 26 years mark at .34 cents.

“I am just one of those people that I want to get out of debt as fast as I can and on a building that ages, I want to be done as soon as I can,” said Commissioner Jordana LaPorte.

After further discussion other Commissioners agreed with LaPorte, “I wouldn’t go with the 28 years, I would look into the 25, 26 years,” said Commissioner Mary Murphy.

With a 25 – 26 year target in mind, Patonai and Bodle  will conduct any further negotiations before the Dec. 3 deadline for determining the bond terms in case anything changes.

LCCHC Commissioners will hold a Budget Workshop on Dec. 18 from 1-5:00 p.m. at the LCCH Board Room. The next regular LCCHC Board Meeting will be held on Dec. 20, beginning at 1:30 p.m.

CEO Update:
After going into an Executive Meeting during the Nov. 27 LCCHC Board meeting to discuss CEO Candidates, Board Chair Mary Signorelli reported “your commissioners over the last few weeks have met and interviewed four CEO candidates in person here at the hospital and at this time we are continuing to negotiate for CEO position.”

 

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