$35M bond measure passes

NORWALK — Huron County commissioners on Tuesday approved up to $35 million in hospital facilities revenue bonds for Fisher-Titus Medical Center, following a brief presentation by Fisher-Titus staff outlining refinancing and construction plans. The resolution authorizes the issuance of tax-exempt revenue bonds to refinance existing hospital debt and fund new capital projects. According to Fisher-Titus chief financial officer Scott Endsley, approximately $16 million will refinance current debt, roughly $15 million will finance construction of a new health center in Bellevue, and about $5 million is designated for future capital expenditures. The Bellevue facility, which will be built in Sandusky County, is projected to total between 18,000 and 20,000 square feet, with approximately 4,000 square feet of shell space for future expansion. Services are expected to include family medicine, urology, pediatrics and general surgery, along with additional offerings, according to Endsley. Endsley told commissioners the refinancing would reduce debt servicing costs from approximately 4.5% to about 3.7%. The change is projected to lower annual debt service payments by roughly $500,000. During the meeting, Huron County assistant prosecutor Randy Strickler explained that these bonds are not general obligations of Huron County or any other political subdivision and that only Fisher-Titus is responsible for repayment. The agreement is structured as a lease-leaseback deal, which will require the county to lease facilities from Fisher-Titus and lease it back to the hospital. Those lease payments will be used to pay the bonds. Strickler described said the lease-leaseback structure used in the issuance as necessary under state and federal bond law and is "of no consequence to the county." Because Huron County is a political subdivision, it must serve as the issuer for the bonds to qualify for tax-exempt status, Endsley said. A public hearing on the bond issuance opened at 9:15 a.m. and closed moments later after no public comment was offered. What are bonds? A bond is a loan that is repaid over time with interest. In this case, repayment comes from hospital revenue, not county tax dollars, meaning taxpayers are not responsible. Revenue bonds differ from general obligation bonds in that they are repaid through hospital revenues rather than county tax dollars. The county is serving as the issuer so the bonds can qualify for tax-exempt interest rates, but repayment responsibility rests solely with Fisher-Titus. Few comments offered The resolution passed with two commissioners, Tom Dunlap and Bob Morgan, voting "yes," with the third commissioner, Harry Brady, absent. Commissioners did not provide further details following the vote Tuesday. Following the meeting, commissioner Bob Morgan said he had no additional information beyond what was presented. "I don't know anything other than what we just did," Morgan said when asked about the bond authorization. Commissioner Tom Dunlap declined to answer questions after the meeting. Endsley referred additional questions to Fisher-Titus chief operating officer Matt Mattner. Calls to Mattner were not returned as of press time Tuesday.