DATE: November 16, 2021
TO: Board of Supervisors
SUBMITTED BY: Jean M. Rousseau, County Administrative Officer
SUBJECT: Conduit Financing for Community Hospitals of Central California and Fresno Community Hospital and Medical Center (Not a County Liability)
RECOMMENDED ACTION(S):
TITLE
1. Conduct a public hearing under the Tax Equity and Fiscal Responsibility Act ("TEFRA") and the Internal Revenue Code of 1986, as amended (the "Code"), regarding the conduit issuance of qualified 501(c)(3) bonds (the "Bonds") in an aggregate principal amount not to exceed $425,000,000 to finance the construction, improvement, expansion, renovation and/or equipping of certain portions of the health care and related facilities owned and/or operated by Community Hospitals of Central California and Fresno Community Hospital and Medical Center (the "Borrowers") located in the City of Fresno and Clovis in Fresno County.
2. Adopt the resolution approving the conduit issuance of the Bonds by the California Municipal Financing Authority ("CMFA") for the benefit of the Borrowers which adoption is solely for the purposes of satisfying the requirements of TEFRA and the Code.
REPORT
The County has received a request from the CMFA and the Borrowers, each of which is a nonprofit public benefit corporation, to conduct a public hearing concerning the conduit issuance by the CMFA of qualified 501(c)(3) bonds in an amount not to exceed $425,000,000 to finance the construction, improvement, expansion, renovation and/or equipping of certain portions of the health care and related facilities owned and/or operated by the Borrowers. Exhibit "A" includes the letter requesting the hearing. The recommended actions are solely for the purposes of satisfying the requirements of TEFRA and the Code.
The Code requires that prior to the issuance of the Bonds by the CFMA, the applicable elected representatives of a qualifying governmental unit with jurisdiction over the area where the project is located m...
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