Agenda

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Public Hearing 2. A.

Regular BOS Meeting

Meeting Date:	05/21/2019
Submitted For:	Mary Springer	Submitted By:	Mary Springer, Finance Director
Department:	Finance

Information

Request/Subject

Hold a public hearing regarding Banner issuance of Series 2019 Bonds as required by the Internal Revenue Code of 1986, Section 147(f), and adopt Resolution No. 19-05-06 supporting the transaction.

Background Information

Banner is requesting the assistance of Gila County with respect to host a public hearing for Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) approval as required by the Internal Revenue Code of 1986, as amended (the “Code”), in connection with the issuance of revenue bonds (the “Series 2019 Bonds”) for Banner by The Industrial Development Authority of the County of Maricopa (the “Maricopa Authority”).

A portion of the proceeds of the Bonds in a maximum principal amount of $14,000,000 will be applied by the Corporation to refund all or a portion of the Arizona Health Facilities Authority Revenue Bonds (Banner Health), Series 2015D (the “Prior Bonds”), a portion of which Prior Bonds were applied by the Corporation to finance and refinance the costs of the acquisition by the Corporation of the Banner Payson Medical Center facilities located at 807 S. Ponderosa Street, Payson, Arizona (the “Payson Project”).

Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), requires that a public hearing be held with respect to the proposed issuance of the Series 2019 Bonds. The Code further requires that Gila County, being the governmental unit having jurisdiction over the area in which the Payson Project described herein is located, approve the issuance of the Series 2019 Bonds for purposes of Section 147(f) of the Code following such public hearing.

Accordingly, Banner is respectfully requesting, solely for purposes of satisfying the requirements of Section 147(f) of the Code, assistance from Gila County with holding the TEFRA public hearing as required by Section 147(f) of the Code, and the approval of the Board of Supervisors of Gila County as to the issuance of the Series 2019 Bonds. The Series 2019 Bonds will be, and the Prior Bonds are, special limited obligations of the respective issuers thereof, payable solely from debt service payments to be made by Banner, and will not be, and are not, a debt, obligation or liability of Gila County.

The Bonds are to be issued in one or more series from time to time, during the expected 3-year period commencing on the date of adoption and approval of this Resolution, and the Corporation intends to issue one or more series of the Bonds not later than one year from the date of adoption and approval of this Resolution.

Evaluation

Banner is requesting the public hearing and approval of the resolution by the Gila County Board of Supervisors to comply with Internal Revenue Service Code Section 147(f). There is no financial impact to Gila County.

Conclusion

Solely for purposes of satisfying the requirements of Section 147(f) of the IRS Code, assistance from Gila County with holding the TEFRA public hearing as required by Section 147(f) of the IRS Code, and the approval of the Board of Supervisors of Gila County as to the issuance of the Series 2019 Bonds.

Recommendation

Staff recommends holding the public hearing and approval of the resolution.

Suggested Motion

Convene a public hearing regarding Banner issuance of Series 2019 Bonds as required by the Internal Revenue Code of 1986, Section 147(f); and adopt Resolution No. 19-05-06 supporting the transaction. (Mary Springer)

Attachments
Resolution No. 19-05-06
Public Notice
Affidavit of Publication-AZ Republic
Affidavit of Publication-Payson Roundup
Affidavit of Publication-AZ Silverbelt