TITLE
Recommendation to receive a report from the City Treasurer regarding the Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing, and adopt resolution approving the issuance of revenue bonds by the California Statewide Community Development Authority (CSCDA) in an amount not to exceed $985,000,000 to benefit Catholic Healthcare West, including an approximately $14,000,000 to benefit Long Beach's St. Mary Medical Center. (District 6)
DISCUSSION
Catholic Healthcare West, a non-profit benefit corporation, has requested the California Statewide Communities Development Authority (CSCDA) to issue revenue bonds on its behalf in an aggregate amount not to exceed $985,000,000 to among other things finance or refinance the acquisition, construction, improvement and equipping of certain medical centers. The City of Long Beach is a member of CSCDA. Catholic Healthcare West owns St. Mary Medical Center (Facilities). Approximately $14,000,000 of the aggregate amount is to be used for the benefit of the Facilities, in particular for seismic retrofits and equipment acquisition.
The Internal Revenue Service (IRS) Code requires that CSCDA seek approval from the City Council of the bonds issued, because a portion of the bonds will benefit the Facilities located within Long Beach. The approval of the attached resolution in no way indicates responsibility on behalf of the City for debt repayment. A Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing notification was published in the Press-Telegram on February 7, 2007. The TEFRA hearing was held on February 22, 2007 at 9:00 a.m. The public hearing, required by Federal tax law regulations, was conducted by the City Treasurer in the sixth floor conference room at City Hall. No public comment was presented.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on February 21,2007, and Budget and Performance Management Bureau Manager David Wodynski on February 22, 2007.
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