Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Wagner, Assistant City Manager
Date:	June 4, 2013
RE:	Hospital Revenue Bond Financing for Lawrence Memorial Hospital

Please place the following item on the City Commission agenda for June 11, 2013:

Adopt on first reading Ordinance No. 8872, authorizing the issuance of up to $6,686,000 in Hospital Revenue Bonds for Lawrence Memorial Hospital for the purpose of financing, refinancing and reimbursing the costs of certain equipment and facilities to support hospital operations, if appropriate.   

Background: 

The City of Lawrence has received a request from Lawrence Memorial Hospital to assist the hospital with the issuance of hospital revenue bonds to finance, refinance and reimburse the costs of certain equipment and facilities to support hospital operations.  The City of Lawrence has participated in a number of prior hospital revenue bond issuances on behalf of the hospital.  This issuance would be for a maximum of $6.685 million. 

It is key to point out that with this type of bond financing, the City only serves as a conduit for the financing and assumes no obligation whatsoever regarding the repayment of the bonds for the project.  This type of financing, however, will assist the project with more favorable financing terms than conventional financing. 

Action Requested:

Adopt on first reading, Ordinance No. 8872, authorizing the issuance of hospital revenue bonds for the purpose of financing, refinancing and reimbursing the costs of certain equipment and facility to support operations at the Lawrence Memorial Hospital.