County finalizes ordinance to refinance hospital debt

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NEWBERRY, S.C. -- Newberry County Council has approved two third readings for ordinances, one that involves an annual lease-purchase payment related to rolling stock purchases and the other for refinancing Newberry County Memorial Hospital's debt.

The first ordinance provides for the issuance and sale of General Obligation Bonds, not exceeding $1,900,000 in aggregate principal amount.

This pertains to the annual lease-purchase payment of principal and interest related to, past, rolling stock purchases, such as ambulances and fire trucks. This also pertains to indebtedness related to the County's public work complex.

"Payments on this short-term borrowing are made each Dec. 30," County Administrator Wayne Adams said.

The ordinance does not include any new lease-purchase indebtedness.

Council held a public hearing for this ordinance, with no one speaking for or against. Third reading was approved after Councilman Kirksey Koon made a motion and Councilman Bill Waldrop seconded.

Council also approved third reading for an ordinance authorizing the issuance of $7,500,000 aggregate principal amount of Special Source Refunding Revenue Bond for Newberry County Memorial Hospital. This ordinance refinances the hospital's debt.

"The hospital does not have stand a lone authority to issue debt of this kind. The debt instrument pledges only the assets and revenues associated with the hospital itself," Adams said.

The hospital will save in excess of $400,000 through the refinancing on a net-present-value basis.

Council approved third reading after Waldrop made a motion and Councilman Travis Reeder seconded.

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