San Gorgonio Memorial Hospital Touts Taxpayer Savings of Nearly $17 Million

Two recent refinancing efforts by the hospital will save a total of nearly $17 million, according to hospital officials.

The following was submitted for publication on behalf of San Gorgonio Memorial Hospital: 

San Gorgonio Memorial Healthcare District Board recently refinanced about $58 million of their outstanding general obligation bonds, saving District taxpayers nearly $12 million.  This is the second bond refinancing done by the District in the past year and a half.  A similar bond refinancing of $25 million done in early 2013 saved District taxpayers about $5 million.

According to G.L. Hicks Financial, the District’s financial advisor, the combined refinancing of the District’s 2006 Series bonds and 2009 Series bonds will save a total of $16,526,856 in interest costs over the next 25 years.

“All of the savings from reduced interest charges on the refinanced bonds accrues to the benefit of District taxpayers,” said Mark Turner, San Gorgonio Memorial Hospital CEO.

Three separate bond offerings were issued as part of the 2006 Measure A Bond obligation passed by District voters to fund the cost of the hospital’s master plan construction, and for the past two years, the San Gorgonio Memorial Healthcare District has taken advantage of low interest rates to refinance those bonds and save taxpayer dollars.

“The District Board pursued these savings when we realized a reduction in bond interest rates would benefit the taxpayers,” said Lynn Bogh Baldi, San Gorgonio Memorial Healthcare District Board Chair. “It is because of the support of our communities that we were able to pass Measure A in the first place, and we are grateful for that support.” 


Ken July 04, 2014 at 07:37 PM
Meanwhile back at the ranch.."Beaumont school board members get lesson on bond sales" Record-Gazette 6-13-2014.. Well I wont comment on the veracity and integrity of the Parties involved in the whole deal, ALSO being the ones giving the lessons..However Google "Municipalities Continuing Disclosure Cooperative Initiative" (if you havent already). The SEC is extending generous terms for those Agencies that "self-report" previous omissions of things like ..continuing disclosure statement..And who was "schooling the school board members about their responsibilities?" The same people that provide services to SGMH, who is a subsidiary of the Bank (Mellon Bank) providing the Capital for Bonds. Piper-Jaffray. Why the sudden interest to be on the up and up? Well if you Googled above then looked pg 31 of http://emma.msrb.org/ER778168-ER604860-ER1006898.pdf it is plain to see the Continuing Disclosure agreement requirements were not met. Also...Appendix C Exhibit A NOTICE TO EMMA OF FAILURE TO FILE ANNUAL REPORT(S).......By self-reporting themselves and rewriting the entire issue. Well it will save everyone headache and some $ way down the road
Ken July 04, 2014 at 07:43 PM
I cant give you the exact wording of the Ballot Measure but I can provide the Bond language that grants such rights from the Issuers (SGMH)
ATC July 05, 2014 at 12:31 PM
Oh, I have no doubt that the actual language within the bond allowed the increase. My point is that the ballot measure either ignored that fact entirely or glossed over it so that the voter wouldn't notice. There is no way that 75% of the voters (even as stupid as we often are) would have agreed to a tax assessment that could be raised to any level at any time.
Ken July 06, 2014 at 02:08 AM
I completely understand your concerns Mr ATC. They are valid and they are wise. There are underlying elements with regards to these issues that the Board has no intention of informing anyone of. Yes all seems well with these supposed savings to the taxpayer pocketbook, but I am highly suspicious of any reduction in your tax load. Quite the contrary I see it going up even more. Why? In order to realize this "savings" a $64 million (@ approx 5 %) refunding package was borrowed to retire a $58 million dollar bond (@ approx 7 %) at an early redemption clause. The Bond information clearly states that these Bonds will be called for early redemption. Which also means a higher tax rate in the short term to realize savings over the previous long terms. The long and short of it is, IMHO the sooner they can retire a majority of outstanding debt, the sooner they can ask for another HUGE package to complete what they promised before. We shall see as taxes become due in the coming year as to how these savings are realized.
ATC July 12, 2014 at 11:54 AM
I'm certainly not holding my breath that the bond payment on my tax bill is going to go down. After all, it certainly hasn't yet, and this is the second time they've refinanced to "benefit the taxpayers", right? Yet my payments on these bonds have not gone done at all. ***** Looking over my tax bills, the payment on the Measure D Bond, starting in 2003, has done nothing but increase yearly with only one small (1.7%) decrease in 2010. That payment is now at 130% of where it started. ******* Similarly, payments on the Measure A Bond, starting in 2007, tripled in 2010, and had one small decrease (7%) in 2011 (tied to a slight decrease in my assessed valuation?). Otherwise it too has increased every year, and now is at 400% of where it started just 7 years ago!!! ******* Since my bond payments are now 430% of what we agreed to at the ballot box, and since they have never decreased as a result of "refinancing", I'd like to be assured that the length of time I will be paying is going to be significantly shorter. Yeah, right. ******* I agree, this is leading directly to them asking for another, larger, bond. Personally, I will never vote for another Hospital bond when the first 2 were so badly mismanaged. AFAIC, we've already paid for the patient tower with Measure A. I already have 2 Hospital payments on my tax bill, that continue to increase faster than anything else on that tax bill. I WON'T even consider voting for a third untill the first 2 are paid in full, and anybody that does is an idiot.


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