The fate of Effingham Hospital’s proposed financing for its modernization and expansion plans may be on the table this Friday.

Effingham County commissioners tabled approving a resolution to back the hospital’s financing for a $29 million expansion and modernization of the 40-year-old facility. 

 

By a 4-1 vote, commissioners tabled any action, with Chairman Dusty Zeigler casting the lone no vote.

 

“If there’s other information that can make this a better and a more viable situation for the county and for the taxpayers to support it, we would not be fiscally responsible if we did not plan for that,” Commissioner Myra Lewis said. “We should not leave a stone unturned.”

 

Commissioners and hospital representatives met as recently as Thursday, the day before the vote to table, to explore other financing options.

They have discussed using special purpose local sales tax option proceeds

 

The hospital authority has been invited to apply for Build America bonds from the federal Housing and Urban Development department. The program for the bonds ends Dec. 31, and as part of the loan application, the hospital authority needs a resolution from the county commissioners guaranteeing 2 mills for 25 years, the life of the loan, and a resolution transferring the needed land for the expansion.

 

Hospital Authority Chairman Rick Rafter said they want to get their application into HUD by the end of July and start putting together the information they need in the beginning of the month.

 

“We need about two weeks to get everything together,” he said. “It’s going to be a pretty big package. There is a significant amount of drawings.

This was the last piece we need to be able to go forward with the application.”

 

Commissioners’ representatives and hospital officials may try to use SPLOST proceeds to cut down on the amount of millage needed. The discussions have involved the hospital receiving $10 million in SPLOST revenues, and perhaps as much as $16 million.

 

“The more we can do with SPLOST, it’s less they’ll have to borrow on a long term basis,” Commissioner Bob Brantley said.

 

Rafter urged commissioners to move ahead with the resolution, since the SPLOST vote won’t be held until November.

 

“We need to be at least going through the application process now,” he said. “At least until SPLOST is approved, we need to at least go forward with this application. I think it’s just a prudent thing to keep on the path we have. It’s prudent to go forward with these numbers to HUD.”

 

To HUD, there’s no difference in the hospital getting either $10 million or $16 million in SPLOST revenues, according to Rafter.

 

“I don’t see the benefit in postponing the vote because we’ll have the opportunity over the next three months to know what’s going into SPLOST and how we can modify this. I don’t see the benefit in postponing the vote on this again. This is just a resolution stating you’re going to give us some sort of financial backing. I would ask you to vote to continue on with this piece and continue the discussions.”

 

Lewis stressed that the commissioners need to make sure they explore all possible feasible solutions before making their commitment to the hospital authority.

 

“If there’s information out there we haven’t discussed, then I’m not sure we’re doing the job we need to be doing for the citizens,” she said. “I want to be helpful but I want it to be the best thing for the citizens. We’re supposed to be working together on this issue, not apart.

 

“There is a very critical time limit for this paperwork to get done. But it is also very critical for this board and the following boards for 25 years that we are careful what we are obligating it to.”

 

Lewis said the commissioners need to have concrete figures before they commit to backing the hospital’s plans.

 

“I frankly cannot vote until I think we’ve done the right job on what our obligations are,” she said. “We need a hospital facility — that’s not the question. I do think we need a hospital facility. I think we need to have the numbers we’re going to obligate ourselves to.”

 

Commissioners also questioned some of the language in the resolution itself. Zeigler issued his concerns that the way the resolution reads, the county could be levying from 2 mills to 7 mills, the maximum allowed by the law, rather than from 0 to 7 mills. County attorney Eric Gotwalt also had concerns about the resolution.

 

“I have doubts this resolution embodies the intent of the agreement we’ve been discussing,” he said.

 

Rafter believes wrinkles in the resolution can be worked out.

 

The hospital recently received its certificate of need approval from the state Department of Community Health for the expansion and modernization.

 

Rafter and Zeigler said the last few meetings between the county and the hospital have been beneficial for both sides. 

 

“We’ve done a lot the last two weeks to work with a county for a solution that’s workable for both sides,” Rafter said. “I think we’ve made a lot of progress in the last two weeks.”