Travis County Commissioners Court
Tuesday, August 23, 2011 (Agenda)
Item 13
Fef 13, consider and take action on an order authorizing the issuance and sale of Travis County healthcare district certificates of obligation, taxable series 2011 limited tax in the aggregate principal amount of $16 million, levying a tax in payment thereof, approve agriculture purchase contract and enacting other provisions relating thereto.
this is 13.
>> > good morning.
I'm john stevens, chief financial officer for central health.
and I'm here with our president and ceo, patricia young brown, with our financial advisor, lad pattillo, who is handing out the numbers from the sale of our certificates of obligation yesterday, a very successful sale that we had.
and also here with glen open al, our -- opal, our bond south san sell from vin son and elkins.
>> what do we need to know today that we don't know already?
>> I'll wait for ladd to answer that.
>> we would just like to report to the court that I've handed out two things to you.
one is I'm sure you're very proud to know that the Travis County health care district was rated triple a by standard and poor's for this issue.
and I congratulate them for that.
and yesterday we had a very successful sale of these $16 million' worth of certificates of obligation for their purposes and with an average interest rate of 3.64.
and that's on a taxable basis.
we had explained at the last time we came why we were doing it taxable.
very much the same reason for almost two-thirds of it for the reason that you did taxable for the purchase of the lot on the downtown.
>> for residents who wonder how this $16 million will be used, what's the answer?
>> the answer is that we are going to use six million of it to reimburse ourselves for the construction costs of the north central clinic, which is scheduled to open in October.
the clinic up on braker lane.
we had intended to finance the entire construction cost of that, which was 18 million, but in November of 2012 we were notified that we would receive an affordable care act grant of 12 million.
so we financed the balance.
>> six million, along with 10 million, for the purchase of the v.a.
facility at montopolis and 71, which we bought a couple of months ago.
>> for that reimbursement you advanced money from the unallocated reserve?
>> yes, sir.
>> judge, I wanted to point out on page 4 the yields -- the rate that we got on the 15 years of maturities.
and we were just very fortunate that last week the u.s.
10-year treasury, which is kind of a benchmark for us in the municipal market, was at its lowest yield since April of 1950.
so this couldn't have been better luck than when we hit the market here.
>> move approval of 13.
in its entirety.
>> second.
>> discussion on the motion?
>> yes.
I just want to make sure that how are we going to include the dove springs area to meet their needs there?
is any of this money for that?
>> this money is for the two health centers that we just discussed.
and the health center at montopolis and 71 will serve the dove springs neighborhood as well as the whole southeastern portion of Travis County.
>> so do we know -- do we have any plans available right now?
>> well, the building will not be -- the v.a.
will still continue to occupy that building for another two years, so we haven't even begun the planning stages for the service delivery.
>> but for the southeast quadrant.
>> the planning for the v.a.
facility is just in its infancy and that will serve the entirety of the southeast quadrant of Travis County.
there's a specific planning exercise related to dove springs that is underway.
so there are two different efforts.
>> is that the meeting with the 24th or 25th?
>> yes, ma'am.
that's specific to dove springs.
>> okay.
>> we may be able to discuss that further in item 12.
>> yes.
>> any more discussion of the motion on 13?
that's the co's?
all in favor?
show Commissioners Eckhardt, Gomez, Huber and yours truly voting in favor.
Commissioner Davis?
>> Commissioner Davis abstained.
I've submitted the proper documentation to the clerk and that is because my son is employed with the persons that's actually dealing with the bonds on this particular issue.
>> thank you.
>> first southwest company.
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