Min 03/26/1987 484
Wichita Falls, Texas
Memorial Auditorium Building
March 26, 1987
Items 1 & 2
The City Council of the City of Wichita Falls, Texas, met in called
session on the above date in the Council Room of the Memorial Auditorium
Building at 12:00 o'clock Noon, with the following members present.
Charles Harper Mayor
Sandy Goff
Charles Thomas
Ruth Ann Allred
Ronald Buffum ( Councilmen
Lindsey Walker
Don Kirkham
James Berzina City Manager
H. P. Hodge City Attorney
Wilma J. Thomas City Clerk
Fred L. Werner Chief Accounting Officer
The invocation was given by Councilman Thomas.
Item 3
Consideration was given to a proposed resolution approving Wichita
( County - City of Wichita Falls Hospital Board Hospital Revenue Refunding
Bonds, and Supplement Number One to Management Contract and Lease Agreement.
(Murphy Davis and Herbert R. Smith were present. 111r. Davis stated that
they will be able to get this done by March 31 , which will save the Hospital
District $150,000, which will go back into the cash account. He requested
approval of this resolution and supplement to the management contract and
lease agreement.
M,r. Davis stated that the economic impact of this refunding will save
1 .6 million dollars. They will not be using all the depreciation funds.
Two hundred thousand dollars will stay with the hospital . T',ey are paying
off an old bonded indebtedness. The hospital will still have $35C,000 in
its coffers. There will be an accumulative cash savings of 3. 'l million
dollars. It will be a savings on all bonds the hospital has outstanding.
The County and the City appoint representatives to a joint board from
the City Council and County Commissioners. Each has to approve it. The
County has approved it. They will be meeting tonight with the hospital
board. In adopting this resolution, the City will take care of its obligation.
This will make the refunding legal . Support data was presented from McCall ,
Parkhurst, and Horton. This will not encumber any more requirer,ients from
the City Council or the citizens of Wichita Falls. It is not a tax bond.
City Attorney H. P. Hodge stated that from his perusal of this information
presented, he believes it is a proper action for the City to take. The
action they are asked to take is approve the issuance of $24,000,000 of
refunding bonds, and approve the supplement to the contract with the Hospital
Board and Hospital Corporation. Mr. Hodge further explained the provisions
of this resolution to the Council , and also the supplement to the management
contract.
Councilman Walker confirmed that the savings of 1 .6 million dollars
will be over the life of the bonds. Mr. Davis stated that it goes to the
year 2013. Mr. Davis also explained that the $200,000 that will be returned
to the hospital district is money put back so that they would have enough
to pay it off. In this instance it is a depreciation fund. They do not
have to use all of these funds, so it will stay with the hospital as cash.
This is dollars that they have now as a result of the refunding. Councilman
lWalker asked about the difference in the payment of the debt service by
year? ,,Ir. Davis gave an explanation for each of the years.
485
Item 3, Cont'd.
Councilman Buffum asked about the current bond rating for the hospital .
Mr. Davis stated that it is an "A" ratinq from Moody' s , which was maintained
from the 1983 series. They did not receive a rating from Standard and
Poors this time. This is clearly a refunding of outstanding debt at a
lower interest cost. These are all net figures. The size of the issue
is $21 ,295,000. They will not get anywhere near the $24,000,000.
RESOLUTUION NO. 50-87
RESOLUTION APPROVING WICHITA COUNTY - CITY OF WICHITA FALLS, TEXAS,
HOSPITAL BOARD HOSPITAL REVENUE REFUNDING BONDS (WICHITA GENERAL HOSPITAL
PROJECT) SERIES 1987 AND A SUPPLEMENT NO. ONE TO MANAGEMENT CONTRACT
AND LEASE AGREEMENT.
Moved by Councilman Goff that Resolution No. 50-87 be passed.
Motion seconded by Councilman Buffum, and carried by the following
vote.
Ayes: Charles Harper, Mayor, Councilmen Goff, Thomas, Allred, Walker,
Kirkham and Buffum
Nays: None
The City Council adjourned at 12:30 P.M.
PASSED AND APPROVED this � l�, day of L( ,' 1987.
I
I
Charles Harper, Mayor
ATTEST:
Wilma J. 71idfnas, CMC, City Clerk