Slidell Memorial Hospital Chairman of the Board Daniel Ferrari announced that the Slidell Memorial Hospital Board of Commissioners approved moving forward with a bond refunding issue for its general obligation bonds issued in 2009. This refinancing of the 2009 bonds is the latest in a series of refundings in recent years resulting in savings to taxpayers of more than $2,302,000.
SMH will close on the bond refunding issue on January 29. The result of this lower rate will be a savings of $582,755.66 over the remaining life of the bond issue for the taxpayers of Wards 6, 7, 8, and 9 in St. Tammany Parish. This new rate will allow the interest savings to be passed to the taxpayers in the form of a faster payoff of the bonds.
SMH Chief Financial Officer Sandy Badinger issued requests for proposal, seeking the lowest possible interest rate to provide the most financial benefit to the hospital and the taxpayers who fund these bonds, from three banks known to do this type of refunding. Capital One Bank provided the lowest interest rate at 3.05%.
“We are very pleased to be able to make this announcement today,” said Ferrari. “The taxpayers in our community who own Slidell Memorial Hospital expect and deserve sound fiscal management. This announcement is our way of continuing to keep the promises we have made to our community over the years.”
General obligation bonds are limited to funding capital projects only; the funds may not be used for any operations of the facility. Slidell Memorial Hospital will not receive any money from this bond refunding. All savings from the refinancing accrue to the property taxpayers of the district.
Sen. Sharon Hewitt and State Rep. Kevin Pearson soon to be joined by newly elected State Rep. Mary DuBuisson; all play a critical role in selecting the members of the SMH Board of Commissioners.