Franklin Co. BOC Finalizes Lavonia Hospital Bond Re-Financing

By MJ Kneiser, WLHR Radio, Lavonia

The refinancing of the Lavonia hospital bond debt is now complete in Franklin County.

When St. Mary’s Healthcare bought the Lavonia hospital, the $38 million bond debt left by Ty Cobb Healthcare was not part of the deal and fell to Franklin County to pay off.

Last November, Franklin County voters approved a refinancing plan in a special referendum.

At its work session last Tuesday, the Franklin County Board of Commissioners approved two resolutions to tie up two minor issues.

Franklin County Manager Beth Thomas said the first issue had to do with a form required by the IRS.

“There is an IRS form in the Bond Resolution that has to be filed with the IRS and there is a box that has to be checked that states whether or not we have official policies and procedures that revolve around the compliance of continuing disclosures and other information,” she said.

Thomas said the resolution will now state that whoever is the county manager will act as the compliance officer to maintain all documents and monitor all requirements and training documents until the end of the bond.

She went on to say the second issue had to do with a typo on the cover letter of the bond.

“The other vote would be to authorize the County Clerk to replace the cover page of the bond resolution. It lists the Bank of New York Mill and Trust Company and it should be U.S. National Bank. If you will make a motion to authorize her to change it in the minutes, then we will be done with the bond issue,” Thomas said.

After hearing from Thomas, the Franklin County Commission unanimously approved both items in separate votes.

At a called meeting on May 17, the Franklin County Commission formally voted to approve the bond refinancing, lowering the interest rate from 5.96 percent to 2.72 percent, which will save Franklin County about $1.5 million a year.

Not only that, but the bond, which would have been paid off in 2041, will now be paid off in 2035.