The Schleicher County Hospital District board of trustees began the process of calling in the general obligation bonds they issued in 2011 on Thursday evening, July 25th, in hopes of refinancing the debt at a lower interest rate.

Robert D. “Dusty” Traylor, managing director of RBC Capital Markets, LLC, met with the board along with attorney Clay Binford, a partner with Norton Rose Fulbright US LLP. Also in attendance was attorney Adam Harden, a senior associate with the firm.

Traylor and Binford assisted the hospital district in issuing 17.37 million in general obligation bonds in 2011 after voters approved the bond measure by an almost 3-1 margin. The 25-year bonds included an option to call them in and redeem them on February 15, 2020.

Traylor explained that lower interest rates make it possible to reissue the bonds at a considerable savings. He said the exact amount of savings will depend on several factors, including whether a new bond can be rated by a independent rating agency, and market conditions when the new bonds are issued.

Traylor also said that issuing new bonds would not extend the hospital district’s debt any farther into the future. Any new bonds issued would mature on the same day as the original bonds.

Traylor then explained that a preliminary analysis indicated the district could save as much as $150,000 per year for a total of more than $2 million in interest over the remaining life of the bonds.

The hospital trustees voted unanimously to adopt a set of parameters under which the old bonds could be redeemed by the issuance of new debt. They authorized board president Randy Mankin to complete the deal on behalf of the district only if it results in savings to the district and then only under the guidelines established by the board.

In other business, the board accepted the 2019 Certified Tax Roll delivered by the Schleicher County Tax Appraisal District. It was noted that the district’s net taxable value in 2019 is $529,350,683.00. That compares to $295,740,319.00 in 2018. The increase is directly attributable to the Live Oak Wind Farm going on the tax rolls.

Randy Mankin then appointed himself, TJ Rodriguez and Sandra Robledo to serve on the district’s budget committee.

The district’s financial reports were received, as were reports by Hospital Administrator Paul Burke, Nursing Home Administrator Pam Stokes and Debbie Davis, RN, the nursing home’s director of nursing.

Mankin presided over last Thursday’s meeting with trustees Sandra Robledo, Denese Capps, TJ Rodriguez and Chuck Jones in attendance. Trustees Jason Chatham and Susie Richters were absent.

The next meeting of the Schleicher County Hospital District board of trustees is slated for 6 p.m. on Monday, August 28, 2019 in the hospital’s board room.