The Slidell Memorial Hospital Board of Commissioners announced Friday its intention to refinance general obligation bonds it issued in 2009, which would save taxpayers in east St. Tammany Parish an estimated $582,756 over the remaining life of the bonds.
The hospital will close on the sale Jan. 29 and all savings will be used to retire the debt more quickly. The move, which was announced at a press conference at the hospital, marked the third time SMH has refinanced general obligation bonds since 2012. That trio of refinancing deals has saved taxpayers more than $2.3 million.
The bonds will be refinanced through Capital One Bank with a rate of 3.05-percent interest.
“The taxpayers in our community who own SMH expect and deserve sound fiscal management,” SMH Board of Commissioners President Dan Ferrari said. “This demonstrates our commitment to proper financial management of this asset.”
General obligation bonds are used for capital projects and cannot be used to fund operations.
Citizens in parish Wards 6, 7, 8 and 9 fund the publicly-owned hospital, which is one of the largest employers in St. Tammany. The hospital has a $190 million annual budget.
Several dozen people attended the announcement, including new SMH CEO Kerry Tirman, CFO Sandy Badinger, Slidell Mayor Greg Cromer, State Sen. Sharon Hewitt, State Rep. Kevin Pearson and State Rep. Mary DuBuisson, as well as several members of the Slidell City Council and the St. Tammany Parish Council.