City to assist Barton Health with their $20 million bond sale

As they've done on six previous occasions, the City of South Lake Tahoe and Barton Healthcare System (Barton) will be teaming up again in order for the hospital to issue $20 million in bonds.

There is no risk to the City. They are simply acting as the conduit so Barton can issue tax-free bonds, reducing their interest charges by 1.5% to 2%.

Federal tax law requires any proposed financing of a facility to be approved by a governmental agency having jurisdiction over the area it is located.

Barton will be using the money on several capital improvement projects, including the new parking ramp at the hospital, the new Robert Maloof Center of Excellence as well as new medical imaging equipment.

Ground has already broken on the Center and a temporary parking area is in place. The parking ramp is expected to be completed by February, 2016, with the center done by the end of that year.

Barton will pay the City $10,000 for their staff time used on the document review for the bond. That money will go into the General Fund.

City Council approved the resolution 5-0.