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Dunn Memorial Hospital Bond Issue Approved On 2-1 Vote

Last updated on Tuesday, March 17, 2009

(BEDFORD) - The Lawrence County Commissioners said “yea” to a bond issuance for Dunn Memorial Hospital on a 2-1 vote this morning.

Hospital legal counsel Jerimi Ullom, who works for Indianapolis health law firm Hall Render, explained the bond issue and then helped answer public questions as they came along.

The bond issue was approved 6-1 at the end of last month by the Lawrence County Council, and remains very much the same since then, although the maximum amount Dunn Memorial Hospital can borrow is set at $8 million.

The bond issue is intended primarily to restructure debt, but if Dunn could not make its full payments, the county, and thus the taxpayer, would then be on the hook.

This concerned Commissioner Chris May, who then asked Ullom what interest rates could be if taxpayers were not on the hook.

"I think if you don't have a [taxpayer] backup, there's a question as to whether [the bond] is financeable [sic] at any rate," Ullom explained. He continued, saying, "With the backup, the most recent rates I've seen fit in the 6%-7% range."

May was lone dissenting vote, Bill Spreen and David Flinn both voted in favor.

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