Subject:
Title
Resolution approving the issuance by Brevard County Health Facilities Authority of Hospital Revenue Bonds (Health First Obligated Group), in one or more series in an aggregate principal amount not exceeding $475,000,000
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Fiscal Impact:
None.
Dept/Office:
County Attorney’s Office (as requested by the Brevard County Health Facilities Authority)
Requested Action:
Recommendation
The Brevard County Health Facilities Authority (the “Authority”) requests that the Board approve a Resolution to allow the issuance by the Authority of tax-exempt revenue and refunding bonds (Health First Obligated Group), in one or more series to fund new capital projects and to refund outstanding bonds.
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Summary Explanation and Background:
The Brevard County Health Facilities Authority (the “Authority”) was created pursuant to the Health Facilities Authorities Law, Part III of Chapter 154, Florida Statutes (the “Act”) upon a determination of a need for the Authority by the Board of County Commissioners under Section 154.207(1) of the Act, through the enactment of Ordinance No. 77-16, as codified in Section 54-36, in the Code of Ordinances. The primary function of the Authority is to issue its tax-exempt revenue bonds to finance and to refinance health facilities for not-for-profit organizations in Brevard County, which bonds are payable solely from the revenues of such health facilities.
Health First Shared Services, Inc. (“Health First”), Cape Canaveral Hospital, Holmes Regional Medical Center, Inc. and Viera Hospital, Inc. (collectively “Health First Obligated Group”), have requested that the Authority issue its tax-exempt hospital revenue bonds in an amount not to exceed four hundred seventy-five million dollars ($475,000,000), to assist the Health First Obligated Group to (1) finance new capital improvements, primarily for the expansion of the Viera and Palm Bay hospitals, (2) refund all or a portion of the Authority’s outstanding Series 2014 Bonds (currently $62,700,000), and (3) provide debt service reserve funds and pay interest and costs associated with the issuance of such bonds. The Viera hospital five-floor expansion will include 64 inpatient beds, 2 operating rooms, a cardiac catheterization laboratory (cath lab), double emergency department capacity, a 10-bed clinical decision unit, expanded imaging and support space, and shelled space for future expansion. The Palm Bay hospital five-floor expansion will include 60 beds with two floors shelled out for future expansion.
The bonds will be payable solely from revenues of the Health First Obligated Group, will bear fixed and variable rates of interest, and will be rated by one or more national rating agencies in the “A” category. The bonds will not pledge the revenues or ad valorem taxes of the County or the Authority.
The Authority held a public hearing on March 23, 2026, following proper publication of notice, for the purpose of receiving public input on the proposed issue, a report on which is attached to the proposed Resolution. The proposed Resolution acknowledges the public hearing and authorizes the issuance by the Authority of the bonds. In order to issue tax-exempt bonds, the Authority must receive the limited approval of the Board of County Commissioners. The Board’s approval of the issuance of the Bonds by the Authority to finance costs of the Project is required by applicable federal tax law and by Sections 159.287(1) and 125.01(z) of the Florida Statutes.
The County’s outside bond counsel has reviewed the proposed issue and provided the following statement: “The resolution proposed to be adopted by the BOCC satisfies the pertinent federal and state law requirements and provides that neither the County nor any of the elected officials or staff of the County will have any obligation or liability, financial or otherwise, with respect to the Project or the Bonds.” (See attachment.)
Cost Benefit Analysis provided by Brevard County Health Facilities Authority:
This issue will reduce interest expenses and provide funds to finance, refinance and reimburse the costs of new capital projects, which will be available to citizens of Brevard County. There is no fiscal impact to the Board of County Commissioners or the Authority. The County is authorizing the Authority to issue its bonds solely to satisfy federal and state law requirements and the County shall be indemnified by Health First Obligated Group with respect to the issuance of the bonds and the Project.
Contact Person: Angela A. Abbott, 264-0334, angela@angelaabbott.com; Steven E. Miller, (813) 281-2222, smiller@ngn-tampa.com <mailto:smiller@ngn-tampa.com>; Jay Glover, PFM Financial Advisors LLC, (407) 406-5760, gloverj@pfm.com <mailto:gloverj@pfm.com>
Clerk to the Board Instructions:
Return a signed Resolution to the County Attorney’s Office and the Health Facilities Authority, c/o Angela Abbott, Esq.