Memorandum                    

City of Lawrence

City Manager’s Office

TO:	Thomas M. Markus, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Casey Toomay, Assistant City Manager Bryan Kidney, Finance Director
DATE:	June 14, 2016
RE:	Presbyterian Manor IRBs

Background:

Presbyterian Manor has a facility in Lawrence, and in several other cities across the State.  In order to maximize an integrated financing structure and improved borrowing costs, Presbyterian Manor has utilized a central City, the City of Wichita, to issue its tax-exempt health care facility revenue bonds, the proceeds of which are then utilized in various facilities across the state.  The City of Lawrence has an agreement with the City of Wichita, which was extended in 2013 in order to facilitate this. 

It appears that based on the letter from bond counsel, Presbyterian Manor intends to utilize some of the bond proceeds related to the City of Lawrence facility.  In order to allow Presbyterian Manor to proceed with its issuance with the City of Wichita, federal tax code requires that each City, within which bond proceeds will be expended, hold a public hearing and authorize the execution of a certificate authorizing proceeds of the bonds to be utilized within the City.  Staff believes that this is beneficial to the Lawrence Presbyterian Manor facility and it would be in the interest of the City to facilitate this request.  There is no risk to the City in making such authorization.

Staff Recommendation: 

Staff recommends that the City Commission conduct a public hearing and authorize the Mayor to execute a certificate enabling Presbyterian Manor to utilize health care facility revenue bond proceeds issued by the City of Wichita at the Lawrence facility.