Sure, refinancing the Floyd Medical Center bonds at lower interest rates is logical but not so much when the county is also taking over the “risk” by insuring the bonds itself instead of letting some deep-pockets outfit do it. That means if FMC defaults then Floyd Countians must cover a tab that now amounts to $123.4 million in outstanding bond debt. Heck, they might even have to sell the hospital (all Floyd Countians own it) to cover the debt.
And, given the size/value of Floyd County how’s that compare in percentage to the national debt that makes so many politicians of the same political persuasion as those running the county shudder?
The temptation of avoiding an immediate problem in a local election year (having to raise the millage rate) is understandable. This will result in a one-time cash infusion to the county of $895,000 from the hospital that, along with mildly reviving sales taxes, might make it possible to slip by for another year ... and keep praying for a miracle.
Still, is this really smart when FMC isn’t on the hook if everything goes bad (it is tax exempt, remember) and its highly, highly paid leadership moans constantly about the rising load of patients who can’t pay?
Just asking because, among the hallelujahs from those benefiting in the short term, somebody that plans to be around for the long run (this newspaper and the taxpayers) needs to mention that artificial financial roses sometimes look better than they smell.