Kirkland, Wash. – Property taxpayers in King County Public Hospital District No. 2 – EvergreenHealth – will see their tax obligation drop by more than $9 million over the next 10 years, thanks to the decision by the EvergreenHealth Board of Commissioners to refinance tax-supported bonds issued in 2004.
“We can realize this reduction by taking advantage of historically low interest rates,” explained Al DeYoung, chairman of the EvergreenHealth Board of Commissioners. “By refinancing the 2004 Unlimited Tax General Obligation bonds now, we have more than halved the interest rate we were paying – from nearly 5 percent to less than 2 percent,” DeYoung said.
EvergreenHealth refinanced $59.5 million, from an original bond amount of more than $112.7 million. The new bonds, to which Moody’s Investor Service gave an Aa2 rating – the best rating for any hospital in the Puget Sound area – will mature in December 2023. The bond closing was May 14, 2013.
The 2004 bonds were primarily used to build the Silver Tower on the EvergreenHealth Medical Center campus in Kirkland. The nine-story Silver Tower houses EvergreenHealth’s Emergency Department, trauma services, the core part of the Halvorson Cancer Center and patient rooms.
“As part of our commitment to financial stewardship, we are able to reduce the total debt service that makes the Silver Tower possible from $89.7 million to $80.4 million with the same maturity date for the bonds,” said Chrissy Yamada, chief financial officer of EvergreenHealth.
“We are deeply gratified that the people of the district have supported our mission to provide them breakthrough care in facilities that we are constantly improving through bond issues such as this, as well as through private philanthropy,” added Bob Malte, CEO of EvergreenHealth.
The district includes the incorporated cities of Kirkland, Redmond, Woodinville, Kenmore and Duvall, portions of Bothell, Bellevue, Clyde Hill, Sammamish, Lake Forest Park and the town of Yarrow Point, as well as adjacent unincorporated areas.