A Message From Hospital General Counsel, David Spiller

A letter to the Jacksboro Newspaper Editor.

Dear Editor:

            As you know, I am General Counsel to the Jack County Hospital District, doing business as Faith Community Health System (“the District”).  Normally, I would not write a letter to the editor, but I am concerned about some misinformation and misunderstanding about the District’s upcoming bond election known as Proposition A.  I would like to make the following statements and clarifications:

  1. The proposition is not to borrow new money, but to refinance existing debt.  It is similar to refinancing the debt on your home.  The proposition is for the issuance of refunding bonds.  Currently the District has revenue bonds.  The refunding bonds would be general obligation bonds.  The existing debt was legally created, is a legal obligation of the District, and has been timely and properly paid down since the construction of the new hospital facility.
  2. The interest rate on the current revenue bonds is 3.56%.  The current average interest rate on general obligation bonds is much less than that.  That difference in interest rates is expected to give the District – and the taxpayers – an annual savings of approximately $200,000.  Refinancing the debt is clearly the responsible thing to do.  The District Board of Directors has unanimously voted to do this.  There is nothing unusual about doing this.  Other governmental routinely refinance their debt for better terms.
  3. If the proposition passes, the refinancing of the debt will not result in higher property taxes.  The District Board of Directors has pledged not to raise taxes from the current tax rate if the proposition passes. 
  4. If the proposition passes, the District can only use the bond funds for the repayment of the existing bonded indebtedness.  The existing debt will be refinanced, and the monies will go into a separate interest and sinking fund account which earns interest, but by law cannot be used for maintenance and operations of the District.
  5. The passage of the proposition would result in greater flexibility to the District in its operations and the ability to take advantage of governmental programs that have been very profitable to the District.  The revenue from those programs has allowed the District to provide the citizens of Jack County a much greater level of health care quality and services.  Without that flexibility, some of those revenue-generating opportunities may be lost. 

            Thank you for allowing me the opportunity to clarify some of the issues relating to the bond proposal.

                                                                              Sincerely,

                                                                              /s/ David Spiller

David Spiller

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God Bless the Dennis Bennett Family

It is with deep sadness that the Faith Community Health System mourns the loss of Dennis Bennett, former JISD Superintendent. Dennis was a friend and supporter of the Faith Family and will be greatly missed. With heavy hearts, we extend our thoughts, prayers and support to his wife Linda and the entire family. May God Bless and comfort you during this difficult time.

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Refinancing Bond Proposition

Refinancing Bond Proposition

Strategic move could save Faith Community Health System $200,000 a year while allowing more nimble operations.

In a strategic move by the Faith Community Health System (FCHS) Board of Directors, a refinancing bond proposition has been proposed to provide the health system more flexibility to continue participating in supplemental state and federal programs and continue to grow.

The proposition will allow the district the option to refinance the existing debt of $22.5 million, down from approximately $30 million over the last five years, with a combination of general obligation and revenue bonds.

Here are important facts that you need to know:

  • Refinancing debt is sometimes necessary for better terms that could save the hospital district approximately $200,000 a year in debt service payments. The ability to refinance existing debt is another tool that any growing business should have available as needed.
  • This refinancing of the existing debt by the district, and issuing refunding bonds in their place, will allow the district greater flexibility of the terms of the debt and will not increase taxes or add any new money.
  • The district will be reducing the current maintenance and operations tax rate by the amount needed to refinance existing debt.
  • This will not add additional debt and would only be used to refinance the existing principal balance.
  • This is like you refinancing your home mortgage for better terms.
  • This process is not new for the hospital district as the same type of bonds were issued in 1991 when the newly formed hospital district absorbed debt from Jack County.
  • This is a routine procedure used frequently by school districts, cities, counties, and special districts all over the state.
  • This proposition and election does not require the district to refinance. If the bond market is not favorable, the district will not exercise the option.

Together, we can ensure that Jack County continues to see much growth and success when it comes to being able to provide the healthcare programs and services that our local community expects, needs, and deserves.

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FCHS Calls for Refinancing Bond Election May 4

Faith Community Health System Calls for Refinancing Bond Election May 4

Strategic move to save the local healthcare provider $200,000 a year while allowing more nimble operations.

JACKSBORO, Texas (Feb. 12, 2019) – The Faith Community Health System (FCHS) Board of Directors unanimously approved to move forward with a refinancing bond proposition election during a special session held on Feb. 4. The move will allow the district to refinance debt for better terms and save approximately $200,000 a year in debt service payments.

In a strategic move by the FCHS board, the refinancing will provide more flexibility for the district to continue participating in supplemental state and federal programs while continuing to grow. The proposition will allow the district to pay off the existing debt of $22.5 million and have the opportunity to refinance with more favorable terms. Existing debt is down from approximately $30 million over the last five years, with a combination of general obligation and revenue bonds.

According to Lori McBrayer, Chair of the FCHS Board of Directors, this proposition is simply a normal course of business that will not increase taxes for Jack County residents or add additional funds to existing debt.

A shifting of finances

The district will be reducing the current maintenance and operations tax rate by the amount needed to refinance existing debt.

McBrayer says that in a review of the 2012 tax rate proposal presented at numerous meetings with taxpayers, it was projected that of the 0.3150 tax rate we would set, the district would need approximately 0.1550 for debt service. At the time, the tax receipts of the district were estimated at $4.1 million.

It is projected that refinancing will take approximately 14 cents of the existing rate of 0.3127 to pay for the refinanced debt placing that amount into an interest and sinking (or debt service fund). This means that the new maintenance and operations rate will be approximately 0.1727.

David Spiller, general counsel and community member, for FCHS, echoes McBrayer in that this critical move will not cost taxpayers anything and will not change current tax rates.

“This refinancing of the existing debt by the district, and issuing refunding bonds in their place, will allow the district greater flexibility of the terms of the debt and will not increase taxes or add any new money,” Spiller explains. “This is like you refinancing your home mortgage for better terms.  It is the fiscally responsible thing to do.”

Not a new process for Jack County

The refinancing bond proposition is not a new process for the hospital district. In 1990 when the district was first formed, Jack County had a debt that the district absorbed. As a result, the district was issued the same type of bonds in 1991 to refinance the debt.

Due to a change in state legislation, the district must now hold an election for the proposition to allow the refinancing of the current existing debt.  This is a routine procedure used frequently by school districts, cities, counties, and special districts all over the state.

McBrayer says that the FCHS board moved for the proposition because it is a practical business decision that will positively impact cashflow, allowing the hospital system to continue growing.

Maintaining fiscal strength amid industry turbulence

Nearly 30 percent of counties in Texas are without access to local healthcare. Also, small and community hospitals across the state continue to see a reduction in programs and services to keep their doors open.

In recent years, as two hospitals, within a 30-mile radius, have closed, and another has discontinued obstetrics, FCHS has embarked on supplemental programs to bring outside revenue to the district.

By operating and generating additional revenues, the district has been able to rely on fewer taxes. Over the past eight years, FCHS has participated in 15 federal, state and private supplemental revenue programs that have brought more than $23 million to the district.

Additional positive revenues have also come from outlying rural health clinics FCHS operates in Bowie and Alvord, as well as the four nursing homes licensed through the health system.

“Jack County has seen much growth and success when it comes to being able to provide the healthcare programs and services the local community expects, needs, and deserves,” McBrayer explains.

Refinancing Bond election set for May 4 in Jacksboro

The bond election is scheduled to take place on May 4 at Faith Community Hospital.

McBrayer encourages anyone needing further information to call and meet with hospital administration on the topic.

“What seemed impossible years ago is now a reality,” McBrayer says. “We have faith that Jack County will continue to be a shining example of what can be achieved in rural healthcare when all options are accessed, and leadership continues to make strategic decisions.”

About Faith Community Health System
Founded in 1958, Faith Community Health System (FCHS) provides healthcare services for residents of Jack County. Anchored by Faith Community Hospital, the local healthcare provider offers a wealth of medical services, including in-patient care, minor surgeries, obstetrics, a Level IV 24-hour trauma center and advanced radiology services (including CT & MRI scanning), an outpatient lab, physical therapy, social services, minor surgical services, patient education, 3 rural health clinics and more. FCHS now serves patients from a new $28 million, 87,000-square-foot replacement hospital facility and $2 million, 10,000-square-foot wellness center. For additional information, please visit www.fchtexas.com.

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Executive Chef, Kathy Warnell, becomes CDM | CFPP

Faith Community Health System’s Executive Chef, Kathy Warnell, becomes Certified Dietary Manager | Certified Food Protection Professional!

The Certifying Board for Dietary Managers verifies that Kathy Warnell has successfully passed the credentialing examination and has met the qualifications of a Certified Dietary Manager | Certified Food  Protection Professional on December 20, 2018.

Congratulations to Kathy Warnell!

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About Faith Community Health System

Faith Community Hospital is a community hospital serving the residents of Jack County, Texas. We offer a wealth of medical services including inpatient care, minor surgeries, obstetrics and other health care services.

Rural Health Clinics

Alvord Clinic
115 East Bypass US Highway 287
Alvord, Texas 76225

940-427-2858

Bowie Clinic
1010 N. Mill St.
Bowie, TX 76230

940-872-1121

Jacksboro Clinic
215 Chisholm Trail
Jacksboro, TX 76458

940-567-5528

Contact Us

If you need to contact us for general inquires or comments, please use the methods below. For emergencies, please dial 911.

215 Chisholm Trail Jacksboro, Texas 76458
940-567-6633
https://www.fchtexas.com/