ST. MATTHEWS – With the entire Regional Medical Center board on hand Monday, Calhoun County Council gave a ringing endorsement to the hospital’s plans to borrow $22 million.

“This is the right thing for both Orangeburg and Calhoun to approve this,” council Chairman David Summers said. “It’s the right thing to do and it’s the business thing to do. Put emotions aside ... Quote me just like I said it.”

Council passed a resolution authorizing the bond issuance after receiving a brief overview of the financing plan from the RMC’s chief financial officer, Lisa Goodlett. The proposal had previously been publicized a month ago during a joint meeting with Orangeburg County Council.

Council’s resolution pledges future revenues of RMC to pay for the debt.

“It only pledges hospital revenues,” County Administrator Lee Prickett said. “There’s no indebtedness of Calhoun County and no provision for a mortgage, which would require your approval.”

Summers said he has no problem with the hospital.

“We’re real pleased with the board Orangeburg and Calhoun has in place,” he said. “We’ve got a staff over there that’s smiling. People are saying how much they like the hospital and how well the hospital is treating them.”

Orangeburg County Council has been more critical of the hospital and its finances. During the joint Oct. 30 session, members questioned why they weren’t informed about RMC giving some $25 million to a new foundation that is able to earn a higher return by making investments the hospital isn’t allowed to. That money, Acting Chairman Harry Wimberly argued, could have been used to run the county’s ambulance service or to buy RMC employees into the state benefits system.

Of the $22 million in additional debt, Goodlett said, half will be for expenditures the RMC has already incurred and the other half will be for future projects over the next two years.“ With a bonding capacity of between $32 million and $41 million, she noted the $22 million RMC proposes to borrow is ”significantly short of capacity.“

“RMC is fortunate to have low debt and a strong balance sheet,” she said. “If we don’t do a debt issuance,” data shows that the cash-on-hand days would be 169 in the year 2011. However, if the board does issue the bonds, there would be 196 cash-on-hand days in 2011.

“So, that actually strengthens the financial picture of RMC,” Goodlett said.

With interest rates changing, Goodlett said she doesn’t think the bond issuance would cost more than 5.75 percent.

Board Chairman Willie B. Owens thanked council for it’s “continuous cooperation.”

After the session, CEO Tom Dandridge said he was appreciative of the opportunity to make the financial presentation before Calhoun County Council.

“We couldn’t ask for a better reception,” he said

Orangeburg County Council will receive the RMC presentation at the Dec. 4 session.

-- T&D Government Writer Tucker Lyon can be reached at tlyon@timesanddemocrat.com or by calling 803-533-5545.

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