ST. MATTHEWS -- The Regional Medical Center's request to refinance its remaining debt from 1998 was approved Monday by Calhoun County Council after a brief presentation by hospital officials.

A week ago, Orangeburg County Council raised a lot of questions before voting to support the refinancing. The hospital is owned by Orangeburg and Calhoun counties.

RMC President Tom Dandridge said council was being asked to refinance the 1998 bonds, which included $20 million in refinanced debt plus another $10 million. That amount has now been paid down to about $17.7 million.

The refinancing is for $19 million, plus about $300,000 in fees.

"The credit markets are so screwed up, we were punished for having insurance," Dandridge said.

Due to financial problems from RMC's financial insurer, Ambac Assurance Co., the hospital has a 7.5 percent taxable rate on the debt, he said.

RMC Chief Financial Officer Cheryl Mason said that, after reviewing requests for proposals, the board has agreed to a plan from BB&T that calls for a three-year variable rate. The current interest rate is 1.5 percent. A letter of credit will be used rather than insurance.

At 7.5 percent, Mason said, the RMC would be paying $1.3 million in interest. At 1.5 percent, the rate would be $274,000.

The other two options, other than refinancing, would be to either continue to pay the high interest rate or to pay the bonds off with cash, Mason said.

The latter option would adversely affect the hospital's amount of cash on hand and the ratio of debt to capitalization. That, in turn, would make it more difficult to have access to capital, she said in response to a question from the county administrator.

Dandridge added that the bonds could always be sold, with 30 days notice.

After council approved the measure, Council Chairman David Summers noted the hospital officials, including trustees and attorney, and joked that they could "take your entourage out, if you like."

In 1998, when council first refinanced and increased the bond issue, Summers was not so enthusiastic.

"I have one question and it was probably asked in Orangeburg County," Summers told RMC officials in August 1998. "The indebtedness is about $20 million and you are asking for $30 million. ... If everybody did that all over the country, you'd raise the rates on the private sector."

Since then, after years of complaints from Orangeburg County Council members over the operation of the hospital, Summers says he's had a change of heart.

"I was nothing but 58 years old. I was not mature enough back then. I've changed my way of thinking," Summers said after the session. "I've seen the light. I wish some other people would see the light."

In other business, council:

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Gave second reading to an ordinance to modify the Fire Commission membership to include representation from the municipalities and to eliminate alternates. The commission will be composed of eight members, one to be nominated by each council member and one representative from St. Matthews, Cameron and Sandy Run.

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Approved a $99,086.67 software contract with Smith Data for additional maintenance. With some savings for leftover forms, the total increase for both supplies and service is about $2,119.

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Approved a contract with AT&T for enhanced 911 service. There's a one-time cost of $198,877 and monthly charges of $5,517, which have increased from $3,910 due to the improved service. Some of the costs will be reimbursed by the state.

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Approved an $18,000 contract from Lyles Data of Florence to put information on-line that will allow property owners to pay their taxes by computer.

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Approved an intergovernmental agreement to officially, as required by the state, perform floodplain management services for the town of Cameron.

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Received as information, a report that the county, which had been paying about $44,000 a year in a fixed-cost fee to the Lake Marion Water Agency, will receive a credit of $8,264.

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Agreed to establish a three-member commission to manage the new Fort Motte Community Center.

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

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