Ocean Beach Hospital and Medical Clinics Earns A1 Rating from National Rating Agency and Achieves Lower Bond Levy Rate

ILWACO, Wash. – April 17, 2023 – Pacific County Public Healthcare Services District No. 3 (Ocean Beach Hospital and Medical Clinics) recently issued Unlimited Tax General Obligation Bonds for the purpose of providing the funds necessary to finance costs associated with the acquisition, purchase, construction, equipping, renovation, expansion and improvement of capital facilities of Ocean Beach Hospital and Medical Clinics (OBHMC), as directed by the Bond Authorization, and to pay the costs of issuing the Bonds.

These improvements may include the following:

  • Renovation, improvement and expansion of the Ilwaco Clinic
  • Development and construction of an Urgent Care Clinic
  • Renovation, improvement and expansion of Ocean Beach Hospital
  • Improvement and expansion of the Wellness and Rehabilitation Center
  • Outfitting procedure rooms at the Ocean Park Clinic and purchasing additional space for District health care purposes
  • And other capital projects that may include renovation, improvement and expansion of the Archive Room; construction and improvement of parking; upgrading and improvement of diesel supply tanks; acquisition of electric/hybrid vehicles for in-home and remote health care services; and acquisition and improvement of equipment.

As part of the bond financing process, OBHMC’s staff presented information to the national rating agency of Moody’s Investor Services and received a better-than-anticipated rating of “A1.”

“The rating is a great accomplishment for OBHMC and its taxpayers!” announced Scot Attridge, CEO, OBHMC. “This is especially true when you consider that this was our first rating presentation.”

The rating of A1 lowers the interest cost, which in turn lowers the bond levy rate on the taxpayers. 

“We are very pleased and proud to achieve the rating of A1 for a rural public hospital,” added Nancy Gorshe, Commissioner and Chair, OBHMC.

“The A1 rating is based on a number of factors,” explained Attridge. “During the Rating Presentation we emphasized the following key credit strengths: 1. strong voter support for the bond levy and operating levies from our community; 2. strength of the local economy and growth in our assessed value; 3. detailed financials over the last six years; 4. financial management practices; and 5. our experienced management team in operating our public hospital district in an efficient manner.”

The Rating Presentation team was comprised of Superintendent & CEO Scot Attridge, Financial Controller Beth Hash, CPA Eric Volk of Wipfli, and Bond Underwriter Jim Nelson of D.A. Davidson & Co.

The team presented information and answered questions that dealt with the topics of management, finances, economic growth, long-term planning, and the various capital improvements. 

“This was an exciting process to present information to the Moody’s analysts and answer all of their questions,” Attridge added.

The Unlimited Tax General Obligation Bonds were priced on March 5 by D.A. Davidson & Co., serving as Bond Underwriter. The Bonds (financed over 21-years) achieved an all-in net borrowing cost of 4.58%. The estimated bond levy rate (for the years 2025-2044) is 13 cents per $1,000 of assessed value, a drop of 4 cents a year per $1,000 or $320 for a $400,000 home over 20 years. 

“This is a savings to the taxpayers of South Pacific County,” said Attridge. “Originally, we estimated a 17-cent bond levy rate. The lower bond levy rate is the result of the bond rating of A1, lower bond market interest rates at the time of the bond pricing, and growth in the assessed value of Ocean Beach Hospital and Medical Clinics.

“Our staff and consultants worked very hard to prepare for the Rating Presentation, and it was definitely worth the extra work, which consisted of preparing a financial projection, establishing financial goals for OBHMC, and rehearsing for the two-hour Rating Presentation.”

“Now that the rating and levy rate are in place and the bonds issued, the OBHMC executive team is moving ahead with pursuing bids and understanding updated costs,” said Gorshe. “When those steps are completed, the executive team, working hand-in-hand with the board, will be able to develop the list of projects that can be afforded and timelines to develop each.”

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