REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 3, 2026
FROM
MATTHEW ERICKSON, Chief Management Officer, Finance and Administration
SUBJECT
Title
Loma Linda University Medical Center Tax Exempt Financing Hearing
End
RECOMMENDATION(S)
Recommendation
1. Conduct a Tax Equity and Fiscal Responsibility Act public hearing regarding the issuance of one or more series of revenue bonds, in an aggregate principal amount not to exceed $1,892,000,000 of which $1,615,000,000 may be tax exempt and will be used to finance and/or refinance the acquisition, construction, improvement, renovation and/or equipping of capital projects of certain health care facilities to be owned or operated by one or some combination of the Loma Linda University Medical Center and Loma Linda University Children’s Hospital within San Bernardino County.
2. Adopt Resolution approving the issuance of one or more series of revenue bonds, in an aggregate principal amount not to exceed $1,892,000,000 of which $1,615,000,000 will be used to finance and/or refinance the acquisition, construction, improvement, renovation, and/or equipping of capital projects of health care facilities located in San Bernardino County.
(Presenter: Robert Saldana, Deputy Executive Officer, 387-4883)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Bonds issued under this Resolution are limited obligations of the California Statewide Communities Development Authority (CSCDA), payable solely out the revenues and receipts derived from the loan made by CSCDA to the borrower, Loma Linda University Medical Center (LLUMC). Pursuant to Section 8 of the Amended and Restated Joint Exercise of Powers Agreement governing CSCDA, dated June 1, 1988 (Agreement), in which the County is a member, the bonds do not constitute a debt of the County nor do the bonds represent a pledge of the faith and credit of the County.
BACKGROUND INFORMATION
This item will allow LLUMC to proceed with the issuance by CSCDA of one or more series of revenue bonds, in an aggregate principal amount not to exceed $1,892,000,000, of which up to $1,615,000,000 may be federally tax-exempt and used to finance and refinance capital projects located within San Bernardino County. The proposed tax-exempt financing of up to $1,615,000,000 includes the following amounts: up to $170,000,000 will finance the acquisition, construction, improvement, renovation and/or equipping of health care facilities owned or operated by LLUMC and/or Loma Linda University Children’s Hospital; and up to $405,000,000, $975,000,000 and $65,000,000 will refund all or portions of CSCDA Revenue Bonds Series 2014A, Series 2016A and Series 2024A, respectively.
Pursuant to Section 147(f) of the Internal Revenue Code, a public hearing must be conducted by a governmental entity having jurisdiction over the area in which the project to be financed with tax exempt bond proceeds is or will be located. LLUMC is also working with CSCDA to issue the bonds. Section 9 of the Agreement requires that a CSCDA member approve the issuance of the bonds. As a CSCDA member, the County meets both requirements.
The bonds, when issued, will be limited obligations of CSCDA payable solely out of revenues and receipts derived from a loan agreement between CSCDA and LLUMC. The refinancing and/or financings will be structured so that neither CSCDA nor the County has financial liability. The bonds do not represent a pledge of the faith or credit of the County.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniella Hernandez, Deputy County Counsel, 387-5455) on September 29, 2026; and County Finance and Administration (Amanda Trussell, Principal Administrative Analyst, 387-4773) on September 30, 2026.