RESOLUTION NO. RS2005-912
A resolution requesting the Mayor and the Director of Finance to establish a study committee to determine the most appropriate method for eliminating the debt owed by the Hospital Authority to the Metropolitan Government.
WHEREAS, over the past several years, the Metropolitan Hospital Authority has incurred operating expenses that have substantially exceeded its revenues; and
WHEREAS, the deficit incurred by the Hospital Authority as a result of operating over budget has been covered by the Metropolitan Government in the form of "loans" to the Authority each year; and
WHEREAS, the operating deficit that has been covered by the Metropolitan Government has resulted in an accumulated debt of between $50-60 million; and
WHEREAS, the Mayor's proposed operating budget for the Metropolitan Government for fiscal year 2005-2006 provides a plan for the repayment of this debt, which would require a significant property tax increase; and
WHEREAS, although the Mayor's proposed budget provides for repayment of this debt, the terms of the debt repayment plan have not been made entirely clear to the Council; and
WHEREAS, it is in the best interest of the citizens and taxpayers of Nashville and Davidson County that a study committee be formed to examine the most appropriate method for repayment of the debt owed by the Hospital Authority from both a legal and financial perspective.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan County Council hereby goes on record as requesting the Mayor and the Director of Finance to establish a study committee to determine the most appropriate method for eliminating the debt owed by the Hospital Authority to the Metropolitan Government.
Section 2. The Metropolitan Clerk is directed to send a copy of this Resolution to Mayor Bill Purcell and to David Manning, the Director of Finance.
Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Charlie
Tygard, Harold White, Jim Gotto, Michael Craddock, Jason Hart, Brenda Gilmore,
& Finance Committee
Health, Hospitals & Social Services Committee
|Introduced:||July 19, 2005|
|Adopted:||July 19, 2005|
|Approved:||July 25, 2005|