Proposition G Investor Relations Historical Perspective

Proposition G Investor Relations Historical Perspective

Several years ago, GHD board members recognized that major capital improvement were needed at Grossmont Hospital. As a result, the District sponsored a voter-approved bond measure called Proposition G (ā€œGā€ for Grossmont).

Appearing on the June 2006 ballot, Proposition G was a $247 million, general obligation bond measure. Passage of the bond measure made possible the financing of a number of capital infrastructure construction projects at Grossmont Hospital, as specified in the hospital’s facilities master site plan. Proposition G was approved by more than 77 percent, well above the two-thirds voter requirement. There was no organized opposition and no ballot argument against Proposition G filed with the Registrar of Voters.

GHD planned on a phased approach for issuing the bonds based on project timelines. The first issue was the 2007A $85,627,075.50 Bonds, the second was the 2011B $136,860,000 Bonds, and the third and final was the 2015C $24,510,000 Bonds.

Proceeds from the sale of the bonds issued pursuant to Proposition G will be used to (i) improve emergency care in eastern San Diego County, including the completion of Sharp Grossmont Hospital’s Emergency and Critical Care Center, (ii) improve seismic safety, (iii) improve access to medical facilities in the event of earthquakes, wildfires or other disasters, (iv) expand cardiac care, (v) increase the number of patient beds, and (vi) acquire, construct, repair, and improve certain medical facilities.

The Bonds represent general obligations of the District payable from certain ad valorem taxes. The Board of Supervisors of the County shall levy and collect annually ad valorem taxes upon all property subject to taxation by the District for the payment of the principal or accreted value of and interest on the Bonds. The Bonds are not obligations of the County, the Authority, the State or any of its political subdivisions, other than the District.

See the GHD audit reports for more information on refunding activities.