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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: June 17, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: TEFRA Hearing for the Benefit of SAC Health System, Inc. (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, following a public hearing under the requirements of the Federal Tax Equity and Fiscal Responsibility Act (TEFRA) and the Internal Revenue (IRS) Code of 1986, as amended (the “Code”), by Resolution:
1. Adopt Resolution No. 2026-070 of the Mayor and City Council of the City of San Bernardino, California, approving the issuance of the California Municipal Finance Authority Revenue Bonds in an aggregate principal amount not to exceed $95,000,000, for the purpose of financing a portion of the costs of the acquisition of a building located at 1003 E. Brier Drive in the City of San Bernardino, California.
City Manager's Comments
City Manager recommends approval. This supports Sac Health System Inc. in financing current facilities that they are leasing.
Executive Summary
The issuance of the Obligations will allow the Borrower to purchase its currently leased facilities and reduce financing costs and debt service costs for the Borrower.
In order to satisfy the requirements for the obligations to be issued as tax-exempt, the issuance of the Obligations by the Authority must be approved in accordance with Section 147(f) of the Code following a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing by the applicable representative of the governmental unit having jurisdiction of the territory in which the Facilities are located. The City Council of the City of San Bernardino is the elected legislative body of the City and is an applicable 3 4
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elected representative to approve the financing of the San Bernardino Facility under Section 147(f) of the Code.
Background
The Mayor and City Council are being asked to adopt a resolution that would approve the issuance of tax-exempt revenue bonds by the California Municipal Finance Authority (the “CMFA”), in one or more series in an aggregate principal amount not to exceed $95,000,000 (the Bonds) for the purpose of making a loan to SAC Health System, Inc., a nonprofit public benefit corporation as described in section 501(c)(3) of the Internal Revenue Code of 1986 (the “Borrower”), to finance the acquisition, design, construction, renovation, and equipping of the building located at 1003 E. Brier Drive San Bernardino, California 92408, to include the building as part of the healthcare campus, and related capital improvement and equipment costs (the “Project”) owned and operated by the Borrower.
The Bonds are limited obligations of the CMFA payable solely by the Borrower, and will not be direct obligations of the City of San Bernardino.
Discussion
The purpose of the Tax Equity and Fiscal Responsibility Act (TEFRA) hearing is to receive public comment and request approval of the financing, as required by the Internal Revenue Code of 1986, as amended. The City Clerk has properly noticed this public hearing and legal counsel has assisted in the preparation of the attached resolution for approval.
Before the Bonds can be issued as tax-exempt obligations, the City must conduct a public hearing and approve the issuance and use of the Bond proceeds pursuant to Section 147(f) of the Internal Revenue Code.
Strategic Targets and Goals
Adopting the resolution for issuance of tax-exempt revenue bonds for the acquisition of the building located at 1003 E. Brier Drive in the City of San Bernardino, California, to be used as part of a healthcare campus, aligns with Mayor and City Council, Key Target No. 4 Improved Quality of Life by providing quality healthcare to the community.
Fiscal Impact
The issuance of the Bonds will have no financial impact to the City other than it is expected that CMFA will provide a small portion of the issuance fees to the City. The CMFA will act as issuer and perform all necessary legal and administrative responsibilities associated with the financing. The Bonds are special, limited obligations of CMFA payable solely through the repayment of the loans from the CMFA, which repayment is used to pay the principal of and interest on the Bonds. The Bonds issued by CMFA are not an obligation of the City or any CMFA member. Neither the faith or credit, nor the taxing power of the City, any CMFA member, the State or any other political subdivision is pledged to the repayment of the Bonds. 3 4
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, following a public hearing under the requirements of the Federal Tax Equity and Fiscal Responsibility Act (TEFRA) and the Internal Revenue (IRS) Code of 1986, as amended (the “Code”), by Resolution:
1. Adopt Resolution No. 2026-070 of the Mayor and City Council of the City of San Bernardino, California, approving the issuance of the California Municipal Finance Authority Revenue Bonds in an aggregate principal amount not to exceed $95,000,000, for the purpose of financing a portion of the costs of the acquisition of a building located at 1003 E. Brier Drive in the City of San Bernardino, California.
Attachments
Attachment 1 Authorizing Resolution No. 2026-070
Attachment 2 Proof of Publication
Ward:
Third Ward
Synopsis of Previous Council Actions:
There have been no previous actions by the Mayor and City Council pertaining to this property.
CC: Eric Levitt, City Manager