Covina : Council to Sponsor Bonds

The City Council has agreed to sponsor up to $40 million in bonds for expansion projects at the Inter-Community Medical Center.

Hospital officials said the center will seek no more than $25 million, part of which would be used to relocate and expand its surgical unit and to pay off $6 million in existing bond indebtedness.

Officials said that sponsorship would not cost the city any money. The hospital will benefit from city sponsorship by receiving lower interest rates and tax-free status on any interest earned on the bonds.