The county will have to do more than expected in supporting arevenue bond for the King’s Daughters Medical Center renovation andexpansion, but will not assume more liability, officials saidMonday.

“We, as the owner of the building, are the borrower” and willhave to administer the bond, said County Attorney Bob Allen. Thecounty will be tasked in issuing the bond, hiring an architect andcontractor, cutting the bond payment checks and other supervisoryroles.

However, the hospital will absorb all the costs of the projectand the county’s bond payments “will be strictly a formality,” saidRandall Wall, a bond consultant working for KDMC.

“That’s a lot more than it was ever intended for you to do. But,having said that, you are absolutely protected” from any liability,Wall told supervisors Monday.

Taxpayers will not burdened by the bonds, which are secured andpaid by the hospital’s revenue and does not affect the county’sbond rating, which is determined by the amount of existing bondsand used when new bonds need to be issued for county projects.

“It will not affect the county’s bond rating over the 30-yearperiod of the bond,” Wall said.

The bond’s administrative shift is a result of changes in thetype of U.S. Department of Agriculture program KDMC is using forfinancing, said Phillip Grady, the hospital’s chief executiveofficer.

The $12 million renovation and expansion project will create anew emergency department, intensive care unit and 10 new patientrooms renovate existing patient rooms. The project will also add asprinkler system for fire suppression to the second and thirdfloors, a new pharmacy and a heliport.

Prior to the Hurricane Katrina’s sweeping damage on the coast,the total project was estimated at $11 million. The hospitalplanned to fund $2 million of the project from funds saved for thatpurpose and has secured a $9 million revenue bond through the USDAfor additional funding.

However, because construction crews are overworked currentlywith the rebuilding on the coast and the high demand for buildingmaterials, the cost of the actual construction for the project maybe more than originally projected, Grady said.

The hospital will cover any mark-ups in cost without cutting anyof the additional services.

“We are anticipating the project may be more expensive thanoriginally thought. However, we will not be reducing the scope ofthe work,” he said.