District News Releases - Ohlone College President's Office
Thursday, September 9, 2010
Office of Public Information
Ohlone Community College District
For Immediate Release:
Ohlone Bond Refinancing Saves Taxpayers $3.4 Million
Fremont, CA—The Ohlone Community College District recently locked in significant savings of over $3.4 million for local taxpayers by refinancing a portion of its outstanding Measure A general obligation bonds.
Measure A was approved by voters in March 2002 to expand educational opportunities and student achievement through the construction of state-of-the art facilities such as the Newark Center for Health Sciences and Technology and the Student Services Center.
The District replaced $23.94 million in bonds at an average interest rate of 5.14% with $23.68 million in new bonds at an all-inclusive interest rate of 3.06%. All of the savings from the refinancing will be realized by District taxpayers in the form of lower property tax bills over the next sixteen years, beginning with the 2010-11 property tax bill.
The District received strong investor demand for its new bonds by securing strong credit ratings of ‘Aa2’ from Moody’s and ‘AA’ from Standard & Poor’s. The ‘AA’ rating from Standard & Poor’s represents an upgrade from the previous ‘AA-’ rating. In upgrading the District’s rating, Standard & Poor’s noted the District’s consistent financial performance amid state funding pressures.
“We are proud to serve our community and are very thankful for all of the support we receive,” said Mike Calegari,Vice President of Administrative Services at Ohlone. “As stewards of taxpayer dollars, we took advantage of significantly lower interest rates. As a result of the refinancing, local taxpayers will save an average of $217,000 per year for the next sixteen years.”
For more information, please contact Patrice Birkedahl in the Office of Public Information Ohlone College, 510.659.6208 or by email at email@example.com.