Taxpayers save $9.1 in Refinanceby Gavilan College on Jan 23, 2018
Gavilan Joint Community College District has refinanced general obligation bonds that will save district taxpayers over $9.1 million. Dale Scott & Company (DS&C) served as the financial advisor to help the district refinance the bonds and take advantage of lower interest rates while shortening the payback period. Gavilan College refinanced $27,115,000 of Measure E general obligation bonds (Series A and D) approved by District voters in 2004, saving local taxpayers over $9,100,000.
"We're always looking for ways to save taxpayer dollars while continuing to improve the quality of higher education for our students," said Laura Perry, president of Gavilan's Board of Trustees. "The District's taxpayers supported these bonds when we needed it, and we're proud to pass along these savings to them."
The interest rate of the new bonds has been cut significantly, down to 2.78 percent from an average of 5.68 percent. "Since coming on board last year, I have been working to bring our long-term vision into focus," said Dr. Kathleen A. Rose, Gavilan president/superintendent. "This refinancing helps our community take a large step forward in our ongoing efforts to responsibly manage our finances."
In 2015, Gavilan refinanced its 2004 Series C bonds, saving taxpayers $3.5 million. The two refinancings have saved taxpayers more than $12.6 million.
"Gavilan College closely monitored the interest rate market and prioritized taxpayer savings," said Dale Scott, president of DS&C. "As a result, the District's taxpayers will benefit." The 2004 voter-approved bond measure provided funds to upgrade outdated plumbing and wiring, renovate aging classrooms and libraries, provide access for disabled students, improve campus safety and plan for the future by expanding satellite sites.