Measure A was a $85.9 million bond measure that voters approved in 2002 to finance the construction and modernization of District facilities. The final C series was originally issued in 2009 for $17.9 million. Technically, these bonds are not callable until 2019, but through a process called “advance refunding,” the district was able to take advantage of low interest rates before they continued to rise. This refunding will also help to smooth out any fluctuations in the tax rate in the future.
“We’re pleased to help save property owners in the Butte College district approximately $4.2 million through lower property tax bills over the next 13 years,” said Samia Yaqub, Butte College President.
Earlier Measure A bond issues (Series A and B) were previously refunded in 2012 and 2015 — saving taxpayers $5.6 million and $7 million respectively. This latest bond refinance that closed on Wednesday, December 20, 2017, brings the total tax payers savings from refunding bonds to approximately $16.8 million.
As part of the process for refunding these bonds, the District’s excellent credit quality was reaffirmed by Moody’s Investors Services with an Aa2 rating. This high rating allowed the district to issue bonds at lower interest rates and ultimately provide the added savings to property owners in Butte and Glenn counties.
The all-in true-interest-costs for the refunding bonds are approximately 2.76 percent in comparison to approximately 5.26 percent for the bonds that were refunded. The net present value savings of this bond refunding is over 20 percent, 5 times the normal rate for a refinance.
Butte College
3536 Butte Campus Drive
Oroville, CA 95965
Content editor:
Christian Gutierrez
530-895-2959
