Butte Valley >> The Butte College district recently was able to lock in lower interest rates and refinance Measure A bonds, which will save Butte and Glenn county taxpayers over $4 million.

Measure A is an $84.9 million general obligation bond approved by voters in 2002 to construct and modernize classrooms, labs, libraries and other facilities. The college used some of the bond money to secure state funding, allowing for construction of the Chico Center, and on the main campus, the Learning Resource Center, the Media Center and the Arts Building.

The bond was issued in three series, with the last one released in 2009 for $17.9 million. Though not redeemable until 2019, the district was able to refinance the final series C bonds in advance of their redeemable date — before interest rates continued to rise, according to a press release from the college.

“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 were refinanced in 2012 and 2015, saving taxpayers $5.6 million and $7 million, respectively. Refunding the entire series has saved taxpayers approximately $16.8 million.

The latest refinancing closed on Dec. 20, approved by the college’s board of trustees. The district’s excellent credit, reaffirmed by Moody’s Investors Service with an Aa2 credit rating, allowed the district to issue the bonds at lower interest rates.

Moody’s Investors Service is one of the most established businesses that offers bond credit ratings.

According to a press release, the district saved over 20 percent in net present value, which is five times the normal rate for a refinance.

Contact reporter Risa Johnson at 896-7763.


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