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December 1, 2014

Contact:

Peggy Cartwright
Director of Marketing and Public Relations
909 652-6115

For Immediate Release


CHAFFEY COLLEGE BOND REFINANCING SAVES TAXPAYERS $8.67 MILLION

(Rancho Cucamonga, CA) Taxpayers in the Chaffey Community College District will save $8.67 million through a bond refinancing completed in October 2014. The transaction involved the refunding of approximately $85 million of tax-payer approved general obligation bonds.

Through the bond refund, the District was able to take advantage of the market’s temporary decline in interest rates during the third quarter.  The tax savings is accomplished solely through the decrease in interest rates and will not require an extension of the repayment period.  All proceeds of the 2014 general obligation refunding bonds will be used for the direct benefit of the District’s property owners and to establish the required escrow account.  The District will not receive any proceeds from the sale of the refunding bonds. Its only effect is to reduce the cost of the bond issuance to taxpayers by achieving a lower interest rate.

In 2002 the residents of the Chaffey Community College District passed Measure L providing the college $230 million. Measure L funds allowed the college to build a new campus in Chino, construct new building and upgrade the infrastructure and many facilities on the Rancho Cucamonga campus, and expand the Fontana Campus.

This is not the first refunding bond Chaffey College has received since the bond was passed. In 2005, the taxpayer savings was $2.6 million, and in 2012 the Refunding Bond was over $47 million, a taxpayer savings of $3.6 million.

“The Governing Boards decisions to act on refinancing the Bonds have had a positive impact on the taxpayers,” stated Dr. Henry Shannon, superintendent/president. “We take very seriously our role as agents of the public’s trust,” Dr. Shannon adds. “I can speak for all who worked on this project that we are pleased to have completed this work on behalf of our taxpayers who have so generously supported our students.”

The bond refunding does not directly affect the college’s own finances. It does, however, have a direct and beneficial effect on taxpayers. Those taxpayers will save money as a result of this bond refunding.

The college has received five series of bond funds to-date in the amount of $229.8 million. Again, through the commitment and outstanding efforts of college officials and financial experts, Chaffey College secured a high AAA rating and low interest rate, thus saving public funds. This year, 2014-15, the projected tax rate increment was projected at $16.09 per $100,000 assessed value, yet the residents are only responsible for $10.90.

Chaffey College is an economic engine and superior choice for higher education. Dr. Shannon exclaimed, “Chaffey College has been changing lives of the residents of the Inland Empire for 131 years and we expect to continue to serve our community for many more.”




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