COD bond refinancing saves $2 million

Residents could see a minor dip in their property tax bills in two years thanks to the College of DuPage.

Officials recently refinanced some of the college's construction debt and say they notched a $2.1 million reduction. All those savings will be passed on to taxpayers in 2011.

COD is in the midst of a $300 million capital improvement campaign that will add several new buildings to the landscape of the Glen Ellyn campus and renovate several existing facilities.

"We started this when we saw the downturn in the economy crank up last fall," COD President Robert Breuder said. "Any organization worth its salt takes a good, hard look at its practices to determine whether it can do anything to soften its economic impact."

Tom Ryan, vice president of administrative affairs, said the timing was good to refinance because interest rates are low. They could drop even more, but not so significantly that waiting would make a large difference in additional savings, he said.

The college could potentially refinance even more debt in the future.

"There could be future opportunities, but we'll have to see how the market plays out," Ryan said.

Breuder has zeroed in on the college's financial well-being since taking office in November. He has instituted a hiring freeze and limited departmental expenses.

"We're doing what a good business does to move through this and be in a good position," he said.

The college also has increased tuition and doubled the cost of some expensive and highly competitive programs.

Taxpayers covered $183 million of the debt created by the capital program by approving a tax increase a few years ago. Another $100 million came from tuition hikes and the remainder came from reserves and other college funds.

Two new campus buildings will soon open. Officials recently held a grand unveiling of the $49.5 million Technology Education Center on its west campus and the $60 million Health Science Center across the street is almost complete.

The next major construction phase is the $111 million renovation of the Berg Instructional Center and adjacent Student Resource Center.