Taxpayers anticipated to save $9M with COD board refunding of bonds
The College of DuPage Board of Trustees at its Feb. 18 meeting unanimously approved the issuance of approximately $33.7 million in General Obligation Refunding Bonds, which will yield property tax savings for Community College District 502 taxpayers of approximately $9 million.
"We are very pleased to take this opportunity to exercise fiscal responsibility and save our taxpayers money," said Board Chairman Christine Fenne.
The bonds, issued in 2011 to finance capital projects including building renovations, carried interest rates ranging from 4 percent to 5.25 percent. Through the refunding, the remaining principal balance will be paid off in 2031.
"The current interest rate environment provided us the opportunity to realize this savings," said Scott Brady, Interim Chief Financial Officer. "The College also has a reputation for its strong financial stewardship which is recognized by industry leaders."
Among the factors influencing the college's ability to maximize savings through the refunding is the institution's Aaa Moody's rating, which was reaffirmed earlier this month.
The Aaa rating is the reporting agency's highest possible rating and accompanies a rating outlook of "stable" for the college's outstanding general obligation bonds.
President Dr. Brian Caputo said the College's history of financial and debt management further influenced the ability to capitalize on low interest rates.
"The college continues to maintain an appropriately healthy fund balance and the administration seeks to make decisions that position us favorably for future opportunities," he said. "We take very seriously our financial responsibilities to the taxpayers of District 502 to ensure the continued success of this institution and the students that it serves."
College of DuPage is regionally accredited by the Higher Learning Commission. Serving approximately 21,000 students each term, College of DuPage is the largest public community college in the state of Illinois. The college grants seven associate degrees and offers more than 170 career and technical certificates in over 50 areas of study.