Truckee hospital refinances Measure C to save more than $5 million
This story has been corrected to report that Series A — one of three sets of bonds that comprise all of Measure C — was refinanced.
According to the hospital, the $98.5 million Measure C was issued in three increments: Series A originally was $29.4 million, issued in July 2008; Series B was $43 million, issued in July 2010; and Series C was $26.1 million, issued in July 2012.
The refinancing of Series A — and not all the bonds — led to the savings of $5.184 million
The Sun regrets the error.
TRUCKEE, Calif. — Tahoe Forest Hospital District recently refinanced a portion of its Measure C general obligation bonds, which was approved by voters in 2006.
The move to refinance Series A of Measure C resulted in a total net savings of $5.184 million, or roughly $215,000 annually, according to a press release from the hospital.
“This savings will be directly passed on to TFHD taxpayers through lower annual property tax assessments,” officials said.
Refinancing does not extend the length of the original bond term, which will be paid off as originally scheduled.
The overall savings in debt service payments equates to a roughly $1.31 reduction in the rate per $100,000 of assessed value for property owners.
“We are continually monitoring the market to protect the public’s interest by taking advantage of lower interest rates that will in turn lower property taxes in our community,” TFHD Chief Financial Officer Crystal Betts said in a statement.
Proceeds of the Measure C bonds were needed to comply with mandates that California hospitals become seismically compliant against earthquakes, according to TFHD.
“Community health priorities that were addressed by the bond measure included an expanded and improved emergency department to maintain life-saving care; a modernized maternity and women’s health center; a modernized long term care facility; and an expansion and upgrade of the cancer center,” according to the release.”
To learn more, visit tfhd.com.