Taxpayers to save more than $17 million
CHULA VISTA, California – Southwestern College taxpayers will save more than $17 million after the Governing Board voted to refinance a portion of Proposition R bonds. Originally, the savings were estimated at $13.4 million, but due to significant investor interest in the district’s bonds, Southwestern College was able to refinance more than originally planned. The savings equal 14 percent of the original bond.
Refinancing the bond gives taxpayers a significant savings and it does not extend the length of the repayment, which is currently scheduled until 2039.
As part of the refinancing process, Southwestern College received two AA credit ratings: “Aa2” by Moody’s Investors Service and “AA-” by Standard & Poor’s. This summer, the San Diego Taxpayers Educational Foundation gave Southwestern College a perfect score for bond reporting and transparency in 2016.
“Proposition R is one of the most exciting things going on at Southwestern College,” said Interim Superintendent President Robert Deegan. “We’re going to invest in our students while making sure we’re being good stewards of taxpayer dollars.”
“The Governing Board is very pleased, not only that we were able to save the taxpayers more money but that we received two great credit ratings from two different financial institutions,” said Governing Board President Nora E. Vargas.