STOCKTON — Delta College's latest Measure L bond refinancing initiative, finalized this week, will lower property taxes and save the community approximately $3.5 million in future debt payments.
The $69 million refinancing addressed portions of the District’s Series 2015A GO Bonds. No new money was generated as the bonds were sold solely to benefit taxpayers.
Approved in 2004, the Measure L bond was the first major investment in Delta’s facilities since the Stockton campus was established in the early 1970s. Major completed projects include the signature Science and Math Building, the DeRicco Student Services Building, the renovated Goleman Library, and many others.
The refinancing, approved by Delta College trustees in March, is the latest in a series of efforts to save taxpayers money. Taxpayers across the College's service area have funded the bond, including residents in San Joaquin County and parts of Alameda, Calaveras, Sacramento, and Solano counties.
"We remain deeply grateful to voters for their generosity in approving Measure L, and we want to do everything we can to be good stewards of their resources. That's why we're so pleased to have completed this refinancing which will result in millions of dollars in savings for our taxpayers," said Delta College Superintendent/President Dr. Omid Pourzanjani.
Despite challenging economic news amid the COVID 19 public health crisis and concerns about inflation fears, bond market conditions on the day of sale were stable and favorable. The College bonds were well received by a broad investor base due to the College's high quality credit rating of Aa2 from Moody’s and AA- from Fitch. The College's bond offering garnered orders well in excess of the amount of bonds offered. A total of 21 different investors actively sought participation in the bond sale which helped drive higher taxpayer savings.
The College was assisted in the bond sale by its Underwriter, RBC Capital Markets, and its Municipal Advisor A. M. Peché & Associates. The San Joaquin County Treasurer’s office was also involved in the bond sale process.
Prior to the new refinancing bond initiative, the local community was paying an average coupon interest rate of 5.00% on the prior Series 2015A GO Bonds. Robust investor demand coupled with Delta's excellent bond ratings enabled the College to lock-in total taxpayer savings of $3.5 million at final true interest cost of 1.84% for the life of the new bonds, which did not extend the maturity of the bonds being refinanced.