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CR News : Community Last Updated: Feb 4, 2015 - 12:35:55 PM

CR saves taxpayers $3 million
By Paul DeMark
Apr 25, 2014 - 2:28:22 PM

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College of the Redwoods will save local property taxpayers a total of nearly $3 million over the next 16 years as a result of a recent refinancing of Measure Q general obligation bonds.

''The CR students and employees are extremely grateful to the voters for passing the original bond measure,'' said CR President Kathy Smith. ''This refinancing will essentially be paying the voters back for a portion of the funds that they have so generously given.''

The CR District – which encompasses Humboldt and Del Norte counties as well as the northwest portion of Mendocino County and western Trinity County -- sold bonds in March 2014 to refinance $13,325,000 of the Series 2005 general obligation bonds originally issued in 2005 and $13,515,000 of the Series 2007 general obligation bonds originally issued in 2007.

The refinancing collectively saves CR District property owners more than $2.95 million through 2031, and savings will be passed on in the form of lower property taxes. Voters will see this first change reflected in their 2014-15 property tax bills.

The refinanced bonds were issued under the Measure Q bond authorization -- Measure B in Del Norte County -- approved by voters in November 2004. The original Series 2005 and Series 2007 carried an all-in interest cost of 4.70 percent and 5 percent respectively. The new refinanced bonds have an all-in interest cost of 3.49 percent. By taking advantage of historically low-interest rates, the District will save taxpayers approximately $173,358 per year beginning in 2015 through 2031.

Proceeds of the Series 2005 and Series 2007 bonds were issued to strengthen local job and vocational training programs, and increase academic opportunities for students with 2-year and 4-year college goals by acquiring, constructing, furnishing and equipping college facilities.

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