In March, the Shasta-Tehama-Trinity Joint Community College District, more commonly known as Shasta College, refinanced $12.3 million in general obligation bonds, saving District property owners over $1,180,000 in property taxes. The District took advantage of continued low interest rates to refinance some of its 2014 General Obligation Refunding Bonds, which were part of Measure A.
In March 2002, District voters authorized Measure A, a $34 million general obligation bond to improve student achievement by modernizing and building new college facilities, improving energy efficiency, and upgrading science labs.
The 2014 Bonds were sold at a time when interest rates were higher. The rate on the refunded 2014 Bonds was 5.00%; rates on the new refunding bonds range from 2.31% to 3.13%. This difference will save property taxpayers $1,180,475 over the next six years.
Shasta College President Dr. O’Rorke stated, “With interest rates below historical averages and lower than when the original bonds were sold, we wanted to take this opportunity to lower property taxes for our community. We have done this before, and with prior refinancings, we have saved taxpayers over $3.5 million over the years.”
Jill Ault, Assistant Superintendent/Vice President of Administrative Services, emphasized the importance of monitoring debt obligations and identifying opportunities to save district funds and taxpayer money, stating, “Part of my job as the CBO is to monitor our debt obligations. This includes looking for opportunities to save the District and our taxpayers’ money.”
The Board of Trustees authorized refinancing the prior bonds on February 14, 2024. Kendall S. Pierson, Board President, expressed gratitude for the continued trust and support from the communities served by the college, affirming the Board’s commitment to seeking savings for taxpayers whenever possible. Pierson remarked, “The Shasta College Board of Trustees recognizes and appreciates the trust and support our communities continue to extend to the college. In turn, we feel it is our responsibility to look for savings for our taxpayers whenever possible.”
Property owners within the District can anticipate a reduced property tax rate on future tax bills as a result of this initiative.
