| A financial move to take advantage of lower interests rates by the Sonoma Valley Health Care District will save taxpayers $2.1 million over the next 10 years. The board, which oversees Sonoma Valley Hospital, refinanced one of its two general obligation bonds.
“We’re delighted with the very quick and highly productive outcome of the placement effort,” said Bill Boerum, board member and Finance Committee chair. “The refinancing represents a projected savings of $2,154,000 for District taxpayers over the remaining 10 years of the bond. This exceeded our expectations because we were able to secure a lower interest rate than we anticipated.”
Boerum reported the final net proceeds of the refinancing (after costs of issuance) are $15,825,000. He said that issuance costs, which are included in the proceeds of the bonds, were approximately $173,000, which is lower than expected.
The refinancing required no equity or cash from the District or the County.
The refinancing included one of the two general obligation bonds, which together originally totaled $35 million, that the District incurred in 2009 and 2010 to enable the District to finance hospital seismic mandates and the expansion of the west wing that included a new Emergency Department and Surgery Center.
The 2009 bond was refinanced in 2014. |
