Written by The Business Journal Staff
A recent bond sale and refinancing by Tulare Local Healthcare District is expected to save district taxpayers as much as $54 million over the life of the new bond issue and further stabilize the district’s finances, according to a news release.
“We have worked hard to exit bankruptcy and provide a viable future for the district,” said Kevin Northcraft president of the TLHCD board of directors. “A critical component of our efforts has been a refinancing of the general obligation bonds at a significantly lower interest rate.”
By working with management, attorneys and municipal advisors, he added that they’ve been able to sell all the bonds at a lower interest rate, saving the taxpayers’ money.
The general obligation bonds are secured by taxes paid by landowners in the district. The savings resulting from the refinancing of these bonds is due to the reduced tax burden from a lower interest rate.
As a major part of the reorganization, the district decided to re-finance outstanding general obligations, finishing this week.
That came about as Moody’s investment rating service upgraded the district’s credit rating to “investment grade” during a January 2020 review.