Tahoe Forest Hospital District (TFHD) successfully refinanced its Measure C, Election of 2007, Series A (2008) general obligation bonds, resulting in a total net savings benefiting District taxpayers of $5,184,014 or approximately $215,000 annually. This savings will be directly passed on to TFHD taxpayers through lower annual property tax assessments. The refinancing of these bonds does not extend the length of the original bond term, which will be paid off as originally scheduled.
The overall savings in debt service payments equates to an approximate $1.31 reduction in the rate per $100,000 of assessed value for property owners. â€śWe are continually monitoring the market to protect the publicâ€™s interest by taking advantage of lower interest rates that will in turn lower property taxes in our communityâ€ť said Crystal Betts, TFHD Chief Financial Officer.
TFHDâ€™s general obligation bonds have an Aa3 Moodyâ€™s Investor Service rating. Moodyâ€™s bond ratings are opinions of the investment quality of the debt obligations they rate. The Aa3 rating by Moodyâ€™s is one of the highest credit ratings possible for California healthcare providers, and reflects the high quality of the TFHD general obligation bonds.
Proceeds of the TFHD Measure C general obligation bonds were needed in order for the District to comply with Senate Bill 1953, mandating California hospitals to become seismically compliant after earthquakes occurred in southern California. Community health priorities that were addressed by the bond measure included an expanded and improved emergency department to maintain life-saving care, a modernized maternity and womenâ€™s health center, a modernized long term care facility and an expansion and upgrade of the cancer center. The bond measure was passed by a 72% supermajority vote in 2006.
General obligation bonds are paid through special ad valorem property tax assessments levied upon all property within the District subject to taxation. The tax is based on the assessed value of property per $100,000 of assessed value.