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Public Relations and Marketing | Published Nov 22, 2017
In order to lower the College of Lake County’s borrowing costs, the Board of Trustees approved pursuing a potential refund of outstanding $57 million Series 2013A and 2013B alternative revenue general obligation bonds. The board also approved reviewing the $20 million in outstanding limited tax general obligation bond Series 2012 for lower interest-rate savings. The college would only pursue the refunds if savings of 3 percent or more were achieved.
“We requested board authorization due to potential changes in federal tax law that would eliminate tax-exempt advanced municipal bond refunding, historically low tax-exempt interest rates and the college’s Aaa rating, which helps limit the borrowing cost of the College’s debts," said Ken Gotsch, vice president for administrative affairs. "We believe this action gives the college the opportunity to save up to $1.6 million in interest payments over the life of the bonds.” The board action authorizing the college’s bond refunding was likened to a homeowner refinancing a mortgage to take advantage of lower interest rates.
Board Chair Richard A. Anderson explained, “This is an example of how our Aaa rating has been great news for the college and our taxpayers. The board continues to effectively manage its resources for the best outcomes for our students and community.”
The board also provided an update about the CLC presidential search. Five finalists were on campus last week for a series of interviews and open forums with faculty, staff, students, the community and board members, who said they were pleased with the quality of the finalists. The board is in a good position to make a selection of a great leader, and likely will announce that person in December. The board also thanked the Presidential Search Committee for its hard work in reviewing 38 applicants, interviewing 11 semi-finalists and then narrowing the field to five.
In other news, the board was excited to approve furniture purchases for the new Grayslake Campus Science and Engineering building, scheduled to open for classes beginning Spring Semester which starts Jan. 16, 2018.