Bond refinancing to save taxpayers nearly $20 million

The Harper College Board of Trustees has approved a bond refinancing resolution that will save taxpayers in Harper’s district approximately $19.6 million through 2028.

The transaction involves refunding about $125 million in outstanding general obligation bonds, which district residents originally approved in a 2008 referendum to fund construction and infrastructure improvements, for bonds with lower interest rates.

Taxpayers will benefit from lower borrowing costs due to current market conditions and Harper’s Aaa bond rating – the highest rating possible by Moody’s Investors Services. Earlier this month, Moody’s reaffirmed Harper’s rating for this bond issuance, saying the College maintains “sound financial operations,” citing its strong management team, limited reliance on state funding, modest debt profile and large and diverse tax base.

The bonds are being refinanced at an interest rate of 2.17 percent. The bond sale is expected to close in December.