Information provided by Gavilan College.
Gavilan College announced on March 29 that S&P Global Ratings has upgraded Gavilan Joint Community College District’s (Gavilan CCD) general obligation bond rating from AA- to AA, which is expected to save local taxpayer money by lowering interest costs for Gavilan CCD bonds. District voters approved Measure X, a $248 million general obligation bond authorization, in November 2018 to construct a new center in San Benito and improve the main Gilroy campus and Coyote Valley Center.
“We have sought to responsibly manage Gavilan CCD funds with conservative budgeting and strong reserves,” said Wade Ellis, associate vice president at Gavilan College. “This rating upgrade is a recognition of our efforts, and it will directly benefit taxpayers as we begin to issue Measure X bonds this year.”
Said Gavilan Superintendent and President Kathleen Rose: “Thanks to the support of our community, we are able to enhance and improve the learning outcomes for our students. At the same time we have worked judiciously to maintain and improve our financial position. Our upgraded bond rating affirms the prudent policies set by the board and the diligent, ongoing efforts of our staff.”
According to the press release, the higher bond rating from S&P is expected to result in lower interest costs for Gavilan CCD bonds, similar to having a higher consumer credit score.
“Over the life of Measure X, Gavilan CCD’s upgraded rating could result in over $2.5 million dollars in taxpayer savings,” said Mark Farrell of Dale Scott & Company, which serves as financial advisor to Gavilan CCD.
About Gavilan Joint Community College District
The Gavilan Joint Community College District encompasses approximately 2,700 square miles including nearly all of San Benito County and the southern portion of Santa Clara County. The District currently operates one comprehensive community college in Gilroy with satellite centers in Hollister, Morgan Hill, Coyote Valley and the San Martin Airport.