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Refinanced Bonds reduce cost to taxpayers and health system costs

Commissioners, Leadership, Community

Refinanced Bonds reduce cost to taxpayers and health system costs

Jan 17, 2020, 17:58 PM
Skagit Regional Health has refinanced General Obligation Bonds to reduce cost to taxpayers and Revenue Supported Bonds to reduce health system costs.

 

Skagit Regional Health refinances General Obligation Bonds  to reduce cost to taxpayers and Revenue Supported Bonds to reduce health system costs

Skagit Valley HospitalMOUNT VERNON – For the second time since voters overwhelmingly approved a 2004 general obligation bond issue to help expand Skagit Valley Hospital, Skagit Regional Health’s Board of Commissioners took advantage of lower interest rates to reduce the amount taxpayers owe on the bonds.
 
In 2004, voters approved the $62.1 million general obligation bond issue to help build and fund the major portion of the 220,000 square foot hospital addition, which opened in 2007. The bond issue received a 67 percent voter approval.
 
The taxpayers of Public Hospital District No. 1 will achieve savings of $2.3 million over the life of the bonds that will be paid off in 2028 as a result of refinancing to a lower interest rate. 
 
The latest refinancing closed on September 18, 2019 and the District was able to achieve a true interest cost of 2.05%. 
 
In 2012, the Board similarly benefited from low interest rates to refinance the bonds, saving taxpayers $3.7 million.
 
Recent lows in interest rates allowed Skagit Regional Health’s Board of Commissioners to take this step to reduce the burden on taxpayers.
 

“Community support has been key to our ability to meet the healthcare needs of the people we serve and we wanted to take this opportunity to give back,” said Peter Browning, Chairman of the Skagit Regional Health Board. “By paying close attention to interest rates, we are able to provide savings to the taxpayers of the district, who made the commitment 15 years ago to help fund a modern, new healthcare facility.”

The impact to the individual property owner’s tax bill is yet to be determined, as Skagit County has not yet released the assessed property valuation for 2020. Property owners in Public Hospital District No. 1, which includes most of Mount Vernon area west of the city and the southern portion of Skagit County, including Conway, Lake Cavanaugh and Big Lake, currently pay 79 cents per $1,000 of assessed valuation. The refinance is expected to reduce the levy rate by approximately 5 cents per $1,000 of assessed valuation.

"In addition to the voter-approved General Obligation Bonds, Skagit Regional Health was able to refinance some of its existing bonds, which are backed solely by the revenues of the hospital and do not rely on taxpayer support. The refinancing of the revenue bonds is expected to realize savings of more than $8.4 million. Skagit Regional Health secured an interest rate of approximately 3.14% on the refinancing, which closed on December 30, 2019. Taking advantage of low interest rates to decrease operating costs is just one of the many ways Skagit Regional Health strives to lower the overall cost of care for its approximately 130,000 residents.
 
Skagit Regional Health is one of the few Public Hospital Districts in Washington that does not have an ongoing Maintenance and Operations (M&O) tax levy. The district has several times, over the 64-year history, gone to voters to support a capital project by requesting General Obligation Bond approval to expand and improve facilities.
 
Chief Executive Officer Brian Ivie applauded the Board for closely watching the financial situation to again reduce the cost for taxpayers.
 

“We are appreciative to the residents of the district for their support,” Ivie said. “The greater region continues to benefit from the foresight and generosity of the taxpayers who provided the support for the Skagit Valley Hospital expansion, which serves as a home for evidence-based, comprehensive healthcare for the people we serve.”

Contact:       

Brian Ivie, President and Chief Executive Officer, 360-814-2293

Kari Ranten, Regional Director of Marketing and Communications, 360-814-2370

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Last post : 02/06/2023

Refinanced Bonds reduce cost to taxpayers and health system costs

Jan 17, 2020, 17:58 PM
Skagit Regional Health has refinanced General Obligation Bonds to reduce cost to taxpayers and Revenue Supported Bonds to reduce health system costs.

 

Skagit Regional Health refinances General Obligation Bonds  to reduce cost to taxpayers and Revenue Supported Bonds to reduce health system costs

Skagit Valley HospitalMOUNT VERNON – For the second time since voters overwhelmingly approved a 2004 general obligation bond issue to help expand Skagit Valley Hospital, Skagit Regional Health’s Board of Commissioners took advantage of lower interest rates to reduce the amount taxpayers owe on the bonds.
 
In 2004, voters approved the $62.1 million general obligation bond issue to help build and fund the major portion of the 220,000 square foot hospital addition, which opened in 2007. The bond issue received a 67 percent voter approval.
 
The taxpayers of Public Hospital District No. 1 will achieve savings of $2.3 million over the life of the bonds that will be paid off in 2028 as a result of refinancing to a lower interest rate. 
 
The latest refinancing closed on September 18, 2019 and the District was able to achieve a true interest cost of 2.05%. 
 
In 2012, the Board similarly benefited from low interest rates to refinance the bonds, saving taxpayers $3.7 million.
 
Recent lows in interest rates allowed Skagit Regional Health’s Board of Commissioners to take this step to reduce the burden on taxpayers.
 

“Community support has been key to our ability to meet the healthcare needs of the people we serve and we wanted to take this opportunity to give back,” said Peter Browning, Chairman of the Skagit Regional Health Board. “By paying close attention to interest rates, we are able to provide savings to the taxpayers of the district, who made the commitment 15 years ago to help fund a modern, new healthcare facility.”

The impact to the individual property owner’s tax bill is yet to be determined, as Skagit County has not yet released the assessed property valuation for 2020. Property owners in Public Hospital District No. 1, which includes most of Mount Vernon area west of the city and the southern portion of Skagit County, including Conway, Lake Cavanaugh and Big Lake, currently pay 79 cents per $1,000 of assessed valuation. The refinance is expected to reduce the levy rate by approximately 5 cents per $1,000 of assessed valuation.

"In addition to the voter-approved General Obligation Bonds, Skagit Regional Health was able to refinance some of its existing bonds, which are backed solely by the revenues of the hospital and do not rely on taxpayer support. The refinancing of the revenue bonds is expected to realize savings of more than $8.4 million. Skagit Regional Health secured an interest rate of approximately 3.14% on the refinancing, which closed on December 30, 2019. Taking advantage of low interest rates to decrease operating costs is just one of the many ways Skagit Regional Health strives to lower the overall cost of care for its approximately 130,000 residents.
 
Skagit Regional Health is one of the few Public Hospital Districts in Washington that does not have an ongoing Maintenance and Operations (M&O) tax levy. The district has several times, over the 64-year history, gone to voters to support a capital project by requesting General Obligation Bond approval to expand and improve facilities.
 
Chief Executive Officer Brian Ivie applauded the Board for closely watching the financial situation to again reduce the cost for taxpayers.
 

“We are appreciative to the residents of the district for their support,” Ivie said. “The greater region continues to benefit from the foresight and generosity of the taxpayers who provided the support for the Skagit Valley Hospital expansion, which serves as a home for evidence-based, comprehensive healthcare for the people we serve.”

Contact:       

Brian Ivie, President and Chief Executive Officer, 360-814-2293

Kari Ranten, Regional Director of Marketing and Communications, 360-814-2370