January 31, 2014
VISALIA – Kaweah Delta Health Care District refinanced its 2004
general obligation bonds on Thursday saving District property owners approximately
$6.3 million over the next 20 years.
The move followed unanimous support of a resolution approved
by the Kaweah Delta Health Care District Board of Directors during its Jan. 6
board meeting. By leveraging Kaweah Delta’s solid credit rating and taking
advantage of low interest rates, property owners within the district will benefit
from a reduction of approximately $303,000 annually through 2034.
Kaweah Delta issued and sold the refinancing bonds to
Compass Mortgage Company and WAB Investments, Inc., a wholly-owned subsidiary
of Western Alliance Bank, at an average rate of 4 percent.
The $51 million general
obligation bonds stem from the 2003 passage of Measure M, which helped Kaweah
Delta raise the $143 million needed to build the Acequia Wing. The
220,000-square-foot, six-story tower Acequia Wing, was completed on time and on
budget in 2009. It increased and
improved Kaweah Delta’s delivery of three key acute care services – cardiac,
emergency, and maternity care – and added 87 beds to the district’s downtown
medical center. The tower houses an
expanded emergency department and trauma center, an expanded area for newborns
and new moms to receive care, a new cardiovascular intensive care unit, and a
state-of-the-art facility to provide cardiac and vascular surgery for patients.
Local residents voted in favor of the bond that is now being repaid through
property tax assessments.