San Gorgonio Memorial Hospital Touts Taxpayer Savings of Nearly $17 Million

San Gorgonio Memorial Healthcare District Board recently refinanced about $58 million of their outstanding general obligation bonds, saving District taxpayers nearly $12 million.  This is the second bond refinancing done by the District in the past year and a half.  A similar bond refinancing of $25 million done in early 2013 saved District taxpayers about $5 million.

According to G.L. Hicks Financial, the District’s financial advisor, the combined refinancing of the District’s 2006 Series bonds and 2009 Series bonds will save a total of $16,526,856 in interest costs over the next 25 years.

“All of the savings from reduced interest charges on the refinanced bonds accrues to the benefit of District taxpayers,” said Mark Turner, San Gorgonio Memorial Hospital CEO.

Three separate bond offerings were issued as part of the 2006 Measure A Bond obligation passed by District voters to fund the cost of the hospital’s master plan construction, and for the past two years, the San Gorgonio Memorial Healthcare District has taken advantage of low interest rates to refinance those bonds and save taxpayer dollars.

“The District Board pursued these savings when we realized a reduction in bond interest rates would benefit the taxpayers,” said Lynn Bogh Baldi, San Gorgonio Memorial Healthcare District Board Chair. “It is because of the support of our communities that we were able to pass Measure A in the first place, and we are grateful for that support.”