Cascade Medical will save taxpayers more than $1 million by refinancing a series of bonds at a lower interest rate.
The bonds, issued in 2005 and 2006, paid for the renovation and expansion of Cascade Medical. Voters supported the $8.8 million project with more than 70 percent approval.
“We had to wait until the bonds became redeemable,” said James Hopkins, Chief of Financial Officer. “With Jim Nelson’s help, we were able to find a very opportune time.”
Cascade Medical spent two months working through the refinance process with Jim Nelson of D.A. Davidson, an investment firm. About 10 banks responded to the bid. Commissioners voted to award the contract to Opus Bank at an interest rate of 2.68 percent.
“The low interest rate quote from the bank is a positive reflection on the local economy and the financial management of the hospital,” Nelson said.
The process wrapped up in late August. The savings is a direct benefit to taxpayers – an average $76,418 a year for the next 14 years. Taxpayers should notice a difference on their next statement in April. The refinance will have no effect on Cascade Medical’s operating budget.
“The bonds had an interest rate of 4-5 percent, so to achieve 2.68 percent was very worthwhile,” said Tom Baranouskas, Board Commissioner and Chairman of the Finance Committee. “As a nonprofit, we are pleased to be able to save our community money.”