Lompoc Valley taxpayers will see a savings on property tax payments for years to come, following the recent refinancing of the Lompoc Valley Medical Center (LVMC) general obligation bonds. The refinancing comes 10 years after LVMC relocated on June 29, 2010, to the newly constructed hospital at 1515 E. Ocean Ave.
In 2005, healthcare district voters overwhelmingly approved the issuance of $74.5 million of general obligation bonds to build a new hospital. In evaluating the financial market this year, hospital leadership saw an opportunity to refinance the 2013 General Obligation Bonds for a savings to property taxpayers of $5.3 million over the term of the bonds.
“As the hospital built with the bond issue funds celebrates its 10-year anniversary this month, the LVMC Board of Directors, administration and staff reflect on how fortunate we are to serve a community willing to invest in a state-of-the art hospital facility which is so critical to meeting the healthcare needs of Lompoc Valley residents,” said CEO Steve Popkin.
“As stewards of the public assets, we are pleased to share that since the initial bond issues, a total reduction in future property taxes of $18.7 million has been achieved through this and previous refinancing efforts,” he said.
Following the successful bond election, LVMC issued an initial series of bonds in the amount of $42 million on Aug. 2, 2006 and issued a second series of bonds in the amount of $32.5 million on Aug. 7, 2007.
“The improved financial market and the structure of the bonds provided an opportunity for LVMC to refinance the 2006 bonds in 2013 and the 2007 bonds in 2014 at a savings to property taxpayers of $13.4 million. The recent financial market conditions afforded the opportunity to refinance these bonds again and save property taxpayers an additional $5.3 million” said L. Wayne Mills, CFO.
Popkin noted that LVMC is hopeful market conditions will remain favorable for future bond refinancing. The 2014 bonds are eligible for refinancing in mid-2021. If it proves fiscally appropriate, Popkin said refinancing would “provide additional savings to property taxpayers within the Lompoc Healthcare District.”
Lompoc Valley Medical Center is the community’s local hospital and the centerpiece to the valley’s healthcare system. The 115,500-square-foot facility has 60 acute care beds, including six critical care beds and six perinatal beds. The district also includes the 110-bed Skilled Nursing Facility Comprehensive Care Center and Lompoc Health sites.