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|FIRST ON WGIL: CSC Issues Bonds to Cover Money State May Never Pay
|FIRST REPORTED 6:00am 1/29/10 Carl Sandburg College officials are convinced that there's no way the state will pay every dollar owed to the college this fiscal year, so they're making it possible to save the bills under what, for them, has become a pretty good situation.
The CSC Board of Trustees Thursday night voted to essentially refinance some outstanding working cash bonds by refunding them to the tune of nearly $6 million, and also voted to issue $2 million more dollars in working cash bonds so that the fund itself is expanded.
The purpose is to essentially make up for most of the money the state will owe but likely won't pay due to the current budget crisis.
Eric Anderson of Chicago-based BMO Capital Markets is the bonding agent, and told the Board part of the financing is being made possible thanks to how Standard and Poor's saw the college's indebtedness.
"The college's bonds are rated AA-, which is two steps from perfection, AAA," Anderson said. "Very few colleges have a AAA bond rating."
Anderson says that's possible in part because the CSC administrative team helped make the case to S&P. He says they felt that the college's financial and bonding situation as being stable, even in an economy that is anything but stable.
The bonds are being issued, officials say, at no additional property tax cost to homeowners.
The CSC Board Thursday night also appointed Julie Gibb to become Vice President of Academic Services starting this June for what will likely end up being an 18-month interim period.
The current Associate Dean of Humanities and Performing Arts will replace Doctor Lori Sundberg, who will take over as president when Tom Schmidt retires in June.
|01 29 10 by Newsroom
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