Chabot-Las Positas Community College District’s Bond Sale Funds Voter-Approved Projects and Saves Taxpayers More Than $25 Million

The Chabot-Las Positas Community College District has successfully completed a more than $533 million general obligation bond financing that will fund voter-approved campus improvements while generating more than $25 million in taxpayer savings. 

The transaction, which closed May 19, included: 

• $338 million in Election of 2016 General Obligation Bonds, Series D; and  
• $195.3 million in 2026 General Obligation Refunding Bonds.  

The Series D bonds represent the fourth and final issuance authorized under Measure A, the voter-approved bond measure passed on June 7, 2016 to modernize and improve college facilities across the district. Since 2016, the district has overseen the successful planning, design, and construction of a new library and learning center, a horticulture facility, a viticulture building, and science buildings, among others. With this issuance, the Measure A authorization is now fully utilized. 

In addition to issuing the Series D bonds, the district concurrently sold the 2026 General Obligation Refunding bonds to refinance prior debt authorized under Measure B. This transaction, similar to refinancing a home mortgage, refunds prior bonds with higher interest costs through new bonds issued at lower rates, reducing future debt service and helping lower the Measure B tax rate for local taxpayers. 

“These results reflect careful planning, strong financial management, and the confidence investors have in our district,” said CLPCCD Chancellor Ronald Gerhard. “We were able to secure lower borrowing costs than expected, save taxpayers millions of dollars over time, and continue making critical investments in facilities that support students, workforce training, and our local communities.” 

Ahead of the sale, both Moody’s Ratings and S&P Global reaffirmed the district’s strong financial standing, assigning ratings of “Aa2” and “AA,” respectively, each with “stable” outlooks. The rating agencies cited the region’s growing tax base, strong enrollment recovery, experienced district leadership, and sound fiscal management practices.  

Investor demand for the bonds was especially strong. The Series D bonds received more than $1.5 billion in investor orders, representing more than four times the amount of bonds available for sale. The Refunding bonds received approximately $424 million in investor orders, more than double the amount of bonds offered. As a result of the district’s strong credit ratings and robust investor demand, borrowing costs came in lower than the original projections presented to the CLPCCD Board of Trustees earlier this year.  Compared to those projections, the final financing results reduced total debt service on the Series D bonds by approximately $31.7 million, directly benefiting local taxpayers by lowering the total amount needed to repay the bonds. The refunding transaction generated approximately $25.1 million in gross taxpayer savings, or net present value savings of 8.3% of par amount refunded. These refunding results significantly exceed the market standard for current refunding transactions, where savings of 3% or greater are considered economically beneficial for local taxpayers. Additionally, issuance costs came in below budget, allowing additional funds to be directed toward campus projects.  

“The community entrusted us with these resources through Measure A, and we take that responsibility seriously,” said CLPCCD Board President Linda Granger. “This financing demonstrates the district’s commitment to protecting taxpayer dollars while continuing to improve the learning environments and facilities our students and communities rely on.” 



The Series D bond proceeds will support voter-approved modernization, renovation, and infrastructure projects at both colleges, including upgrades to classrooms, student support spaces, and workforce training facilities. 

With the final issuance under Measure A now complete through the Series D bonds, the district can assess how the bond program has performed against the estimates provided to voters at the time of the 2016 election.  To date, the actual tax rates levied to repay Measure A debt, as well as the debt service required to repay Measure A bonds, remain well below the estimates originally shared with voters. This outcome reflects robust regional assessed valuation growth, the district’s disciplined management of the bond program, and its continued stewardship of taxpayer dollars.
 

About Chabot-Las Positas Community College District 

CLPCCD serves the San Francisco East Bay Area, particularly southern Alameda County, through its two colleges: Chabot College in Hayward and Las Positas College in Livermore. CLPCCD is governed by a seven-member board of trustees, which is responsible for all policy decisions. Board members are elected from trustee areas by the registered voters of nine communities: Castro Valley, Dublin, Hayward, Livermore, Pleasanton, San Leandro, San Lorenzo, Sunol, and Union City.