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CCCCD Earns AAA Rating On Limited Tax Improvement Bonds, Series 2002



CCCCD Earns AAA Rating On Limited Tax Improvement Bonds, Series 2002

JUNE 25, 2002 - Collin County Community College District was recently upgraded to AAA/Aaa rating on $20 million Limited Tax Improvement Bonds, Series 2002, by both Standard & Poor's Corporation and Moody's Investors Service, Inc, respectively. The AAA/Aaa rating represents the highest credit rating available to a municipality. In the state of Texas, there are only 15 AAA/Aaa rated political subdivisions among all of the counties, cities, school districts and community colleges.

The prime rating reflects:

  • the college districts very strong underlying financial base
  • strong demand for district educational programs
  • solid financial reserve levels with conservative budgeting practices and multiyear planning
  • low tuition and an operations and maintenance stabilization fund.

The 2002 bonds are secured by a general obligation, limited tax pledge. Proceeds from this issue will finance new buildings and improvements to facilities at the college's Spring Creek and Preston Ridge campuses.

"We are very pleased with the AAA rating and will continue to employ sound fiscal practices," said Cary Israel, CCCCD president. "Our goal has always been to provide quality educational programs and facilities for the students and community."

CCCCD board of trustee chairman Sam Roach said that the college would continue its level of responsiveness to the citizens of Collin County while maintaining judicious financial control. "The board and management of the college are committed to meeting the needs of the students and the community within a very conservative fiscal strategy," said Roach.

At the June 25 board meeting, the CCCCD board of trustees approved the sale of $20 million bonds to Prudential Financial Securities, the first sale from the $57 million bond package passed by voters last November. The bonds were sold at a low 4.6 percent yield rate over 20 years.

"The rating upgrade from an Aa2 to a AAA is a tremendous achievement and represents significant cost savings to the college," said Dr. Bob Collins, vice chair of the CCCCD board of trustees. "The college will save almost half a million dollars over the life of the issue, and every bit of cost savings is important."