Due to an interest rate cut on its bond refinancing, Gavilan Joint Community College District has reduced the amount district taxpayers must repay for Measure E funds.
Gavilan College refinanced $27,115,000 of Measure E general obligation bonds (Series A and D) approved by district voters in 2004, decreasing payments by over $9.1 million.
The interest rate of the new bonds is lower, down to 2.78 percent from an average of 5.68 percent.
“We’re always looking for ways to save taxpayer dollars while continuing to improve the quality of higher education for our students,” said Laura Perry, president of the Gavilan College Board of Trustees. “The district’s taxpayers supported these bonds when we needed it, and we’re proud to pass along these savings to them.”
In 2015, Gavilan refinanced its 2004 Series C bonds, resulting in $3.5 million in savings. The two refinancings have reduced the payback by more than $12.6 million.
Dale Scott & Company served as the financial advisor to help the district refinance the bonds and take advantage of lower interest rates while shortening the payback period, according to a press release.
“This refinancing helps our community take a large step forward in our ongoing efforts to responsibly manage our finances,” Gavilan President Kathleen Rose said.
The 2004 voter-approved bond measure provided funds to upgrade outdated plumbing and wiring, renovate aging classrooms and libraries, provide access for disabled students, improve campus safety and plan for the future by expanding satellite sites, according to Gavilan staff.