Board approves cost-savings measures for 2020-2021 year
During a special called meeting on Monday, August 10, the College of the Mainland Board of Trustees approved several cost-savings fiscal measures for the 2020-2021 budget year. The following measures will not raise tuition costs and could save up to $4.75 million in interest over the life of the college’s bond:
- A November 3 election to refinance the college’s maintenance tax notes
Due to the ongoing COVID-19 pandemic, the refinancing election, originally scheduled for May 2, will now be held this fall. With voter approval, the refinancing would serve as a significant long-term cost savings by allowing the college to refinance its existing maintenance tax debt at a reduced interest rate allowing taxpayers to save a potential $3 million over the life of the tax debt because of the market’s current historically low interest rate.
- A new, lowered proposed maintenance and operations (M&O) tax rate
COM has lowered its maintenance rate from 0.212755 to 0.186771, and homeowners will pay less in taxes for operations this year than was paid last year. Likewise, COM will continue its streak as one of only three colleges in the state to keep maintenance and operations below the no-new-revenue rate. Most importantly, because of the lowered M&O rate, homeowners will pay less in taxes for operations this year than was paid last year.
- A new tax rate of 0.055192 for interest and sinking (I&S)
Residents in COM’s taxing district will soon be receiving more information about their upcoming property tax rate. Residents should note the following regarding this new rate:
- Individuals will notice a new tax rate of 0.055192 for interest and sinking (I&S) taxes as the college now moves to begin paying off the interest from the November 2018 voter-approved bond.
- The I&S tax rate will remain below the 0.1172 rate promised during the 2018 bond election.
- Therefore, the total tax rate amount combining the M&O rate plus the I&S rate, is 0.241963 which remains under the voter-approval rate of 0.253421.
Through the 2018 bond, COM continues to address facilities needs and expand to add new and innovative programming options to better serve the needs of students and the community in the coming years. The new STEAM and Admin buildings are scheduled to be completed in early 2021, and the college will also begin construction soon on the Industrial Careers and Police Department buildings.
As one of the most affordable colleges in the state, COM looks forward to continuing its prudent oversight of financial resources this budget year to best serve its students and community.
Please note that all above-mentioned tax rates are per $100 of assessed property value.