An Important Election

The College of the Mainland Board of Trustees has approved a May 1 election for the purpose of refinancing the college's maintenance tax notes. If the proposition is passed, the refinancing would save taxpayers an estimated $4.3 million in interest over the life of the college’s existing bond debt.

Additionally, if passed, the refinancing will serve as a fiscally responsible action that:

• Allows COM to take advantage of the market’s historically low interest rates by exchanging its existing $16 million higher-interest tax note for a lower-interest rate.
• Could decrease COM’s interest rate from 4 to as low as 1 percent.
• Saves the college nearly $250,000 per year in interest.
• Will not raise student tuition costs.

The refinancing of an existing tax note (also known as a debt or bond) at a lower interest rate is done routinely when a college reacts to changing market conditions and interest rates. By refinancing the maintenance tax debt, that money will essentially be reallocated from the college's maintenance and operations (M&O) budget to its interest and sinking (I&S) budget at a lower interest rate, allowing taxpayers and the college to see significant financial savings over the life of the bond.