College officials say move will save taxpayers $2.8 million
Taft College completed the refinancing of $11.235 million in Measure A general obligation bonds approved by the voters in 2004 to fund core campus improvements.
Through this refinancing, completed on Nov. 26, property owners within the College will save $2.8 million over the next 13 years, West Kern Community College District officials said.
The savings will also reduce tax rates paid by property owners within the College.
The College was able to take advantage of extremely low interest rates that generate savings for taxpayers. The original bonds had an average interest rate of 4.70%.
The new interest rate is 2.31%. The District received this low rate due to favorable market conditions and a high credit rating of “A+” from Standard & Poor’s Ratings Services. According to Standard & Poor’s, the rating reflects “the consistent demand for the district’s program offerings, steady enrollment trends and continue support from state appropriations”. While all of the savings from the refinance will directly benefit only taxpayers, there will also be no out-of-pocket costs to the College itself.
“The Board of Trustees is committed to fiscal responsibility and maintaining the trust we have within our community,” said TC Superintendent/President Dr. Debra Daniels, “Our Administration and our employees are focused on providing a top notch educational experience while maintaining an intentional commitment to fiscal responsibility.”