Photo via SCCCD
Written by The Business Journal Staff
The State Center Community College District (SCCCD) issued $205 million in “new money” general obligation bonds to fund capital projects at college campuses throughout the district.
The funding comes from Measure C in 2016.
SCCCD also refinanced approximately $11.15 million of outstanding bonds to lower interest rates and reduce the annual debt service payments for taxpayers. The financings will close on Oct. 1.
With this refinancing, property owners in the district will save more than $1.2 million over the remaining life of the bonds — around $1.1 million in today’s dollars. The district got a 2.12% overall interest rate for the bonds.
Refunding bonds pays off existing debt with funds borrowed at lower interest rates, with the savings being passed on to taxpayers through lower property taxes. These bonds were refinanced without the term of the prior bonds being extended.
There is $205 million in remaining unissued Measure C bonds left to be sold.
“The District appreciates the community’s continued support for maintaining high quality facilities and educational programs offered at our college campuses and we are pleased to have an opportunity to reduce the tax burden for homeowners, “ said SCCCD Chancellor Dr. Paul Parnell. “The positive results of this bond sale reflect the commitment of the SCCCD Board to effectively manage its bond program and demonstrate strong fiscal stewardship of public funds.”