College of the Mainland seeking to refinance tax notes in May 2 election
During a special called meeting on Thursday, February 13, College of the Mainland Board of Trustees approved placing the refinancing of the college’s maintenance tax notes on the upcoming May 2 voting ballot.
With voter approval, this would serve as a significant cost savings by allowing the college to refinance its existing maintenance tax debt at a reduced interest rate. Taking advantage of the market’s historically low interest rates, the refinancing:
- Will save the college approximately $3,000,000 over the life of maintenance tax notes.
- Saves the college nearly $200,000 per year in interest.
- Will free roughly $1,200,000 from COM’s maintenance and operations budget.
- Will keep the interest and sinking (I&S) tax rate below the 11.7 cents promised during the 2018 bond election.
- Could decrease COM’s interest rate from 5 to as low as 2 percent.
- Will not raise student tuition prices.
Registered voters that live within the Dickinson, Hitchcock, Santa Fe and Texas City (including La Marque) school districts are eligible to vote on the proposal because they are within the COM taxing district.
The general election will be held on Saturday, May 2, 2020. For more voter information, visit www.galvestonvotes.org.