MPC District Saves Millions for Local Taxpayers!
The Monterey Peninsula Community College District is proud to announce its most recent initiative to benefit its students and community members. Under the leadership of its Governing Board, the District chose to take advantage of historically low interest rates to refinance a portion of its Measure I General Obligation Bonds without extending the term of those Bonds. The District selected the right time to refinance the Bonds and was able to reduce the average interest rate on the prior Bonds from 5.03% to 2.87%, reducing the community’s tax bill by about $28.2 million from 2017 to 2034.
Since the passage and issuance of Measure I Bonds, the District has consistently sought to benefit its local taxpayers by seizing opportunities to refinance old bonds with higher interest rates. Since 2005, the District’s actions will have saved taxpayers a total of $30,101,359.
“The Measure I Bonds have literally transformed our Monterey campus and allowed The District to serve our communities better by adding centers in Marina and Seaside. This refinancing of the Measure I Bonds is a tangible way for our Board and the college to say thank you to the taxpayers for their support of the college,” says Dr. Walter Tribley, Superintendent and President of Monterey Peninsula College.
While the District itself will not receive any part of the savings, the District Board, the Superintendent/President and District staff pursued this opportunity strictly on behalf of local taxpayers as part of their continued support for the education of the students of the Monterey Peninsula community.
Some of the highlights of the 2016 refinancing are:
- $28,243,666 of Debt Repayment Savings from 2017 to 2034
- Average Old Interest Rate: 5.03%
- Average New Interest Rate: 2.87%
- No Extension of Maturities
- 1.41 to 1 Repayment Ratio