Taxpayers to save approximately $13.4 million
CHULA VISTA, California – The Southwestern College Governing Board unanimously voted at its June 14 meeting to refinance a portion of Proposition R bonds to give taxpayers a potential savings of approximately $13.4 million.
The decision to refinance these bonds comes at a time when interest rates are at an historic 50-year low. Currently, the average interest rate for the bonds is 4.84 percent and refinancing will lower it to 3.11 percent.
While refinancing the bond gives taxpayers a significant savings, it does not extend the length of the repayment, which is currently scheduled until 2039.
“As we move forward with Proposition R, we’re always making sure the community and the taxpayers are receiving the best deal possible,” said Superintendent/President Dr. Melinda Nish.
Governing Board President Nora E. Vargas agreed.
“Fiscal responsibility is a top priority for us at Southwestern College,” Vargas said. “Proposition R will not only enable remarkable growth for the Southwestern College community, it also brings significant savings to taxpayers. Refinancing Prop. R bonds will allow Southwestern College to expand vital resources for students and the community.”