At their meeting on February 14, 2012 the Gavilan College Board of Trustees voted to refinance a portion of outstanding Measure E General Obligation Bonds at much lower interest rates, without extending the life of the bonds. The District was able to reduce the interest rates on Measure E bonds, which will generate a net savings in debt service to taxpayers of $2,592,801 over the life of the Refunding Bonds.
"We can save the taxpayers' money by taking advantage of the historically-low interest rates available right now," said President Steve Kinsella, "without extending the life of the bonds, or reducing the amount available for capital improvements funded by Measure E." The District itself will not realize any part of the savings, which the Board pursued on behalf of local taxpayers.
Measure E was passed by local voters in March, 2004, authorizing the issuance and sale of general obligation bonds in the maximum amount of $108 million. The portion to refinance is $25 million -- the outstanding principal amount of the Series A Bonds. Measure E has been used to provide needed upgrades to the Gavilan College campus infrastructure, technology, instructional space, and acquired property for future development. For information about projects completed with Measure E funds, go to http://www.gavilan.edu/bond.