MCC to Save $375,000 in interest with Bond Re-Funding
Mott Community College (MCC) will maximize taxpayer’s dollars through re-funding of voter-authorized bonds projecting interest savings of approximately $375,000. The bonds in question are “call-able,” allowing the college an opportunity to re-fund them at a lower interest rate than the existing debt.
The MCC Board of Trustees voted June 26 to approve re-funding a portion of the college’s call-able bonds in 2017.
“This proposed action demonstrates a continued commitment to fiscal responsibility to its local taxpayers by MCC ,” said Larry Gawthrop, chief financial officer for MCC. “We will continue to look for savings opportunities as we move forward.”
The College relies on bonds to finance a majority of its capital needs and bonds are an integral part of the overall college budget. When bonds are issued, there are several principal maturities, or “series”, within each offering, each having differing maturity dates. “Because these bonds are amortized over several years, the original interest rates may be higher than what is available at a future point in time on the amortization schedule,” explained Gawthrop. “This presents an opportunity to re-fund them at a lower rate.”
Re-funding can create considerable savings in interest costs. In the past 12 years,
MCC has refunded several of its previous bonds and saved more than $4.5 million in
$521,000 in 2012, $303,000 in 2009 and $3,340,000 in 2005.
Mott Community College is committed to excellence in education and offering services that cultivate student success and improve the overall quality of life in a multicultural community. With more than 100 academic and occupational degree programs, we help students prepare to achieve more in an ever-changing economy. Through university transfer agreements, high-demand associate's degree programs and one-year certification programs, we help ensure that all Mott students are ready to get more out of life.
As an affirmative action/equal opportunity institution, the College encourages diversity and provides equal opportunity in education, employment, all of its programs, and the use of its facilities. The College does not discriminate in educational or employment opportunities or practices on the basis of race, sex, color, religion, gender, national origin, veteran’s status, age, disability unrelated to an individual’s ability to perform adequately, sexual orientation, or any other characteristic protected by law. Title IX Coordinator Contact Information: 1401 E. Court St., Prahl College Center (PCC-2030G), Flint, MI 48503, (810) 762-0024. Title II, ADA, Coordinator Contact Information: 1401 E. Court St., Curtice-Mott Complex (CM-1024), Flint, MI 48503, (810) 762-0373. Section 504 Coordinator Contact Information: 1401 E. Court St., Prahl College Center (PCC-1130), Flint, MI 48503, (810) 762-0191.
For important information about the educational debt, earnings, and completion rates of students who attended these programs, please see the following link: https://www.mcc.edu/gainful_employ_disclosure/index.php