An Important Election
To continue effectively serving the growing needs for our students and communities, this election gives COM an opportunity to take advantage of historically low interest rates by refinancing a college bond – saving taxpayers more than $4.3 million.
Make it count May 1, 2021
The College of the Mainland Board of Trustees has approved a May 1 election for the purpose of refinancing the college's maintenance tax notes. If the proposition is passed, the refinancing would save taxpayers an estimated $4.3 million in interest over the life of the college’s existing bond debt.
Additionally, if passed, the refinancing will serve as a fiscally responsible action that:
- Allows COM to take advantage of the market’s historically low interest rates by exchanging its existing $16 million higher-interest tax note for a lower-interest rate.
- Could decrease COM’s interest rate from 4 to as low as 1 percent.
- Saves the college nearly $250,000 per year in interest.
- Will not raise student tuition costs.
The refinancing of an existing tax note (also known as a debt or bond) at a lower interest rate is done routinely when a college reacts to changing market conditions and interest rates. By refinancing the maintenance tax debt, that money will essentially be reallocated from the college's maintenance and operations (M&O) budget to its interest and sinking (I&S) budget at a lower interest rate, allowing taxpayers and the college to see significant financial savings over the life of the bond.
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 1, 2021. For voter registration information, polling dates and locations, visit www.galvestonvotes.org.