Maintenance Tax Election
Spend a penny now.
Save an estimated $4.3 million later.
This election could allow COM to refinance its maintenance tax notes and save millions.
Make it count November 3, 2020
The College of the Mainland Board of Trustees has approved a November 3 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 Tuesday, November 3, 2020. For voter registration information, polling dates and locations, visit www.galvestonvotes.org.
The ballot measure will read as follows:
[ ] FOR
[ ] AGAINST
THE ISSUANCE OF $13,950,000 BONDS FOR THE PURPOSE OF REFUNDING COLLEGE OF THE MAINLAND MAINTENANCE TAX NOTES, SERIES 2017 AND LEVYING AND IMPOSITION OF TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS AND THE COSTS OF ANY CREDIT AGREEMENTS. REQUIRED STATEMENT FOR ALL SCHOOL 4 4146-0374-0966.3 DISTRICT BOND PROPOSITIONS PURSUANT TO SECTION 45.003, TEXAS EDUCATION CODE: THIS IS A PROPERTY TAX INCREASE.