2014-10-02 / News

MCC to save $1.4 million with bond re-funding

FLINT — Mott Community College (MCC) will maximize taxpayer’s dollars through re-funding of voter-authorized bonds projecting savings of $1.4 million. The bonds in question are “callable,” allowing the college an opportunity to re-fund them at a lower interest rate than the existing debt. The MCC Board of Trustees voted Sept. 22 to approve re-funding a portion of the college’s callable bonds in early 2015. “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.” MCC relies heavily on bonds to finance a majority of its capital needs and is an integral part of the overall college budget. When bonds are issued, there are several principal maturities, or “series,” within each offering 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 nine years, MCC has re-funded several of its previous bonds and saved more than $4 million in interest, including $521,000 in 2012, $303,000 in 2009 and $3,340,000 in 2005. Mott Community College offers more than 100 academic and occupational programs focused on preparing students for a successful future through university transfer agreements, and high-demand two year degree programs or one year certification programs. Affordable tuition, an open door policy and flexible scheduling make MCC the Smart Choice. – G.G.

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