Imperial, CA – The Imperial Community College District recently issued a series of “Measure J” bonds, taking advantage of historically low municipal bond interest rates.
The $16.6 Million bond issuance bears an overall borrowing rate (True Interest Cost) of less than 4.83%. In addition, the payback ratio, the relationship between the amount borrowed and the amount repaid over the term of the bond, is less than 2.2 to 1. This ratio is well below the State of California sanctioned rate of 4.0 to 1.
The District, with the assistance of its Financial Advisor, secured the low interest rate, in part, due to the District’s quality credit rating. Standard and Poor’s, an internationally recognized credit rating agency, reaffirmed the District’s “A” credit rating.
The bond proceeds of “Measure J” have allowed the District to compete into the 21st century through the building of its Career Technical Facility. The Career Technical Facility is on budget and scheduled to open in the Fall of 2014.
The $16.6 Million will fully repay the interim Bond Anticipation Note that allowed the District to begin construction in 2012.
“We are very pleased with the outcome of the bond sale,” said IVC President Victor Jaime.
“The Board of Trustees and District Staff are mindful of the strong support that our community has given us, and we take very seriously our obligations as stewards of taxpayer funds,” he added.