Refinancing debt on 2008 certificates of participation at a lower interest rate should save Barton Community College more than $100,000 over the life of the bonds, college trustees were told Tuesday.
The board approved a resolution that will make it possible to reduce the interest on nearly $4.8 million in principal. The college is paying 5.13 percent interest, and Dean of Administration Mark Dean said the estimated refinancing could be done at approximately 3.63 percent.
The debt was incurred to remodel the BCC Library and to build an addition to the Technical Building.
The resolution approved Tuesday allows PiperJaffray, a Leawood firm, to offer the bonds for resale. Once buyers are found and a lower rate is locked in, the board would need to approve the final transaction.
Dean noted that the college has refinanced certificates of participation in the past, resulting in a total savings of $527,946 in recent years as PiperJaffray looked for other opportunities to reduce the college’s interest expense.
PiperJaffray completed refinancing issues for the college in 2004, 2005 and 2013.
In other business Tuesday, the board approved an interlocal agreement with the city of Ellinwood, which has adopted a neighborhood revitalization plan. Dean also provided information on the City of Great Bend’s Rural Housing Incentive District resolution, although no action was required by the BCC board. Plans that offer rebates or tax incentives for new construction are periodically brought before all entities that would be affected.
The board approved hiring the following personnel, all for the Barton County campus: Kathryn Jackson, AOK instructional specialist, part-time; Orlando Hernandez, systems analyst; Kasey Miller, assistant care provider, part-time; Samuel Mertens and Christopher Brunner, campus safety officers; and Wendy Rodriguez, admissions secretary and switchboard operator.
Refinancing should save BCC $100,000