(Bonds Issued at Historic Low Interest Rates)….They were issued by the Imperial Community College District.
The District issued a series of Measure J bonds recently, taking advantage of historically low municipal bond interest rates. They say the $16.6 million bond issuance bears an overall borrowing rate, the 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 one. This ratio is well below the State of California sanctioned rate of 4.0 to 1. The District secured the low interest rate, in part, due to the District’s quality credit rating. Standard and Poor’s reaffirmed the District’s A credit rating. The bond proceeds have allowed the District construct the Career Technical Facility. They say the Facility is on Budget and scheduled to open in the Fall of this year.