San Joaquin Delta College will save taxpayers more than $20 million by paying off the college’s last installment of Measure L bond money over a shorter period of time.
The agreement, finalized earlier this year, means property owners will pay a little more now but will save a lot more later.
The arrangement is roughly comparable to a homeowner who decides to pay off a 30-year mortgage in 10 years, saving a substantial amount of interest as a result.
In Delta’s case, the final installment of bond money will be paid off in 10 years instead of 25 years, saving about $20.3 million in interest.
“We are extremely pleased that our recent Measure L bond sale has resulted in significant savings to our taxpayers, and, on behalf of the students of the district, we remain grateful to the voters for supporting Measure L,” said Delta College Superintendent/President Kathy Hart.
Meanwhile, Delta’s credit rating has been upgraded from an A-plus to an AA-minus, signifying the college has a “very strong” ability to meet its financial commitments.
Approved by property owners in 2004, the Measure L bond is the first major investment in Delta’s facilities since the Stockton campus was established in the early 1970s. Major completed projects include the signature science and math building on the northeast corner of campus, the DeRicco Student Services Building, the renovated Goleman Library and many others.
Science and math building
As a result of the faster payoff, property owners in 2018-19 will see their yearly payments increase from $18 per $100,000 of assessed value to $21.70 per $100,000. That’s still well below the $25 per $100,000 that is allowable under state law.
By 2029, property owners’ payments will be lower than they otherwise would have been. In the end, the cost to taxpayers of financing the final portion of the bond will drop from $62 million to about $42 million.
This is not the first time the college has achieved significant savings with regard to Measure L. Delta refinanced a share of the bond in 2015, saving taxpayers nearly $26 million at the time.