BOT Approves Cost-Saving Debt Restructuring to Fund Needed Projects
[Garden City, KS] March 10, 2021 -- The Garden City Community College Board of Trustees voted to approve a debt restructuring and financing agreement during the regularly scheduled meeting on March 9th.
During the previous meeting, the Trustees asked for additional details regarding COP financing options. In this month's meeting, the Board of Trustees heard a presentation discussing various options for debt restructuring and financing agreements.
"The reason why we bring this forward for consideration is because of where interest rates are at, we feel like this will help move the needle on deferred maintenance items that have been on our Facilities Plan since 2012 but have not yet been addressed." Dr. Ruda, GCCC President said. "We hope to get those properties and projects in proper alignment on campus, not only for the students but also for the community." Dr. Ruda continued by stating, "The taxpayers have made an investment in GCCC and this action addresses and protects the taxpayer's current investments in infrastructure. The sustainability of existing infrastructure is being addressed by the GCCC Board through this financing agreement."
With the current low-interest rate environment, there is an opportunity to issue lease agreement refunding certificates of participation to achieve an interest cost savings on the obligations represented by the 2017 Lease and Series 2014 Bonds. The Board passed a motion to proceed with the offering for sale of refunding certificates of participation and related activities. This action will save GCCC over $200,000 while still paying the debt service off in the same timeframe as the original agreement in 2026-2027.
The Board then discussed a Certificate of Participation (COP) financing agreement to fund a variety of deferred maintenance and capital project needs that have been addressed through the GCCC Master Facilities plan. These projects have been identified through the college planning process and include:
- Replacing hydronic water pipe across campus
- A new boiler and chiller to enhance HVAC needs and for redundancy
- Replacing tunnel caps/sidewalks
- Replacing roofs on student housing
- Replacing a bus
- Transportation building to protect the vehicle fleet and college investment in the fleet
- Cameras and lighting across campus to enhance student safety
- Dishwasher for campus cafeteria
- Updates to sound, lighting, and stage equipment in Fine Arts Auditorium
- Grounds improvements and updates to the GCCC Rodeo arena/Horse Palace
The Board discussed and considered various means of financing the acquisition, construction, installation and equipping of the improvements, and determined that it would be in the public interest to acquire, construct, install and equip the improvements through the execution and delivery of a Lease Purchase Agreement. The Board voted to proceed with a 15-year amortization for this agreement.
The Board also commended Deborah Medina-Escalera and Lauren Jones for being selected as Kansas Academic All-Americans through Phi Theta Kappa this past month, as well as the College Quiz Bowl team representing GCCC at the National Collegiate Quiz Bowl Competition.
The next meeting of the Board of Trustees is scheduled for Tuesday, April 13 at 6 p.m. in the President's Conference room.
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Garden City Community College exists to produce positive contributors to the economic and social well-being of society.