In an agreement made earlier in the year, San Joaquin Delta College has arranged to pay off its last installment of Measure L bond money in less than half the time originally allotted.
The result will be a savings of about $20.3 million in interest, according to Delta College. The original installment pay-off time was 25 years. The Measure L money will be paid off in 10.
“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 Kathy Hart, president and superintendent of Delta College.
The quicker payoff will cost property owners a bit more in assessments starting with the 2018-2019 year. Those costs will increase from $18 per $100,000 of assessed value to $21.70 per $100,00. State law puts a cap on assessments at $25 per $100,000.
According to the school, by 2029, the final cost to taxpayers for the bond will be $42 million instead of $62 million.
Measure L was approved by voters in 2004 as an investment in the Delta College campus.