Yavapai College saves money on lower tax rate
The Yavapai College Governing Board unanimously awarded the low bidder, UBS PaineWebber Inc., as underwriter for the initial $26 million bond issuance.
The board met via teleconference on Tuesday, July 31, 2001, to approve the bid from UBS PaineWebber Inc. with a net interest rate of 4.49 percent, approximately .5 percent lower than anticipated. The lower interest will result in a lower tax rate for Yavapai County residents.
"The market conditions were very favorable for this issue," said Terry Bowmaster, Yavapai College director of finance. "The result was a good interest rate."
Prior to the board meeting, college staff, bond counsel and financial advisors evaluated six bids before determining UBS PaineWebber had the lowest interest rates. At the time of the November 2000 bond election, college officials had projected a tax rate of $46.30 per $100,000 of assessed valuation. With Tuesday's bid, the actual tax rate will be $41.60 per $100,000.
In the next few weeks, college officials will finalize documents with UBS PaineWebber and complete the transaction Wednesday, Aug. 15. That day, the college will receive $25,955,000 in a wire transfer from the firm.
Of that money $25 million will be used to improve existing buildings on the Prescott and Verde Valley campuses, as well as new construction and facilities across Yavapai County, as approved by voters in the November 2000 bond election.
The remaining $955,000 will be used to refinance the college's Series C bond from 1991.
"By refinancing, Yavapai College will save taxpayers more than $97,000," Bowmaster said.