By Juan Montoya
The press release by a bond-rating company that Texas Southmost College had improved its bond ratings from negative to positive will allow the college district to get a better interest rate if it decides to issue debt in the future.However, given the community college's current bond debt, it is doubtful that the district will encumber its taxpayers with further debt. However, for months the board under president Kiko Rendon and TSC president Lily Tercero have entertained a proposal to refinance at least part of that debt to save the district millions and they have not acts.
Currently, TSC carries a $118,931,667 bond indebteness that dates back to the facilities-building binges when the district was under the operational control of the University of Texas at Brownsville under President Julieta Garcia. During that time, bond issues were used to construct many campus buildings, including the TSC Arts Center and the TSC Recreational (Wellness) Center.
The general obligation bond debt ($94,157,642) won't be paid until at least 2034, the Wellness Center debt ($16,682,544) won't be paid until 2030, and the last year for payments of the Combined Fee Service ($8,091,491) is until 2031.So regardless of what ratings the college district gets to borrow more money, its obligations make it difficult to encumber more debt in the form of bond issuances.Chet Lewis, TSC vice president for Finance and Administration said that if current growth and enrollment projections pan out, the college in the future may consider a bond issue. He listed among the district's assets facilities such as the Oliveira Library, the International Technology and Commerce Campus (Old Amigoland Mall), Tandy Hall, the Arts Center and the Recreational Center.However, with that much bond debt for a small junior college, most institutions would seek to lower the debt through diverse mechanisms such as refinancing of existing debt at better interest rates. That opportunity has been available for months to the board and to Tercero but for some reason they have been reluctant to act."Neither Kiko nor Tercero are moving on this at all," said a TSC supporter. "The original rate of interest on some of the bonds stood at something over 4.7 percent and the market has improved since so they can be refinanced at about 2.7 percent interest. This would save the college millions."In one scenario presented to the board last November and again in April this year, TSC stands to garner $4,029,128 in gross savings on $34,825,000 of the bond debt if it refinances at the better rate. However, board president Rendon and Tercero have made no effort to get the board majority to consider refinancing. (Clock on graphic to enlarge)
Why?
"We don't know," said our source. "The college is paying millions in interest charges when we can easily be saving $4 million on those $35 million alone. Kiko is not moving."
The problems, insiders say, seems to be a misplaced allegiance by board president Rendon and Tercero on the company that issued the $35 million in debt under Garcia's administration. That company – First Southwest – has not presented a refinancing proposal to help the college save on its interest payments and as far as any of the new board members can remember, have they presented a status report on the college's debt. If Rendon and Tercero allow things remain the same, the college will continue paying exorbitant interest rates (and financial consultant fees to FirstSouthwest) irregardless of the improved bond ratings.
(To our Grammar Nazi commenter: "Merriam-Webster Dictionary says: (Irregardless originated in dialectal American speech in the early 20th century. Its fairly widespread use in speech called it to the attention of usage commentators as early as 1927. The most frequently repeated remark about it is that “there is no such word.” There is such a word, however. It is still used primarily in speech, although it can be found from time to time in edited prose.")
(Get a life or write your own stuff so we can be Nazis, too. Irregardless, did you even bother to read the post above the objectionable word?)
10 comments:
Irregardless is NOT a word, pendejo.
Irregardless, where is Cangas Rendon and when is he going to pay for the deaths he caused while driving drunk? Stay tunned.........
I have been at the campus almost daily since the "divorce" began and I have not seen "growth" that Chet Lewis referred to. I think he is a very capable administrator---probably more capable than President Tercero in her current position---but visitors I have brought to the campus, while admiring the architecture, have referred to it as a "ghost town" and a "museum". Maybe once the UT-RGV admission standards kick in, more Brownsville students will enroll at TSC.
It is still used primarily in speech, although it can be found from time to time in edited prose. Its reputation has not risen over the years, and it is still a long way from general acceptance. Use regardless instead. {same source you used}
(Irregardless is NOT a word, pendejo)
You just used it, bitch.
It is a bastard combination of regardless an irrespective, which happen to be perfectly good words.
Why haven't the other Trustees acted on this, why rely on kiko or Dr. Tecero, where's Trey, Adela??
From the online Oxford dictionary,"Irregardless is widely heard, perhaps arising under the influence of such perfectly correct forms as irrespective, but should be avoided by careful users of English. Use regardless to mean ‘without regard or consideration for’ or ‘nevertheless’."
Adela was asleep at the wheel . Da Mayor disguised as a Chofer woke her up from her deep slumber.
Stupid.
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