Since the passage of Proposition S (2002) & N (2006) and sale of original bonds, the district has sold five refunding series resulting in $308.6 million in combined City of San Diego taxpayer savings.
The move to refund – or refinance – the outstanding bonds that funded a transformation of SDCCD campuses comes after the nation’s benchmark bond-rating agencies again assigning the district their highest rating possible: S&P Global assigned a rating of AAA to SDCCD’s bonds; Moody’s Investors Service also assigned its Aaa rating. The “triple A” rating was due to both agencies lauding the SDCCD’s financial management practices and policies, reserves and low debt burden, in addition to the strength of the regional economy.
The ratings not only allowed the SDCCD to re-fund bonds at a lower interest rate, but also eliminated previously issued capital appreciation bonds. Capital appreciation bonds enable school and college districts to borrow money for construction projects and pay it back with compounded interest decades later. While the SDCCD did not issue many capital appreciation bonds, eliminating those previously issued significantly contributed to taxpayer savings.
“This marks the third time in five years the San Diego Community College District’s responsible fiscal policies have allowed it to refinance voter-approved bonds at a lower interest rate and save local taxpayers millions of dollars,” said SDCCD Chancellor Carlos Cortez.
The SDCCD has consistently earned high scores from the San Diego Taxpayers’ Education Foundation’s School Bond Transparency in San Diego County Summary Report, which looks at the availability and accessibility of public information on bond programs.
The $1.555 billion Propositions S and N construction bond program has allowed the SDCCD to transform San Diego City, Mesa, Miramar, and Continuing Education colleges. Proposition S authorized the sale of $685 million in bonds and was approved by voters in 2002. Proposition N authorized the sale of $870 million in bonds and was approved by voters in 2006. The Propositions S and N financed construction of 36 new buildings and 18 renovations across the district.