The initial general obligation bonds were sold on January 9, 2025, to kick-off implementation of the district’s overall $3.5 billion Measure HH bond program. If the SDCCD had sold its bonds on April 9, for example, the district would have paid $28.9 million more in total debt service over the life of the bonds based on market rates.
"As one of the first districts in California to enter the bond market this year, we capitalized on reduced competition and secured highly favorable interest rates," said SDCCD Chancellor Gregory Smith. "The strong investor response reflects confidence in our district’s financial stability and the transformative impact of Measure HH projects on our campuses and community."
By moving quickly to issue bonds, SDCCD, which includes San Diego City, Mesa, Miramar, and Continuing Education colleges, locked in lower interest rates, ultimately reducing borrowing costs and minimizing the long-term financial impact on taxpayers. Recently, the bond market has seen tremendous volatility with Treasury rates increasing as much as 40 basis points in a day, which has led to the primary market essentially shutting down with a host of districts unable to access the market until there is some stability.
Funds from this initial bond sale will support critical upgrades across SDCCD’s campuses, modernizing facilities and creating state-of-the-art learning environments for the 90,000 students the district serves annually. Key projects in this first phase of funding include:
- New affordable student housing at San Diego City College
- An English and Student Resource Center at San Diego Mesa College
- A renovated aviation facility at Montgomery-Gibbs Executive Airport, operated by San Diego Miramar College
- Expansion and renovation of the Educational Cultural Complex at San Diego College of Continuing Education in Southeast San Diego
"The district has been incredibly strategic in its planning to minimize costs for taxpayers while maximizing the return on investment," said Joel Peterson, vice chancellor and executive operations officer for SDCCD. "By getting to market early, we avoided increasing costs, ensuring that we can begin these projects as soon as possible while keeping overall expenditures low."
To ensure transparency and accountability, the SDCCD Board of Trustees has established a Citizens’ Bond Oversight Committee comprised of community members who will monitor spending and provide regular reports on bond expenditures and project progress.