“San Diego voters placed their trust in the district when they approved Proposition N and Proposition S to improve educational facilities throughout our colleges," said Chancellor Gregory Smith. "We take that responsibility seriously. By refinancing this debt at more favorable terms, we are reducing the long-term cost to taxpayers while continuing to deliver the high-quality learning environments our students and communities expect.”
The refinanced bonds supported projects funded through Proposition S and Proposition N, which were used to modernize and build new labs and classrooms at the in the district’s four colleges – San Diego City College, San Diego Mesa College, San Diego Miramar College, and the San Diego College of Continuing Education.
Refinancing outstanding bonds when market conditions permit is a common financial management practice that can reduce repayment costs while preserving the public investment in these facilities, said Daniel Troy, Vice Chancellor of Finance and Business Services.
“This transaction reflects our ongoing commitment to prudent financial stewardship,” Troy said. “Our team continuously monitors opportunities in the municipal bond market to reduce borrowing costs whenever conditions are favorable. By acting strategically, we generated more than $27 million in savings for taxpayers without affecting the scope or schedule of any bond-funded projects.”
Including this refinancing, the district has generated more than $366 million in taxpayer savings through strategic bond refundings over the life of the Propositions S and Proposition N bond programs, (This cumulative figure combines the approximately $339.1 million in reported savings following the district’s 2024 refinancing with the $27.2 million in savings generated through this transaction.)
The district will take the same approach with Measure HH, the $3.5 billion facilities bond voters approved in November 2024 – watching the market for chances to refinance and lower taxpayer debt as projects move forward.