Tax Implications
As per Proposition 39, the School Facilities Local Vote Act passed in 2000, there is a maximum tax rate 25¢ per $1,000 – or $25 per $100,000 - of assessed value for a General Obligation (GO) Bond election. Legal bonding capacity is also 2.5% of the assessed value within the District’s boundaries.
District Assessed Value (AV)
The size of the District’s tax base would determine the size and amount of the bond program. Bonding capacity is 2.5% of the assessed value within the District’s boundaries. The estimated assessed value for SDCCD for 2023-2024 is $253,089,287,688, resulting in a net bonding capacity of approximately $5 billion.
Timing of Bond Sales
A likely issuance schedule would be up to nine series at equal dollar value (or par) amounts. As was done with the Propositions S and N bonds, some series, over time, may be refinanced (or re-funded) when the current interest rates are more beneficial to taxpayers. SDCCD refinanced S and N bonds five times, resulting in $308.6 million in savings for City of San Diego taxpayers.
Cost of Funding
Issuances would be based on current market rates, for current interest bonds only, at 25- or 30-year maximum terms.