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.

Proposition 39
  • Passed in 2000, Prop. 39 amended the California Constitution to lower the voter approval threshold to 55% for school and community college districts for GO Bond elections, where the District asks its voters to raise property taxes to repay bonds issued to fund construction, acquisition, repair, furnishing, and equipping of education facilities.

-Bond election must occur on a regularly scheduled Statewide election date

-At least 2/3 of the Board must approve the Resolution ordering the Election

-Detailed project list & tax rate statement must be included in the ballot measure

–Citizens’ Oversight Committee formed to ensure money is spent as promised and according to accounting & spending requirements with Annual Financial and Performance Audits

  • Since 2010, Prop. 39 Education Bonds have an overall average pass rate of 81%
  • Many districts have approved multiple bond measures to meaningfully fund their significant facilities needs