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Board approves initial steps for Paloma Townhomes CFD and advances Measure JJ bond issuance and refunding plans
Summary
The board approved a school facilities funding agreement and initial actions to form Community Facilities District (CFD) No. 20 for the Paloma Townhomes project, and adopted resolutions authorizing sale of Measure JJ Series A general obligation bonds and potential 2025 refunding bonds; a citizen bond oversight appointment was also made.
The San Marcos Unified School District board took several fiscal actions Thursday tied to construction and facilities financing: it approved a form of school facilities funding agreement with Paloma Townhomes LLC to support formation of Community Facilities District (CFD) No. 20, adopted initial resolutions to proceed with the CFD, authorized the issuance and sale of Measure JJ 2024 general obligation bonds (Series A) up to $150 million, and approved a resolution allowing up to $135 million in potential 2025 refunding bonds.
Erin Garcia, assistant superintendent of business services, outlined the CFD proposal. The project — 102 townhomes at Grand Avenue and Linda Vista Drive developed by California Pacific Homes — would fund a mitigation payment equal to 32% of the district's level 1 developer fees and is estimated to generate approximately $998,000 for school facilities. The board approved the funding agreement and initial CFD formation steps on voice votes; trustees moved and seconded the motions (movers included Trustee Martin; seconds included Trustee Ahmad and others) and the motions carried.
On the bond measures, district financial advisers presented a plan to issue the first series of Measure JJ bonds (voter authorization $324 million) using conservative assumptions for assessed-value growth and a maximum tax rate of $40 per $100,000 of assessed value. Rachel from Fieldman presented a timeline and noted the district received a AA3 rating from Moody’s. She said the district planned to combine issuance of Measure JJ Series A (project proceeds for modernization, athletics, technology, and safety) with an opportunistic refunding of eligible outstanding Prop K bonds if market conditions generate taxpayer savings. The board adopted the resolutions authorizing both the bond issuance and the refunding process; staff emphasized they will only proceed with refunding if it produces net taxpayer savings.
The board also filled one vacancy on the Measure JJ Citizens’ Bond Oversight Committee by appointing Jason Dickey from the original applicant pool. District staff said the oversight committee’s first meeting is scheduled for May 13.
All actions on the CFD and bond resolutions were approved on motions and voice votes; board members voiced “aye,” and no recorded “no” votes were announced. Staff said closing and rate-locking will proceed only after continued market review. The district will return with finalized sale documents and an administrative timeline if market conditions are favorable.
