Board workshop outlines bond issuance options, refinancing that could save taxpayers $37 million; district previews campus projects

Consultants told the San Ysidro School District Board of Trustees that refinancing portions of the district's high-interest general obligation debt could produce large taxpayer savings while the board considers how to issue remaining voter-approved bonds.

At a board workshop, the district's bond adviser described three connected items: options to issue the remainder of Measure T and Measure U bonds approved in 2020; a plan to refinance older capital appreciation and 2015 GEO refunding bonds now callable at lower market rates; and how to time issuance of three recently passed bond measures so tax rates stay manageable for property owners.

The advisory presentation said the refunding of 2015 GEO bonds could shift earlier high-interest payments into later years and produce an estimated $37,000,000 in lifetime savings to taxpayers. The presenter also showed two repayment profiles for issuing the remaining Measure T/U authorization: a shorter schedule with higher annual payments and a longer schedule (about 25 years) with smaller annual increases to district property owners.

Why it matters: The district has unissued bond authorizations from multiple elections that voters approved; the board decides whether and when to sell those bonds. Refinancing callable high-interest issues can lower the district's debt-service burden and reduce what taxpayers ultimately pay, but timing and amortization choices affect annual tax rates.

Key details from the presentation and board discussion

- The presenter recommended structuring issuance to keep near-term tax-rate increases lower for property owners while warning that longer amortizations increase total interest paid over time.

- The adviser said one available refunding could be executed now (first-call date called out on the schedule), allowing the district to replace higher-cost capital appreciation bonds with lower-interest coupon debt.

- The board was told that issuing the full authorizations passed by voters is discretionary; bonds carry no 'shelf life' and may be issued in series as the district needs funds.

- The adviser flagged a statutory constraint unique to California school districts: a debt limit under the Education Code that effectively caps principal outstanding at 1.25% of assessed valuation. The presentation said issuing certain 2024-authorized bonds as proposed would require the district to request a waiver from the state and that the district should pass a resolution requesting that waiver before issuing those series.

- A tentative calendar presented to the board proposed bringing bond-issuance and waiver-request resolutions to the board at the March 13 meeting and a potential further resolution in July for additional series issuance.

Construction and project updates

District program staff then reviewed completed and in-progress projects funded by Measures T and U and outlined next steps for major sites. Highlights included: - Willow Elementary: security fencing, entry-control hardware and perimeter upgrades are in final punch-list work; a damaged fence panel at a campus corner has been ordered and is expected to arrive in a few weeks; staff said bollards already are installed and additional playground and surfacing repairs remain on the punch list. - Sims revitalization: design renderings and project phasing were shown; staff said construction is expected to start after Division of the State Architect (DSA) approval and is scheduled for completion in phases beginning in mid-2025. - Buyer-site community resource center: plans call for a community-focused center with educational, recreational and medical service space; the district noted the proposed medical/dental component would require partner agreements and added square footage and scope. - CDC move to La Mirada: staff showed how preschool classrooms, new playgrounds and parking adjustments would fit on the site; they said separation of preschool operations from other campus activity and careful phasing will be needed.

Staff also presented a 'cost-adjustment' summary showing both scope changes and savings from completed projects; the presentation noted roughly $935,000 of project savings in one set of completed Measure T/U work and an overall negative contingency in the current estimate after adjustments (presenters said the net figure was approximately -$162,767 when combining adjustments and savings).

Board members asked about timeline, shade and design details, noise mitigation for special-education students during construction, and whether the district could prioritize restroom modernization and other items if savings are realized. Staff said some additional work could be funded from savings or future series if the board prioritizes it; they also said they will coordinate phasing, noise control and staff training to limit instructional disruption.

Ending

District leaders asked the board for direction on whether to pursue the waiver and for permission to bring bond-issuance resolutions back at the next business meeting. Staff also committed to return with cost estimates for specific additions (for example, restroom modernization) if the board wants to prioritize them when series are authorized.