GEDA and BBMR outline debt plans: 2015 BPT bonds targeted for refunding; Simon Sanchez leaseback needs $16.3M during design/construction, airport arrears of $9.

Diego Mendiola, representing the Guam Economic Development Authority (GEDA), briefed the committee on debt‑service plans for FY26. GEDA reported the government could refund Series 2015D business privilege tax (BPT) refunding bonds with an estimated net present value (NPV) savings of at least 2 percent of refunded par; current estimates stated NPV savings near $8.8 million (about 2.9% of refunded par). Pricing was targeted for late July.

On contemplated new financing, GEDA said the intent is a leaseback model through a public‑private partnership (P3) to build a new Simon Sanchez High School campus in Yigo. An RFP issued March 25 closed May 25 and negotiations were under way with CoreTech International; statute and enabling legislation require $16.3 million to be made available during the design and construction phases and the agency requested the Legislature consider that funding in the FY26 budget.

Lester Carlson (BBMR/DOA) also told senators the government owes approximately $9,254,625 in arrears related to prior aviation fuel tax apportionments (the additional 4¢ per gallon that began being remitted correctly only in 2024). Carlson said the arrears will need to be addressed and flagged it for the committee.

GEDA also reported that Guam Water Works Authority (GWA) is authorized to issue bonds (presentations referenced a planned issuance in the hundreds of millions) to fund upgrades related to a partial consent decree; those projects will bring additional construction and economic activity but are not direct budget obligations to the government.

Committee members asked whether the $16.3 million for Simon Sanchez was included in the executive budget; BBMR said the RFP and negotiations occurred after the executive budget submission (Jan. 31), so the $16.3 million was not included and would require legislative action.