• Governing Board Saves East County Taxpayers Millions


  • Governing Board Saves East County Taxpayers Millions
    Approval of bond refinancing plan reduces long-term interest costs and reinforces District’s reputation for responsible stewardship of taxpayer dollars

    EL CAJON Governing Board President Dr. Gary Woods of the Grossmont Union High School District (GUHSD) has announced that the GUHSD Governing Board approved a major bond refinancing plan, saving East County taxpayers nearly $19 million by reducing long-term interest costs on its existing school construction bonds.
     
    “These savings are exceptional. East County taxpayers’ investment in our bond program has completely transformed the educational opportunities that we will be able to provide students for years to come,” reported Dr. Woods. “Our Board is committed to saving taxpayers their hard-earned money whenever possible. We are truly grateful for the community’s trust and proud to offer these savings back to our taxpayers,” he added.
     
    East County voters launched GUHSD's bond construction program with Proposition U, a $417 million bond approved in 2008, followed by Measure BB, a $128 million bond approved in 2016. These bonds have funded remarkable new construction, major upgrades to classrooms and labs, advanced technology, modern athletic and performing arts facilities, and cutting-edge Career Technical Education classrooms and equipment across the District. 
     
    “The Governing Board also secured nearly half a billion dollars in additional state school construction funds,” Dr. Woods reported. “These resources have transformed the Grossmont Union High School District into one of the most state-of-the-art districts in the state, especially in career pathways. I want to extend my gratitude to Governing Board Trustees Robert Shield and Jim Kelly for their thoughtful leadership from the outset of the bond program. I also commend Superintendent Mike Fowler and the District’s fiscal services and bond team for their careful and diligent work, ensuring we honor our commitment to maximizing East County taxpayers' investment,” he added.
     
    The Governing Board approved refinancing $104 million in Proposition U bonds, resulting in a net present value savings of $18,900,017. Mark Young of KNN Public Finance, who advised the District throughout the refinancing, noted that the savings rate – approximately 18% in long-term interest costs – is “very, very rare” for such transactions. Young attributed this success, in part, to “the conservatism demonstrated by the Board year over year,” and highlighted their prudent approach by avoiding excessive spending with COVID funds and setting money aside to address anticipated future challenges.
     
    East County taxpayers will see these savings reflected in reduced property tax rates starting in the 2025-26 billing cycle. This successful savings initiative follows three consecutive “A+” scores awarded to the GUHSD Bond Construction Program on the School Bond Transparency Report Card from the San Diego County Taxpayers Association.
     
    Refinancing Specifics
    Authorized under Articles 9 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, this bond refinancing involved replacing $65 million in Capital Appreciation Bonds with the Series 2024A Capital Interest Bonds, which carry a lower interest rate. The proceeds from the sale of the new bonds are being held in an interest-bearing escrow account, which will be used to retire the prior bonds at their maturity or redemption dates. The sale was strategically timed to leverage favorable market conditions in October 2024, maximizing taxpayer savings.
     
    About the Grossmont Union High School District:
    The Grossmont Union High School District (GUHSD) provides education to over 16,000 students in grades 9-12 and is located in the eastern portion of San Diego County. GUHSD was established in 1920, and it encompasses an area of approximately 465 square miles, including all of the cities of El Cajon, Santee, and Lemon Grove, most of the city of La Mesa, a small portion of the city of San Diego, and the unincorporated areas of Alpine, Dulzura, Jamul, Lakeside, and Spring Valley. GUHSD’s family of schools and programs consists of nine comprehensive high schools, a middle college high school, one project-based learning school-of-choice, one continuation high school, three special education academies, four independent charter high schools, and an adult education program.
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