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Tax Implications

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Legal Framework and Tax Rate Limits

Under Proposition 39, the School Facilities Local Vote Act of 2000, General Obligation (GO) bonds are subject to a maximum tax rate of $25 per $100,000 of assessed value (or $0.025 per $1,000). In addition, legal bonding capacity is limited to 2.5 percent of the total assessed value of taxable property within the District’s boundaries. Measure HH was structured to comply with both requirements.


Refinancing and Taxpayer Savings

Consistent with past practice under Propositions S and N, the district may refinance outstanding bonds when market conditions are favorable. Previous refinancings under those programs resulted in $339.1 million in savings to City of San Diego taxpayers. Similar opportunities may be pursued under Measure HH, subject to market conditions and Board approval.


Cost of Funding

Measure HH bonds are issued based on prevailing market interest rates at the time of sale, typically with 25- or 30-year maturities. Issuances are structured to remain within the voter-approved tax rate limit while supporting the district’s long-term capital improvement and facilities renewal needs.

 

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