The San Diego Association of Governments refinanced more than $433 million in sales tax revenue, lowering long-term borrowing costs — and thus saving taxpayers about $40 million — it was announced Friday.
SANDAG refinanced the $433,355,000 in sales tax revenue in its role as the San Diego Regional Transportation Commission.
"SANDAG is pleased to be able to bring back these savings to families because this opens new opportunities to develop greater infrastructure projects that can transform our region," said SANDAG Chief Financial Officer André Douzdjian. "Anytime we are able to save taxpayers money, it is a win-win for everyone."
According to the agency, the transaction will save the region approximately $40 million through 2042 — or $29.5 million in present value.
"Proceeds from the Series 2023 Bonds were used to refund and fix-out all the Series 2008 variable rate bonds and a portion of the Series 2019A Bonds," a statement from the agency reads. "In the process, SANDAG eliminated all risks related to long-term variable rate bonds and interest rate swaps, simplifying the bond portfolio and lowering long-term borrowing costs."
Following the signing of the deal, 52 investors ordered $1.3 billion in bonds — allowing the agency to negotiate a favorable borrowing rate at 3.22% for the Series 2023 Bonds due in 2042.
