Taking advantage of low interest rates in the municipal bond market, SANDAG sold $350 million in bonds at a 3.85 percent rate to finance key highway and public transportation projects in the San Diego region.
The bond issue generated proceeds totaling $404 million — $54 million more than the face value of the bonds — because of high investor demand. The low interest rate means that more taxpayer money will go toward project construction, rather than debt service.
“We will use the money strategically to accelerate the completion of a host of infrastructure improvements that will benefit the region’s economy and quality of life,” SANDAG Chair and Santee Councilmember Jack Dale said in a statement on Friday. “Over the next few years, we will break ground on the Mid-Coast Trolley extension from Old Town to University City and the North Coast Corridor rail, highway, and bike projects.”
Earlier this month, a comprehensive 40-year plan to handle the growing transportation needs along the North County coastline was unanimously approved by the California Coastal Commission.
SANDAG bonds have top AAA ratings from both the Fitch Ratings and Standard & Poor’s agencies.
The newly-issued debt will be repaid with tax receipts from TransNet, the regional half-cent sales tax for transportation projects. TransNet was first approved by county voters in 1987 for 20 years and was extended for another 40 years in 2004.
SANDAG, the San Diego Association of Governments, is the regional planning agency for San Diego County and its 18 cities.
