SANDAG Saves the San Diego Region $61.6 Million Over the Next 22 Years

Sales tax revenue refunding bonds generate meaningful savings for the San Diego region

SANDAG, serving as the San Diego County Regional Transportation Commission, successfully refinanced $376.31 million in sales tax revenue bonds. This transaction provides significant savings to the region and taxpayers.  

“These savings can be used to continue developing and delivering infrastructure projects that bring mobility benefits to our region,” said SANDAG Chair and Solana Beach Mayor Lesa Heebner “Any time we are able to reduce our debt and save taxpayers money, it is a win.”  

The refinancing transaction will save the region approximately $61.6 million through 2048, or nearly $45 million in today’s dollars. Proceeds from the Series 2026A Bonds were used to refund Series 2016A Bonds and a portion of the Series 2019A and 2021A Bonds. Both Standard & Poor’s (S&P) and Fitch gave the bonds AAA ratings and lauded the sound fiscal management of the TransNet program. 

The deal was very well received by investors and received over $1.6 billion in orders from  
63 different investors wishing to purchase the bonds. The high investor interest allowed the agency to negotiate a favorable borrowing rate with an all-in true interest cost of 3.34% for the Series 2026A Bonds, which fully mature in 2048.  

Since the TransNet Program’s inception, annual sales tax revenues have increased from  
$95.7 million in FY 1989 to $426.9 million in FY 2025. The original TransNet Program, which was adopted by county voters in 1987 and funded major transportation projects, expired in 2008.  

In 2004, San Diego County voters approved an extension of TransNet which began in 2008 and is set to continue for 40 years (until 2048). The Ordinance and Expenditure Plan for the TransNet Extension includes funding for additional major highway, transit, and local street and road projects, as well as environmental mitigation, smart growth incentives, bicycle and pedestrian facilities, and related programs.