The Board of Education on Tuesday, March 1 unanimously voted to stay the course on its Phase 1 bond building schedule, targeting a fall 2013 completion date for the first five projects, by using some of the District’s capital fund balance.
The Board approved a resolution to authorize the issuance of up to $70 million in bonds, as originally planned, to enable the District to break ground on all five Phase 1 projects this summer. The five projects are the rebuild of Midvale Elementary and Butler Middle School; a seismic retrofit for Sandy Elementary, a renovation of Albion Middle School and the building of a new high school in Draper.
Instead of issuing a second round of bonds next spring, the District will use money from the capital fund balance, which is an account dedicated to building projects. The District anticipates issuing additional bonds and beginning the remaining eight projects when assessed valuation improves and when old Jordan debt begins to substantially tail off.
The plan accomplishes several goals. It keeps intact the target fall 2013 completion date for the first five projects. It allows grade reconfiguration to move forward in fall 2013 as part of the District’s college- and career-ready academic plan. It also allows the Board to keep its promise to the public not to raise its debt service levy when voters approved the $250 million bond in June 2010.
Board members noted they have been talking about addressing building issues for the past two years, and praised the plan as a well thought out solution and first step in addressing the District’s $650 million in critical building needs.
Two weeks ago, the Board discussed building schedule options for the first five bond projects after learning property values are expected to decline for the third consecutive year. Declining property values would impact Canyons’ ability to collect sufficient tax revenue from its existing debt service levy to pay for the principal and interest on the total amount of new bonds needed to proceed with its current timeline. The Board had looked at the possibility of delaying projects one year or funding one or two projects at this time.