The Board of Education on Tuesday, March 22, 2011 unanimously voted to issue $68 million in bonds to allow the District to break ground on all five Phase 1 building projects this summer.
The District was able to secure an extraordinarily low 3.79 percent, 20-year interest rate from J.P. Morgan on the bonds after securing the highest-possible bond rating of Aaa from Moody’s Investors, and a AA+ bond rating, the second-highest possible, from Fitch Ratings. The low interest rate saves the District about $3 million, George K. Baum & Co. bond counsel Dustin Matsumori said.
The Board cast its vote on the same day Canyons School District was featured on the front page of The Bond Buyer, a highly respected daily newspaper of public finance.
The Phase 1 building projects are rebuilds of Midvale Elementary and Butler Middle; a seismic retrofit for Sandy Elementary, a renovation of Albion Middle and the building of a new high school in Draper. All of the projects are expected to begin by the end of the summer and be completed between the summer of 2012 and the fall of 2013.
The bond issuance is the first in the $250 million bond Canyons voters approved in June 2010 to renovate or rebuild aging schools, build a new high school in Draper, and forward the District’s efforts to better prepare students for college and careers. The Board on March 1 approved a resolution to authorize the issuance of up to $70 million in bonds.