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District outlines intent to issue $70 million in lease‑revenue bonds for Tempview completion, Dixon planning
Summary
District staff outlined a plan to issue up to $70 million in lease‑revenue bonds to finish Tempview High School and begin planning on the Dixon site. Staff described the required public‑hearing timeline, tax‑impact estimates per $100,000 of residential valuation, and options to refund callable bonds in coming years.
Provo School District staff told the board Jan. 28 they intend to issue up to $70 million in lease‑revenue bonds to complete Tempview High School and to fund planning and early design work for the Dixon site.
Staff described the procedural timeline: the board would adopt an intent‑to‑issue resolution, hold a public hearing at least 14 days later to approve issuance, and then observe a 30‑day contest period before finalizing the bonds. The district presenter said the planned $70 million would cover Tempview construction completion and architectural/planning work for Dixon, allowing the district to use interest income in early years to offset some bond interest costs and avoid dipping into fund balance for planning.
Staff presented an illustrative tax‑impact table for residential property (based on 55% of market value, per the district’s calculation): current payments were shown in the board materials as roughly $123.13 per $100,000 of assessed value; including the new bonds, the presenter said one year’s incremental cost would be about $2.99 per $100,000 in the short term and roughly $28 per $100,000 in the later years once principal payments begin. Staff noted the figures came from the bank earlier that day and that valuations and commercial property treatment could change totals.
The presenter also discussed refunding callable 2014–2016 bonds if market conditions permitted a minimum net savings (commonly about 3%). Board members asked for simplified graphics and public‑facing explanations of the tax impact and legal documents; staff said they would produce graphical summaries and plain‑language explanations for public outreach.
Staff described current market conditions: recent lease‑revenue bonds were issued at about 3.75%, close to comparable general‑obligation rates, and staff said rates could move lower before issuance. No final action to issue bonds was taken in the study session; staff described the intent resolution and expected next steps for a public hearing and formal board action.
