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Granite School District “from here, anything’s possible” Bond Election November 3, 2009

Granite School District “from here, anything’s possible” Bond Election November 3, 2009. Sarah Meier Granite School Board President. History of financing school buildings Current capital challenges Bond consideration Bond proposal to raise capital funds without raising taxes!

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Granite School District “from here, anything’s possible” Bond Election November 3, 2009

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  1. Granite School District“from here, anything’s possible”Bond ElectionNovember 3, 2009

  2. Sarah MeierGranite School Board President

  3. History of financing school buildings • Current capital challenges • Bond consideration • Bond proposal to raise capital funds without raising taxes! • School building projects History agenda

  4. Granite Has Been Fiscally Conservative • Last bond election was approved on • February 15, 1983 • The bond indebtedness ended in1996 • Pay-as-you-go for capital projects since 1996 History History

  5. Annual Capital Outlay Budget History History

  6. Major School Projects Funded on a pay-as-you-go basis since 1996 History History

  7. Granite has one of the lowest property tax rates in the region History History

  8. Construction costs have increased significantly in the last decade History History

  9. Major School Building Projects are determined by two main factors: • Adequate Facilities (e.g. air conditioning, safety/seismic, ADA compliance) • Population Growth (e.g. Student enrollment, Community needs, Long-term population trends) Capital challenges Capital Challenges

  10. Air Conditioning: A Major Facilities Issue • The Utah Department of Health requires classroom temperature monitoring and reporting on school-days between May 1-September 15 • A majority of our schools have reported 90+ degree temperatures • Heat related illnesses have been noted by both students and teachers • Efforts to alleviate heat problems have had limited effect (e.g. fans, bottled water) Capital challenges Capital Challenges

  11. Given the two factors, the following projects need to be completed in the next 5-8 years: Capital Challenges Capital Challenges

  12. Conclusions • Construction costs nearly doubled in the last decade • Pay-as-you-go funding does not meet current capital needs • At the current level of funding, needed capital projects will be significantly delayed Capital Challenges Capital Challenges

  13. Bond Consideration • A Unique Opportunity Exists to Meet School Building Needs Bond Consideration

  14. Decrease in construction costs • Low interest rates • and…NO TAX INCREASE Why is it unique? Bond Consideration

  15. How is this possible? No tax increase! Bond Consideration

  16. How is this possible? No tax increase! Existing capital outlay funds would be used to make payments on any new bonds as promised to the public when the last bonds were retired in 1996. Therefore, Granite School District taxpayers would not see a tax increase resulting from the issuance of new bonds. Bond Consideration

  17. On August 11, 2009 the board approved a resolution to place a $256 million bond on the November 3 ballot Bond Proposal Bond Proposal

  18. The bond would address the following school facility needs: • Air condition all schools (51 schools remain) • Rebuild two high schools and two elementary schools • Build two new elementary schools and one junior high school to accommodate growth • Rebuild school for medically fragile students Bond Proposal Bond Proposal

  19. Projects Projects

  20. Air Conditioning (51 schools total) Elementary Academy Park Arcadia Bennion Cottonwood Crestview Driggs Eastwood Fremont Frost Gourley Hunter Jackling Lake Ridge Mill Creek Morningside Oakridge Oakwood Oquirrh Hills Orchard Pioneer Rosecrest Sandburg Silver Hills Smith Spring Lane Taylorsville Truman Twin Peaks Upland Terrace Vista West Kearns Western Hills Woodstock Projects Projects

  21. Air Conditioning (51 schools total) Secondary Projects Junior High: Bennion Jr. Bonneville Jr. Churchill Jr. Eisenhower Jr. Evergreen Jr. Granite Park Jr. Hunter Jr. Kearns Jr. Kennedy Jr. Valley Jr. West Lake Jr. Senior High: Cottonwood Cyprus Granger Hunter Kearns Olympus Skyline Projects

  22. OFFICIAL BALLOT FOR THE BOARD OF EDUCATION OF GRANITE SCHOOL DISTRICT, UTAH SPECIAL BOND ELECTION November 3, 2009 PROPOSITION #1 Shall the Board of Education of Granite School District, Utah, be authorized to issue general obligation bonds in an amount not to exceed $256,000,000 and to mature in no more than 21 years from the date or dates of issuance of such bonds for the purpose of raising money for purchasing one or more school sites, buildings and furnishings and improving existing school property under the charge of the Board of Education, and, to the extent necessary, for providing moneys for the refunding, at or prior to the maturity thereof, of general obligation bonds of the Board authorized hereunder? Continued… Ballot Language Ballot language

  23. …continued Notice of Property Tax Increase Due to Bond Issuance Passage of the proposition means that the tax on a $221,444 residence in the School District would increase $105 per year ($221,444 being the estimated average value of a residence in the School District). The tax on a $221,444 business in the School District would increase $191 per year ($221,444 being the estimated average value of a residence in the School District). Ballot Language Ballot language

  24. Ballot Language Why does the ballot say “Property Tax Increase Due to Bond Issuance” when the district says it will not be raising taxes? THERE WILL NOT BE A TAX INCREASE AS A RESULT OF THIS BOND PROPOSAL. Ballot language

  25. Please explain the $105 per year… • If the district had no existing funds to make the bond payment, AND • All $256 million of the bond was issued at once, AND • The debt was paid off over 15 years, THEN • the annual tax would be $105 • NONE OF THESE FACTORS APPLY TO GRANITE SCHOOL DISTRICT Ballot Language Ballot language

  26. Conclusions • Pay-as-you-go funding does not meet current school building needs • Using our current pay-as-you-go strategy, needed capital projects will be significantly delayed • We currently have a window of opportunity to meet our school building needs with low construction costs and interest rates • We can meet these school building needs WITHOUT RAISING TAXES! Summary Summary/Questions?

  27. Questions? You can email specific questions or concerns to the Superintendent via his blog email address at superintendentsblog@graniteschools.org Questions will be organized by topic and answered on the blog. The blog is accessible through the district homepage Summary/Questions?

  28. Remember to vote on November 3, 2009 THANK YOU! Summary/Questions?

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