Home Editorial Letter to the Editor – School Bond

Letter to the Editor – School Bond

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Dear Editor,

As a school board member, I have been consulted multiple times regarding the bond election. Based on experience over the past year, I would like to share my answers with your readers.

The questions presented have been as follows:

1. Is the contractor recommended by the committee the best value, choice, qualified etc. for this project?

A majority of the board felt confident in the recommendation.

2. Is a voter-approved general bond the best option to finance this project?

Prior to being elected, I would have said that it is best to save up for such costs. Based on an enlightened viewpoint, my opinion has been altered for the reasons following:

a. Voter approved bond = higher bond rating + lower interest rate

b. Capital lease = lower grade bond rating + higher interest rate

The board unanimously sided with the voter-approved bond.

3. If this project exceeds the bonded amount, how will the remaining liabilities be funded?

Most likely with a capital lease.

4. Morgan County Council has addressed the assessment value of $151 million in reduction of the Salt Lake Pipeline. Questions that have risen because of this are the following:

a.Will this affect Morgan School District revenue?

Yes, though final judgment of the restitution is still pending, it will be a reduction in excess of $400,000 annually.

b. By what means shall this shortfall be compromised and who will pay for it?

At this point, it is left to speculation.

c. Will the reduced assessment affect the limit for which the school district can bond?

Yes

5. Will education in Morgan County benefit if the bond is approved?

Absolutely.

6. If postponed, would construction costs reduce?

If you consider continued inflation, trending job growth in Utah, probable rise in interest rates and limited housing inventory, near term reduction in construction costs is unlikely.

Morgan County voters, thank you for participating in this bond election.

Adam Toone

School Board District 5

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