Two top-rated Utah issuers put $1.237 billion of bonds on November ballot

Utah voters will weigh big bond propositions Nov. 5 as two top-rated issuers seek authorization for $1.237 billion of general obligation debt.

The Salt Lake City School District Board of Education approved a plan last week to seek $730 million of bonds to rebuild two high schools, construct an athletic field house, and upgrade facilities. The Salt Lake County Council took action Tuesday to ask voters for $507 million of bonds to build a Justice and Accountability Center in Salt Lake City that would consolidate the county's two existing jails.

The triple-A-rated school district, which serves about 20,000 students, last sought GO bond authorization in 1999 when voters approved $136 million of debt.

The decision to seek new bonds "comes after years of patchwork building repairs and 'making things work' at Highland High School and West High School" and after consulting with architects, demographers, and others, a statement from the district said.

At the end of fiscal 2023, the district had just $4.6 million of GO bonds outstanding, according to its annual comprehensive financial report. Its last trip to the municipal market was in 2013 with a $22.14 million GO bond refunding that carries a final maturity in 2025.

The proposed bonds for Salt Lake County, which is also rated triple-A, are part of a plan to address public safety and homelessness by providing inmates with resources, including job training, mental health and substance use treatment, and connection to housing options.

"What we're asking the public to approve is a revolutionary change to break the cycle of criminality and homelessness and put people on the path to self-reliance," Salt Lake County Mayor Jenny Wilson said in a statement.

A debt review committee recommended that if approved by voters, the bonds should carry maturities of no more than 25 years and should be issued in at least two tranches with sales expected in 2027 and 2029.

The county has $101.23 million of outstanding GO bonds, according to its latest debt and financial disclosure report posted on the Municipal Securities Rulemaking Board's EMMA website. It refunded $8.28 million of taxable GO bonds in 2020.