General Bond Information & FAQs

Frequently Asked Questions

Q: What is a bond election?

A: A school bond election gives individuals an opportunity to vote on paying for the construction and renovation of school facilities. It is a request to give the elected Board of Education members the authority to sell bonds when facilities are needed.

Q: What is a bond? How long does it take to pay it off?

A: A bond is a low interest loan that school districts use to pay for new school construction, reconstruction, renovations, and property for new schools. In Utah, a school bond can only be used for acquiring, improving, or extending any facility a school district owns. It is similar to a home loan or mortgage. Just like homeowners, Iron County School District borrows money and makes monthly payments. Bonding requires the approval of taxpayers through an election. Bonding is the least costly option for taxpayers to build school building. Tax payments for a bond typically go down each year as bond debt is paid off. Payout is limited to 21 years.

Q: What is the amount of this bond?

A: The amount of the proposed 2021 School Bond is $69.5 million. Funds will only be borrowed as projects are started.

Q: How will this impact my taxes?

A: If approved, it would raise property taxes an estimated $93.50 on a personal residence valued at $300,000, and $170.00 on a business property valued at $300,000.

Q: Why is the District holding this school bond election?

A: These bonds are designed to address the following needs:

• Cedar Middle School - Inadequate space in performing arts rooms, lack of classrooms to accommodate current and projected enrollment

• Canyon View Middle School - Inadequate space in performing arts rooms, insufficient science labs, lack of classrooms to accommodate current and projected enrollment

• Cedar High School - Inadequate and antiquated science labs and classrooms

• East Elementary School - Overall age of the building, inaccessible crawl spaces, inefficient and aged heating, plumbing and electrical systems, environmental concerns

• Parowan Schools - Lack of kitchen and cafeteria at Parowan High School, inadequate physical education space at Parowan Elementary School

• Transportation Facility - Lack of space to accommodate increased number of busses and other student transportation vehicles, inadequate garage facility, inadequate security

Q: What will the bonds be used for?

A: The proceeds from the bonds will be used for six projects:

• Cedar Middle School will be expanded with new performing arts classrooms, science labs, and general classrooms. Additional rooms will be reclaimed for general and severe special education use.

• Canyon View Middle School will be expanded with new performing arts classrooms, science labs and a remodel of the science wing, providing improved instructional facilities and additional classrooms for general use.

• Cedar High School’s science wing will be remodeled to streamline the use of existing space for needed science classrooms, and to modernize aging science lab facilities.

• The seventy-year-old East Elementary building will be replaced with a new building on the same property. In addition to foundation settling issues, the current building has antiquated HVAC, mechanical, and electrical systems that are inefficient, inaccessible, and often require rerouting and costly maintenance.

• A new Shared/Multi-Use facility will be built between Parowan High School and Parowan Elementary to accommodate needed lunchroom, physical education, and extra-curricular space for Parowan High School and to provide improved physical education instruction space at Parowan Elementary.

• A new District Transportation Facility will be constructed to improve bus security, and to increase capacity to maintain a growing number of school busses, fleet vehicles, and facilities maintenance equipment.

Q: If approved, what is the timeline for the projects?

A: Cedar Middle School Project - Estimated start Spring 2022

Canyon View Middle School Project - Estimated start Spring 2022

Cedar High School Project - Estimated start Spring 2022

East Elementary School Project - Estimated start Spring 2023

Parowan Schools Project - Estimated start Summer 2023

Transportation Facility Project - Estimated start Summer 2023

Q: Can the District use the bond proceeds for project other than those currently listed?

A: The District is committed to using the bond proceeds for the six projects listed above and in the voter information pamphlet. However, if conditions change, the funds may be used for any purpose listed on the ballot including: paying all or a portion of the costs to acquire land; acquiring, constructing, furnishing and equipping new school facilities; and improving or rebuilding existing facilities. Any change in the use of the bond funds must be approved by 4 out of 5 board members in a public meeting.

Q: What is the difference between capital funds and bond funds?

A: Capital Funds are restricted for large capital projects such as schools. However, the District does not typically have enough funds in capital in a given year to build a large project, like a new school building. This is when the District needs to ask voters to approve a bond. Bonds are debt that allow the District to finance large projects and pay them off over a given period of time. Funds the District receives through bonding are restricted to the Debt Service Fund only, and must be spent on projects which are allowed under the resolutions/parameters set by the Board of Education.

Q: Can funding from the bond be used to pay for day-to-day operations, such as salaries, supplies, programs, etc.?

A: No. By law, capital funds, such as money from a bond, cannot be transferred to the general fund or used to pay for day-to-day costs of running a school district. Bond funds may only be used for "capital" projects, like buying land, building facilities, making major capital improvements, and paying for costs tied to construction. Additional capital expenses that are legitimate are the salaries and office space for capital projects work, and materials/equipment needed to furnish new buildings.

Q: How do bonds work?

A: The sale of bonds begins with an election to authorize a specific amount - the maximum the district is allowed to sell without another election. The school district sells the bonds when funds are needed for capital projects, usually once or twice a year. Bids are taken from interested buyers, usually large institutional investors, and are sold at the lowest interest rate offered. The rate is based on the district's bond rating: the higher the bond rating, the lower the interest rate to sell the bonds. Principal and interest on the bonds are repaid over an extended period of time with funds from the Debt Service tax rate.

Q: Does the school district immediately incur the debt?

A: The bonds do not cost the district anything until they are sold. Even though the voters approve the bond issue, there are not costs incurred until the bond is sold. Tax levies, and payments on the bonds do not begin until after they are issued.

Q: What will happen if the bond does not pass this year?

A: The District could propose another bond in a future election at a higher rate due to the rising costs of construction. This will also delay other projects that are expected to be needed in the future. Another option is to issue a different form of bonds that do not require voter approval. Payments on those bonds would be made through increases in the capital property tax levy. These bonds are typically more costly to issue and carry higher interest rates.

Q: How has Iron County School District been planning for the future?

A: District administration is continually analyzing enrollment growth, current and proposed development in the County, and the condition of current District facilities to determine the need and timing for future projects. The District owns two pieces of property in the County to build two additional elementary schools and one piece of property that would accommodate a middle school and high school. We expect to hold another school bond election in the next two to four years to request authorization to issue bonds needed to build a new elementary school that will either replace the current South Elementary School or add another elementary school to the District. This bond may also include additional projects such as remodeling the existing South Elementary to accommodate the District's alternative programs. Based on current projections, a new middle school and high school may be needed in 10 to 15 years.