School district split: some answers to questions
Who gets a say whether a district splits? Voters in the cities or adjoining areas that want to create their own district.
Who would be the boss? Cities initiate the process, but new school districts will have their own school boards, which will have their own taxing powers like any other district.
Board elections would be clarified in a bill, being drafted now and expected to be carried by Sen. Carlene Walker, R-Sandy. As proposed, the school board would be elected the June following the public's November vote to secede. The district would become operational a year after the board is elected.
Would a new district be able to bond? Borrowing money might not be immediately possible. The new district would not be able to receive a bond rating until it has a financial track record, said Carl Empey, vice president of public finance at Zions Bancorp and state financial adviser. Also, without a rating it probably can't participate in the state school bond guarantee program, where the state basically co-signs loans. Bond ratings are tied to interest rates and, thus, taxpayer burden when districts borrow money.
Would a remaining district's bond rating be affected? Probably, Empey says, because the split would change the existing district's assets, average median household income and other factors weighed in a bond rating.
What happens to my property taxes if I live in the new district? The question is difficult to answer, since outcomes would depend on the district, cities seceding, tax bases, student enrollment, old debt and other factors.
But in Jordan District, where a Sandy-Draper-Cottonwood Heights district has been examined, residents could be in a position to have taxes cut, or see improved programs or higher teacher pay. While overhead costs will rise, those cities have a relatively high assessed valuation and relatively few students to pay for, said Burke Jolley, Jordan District deputy superintendent overseeing business services.
The new district would have to help repay bonds already issued before the split.
What happens to my property taxes if I live in the old district and part of it secedes? Again, tough to answer because of the complex factors involved.
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