DALLAS - The Wasatch County School Board, Utah, will increase spending 4.3% to $59.4 million under the 2015 budget approved June 17, but the district will not increase taxes, officials said.
"Wasatch County School District has not raised their tax rates above the certified tax rate in the past several years, and we do not intend to do that in this coming year," said the district's business administrator, Keith Johansen. "The increase in revenue is coming through growth in the county as well as through an increase in student enrollment."
The school district in the scenic Heber Valley 30 miles east of Provo plans to refund $40.8 million of debt for interest cost savings in a competitive deal July 8. George K. Baum and Co. serves as financial advisor.
The bonds reach final maturity in 2026 and carry an underlying Aa3 rating from Moody's Investors Service. Utah's School District Bond Guaranty Program confers triple-A ratings.
The district, which includes all of Wasatch County, has a tax base of $4.6 billion, according to Moody's. From 2011 to 2013 assessed values dropped nearly 20% before increasing 1.5% in 2014.
"Despite the recent declines, at $4.6 billion the full market value is still above the median for similarly rated districts nationally," Moody's analyst Dan Steed noted.
With a county population of less than 27,000, the school district enjoys a benefit from second homes that represent about 32% of assessed values. Because the district does not have to serve students from the families that own the homes, it gains tax revenue without expense.
Johansen said that local revenue grew by 2.96% this year due to growth in the county. The state also increased funding to all school districts by 2% this year, which WCSD passed on to the teachers in the form of a 2% pay increase.
"We believe taxable values will continue to increase over the forecast horizon as residential construction activity has picked up in recent years supported by the district's desirable location, continued second home construction activity and modest commercial construction as well," Steed concluded.
