Election officials and volunteers process ballots in Utah County seat Provo in 2020. Voters this November approved measures to split the Alpine School District, which has more than $500 million of outstanding bonds, into three systems.
Bloomberg News
Utah's largest public school district is preparing to split into three separate entities and divvy up its outstanding debt after voters approved the move in November.
Processing Content
A timeline on the Alpine School District's website indicates Utah County officials will establish boundaries for the districts in April, with voters in November electing school board members, who will take office in January 2026. The districts will launch services for students in July 2027.
The split follows the Nov. 5 passage of Proposition 11 with 57.1% of the vote and Proposition 14 with 61.5%, according to Utah County official election results.
The Alpine school system had $524 million of outstanding bonds, including $319 million of general obligation debt, as of June 30, according to its fiscal 2024 annual comprehensive financial report.
"Alpine School District's outstanding bond liability amounts will be divided between the newly created districts proportionately according to Utah state statute," a district spokesman said in an email.
Legislation signed into law this year by Gov. Spencer Cox includes provisions for the treatment of outstanding and approved, but unissued bonds, and debt payments by reorganized districts.
Alpine's latest debt sale was in 2022, a $25.7 million general obligation taxable refunding bond issue rated triple-A by Fitch Ratings and Moody's Ratings based on the state of Utah's school district bond guarantee program. The district also has triple-A underlying ratings from both agencies, according to the official statement.
In November 2022, Orem, Utah, voters rejected a proposal to create its own district, which would have entailed taking on about $105 million of Alpine's outstanding debt. At the same time, Alpine District voters turned down a $595 million bond issue to build and upgrade schools.
Alpine serves about 84,000 students from several northern Utah County communities in 61 elementary, 14 junior high, and 11 high schools, along with seven special purpose schools.
Karen is a senior reporter covering the Southwest. She has covered the municipal bond market for more than 30 years at The Bond Buyer and Reuters.... Read full bio
Federal Reserve guidance will likely continue to support the long end, MMD's Kevin McGuigan said, but "investors need to be cautious about extending duration right now, given that a lot of the pressure on the long end has been the result of supply concerns."
With the effects of added Medicaid requirement looming next year, some states are already seeing stress cracks in their reserve fund balances and revenue levels.
Healthcare providers will receive nearly $12 billion in funding in fiscal 2027 with federal approval of the state's Medicaid directed payment programs.
With more than 25 years in executive leadership in Texas public education, Rees will develop bond underwriting opportunities in the state, a Stephens statement said.
