Proposed New School District

Does it make sense for Draper?

This bill modifies procedures related to the creation of a new school district:

• Allows the governing body of certain cities and counties to submit for voter approval;

• Allows a proposal to establish a new school district;

• Imposes requirements for the filing and processing of a petition or request to create a new school district;

• Requires the county legislative body to make district boundary changes when voters approve a new school district;

• Provides for transfer of property and indebtedness of affected districts consistent with procedures for other types of school district boundary changes;

• Provides for certain treatment of transferred employees of affected districts;

H.B. 77: School District Boundaries2006 General Session

Proposed District to include:

• Cottonwood Heights

• Draper City

• Alta City

• Midvale City

• Sandy City

• Unincorporated areas within and adjacent to cities.

Bennett Educational Consultants, Inc. Presentation to Draper City Council

• New district would be about 35,000 students.

• Current Jordan enrollment is 80,000 students.

• New district per pupil revenue estimate to be $6,722.

• Current Jordan School District revenue is $6,535 per student.

• Adjusted Jordan School District revenue would be $6,407 per student.

• Current number of students in Jordan Schools from new district cities is 40%. This number will decrease to 30.3% by the year 2015.

• Current funds going to Jordan School District from cities forming new school district is 57.3%.

• New district will escape the high cost of indebtedness as the west side of Jordan School District grows.

Key Elements in Dr. Bennett’s Report: Presented to Draper City Council in August 2006

Building of New Schools and Rehabilitation• Building rehabilitation for schools within cities forming

new district is $211 million.

• Cost for new schools built in Jordan School District is estimated at $600 million over the next 10 years.

• In Jordan School District, the emphasis is on new school building, not on remodeling and upgrades.

• Probability of having a Jr. High School in Draper under current Jordan School District alignment is in 10 years at best.

• Probability of having a high school built in Draper is 20 years to never. (based upon conversations with school officials)

• Probability of having a Jr. and Sr. high school built in Draper with the formation of the new district – substantially greater and much sooner.

Financial Capabilities of New District

• No increase in tax rate produces substantial revenue.

• Estimated $30 million plus in surplus available for:• Maintenance and operation• Smaller class sizes• Improved teacher salaries• Additional computers and special

programs.• Capital improvements and needed

upgrades on older schools.• Reducing debt.• Building new Jr. and Sr. high

schools in Draper City

• Financial growth of business, light industry and professional buildings in all new district cities will substantially increase the general tax base.

Pros and Cons of New School DistrictPros

• Student population would remain stable with slight growth. District wide student potential growth would increase from 79,207 students in 2006 to 114,494 students by the year 2015.

• Jordan District has 211 million dollars in voter authorized bonds that they plan to issue over the next four years, plus another $400 million to be considered. If this money is primarily set aside for new building in the west, then the tax burden of east side cities will become increasingly disproportionate.

• Current school feeder systems will not be disrupted by the district split.

• The new district would begin with a capital outlay levy that generates over 31 million dollars annually beyond money reserved for debt service to JSD.

Cons• Jordan District is a well

established entity with a significant fund balance, a nationally recognized superintendent and experienced administrators and staff.

• Asset redistribution could still be somewhat problematic given the lack of clarity in H.B. 77, especially with regard to district facilities and programs that now serve the entire district.

• The size of the Jordan District allows them to keep schools open even when they are not occupied at capacity.

• Do further feasibility studies.

• Work together to correct anomalies in H.B. 77, such as: • Draper students located in two counties.• Disposition of assets and expenses.• How bond ratings will be affected.• Other district formation issues.

• Bring issue to vote no later than November, 2007.

Cities Form Interlocal Agreement