LOCAL BUILDING AUTHORITY OF WEBER SCHOOL DISTRICT, UTAH NOTICE OF INTENT TO ISSUE LEASE REVENUE BONDS AND PUBLIC HEARING
PUBLIC NOTICE IS HEREBY GIVEN that on May 1, 2024, the Board of Trustees (the “Board of Trustees”) of the Local Building Authority of Weber School District, Utah (the “Authority”), adopted a resolution (the “Resolution”) expressing its intent to issue up to $60,000,000 of lease revenue bonds (the “Bonds”) and calling a public hearing to provide members of the public desiring to be heard an opportunity to present testimony on the proposed issuance of the Bonds, pursuant to the Local Building Authority Act, Title 17D, Chapter 2 (the “Act”) and the Local Government Bonding Act, Title 11, Chapter 14, each of the Utah Code Annotated 1953, as amended (the “Code”).
The Authority intends to issue the Bonds for the purpose of (1) financing certain costs of acquiring, constructing and improving (i) the Roosevelt Elementary replacement in Washington Terrace, Utah, and (ii) a portion of the new elementary to be located in West Haven, Utah (collectively, the “Project”), (2) providing capitalized interest to pay all or a portion of the interest accruing on the Bonds during the acquisition, construction and improvement of the Project and (3) paying the costs incurred in connection with the issuance and sale of the Bonds.
The Authority intends to issue the Bonds in an aggregate principal amount not exceeding Sixty Million Dollars ($60,000,000), which will mature in not more than 26 years from their date or dates. Under current market conditions and with the Authority’s current plan of finance, the Authority currently expects that average annual amount the Authority will pay in principal and interest on the Bonds is approximately $4,686,050 and the maximum annual amount the Authority will pay in principal and interest on the Bonds is approximately $4,931,100.
Pursuant to the Act, the Authority proposes to pledge to the payment of the Bonds various rental payments made to the Authority by the Board of Education of Weber School District, Utah (the “Board”), pursuant to a Master Lease Agreement, between the Authority and the Board. Under current market conditions and with the Authority’s current plan of finance, the Authority currently expects that average annual amount the Board will pay in lease payments is approximately $4,691,050 and the maximum annual amount the Board will pay in lease payments is approximately $4,936,100.
The Authority will hold a public hearing during its Board of Trustees meeting which begins at approximately 6:00 p.m. on June 12, 2024. The public hearing will be held at the regular meeting place of the Board of Trustees, 5320 Adams Avenue Parkway, in Ogden, Utah. All members of the public are invited to participate in the public hearing. Written comments may be submitted to the Authority, to the attention of the Secretary and Treasurer, prior to the public hearing. The purpose of the hearing is to provide members of the public desiring to be heard an opportunity to present testimony on the proposed issuance of the Bonds.
The Authority currently anticipates taking action on the proposal to issue the Bonds following the public hearing at the Board of Trustees meeting which begins at approximately 6:00 p.m. on June 12, 2024, which meeting will be held at the regular meeting place of the Board of Trustees, 5320 Adams Avenue Parkway, in Ogden, Utah.
REQUIRED STATEMENT
The proposed Bonds will be secured by lease payments made by the Board. The lease payments are subject to annual appropriations by the Board and, once appropriated, may commit money from future property tax and income tax revenue allocated to the Board. (The Authority itself has no taxing authority and receives no tax revenues.) A lease revenue bond issued by the Authority generally has a higher interest cost that a voter-approved general obligation bond issued by the Board.
DATED this 1st day of May, 2024.
LOCAL BUILDING AUTHORITY OF WEBER SCHOOL DISTRICT, UTAH
By /s/ Robert D. Petersen
Secretary and Treasurer
