Tooele Board authorizes issuance of GO bonds and MBA lease-revenue bonds to finish construction, approves MBA convening

The Tooele Board of Education on Tuesday approved resolutions to issue the final series of voter‑approved general obligation bonds and to authorize lease‑revenue bonds through the district's municipal building authority, motions board members said will free up capital to finish ongoing construction projects.

Business administrator Lark Reynolds framed the move as part of a “plan of two funds,” separating a capital fund and the operating (maintenance and operations) fund so the district does not exhaust reserves while completing Stansbury Junior High. Reynolds said the approach combines previously voter‑approved GO bonds with an MBA lease‑revenue financing option to provide more year‑to‑year flexibility.

Alex Buxton of Zions Bank Public Finance explained the difference between the bond types to a board question about whether the financing would raise taxes. “The MBA bond actually uses existing revenues that the district has,” Buxton said, contrasting that with GO bonds, which are tied to a voter‑approved debt‑service levy. Board members and staff discussed that the MBA security rests on an annual appropriation and the asset (the building) as collateral.

Board members moved to adopt the GO bond resolution and then separately adopted the resolution authorizing MBA lease‑revenue bonds. The board convened as the Board of Trustees for the municipal building authority to adopt the MBA resolution and then reconvened as the school board. During discussion a board member summarized the impact in plain terms: the action authorizes the district to borrow and to pursue issuance of up to the amounts listed in the resolution documents presented; related comments during the meeting referenced an authorization level discussed as high as $55,000,000 for MBA financing to support finishing construction.

The motions were approved by voice vote; the meeting record shows the actions as ‘‘Aye’’ and the chair announced the motions passed.

The board and staff said the financing package was designed to avoid draining capital reserves while providing funds to complete high‑priority facility work in the wake of higher construction costs since 2020. Staff members said they would follow the board’s authorization with the formal bond‑issuance steps required by state law and by the MBA structure.

Next steps: staff will proceed with the technical steps for issuance and will return with the required resolutions and timelines as the issuance process moves forward.