INTENT TO ISSUE DEBT
NOTICE OF PUBLIC HEARING
PUBLIC NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Building Authority Act, Title 17D, Chapter 2, Utah Code Annotated 1953, as amended (“Utah Code”), the Local Government Bonding Act, Title 11, Chapter 14, Utah Code, and Title 11, Chapter 14a, Utah Code collectively, the “Act”), that the Governing Board (the “Governing Board”) of the Local Building Authority of Millard School District, Utah (the “Authority”) plans to adopt a resolution on December 14, 2023 (the “Resolution”), declaring its intention to issue its Lease Revenue Bonds, Series 2024 (the “Bonds”), and calling a public hearing to receive input from the public with respect to the issuance of the Bonds for a project that was rejected by the voters of the Millard School District (the “District”) in a general obligation bond ballot question on November 21, 2023.
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The Authority shall hold a public hearing on Thursday, December 14, 2023, at the hour of 2:30 p.m. The location of the public hearing is at the offices of the District located at 285 East 450 North, Delta, Utah. The purpose of the hearing is to receive input from the public with respect to: (a) the proposed Bonds and (b) any potential economic impact that the improvements, facility or property financed in whole or in part with the proceeds of the Bonds may have on the private sector. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING BONDS
The Authority intends to issue the Bonds to provide funds to (i) finance the costs of constructing, furnishing and equipping new school facilities and improving existing facilities; (ii) fund any required deposits to a debt service reserve fund as needed; and (iii) pay costs associated with the issuance of the Bonds.
PARAMETERS OF THE BONDS
The Authority intends to issue the Bonds in a principal amount of not to exceed Fifty Million Dollars ($50,000,000), to bear interest at rates not to exceed six percent (6%) per annum, to mature in not more than thirty-six (36) years from their date or dates, and to be sold at a price not less than ninety-eight percent (98%) of the total principal amount thereof, plus accrued interest, if any, to the date of delivery of the Bonds.
The Bonds are to be issued and sold by the Authority pursuant to the Resolution, including as attachments to said Resolution forms of an Indenture of Trust and Supplemental Indenture (collectively, the “Indenture”), between the Authority and a trustee and the form of a Master Lease Agreement (the “Lease”), between the Authority and the Board of Education of the District (the “Board”), which are to be before the Governing Board at the time of the adoption of the Resolution. The Indenture and the Lease are to be executed by the Authority and/or the Board with such terms and provisions and any changes thereto as authorized by the Resolution.
TYPE OF DEBT/SECURITY FOR THE BONDS
The Bonds will be special limited obligations, payable solely from rents received by the Authority from the Board from legally available moneys of the District that are annually appropriated by the Board to the payment of rentals for projects leased by the Board for use by the District (the “Lease Revenues”).
OUTSTANDING BONDS SECURED BY LEASE REVENUES
The Authority currently has $4,018,000 of bonds outstanding secured by Lease Revenues.
OTHER OUTSTANDING BONDS OF THE AUTHORITY
Information regarding all of the Authority’s outstanding bonds may be found in the Board’s audited financial report (the “Financial Report”) at https://reporting.auditor.utah.gov/searchreports/s/. For additional information, including any more recent than as of the date of the Financial Report please contact Corey Holyoak at (435) 864-1022.
TOTAL ESTIMATED COST
Based on an estimate of the current interest rate and financing plan, the estimated total debt service cost of the Bonds, if held until maturity, is $103,089,917.
A copy of the Resolution and the forms of Indenture and the Lease will be placed on file in the District offices, located at 285 East 450 North, Delta, Utah, where they may be examined during regular business hours from 8:00 a.m. to 5:00 p.m., Monday through Friday (legal holidays excepted) for a period of at least thirty (30) days from and after the date the Resolution is expected to be adopted.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the posting of this notice is provided by law during which active voters (as defined in Section 20A-1-102 of the Utah Code) within the District may sign a written petition requesting an election to authorize the issuance of the Bonds. If written petitions which have been signed by at least twenty percent (20%) of the active voters of the District are filed with the Authority during said 30-day period, the Authority shall be required to hold an election to obtain voter authorization prior to the issuance of the Bonds. If fewer than twenty percent (20%) of the active voters of the District file a written petition during said 30-day period, the Authority may proceed to issue the Bonds without an election.
DATED this November 29, 2023.
/s/ Corey Holyoak
Posted: November 29, 2023