Last modified: Januar 31, 2025

Lease Revenue Bond

Lease Revenue Bonds allow school districts to address facility needs. Lease Revenue Bonds are approved by the board of education, convened as a Municipal Building Authority.

Provo City School District plans to issue a Lease Revenue Bond on February 25, 2025. This bond will be issued to address the following needs:

Timpview Needs

When the bond for Timpview passed in 2019, it was to rebuild the main academic wing and the dance/locker wing. PCSD was focused on the areas that had the greatest need structurally. In the current rebuild process, it was discovered that the remaining parts of the building are in worse structural condition than initially thought. Engineering and architectural experts advised PCSD to rebuild these remaining areas of the school ASAP:

Arts wing
Administration wing
CTE wing
Cafeteria remodel

Dixon Site Needs

When Dixon Middle School was rebuilt at a new site as Shoreline Middle School, PCSD indicated to the neighborhood its desire to utilize the Dixon site for our district needs while keeping it a positive space for the neighborhood.

PCSD is in the process of a feasibility study. During the February 11, 2025 Board Meeting the results of that feasibility study will be presented to the school board. PCSD is also exploring how to better meet the Career & Technical Education (CTE) needs for secondary students. One prevailing idea is to build a CTE center on the Dixon site. Those decisions will be made after getting information from the feasibility study.

Advantages of a Lease Revenue Bond

Lease Revenue Bonds can be approved at any time in the year and do not have to wait for the timing of an election cycle. This is important for the timing of Timpview. The school and neighborhood have expressed desire to keep the construction going and finish the project as soon as possible. Doing a lease revenue bond now will facilitate that.

Traditionally a lease revenue bond has a higher interest rate than a General Obligation bond (voted on by the public in November). However, right now the interest rates are practically the same. The school district and board of education wants to be good stewards of taxpayer dollars, taking care of these projects now — construction rates are only going to go up — without paying more interest in the process. The school district has held several public meetings and have gotten positive feedback about this.