What is a Bond?

The State of Utah does not provide school districts funding to build or upgrade schools. However, they do provide a mechanism, in the form of a bond process, for school districts and property owners to work together to construct and update schools. Voters must approve a general obligation bond referendum election.
 
A bond works somewhat like a home mortgage. The school district sells bonds for building construction and improvements, and residents pay back, through their property taxes, a portion of the principal and interest every year until the bonds are paid off.
 
Under Utah law, school districts can issue bonds for constructing, acquiring, improving, or extending facilities or property. Bond funds cannot be used for personnel, maintenance, or operations.