Historic increases in construction costs have impacted the original timeline for school rebuilds and remodels. As such, many Phase 1 projects have been delayed by 7-9 years.

• Annual cost increases since 2016 have been higher than previous trends.
• Increases are related to labor shortages, material costs, tariffs, and supply chain issues.
• Local market conditions have out-paced national trends due to growth.
• Cost increases are anticipated to be near 10% for the next few years.

The Phase 1 timeline is still based on a ‘worst first’ schedule. In addition to these major projects, security upgrades and small scale remodels will continue. Read more about the impacts of cost escalations on school projects.

The anticipated start dates for Phase 1 projects are listed below.

Is Granite School District raising my taxes?

NO, here’s why your tax notice looks like that’s happening:

• When voters approved the 2017 Granite Bond the district promised to shift the debt levy to the capital levy when bond payments began to decrease.
• We are now fulfilling that promise, which allows school building projects to continue.
• Your tax notice may give the impression of an increase, but your tax rate as charged by Granite will stay the same.
• Other factors (especially home value) may affect your tax payment, but as for your property tax rate to Granite School District, there is no net tax increase to you.

Please join us for an informational Q&A meeting on the capital levy shift and your tax notice:

Wednesday, July 28 at 6 p.m. – Granite Education Center (2500 S. State Street)

When voters approved the Granite Bond in 2017, projects immediately began moving forward. Since that time, multiple schools have been remodeled, two elementary schools have been rebuilt, Hunter High School added a new building wing, several schools have received security and building upgrades, and construction has begun on rebuilding Cyprus and Skyline high schools.

All of these projects were established along the Phase I timeline of a 30-40 year strategic plan to rebuild and renovate all schools in Granite, with the schools in most need of building updates at the top of the timeline.

From the time the bond was approved, however, construction costs have risen at a historic rate. Between 2017 and 2020, costs increased about 10 percent every year (compounded yearly). For 2021 and beyond, costs are estimated to increase 6 to 7 percent annually. Utah’s economy shows no signs of slowing, and many large projects across the state are keeping all areas of the construction industry very busy. Combine this with a decline in the construction labor force and hikes in prices for materials (exacerbated by tariffs and the COVID-19 pandemic), and the result has been major leaps in costs in a short amount of time.

The challenge, therefore, is to hold construction costs to budget, especially between now and 2025 while two high schools are under construction.

In order to achieve this and keep the district’s cash flow for capital projects ‘in the black,’ our remaining Phase I projects need to be delayed five to seven years.

The damage to West Lake STEM Junior High as a result of the March 2020 earthquake also presents financial challenges as insurance settlements may not cover all rehabilitation/rebuild costs.

Despite the hurdles, we are moving forward with projects as quickly as possible given the circumstances.

The first issuance of $50,000,000 General Obligation School Building Bonds has been given the highest rating by Fitch Ratings, reflecting the district’s “solid financial operations, flexible labor environment and low liability burden.”

This first issuance will be used for a variety of purposes, from design work to construction contracts. Read the full Fitch Ratings report:

Granite School District New Issue Report

Students and staff at Valley Junior High were pleased to welcome families, residents, dignitaries, and elected officials to tour the newly remodeled building.