Jordan-Canyons hearing focuses on taxes, buildings

Property taxes and aging school buildings were the subject of a hearing Tuesday aimed at dividing assets between the east and west sides of the Jordan School District.

The arbitration process, which began Monday, is aimed at reaching agreement on how split property from buildings to buses. Liabilities, including $281 million in bond debt, are also part of the picture.

The east side, now called the Canyons School District, contends it is suffering from declining enrollment and aging school buildings, some with seismic concerns. The west side says it is worried about predicted rapid enrollment growth and the lack of school buildings to house the student influx.

"We just have very different needs on each side of the river. It was hard to find a way, in going forward, that you could balance the desires of both sides," said Mike Shelton, member of the east-side transition team.

The districts agreed to arbitration after attempting several times to come to an agreement during the past year. Three arbitrators — a former educator, an accountant and an attorney are serving as a quasi-judicial board. The trio will have the final word.

Steve Newton, chairman of the east-side transition team, took the stand Tuesday.

Newton detailed what he sees as a financial imbalance as the east side contributes the lion's share of property taxes. He pointed to farmland on the west side that receives tax exemptions because it's in the greenbelt zone.

Representing the west side, attorney David Jordan told the Deseret News he is surprised the east side is taking the position that taxpayers on the east side have a greater right to the assets of the school district just because there is more tax base on the east side.

"We think that is contrary to the fundamental principle of public education," Jordan said. "You don't buy school assets by paying your taxes. You support the public good, the common good of all taxpayers in having an educated society."

Representing the east side, attorney Jeff Shields said while the east side is helping pay off Jordan District's bond debt, it isn't getting new schools. "They spent every dime of it on the west side," Shields said.

In further testimony, structural engineer Paul McMullin said at least three-fourths of Jordan District schools aren't on a fault line. The district has been "proactive" in keeping up with seismic issues, he said.

Randy Haslam, Jordan District director of construction, agreed saying, "I think we're making a good effort."

On Wednesday, attorneys plan to call to the stand members of the east and west transition teams and school boards. How much the arbitration will cost Jordan District is yet to be seen. Arbitration hearings are scheduled to run through Dec. 19.

In November 2007, east-side residents voted to leave Jordan District and form their own school district. The Jordan District division will be official July 1, 2009.

Canyons District comprises Cottonwood Heights, Sandy, Midvale, Alta and Draper.

The west-side Jordan District consists of Bluffdale, Herriman, Riverton, South Jordan and West Jordan and Copperton.

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