Fiscal Facts on Utah County (4-9-10 email to county delegates)

I sent the email below to all County Delegates on the morning of Friday, April 9, 2010. It goes through and details the Fiscal Facts on Utah County, and explains my position in response to the claims from Gary Anderson. I have included Gary Anderson's email below for you to review because I want to earn the vote of delegates who have reviewed the claims, and verified the facts.


Dear County Delegate,

Wednesday you received an email from Gary Anderson with a number of claims about our campaign for Utah County Commissioner. I would like to take a few moments of your time to respond. You are always welcome to call me on my cell phone directly at 801-368-5385. I’ll first cover the fiscal facts that you can verify, address the claims in Commissioner Anderson’s email, and then make three promises to you that you will be able to verify if I run for re-election in four years.

FISCAL FACTS

1. Utah County’s expenditures have grown twice as fast as our population the last five years. Utah County’s expenditures have grown 68% in the last 5 years, from $51.04 million (in 2003) to $85.78 million (in 2008).[1] During that same time, Utah County’s population only grew 29.6%, from 409,000 to 530,000.[2]

2. Commissioner Anderson has supported these increases in the budget. Shortly after Commissioner Anderson was sworn in for his third term (2 terms in the late 80s previously) in, he approved amending the budget to increase it by 7% in 2007,[3] and then was the deciding vote (by 2 to 1) to approve a substantial 14% increase to the 2008 budget.[4] This rapid increase in spending led the Utah County Auditor to warn in 2008 that such expenditures would deplete the surplus (or general fund) and created a budget situation that “will not be sustainable in subsequent years without either new revenue sources or increased revenue from existing sources.”[5]

3. Commissioner Anderson voted to increase his salary by 10% in 2008. Commissioner Anderson was the deciding vote (by 2 to 1) to increase the salary of the Utah County Commissioners from $94,700 to $104,000 in June 2008.[6] In November 2009 I suggested this salary increase be rolled back to ease the burden on tax payers, and was rebuked by Commissioner Anderson.[7]

4. Commissioner Anderson voted for the largest combined sales tax increase in Utah County’s history that was not approved by the voters. In August 2007, Commissioner Anderson voted to increase the voter approved 0.25 percent sales tax for transportation (2006) by 20% up to .30 percent in 2007.[8] Further Commissioner Anderson voted in September of 2008 to further increase it by almost 100% more to .55 percent. [9] We certainly need transportation projects, but I believe any sales tax increase should be put before the voters so they can determine if it is justified.

5. Property Taxes Increased in 2008 and 2009: Utah County’s property taxes had stayed relatively modest and stable until 2008, when Utah County received a windfall due to the Utah State Tax Commission allowing a one time change in the assessing and collecting rate without going through the truth-in-taxation process, which resulted in the Utah County’s property tax revenue going from $25,430,082 to $30,299,437 from 2007 to 2008, or a 19% increase, in a single year.[10] It would have been responsible to either return this windfall to the taxpayers, or at least save it, but instead it was immediately spent on the growing budget. Because the surplus had been used up, Utah County then had to raise property tax rates by 8.5% in 2009[11] when our property values declined so Utah County could collect the same amount of revenue, even though it means they were now taking a larger percentage of your home’s value, or a bigger piece of the pie.

6. $40 million in new debt for the Convention Center in Provo: We can have honest disagreements on the Convention Center, including whether it is the proper role of government, why Utah County is paying $40 million for the Convention Center while Provo is only paying approximately $7 million, and whether the private sector would have built a convention center for our County in Pleasant Grove. But we cannot debate that the taxpayers of Utah County are paying for the Convention Center, because they clearly are. According to the Preliminary Offering Statement used to sell the Convention Center debt to investors, the annual debt service on the Convention Center will be paid as follows: 7% from the tax on hotel rooms, 11% from the tax on car rentals, and 82% by the one percent tax on restaurant food in Utah County.[12] While the tax on hotel rooms and car rentals are typically paid by visitors from out side our County (while also being paid by local businesses bringing in clients and employees), the tax on restaurant food in Utah County is paid overwhelmingly by the residents of Utah County, and most informed observers believe approximately 80% of the restaurant tax is paid for by the residents of Utah County.[13] Bottom Line: While tourists and business will generate up to 40% of the revenue to cover the debt service on the Convention Center, the tax payers of Utah County will pay the most of the cost of the Convention Center. Furthermore, without the Convention Center’s debt service, the restaurant tax could have been decreased substantially, easing the tax burden on our residents.

CLAIMS FROM
COMMISSIONER ANDERSON
1. Claim: “Mr. Wright wants to expand the county commission to a council form of government or expand it to five commissioners.”

True? Partially. Our campaign wants to trust the voters to decide how best to govern Utah County. The current form of government (3 full time County Commissioners) has no checks and balances, has no regional representation, and is not based on the Constitution. If only two county commissioners would trust the voters, then the form of county government would be put on the ballot, and the voters could decide to consider a potential change. If the voters approved the change, then a study commission would be created to recommend a potential change to either a Mayor/County Council form (Salt Lake and Cache counties have done this), or a full time executive and part time county council (Grand, Morgan, Summit and Wasatch have done this) or five or seven full time county commissioners (no county has done this, but former Utah County Commissioner and current Governor Gary Herbert told me in February 2010 that he publicly supports increasing the full time Commissioners in Utah County from 3 to 5). Such recommendation would then be on the ballot, and the voters could accept or reject their recommendation. In other words, the voters would directly decide this issue, not the Utah County Commissioners. Finally, I believe the best choice would be a full time Mayor and five part time county council members, which would cost substantially LESS than the current form of three full time county commissioners. Right now, three full time county commissioners cost Utah County $312,000/year in salary, while a full time Mayor (at $104,000/year), and five part time county council members (at $20,000/year) would only cost Utah County $204,000/year.[14]

2. Claim: “Mr. Wright wants our county to take over jurisdiction from the State all of the roads in Utah County that do not cross county lines.”

True? Yes, but only on fair terms. I believe Utah County can more effectively govern its future if it controls the roads within Utah County that do not cross county lines. However, I would only accept the transfer of such roads to the extent the State allows us to keep the funding associated with such roads. As a former City Council member, I have seen the arrogance of our Federal Government, the State of Utah and even Utah County with a “one size fits all” approach on certain issues. As Dr. Skousen points out in the 5,000 Year Leap, one of the principles of the Founding Fathers was that “Problems were solved to the greatest possible extent on the level where they originated.”[15] In short, we should not be expecting citizens of another county to be funding Utah County's roads, nor should they expect us to fund their roads. To the greatest extent possible, where roads need repair, or where residents desire new roads, I believe we should be funding them ourselves rather than forcing others to help pay for them.

3. Claim: “Mr. Wright wants to give the County Attorney more funds to prosecute White-collar crime.”

True? Yes, absolutely. I believe investment fraud is at epidemic levels and is harming our economy far more than any form of “economic development” by the government can improve our economy. In 2009, the Utah County Attorney received claims of $104 million in investment fraud. When Commissioner Anderson assumed office in 2007, those claims were less than $20 million annually. Since 2000, the Utah County Attorney has received investment fraud claims totaling $432 million.[16] We need seasoned and experienced investigators and prosecutors to fight this relatively complicated form of crime that has done tremendous damage to our property values, and our community’s ability to remain solvent and self-sufficient. On October 24, 2009, County Attorney Buhman was quoted as follows: "The honest truth is we're barely scratching the surface [on investment fraud]. We could double or triple our department easily, and we would still be extremely busy."[17] However, I am unwilling to raise taxes to increase the resources devoted to investment fraud, but I will find savings from other areas to do so. The very first cut will be $10,000 to the salary of each of the County Commissioners, giving us another $30,000 to fight investment fraud immediately.

4. Claim: “I believe we should be involved in and support Economic Development in Utah County. Mr. Wright does not.”

You have to define “Economic Development.” I believe government does not know better than the private sector how to most effectively allocate resources, and should instead live within its means and do the jobs it is given, namely fight crime and build transportation infrastructure, as effectively as possible. In contrast, Commissioner Anderson has said on multiple occasions that “It is the government’s job to help you get jobs.” Nonetheless, I support the relatively minimal expense for the Economic Development Corporation of Utah to help companies that are already attracted to Utah find the best location for their operations in Utah. Commissioner Anderson claims that 1,027 jobs have come to Utah County in the last 2 years due to his work, even though he offers no evidence that his personal efforts made any difference.

Finally, I make three promises to you that you will be able to verify four years from now, and that Commissioner Anderson is unwilling to make:

1. I will vote against any budget that includes an increase in the property tax rate in the next four years. Our citizens and businesses have to live within their means. It is time for Utah County to do the same.

2. I will vote against any budget that includes the 2008 salary increase from $94,700 to $104,000 for the County Commissioners, and vote against any salary increase for Commissioners in the next 4 years. Everyone is doing more with less. It is time for our Commissioners to lead by example.

3. I will not run for more than two terms as a Utah County Commissioner. Our founding fathers understood the problems with any individual accumulating too much power, and becoming a career politician. I believe no one should serve in any Executive Branch position for more than two terms, and that includes our County Commissioners. In contrast, my opponent is asking you for a fourth term in office.

Thank you very much for engaging with me in an informed discussion of these issues.

I would warmly welcome an opportunity to discuss these issues with you at length. Please join me at any of the meetings below where we will discuss these issues in depth:

1. Saturday, April 10 from 6 PM to 8 PM at the home of Oak Norton in Highland at 10812 North 5800 West.

2. Tuesday, April 13 from 5:30 PM to 9:30 PM at the Cotton Tree Inn in Provo at 2230 North University Parkway. Light refreshments will be provided.

3. Wednesday, April 14 from 6:00 PM to 7:30 PM at the home of Karen Herd in Cedar Hills at 10669 Fiddlesticks.

4. Saturday, April 17 from 6:00 PM to 7:30 PM at the home of Kirk & Shannon Magleby at 553 East 100 North in American Fork.

I will also be attending all the mass meetings for county candidates in the next three weeks, which includes events in Santaquin, Lehi, Eagle Mountain, Provo and multiple times in Springville. Please see the complete schedule of all such meetings here:

http://wright4countycommissioner.blogspot.com/2010/04/where-you-can-meet-me-in-person.html

Alternatively, you are always welcome to call me on my cell phone at 801-368-5385.

As always, I also ask for your vote April 24th at the Utah County Convention!
Warm Regards,

Joel Wright

Joel Wright

p.s. If you want further clarification please give me a call. 801-368-5385

p.p.s. Let me know what you think on these issues! I always welcome feedback.

SOURCES

[1] Numbers from 2004 to 2008 available at http://www.sao.state.ut.us/lgr/county/2008/08xbutco.pdf , 2009 numbers from http://www.sltrib.com/utahcounty/ci_13862040 (Note that final official expenditures for 2009 are not yet available.)

[2] See http://www.census.gov/

[3] 2007 Lower budget was approved in 2006, but subsequently amended after Commissioner Anderson came into office in 2007, see: http://www.sao.state.ut.us/lgr/county/2008/08xbutco.pdf

[4] See the Minutes from the December 18, 2007 Utah County Commission Meeting, Item #26: http://www.co.utah.ut.us/Dept/COMMISH/Data/Minutes/CM/2007/121807-CommissionMinutes.pdf

[5] See page 9 of the 2008 Financial Statements from the Independent Auditor here: http://www.sao.state.ut.us/lgr/county/2008/08xfutco.pdf

[6] See the Minutes from the June 17, 2008 Commission Meeting, Item #1: http://www.co.utah.ut.us/Dept/Commish/data/minutes/CM/2008/061708-CommissionMinutes.pdf ; see also the Deseret News article dated June 18, 2008: http://www.deseretnews.com/article/700235619/Utah-County-commissioners-hike-pay.html

[7] See the blog of Daily Herald reporter Joe Pyrah here: http://sausagegrinding.blogspot.com/2009/11/game-on.html

[8] See Item #22 on the August 28, 2007 Commission Minutes at: http://www.co.utah.ut.us/Dept/Commish/data/minutes/CM/2007/082807-CommissionMinutes.pdf

[9] See item #17 on the September 23, 2008 Commission Minutes at: http://www.co.utah.ut.us/Dept/Commish/data/minutes/CM/2008/092308-Commission-Minutes.pdf
[10] See page 46 of the 2008 Financial Statements here: http://www.sao.state.ut.us/lgr/county/2008/08xfutco.pdf

[11] Such information not yet available in official Financial Statements, but available on every property tax notice in Utah County. The Utah County Tax Levy was .000809 in 2008, and increased to .000878 in 2009, which is an 8.5% increase.

[12] Copy of the Preliminary Financial Statement (page 3) obtained from Utah County in February 2010 through a GRAMA request. Email Joel Wright at Joel@ElectWright.com if you would like a copy of it.

[13] The Utah Restaurant Association told me that at least 80% of the restaurant tax is paid for by the residents of Utah County, and likely over 90%. I have also had conversations with Commissioners Anderson and White, as well as Rep. Frank who tried to repeal this tax earlier this year, and they all have said to me that approximately 80% of the restaurant tax is paid for by Utah County residents.

[14] See our campaign blog for more details on this proposed change here: http://wright4countycommissioner.blogspot.com/2009/11/should-utah-county-change-its-form-of_18.html

[15] See page 16 of the “5,000 Year Leap” by W. Cleon Skousen.

[16] See: “Investment Fraud Rampant in Utah County” from the Daily Herald, February 28, 2010, available at: http://www.heraldextra.com/news/local/article_7c2429f4-a9ed-5ce2-af14-a40ed6c7b8bc.html, or see “Investigators say $59 million scheme targeted Utah County” from Deseret News, October 24, 2009, available at: http://www.deseretnews.com/article/705339222/Investigators-say-59-million-scheme-targeted-Utah-County.html?pg=4 ; the number of $432 million from 2000 to 2009 is from an email from the Utah County Bureau of Investigations in our possession that we are happy to share.

[17] See “Investigators say $59 million scheme targeted Utah County” from Deseret News, October 24, 2009, available at: http://www.deseretnews.com/article/705339222/Investigators-say-59-million-scheme-targeted-Utah-County.html?pg=4