Fiscal Facts on Utah County

Below I cover fiscal facts you can verify, 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, 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 $108,000 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] Note that the salary of the County Commissioner has been increased from $82,000/year to $108,000/year in the last four years.

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 on the hook for the Convention Center. 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, the Utah Restaurant Association and most informed observers believe at least 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 most of the cost of the Convention Center. Furthermore, without the Convention Center’s debt service, the restaurant tax could be decreased substantially, easing the tax burden on our residents. The Daily Herald recently analyzed the claims that taxpayers will not pay for the Convention Center, and concluded that "local people are on the hook" [14] for the Convention Center.

Finally, I make three promises to you that you will be able to verify if I run for re-election:

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. Please don't hesitate to call or email me to discuss further. My mobile is 801-368-5358 and my email is "Joel@ElectWright.com".

Warm Regards,

Joel Wright



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: http://heraldextra.com/news/opinion/article_2073d488-45d9-584f-aeb3-8afc395c6a9d.html