June 19, 2012 Daily Herald Newspaper
When I offered my service to the City of Orem after the passing of Mayor Jerry Washburn, I knew there would be tough decisions to make. Responsible leadership requires tough decisions.
There's nothing easy about meeting the needs of a community with nearly 90,000 residents. Luckily, Orem is a great place. We live in a safe community with clean water, beautiful parks, amazing library and recreation programs and other high-quality services.
The cost of providing services has certainly changed over the years -- gas has increased, power has increased and materials have increased. Surprisingly, the one thing in Orem that hasn't increased since 1978 is the property tax rate. Sure, our tax bills have changed over the years, but those changes haven't had anything to do with Orem's portion of our taxes. Orem hasn't proposed an increase in property taxes for 34 years. Because of visionary economic development and frugality, Orem hasn't had to increase property taxes to provide the high-quality services residents and visitors have come to know and expect.
Nearly half of Orem's general fund revenue comes from sales tax. For many years, Orem was a regional shopping destination, and as a community, we have been well served by sales tax. Now there are shopping options all over the valley. Many people also love to shop on the Internet, but unfortunately, Orem doesn't get sales-tax revenue from all Internet sales. These factors along with the economic downturn have taken a substantial toll on Orem's revenue.
Every year the city must look at balancing its revenue with its needs and obligations. To compensate for declining sales-tax revenue, the city has cut costs in personnel, operations and projects. To maintain service levels, the city has also used money from its savings, or reserves. In order to continue to maintain high-quality services, we now must consider additional options, including the proposed increase in property taxes. It is definitely a time for tough decisions.
One of the reasons why Orem is looking at a property-tax increase is the city's UTOPIA obligation. Many years ago Orem and other cities decided to move forward with a plan to provide fiber-optic infrastructure. There are a lot of benefits to having fiber-to-the-door service available in our community. We all benefit from having this technology available for businesses, schools, hospitals and other important areas.
Some residents are already able to access this service for home and home-business use. Others are anxiously waiting for it. I completely understand the frustration from those who are waiting for the services and those who completely disagree with paying for UTOPIA. A commitment was made many years ago and Orem must honor its commitment.
Some have suggested that deeper cuts be made to cover the shortfall between revenue and needs. I believe the city has made significant, responsible cuts. I also believe that trying to cut the budget to cover the entire cost of the UTOPIA payment will have a negative impact on this community, and I don't want to see that happen. As a resident of Orem, I value the same services that you do. I raised my family here because of the great environment that those services help to create.
I appreciate all of the citizens who have shared their comments and concerns with me and the other members of the city council. Raising taxes is not something that any of us wants to do, and it is not an option that anyone is taking lightly. It is a very tough decision. I recognize the tremendous value of what we have here in Orem, and I believe that the increase of $8 per month on the average home is worth considering as an additional investment in our community.
• Jim Evans is mayor of Orem.
Jim Evans Op Ed Daily Herald
Jim Evans Op Ed Daily Herald
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