Why a tax increase isn’t so bad
JUNE 19, 2012 10:57 AM •
Orem has long been considered one of the finest cities in the country in which to live and raise a family. I have chosen to make Orem my home because I love what the city has to offer.
Like nearly every other city in the state and country, Orem has suffered financially during the recent economic downturn. Now, mainly because of decisions made in the past and shrinking sales tax revenues, city leaders are faced with a shrinking budget and the need to find more revenue.
The big albatross around Orem’s neck is UTOPIA. Most everyone now agrees that UTOPIA was a mistake. However, I remember attending public meetings a few years ago where the vast majority of Orem residents wanted UTOPIA. It is easy to sit back, not be involved in the initial process and then, when it doesn’t turn out as planned, complain. Whether we like it or not, we are stuck with UTOPIA. Here are some options to consider.
We can pay 100 percent of the obligation from our tax dollars and receive zero benefit. Or we can do our best to execute the current plan—increase usage. Orem is built out much more than most cities and could derive benefit from use, and revenues could help offset much of the tax. If the second option is successful, then more options could open up — possibly some of the larger internet providers would jump on board.
Overall, Orem has exercised fiscal discipline and has been conservative in the way it has managed its finances. Prior to the recession, Orem actually saved the maximum amount allowed by law. When times got tough and revenues decreased, the city has been able to access this “rainy day” fund. If the reserve falls below five percent, the legislature will force Orem to raise taxes. I believe most Orem citizens would much rather see a methodical, strategic, proactive approach to solving the financial dilemma rather than leaving the City’s financial circumstances in the hands of state legislators.
The Daily Herald’s recent article (Orem’s Dilemma Over Taxes) is perplexing. They say, “rather than acknowledge annual shortfalls forthrightly to the taxpayers — and seeking more money when it might have been a bit less painful — Orem officials simply tapped reserves.”
My question is this: When in the last few years would it have been “less painful” to seek more money? The economy has generally improved. Unemployment is lower. Things are not great, but they have improved. I think Orem did the right thing in tapping the reserves. Isn’t that the reason they had reserves in the first place?
Another concern I have is the statement by Mr. Royce Van Tassel of the Utah Taxpayers Association in the same article. He said, “They’ve made their bed, and the city of Orem is going to have to lie in it. They shouldn’t have to ask the taxpayers to make it more comfortable.”
That statement begs the question: Who is the city of Orem? As I understand it, Orem is made of a number of “taxpayers” living together, working together and paying taxes in exchange for services to make life more comfortable. I enjoy the fact that my toilet flushes; that when I turn on the tap, fresh water comes out; that if there is an emergency, the police or fire department will respond; and that when I have concerns, I can talk with competent city officials.
I was one of the 35 residents who attended the first Neighborhood in Action joint neighborhood meeting. I was extremely impressed with the caliber of people that work for the city of Orem. I strongly disagree with Councilman Hans Andersen’s proposal to scrap a wage increase and decrease the city’s 401(k) retirement match. His proposal doesn’t come close to fixing the problem and, in fact, adds to it. We risk disenfranchising employees who have been working extremely hard without pay increases for years. They are very well qualified and deserve a modest pay increase. The cost to replace an employee is much greater than a two percent raise.
There are no easy solutions to the problems Orem faces. Having gone to meetings and taken the time to educate myself about the issues, I take great comfort in knowing that the city staffers have come up with a sensible, sound budget plan. Yes, it may require a tax increase, which I, a staunch Republican, do not like. But my intense dislike of tax increases takes a back seat to my desire to have Orem remain at the top of America’s best places to live and raise a family.
∫ Tai W. Riser is a resident of Orem.
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