Orem referendum moving forward after application approved
AUGUST 30, 2012 12:17 AM •
OREM -- After a week of discussion, Orem city officials have given the go-ahead to the citizens behind a referendum to vote on the tax increase.
The applicants' next task is getting a minimum of 3,129 registered voters to sign the petition by the end of September. If they get enough, the recent property tax increase will be on hold for two budget cycles, even though the referendum will not be up for vote until 2013.
There was an issue about whether the application could be accepted because addresses were left off. All were verified as registered voters in Orem. Applicant Wayne Burr later brought the addresses in, but it was past the deadline and they were not accepted by the city recorder's office.
Mark Thomas, director of elections in the Lt. Governor's office, said Orem officials had asked if the application could be accepted as is.
"The election official looks for substantial compliance, not exact compliance," Thomas said. "In my mind they were in substantial compliance."
Mayor Jim Evans concurred with Thomas's statement.
"We didn't see any problem with them not having addresses on the application," Evans said.
The city council passed the $1.7 million tax increase earlier this month. That was half of the tax increase ($3.3 million) built into the original budget; after an hours-long truth in taxation hearing the council cut it back but did not feel the city could reduce its budget by $3.3 million without decreasing services. Most of the tax increase was slated for the city's bond payment for UTOPIA, a fiber-optic system that is a conglomerate of a number of Utah cities.
The referendum puts the tax increase to a popular vote. State law requires that a contested tax increase be put on hold until it can be voted on, which will be 2013. That means the tax increase may not go into effect for two years if residents get the requisite signatures.
"Some people thought it was a lost cause, but I'm starting to feel fine about it," Burr said. "Most people don't want their taxes raised."
City manager Bruce Chesnut said if the increase doesn't happen, department heads will now have to cut more from the city's budget, and that has city administration deeply concerned.
"If they get the required signatures based on the last presidential election and the county verifies them, then it goes to a special election or on the next municipal election next November," he said. "It would put everything on hold for two budget cycles."
The cost of a special election is approximately $35,000, so the city will most likely opt to have the election in November 2013.
Chesnut also noted that he would try to find an additional $3.3 million in the general fund.
"It would affect police, fire, parks, streets, library and other services," he said.
"We think they can find more places to cut without hurting the police and fire. There are plenty other places," Burr said.
People who would like to carry petitions can call Burr at (801) 224-6992. Their deadline is Sept. 28. heraldextra.com Genelle Pugmire
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