For the Standard-Examiner hard-copy subscription-impaired readers amongst us, you can read John Wright's fine article, in which he reports what happened in the City Council Chambers Tuesday night.
Coincidentally, the Weber County Commission held its own lively and well-attended meeting Tuesday evening, as was also reported in the Std-Ex. It was during this meeting that the commission approved its new budget, resulting in a 17% across the board tax increase for all property owners of Weber County. We talked about this earlier here. And yes, they went right ahead and did it. Weber County got most of the extra taxpayer funding that they were originally looking for.
I think it was an interesting conjunction of public sessions on Tuesday night. On the one hand, we had the Ogden City Council, wringing out every possible source of funding in a seemingly heroic effort to keep the High Adventure Recreation Center project alive. On the other hand, we had the Weber County Commission, which has generally run a tight ship, and avoided raising property taxes for seven years running, now biting the political bullet and doing what taxpayers like the very least -- raising property taxes. It was inevitable that this day would come, as tax increment dollars from the variety of ongoing Ogden City RDA projects get recycled into new projects, and diverted from Weber County government.
Inflation is a reality in our economy, notwithstanding the government's "rigged" CPI figures. Anyone who buys groceries or fuels-up an automobile knows that. County government isn't immune to the effects of price inflation, of course. And the County maintains a sizeable motor pool. The problem is that the Weber County Commission will take the direct heat from this necessary tax hike, when the real problem in large part originates with Ogden City RDA, which is perceived by Weber County and other local taxing authorities as being somewhat "inwardly-directed" and "ungenerous," shall we say.
I spoke with one of the Weber County Commisioners last week on this topic. He was very gracious and accomodating as to the actions of Ogden City officials, on the surface of the conversation at least. Although he assured me that this tax hike didn't represent the "throwing down of the gauntlet," as I'd suggested in an earlier "open Thread" article, I couldn't help but detect a hint of tension in his voice as he told me that.
While Weber County and the other taxing authorities who show up on your tax bill have much to gain in the long-run if the City administration's grand plan succeeds, these same entities also have everything to gain, and nothing to lose in the short-run, if the Rec Center project isn't commenced by the end of this year. In that event, much of the substantial tax increments from the ten or so existing Ogden City RDA's that would otherwise flow into the Rec Center project for the next twenty years would instead revert to Weber County, (and these other various taxing entities that you see on your Weber County property tax bill,) by operation of law. it's millions of dollars that we're talking about here, folks.
Something tells me that there's a storm brewing between our city and and county governments, that the county belt-tightening has reached the point where no new belt notches are left, and that our Weber County Commissioners are keeping their fingers crossed, and quietly hoping that the Rec Center project falls flat on its face, because of its ever-increasing financial weight.
For those who are curious about the ten or so Ogden RDA projects whose tax increments will be tied up in the event that the Rec Center project goes forward of planned, I'm furnishing a map from the excellent Ogden City website.
Comments, anyone?
IE Users: Click to enlarge image
5 comments:
A fine and informative article, Rudi. If digested properly, this most likely answers the question of "increased property taxes," etc., that the Mayor's proponents always blame on the "obstructionists." It appears to me that with all of the RDA tax increment funds being diverted to the Recreation Center instead of into the proper Weber County tax coffers, that the rise in those taxes is resultant from this diversion.
Some of these RDA projects seem to extend back to Steve Dirk's tenure and some to the Mecham years. Those projects were completed, while the bulk of Godfrey's projects appear to be either stalled or in financial straits. Is there any question as to why many of the Mayor's new and grandiose schemes aren't supported with vim and vigor? All they seem to do is to create a revenue drain and a rise in taxes.
Rudi, did the Weber County Commissioner with whom you spoke say definitively anything like:
"If it weren't for all the projects the city is doing that are draining our coffers, we wouldn't have to do this?"
Anything like that? Does the Weber County Commission's stance include a direct link between its raise in our taxes and the projects?
I really want to know that. Because their stance could just as easily be:
"No, we had to do this anyway---even if we had all the tax increment money, we still would have gone ahead, because..." and then whatever reason.
This I think is the crux of the issue. Your account sounds like the commissioner with whom you spoke was unwilling to get into this, perhaps because it would be considered bad form for one to criticize the other.
Bad form or no, I really think this information is necessary for citizens to know in order to make informed decisions on who or what to vote for. If it is truly bad form, maybe somebody could just show us Weber County's numbers, with and without increments. That would be enough.
Dian, it stands to reason that once the TIF stream has been diverted, shortfalls have to be made up the only way they can, and that's by tax increase or impact fees. But you're right, it would be nice if the WC Commissioner would just come flat out and say that it was the diversion. However, political improprieties probably prevent this statement.
Logic prevails, though. Every RDA tax increment generator, present and in the future, is now tied to Godfrey's Recreation Center.
Amazing....and there are some who feel that tax increases are caused by who they term, "obstructionists." Also amazing.
I believe that part of the tax increase can be attributed to the RDAs (both Ogden and North Ogden are taking increment for recreation, if Ogden gets things started in time) but not all of it. And all of the RDA areas that are having increment diverted to recreation are pre 93 RDA's. So in reality everyone in Weber County is now paying for the Ogden Rec center.
As for the statement that they approved the budget. In fact they approved the budget that included the tax increase last Nov or Dec. But it is now that they approve the actual tax increase. To not approve the tax increase now, they would have had to cut the budget that began on Jan. 1 2005 which at this point would be extremely difficult to do. This Truth In Taxation hearing was a farce simply a formality to comply with law. Nothing that was said at the meeting had any difference as to the vote on the tax increase. That vote in effect took place last year.
Thanks for the clarification, ARCritic.
For anyone who'd like more information on Utah's "truth in taxation" law, the Utah government website provides a good article here.
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