By Rosemary
Sales tax revenue falls shortWhat $1.2 million left over from fiscal 2007? Why isn't that money (if it exists) being used to upgrade police, fire, and water departments?
Ogden, other Top of Utah cities seek ways to offset impact
By SCOTT SCHWEBKE
Standard-Examiner staff sschwebke@standard.net
OGDEN — The effects of a slumping national economy may result in an $800,000 shortfall in local sales tax revenue this year for Ogden.
Based on early economic indicators, Ogden expected to receive about $15.5 million in sales tax revenue in fiscal-year 2008, which ends June 30, but is now projecting it will get only $14.7 million, said John Arrington, city finance manager.
The city received about $14.5 million in sales tax in fiscal 2007.
Arrington blames the projected shortfall on the sagging national economy, which is affecting consumer purchasing. “People are spending less on retail sales,” he said. Arrington has recommended the city council use a portion of $1.2 million in carryover funds from the municipality’s fiscal 2007 budget to offset the projected revenue shortfall. He favors that strategy over budget cuts in various city departments because it won’t affect operations. The council will have to decide before the start of fiscal 2009 how to address the shortfall, Arrington said. Councilman Jesse Garcia favors waiting until final figures are in before deciding. “You can’t address a projection.”
Why do we have an expected deficit when we now have the ever-booming Junction? Guess no one comes to it because they are waiting for the ice tower to be built!
25 comments:
They are around 100K ahead of last year at this time.
You can go to the State website that gives monthly reports of the sales tax distributions to the entities.
Here it is:
http://tax.utah.gov/esu/sales/distribution.html
Well, if they did escrow $1.2 million from last fiscal year, it was on the part of the Mayor and Council a wise decision. Because the city has to fund its actions going forward, the city has to estimate the revenues it will have available, like the sales tax revenue. A downturn in the economy -- highly probable with a Bush in the White House continuing to run the deficit and debt through the roof and so undermine the dollar -- or other unanticipated events, can reduce those revenues. If the city has no rainy day fund [the state, wisely, has created one], then a downturn in sales tax revenues can lead to really disruptive lay offs among police and firemen, other city agencies, and a significant and sudden cut in public services. Building a little cushion into the budget to deal with unanticipated revenue shortfalls is, IMHO, good urban fiscal management.
The Junction produces very little in retail sales aside from the occasional tourist T-shirt. Most of what is sold there is not taxable. The current construction proceeds at a snail's pace. Most new buildings in South Ogden and elsewhere have key tenants pre-construction. The east side of Washington from the Junction still remains largely empty. Hopefully WalMart will help turn things around downtown. Reality is that Riverdale and Harrisville now have a huge jump on the diversified retail. Only WalMart has the saturation factors that allow it to put a store in between. Few of the others will duplicate so close. People now shop where they can hit the most big and medium box stores in a given area. The great downtown Ogden experiment is still not attracting any significant number of actual home owner-occupants to the older neighborhoods nearby.
Frontrunner is coming soon. They are running trains on a schedule and training staff as of last week. No opening date yet announced.
Tec:
The model, I think, depends on relatively high-end buyer/occupiers of the condo units now under construction or planned. If they don't sell well, and upper middle class refugees from SLC do not move in in significant numbers, the expected retail-bounce close in [downtown] is not likely to happen and the overall plan will be in... "deep doo-doo" comes to mind.
We'll have to keep our fingers crossed, and hope that Frontrunner's arrival, and upscale living within walking distance of commuter rail, will attract SLC up-scale refugees. Too soon to tell. The suspension of a similar project in Orem for lack of pre-completion buyers is not a good sign in a declining economy and tight mortgage period. Crossing my fingers hard.
The City has or is supposed to have a 5% surplus,rainey day fund of the general budget amount on hand. State Law
follow the law:
Thanks. Which raises the question then of whether the 1.2 million is that "rainy day fund" or is another 1.2 million that was for some reason appropriated but not expended in the previous fiscal year. I have no idea. Does anyone?
tec,
I'm pretty sure that the first day of scheduled FrontRunner operation will be Monday, April 28.
They could lay off the whole damn incompetent development staff and save the tax payers of Ogden a million a year easy. That would be a direct saving of cash that is now coming out of the city treasury to pay these losers big time dough for bringing us $93 million in debt over the last few years.
Wick's Airdale could take over for all of them, do a much better job, and only cost the tax payers a few hundred a year in dog food and treats.
Perhaps this is a good time to quote the prediction that I posted here on November 13:
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Now that Godfrey has been reelected, I'd like to publicly make a prediction.
Remember how, in April 2006, Godfrey said Ogden was in a "downward spiral" and his only idea for stopping the downward spiral was to build gondolas and sell park lands and otherwise make "sacrifices"?
Then, as the campaign approached, suddenly Ogden was doing great: thousands of new jobs, crime rate way down, lower taxes, debt about to be eliminated.
My prediction is that within a year, Ogden will again be in dire straits, and severe sacrifices will be necessary (according to the mayor). I don't know exactly what these sacrifices will be, but they'll be highly controversial. I don't know if the mayor will again use the words "downward spiral", but it'll be something roughly equivalent.
-------------
Obviously it's taken much less than a year. Now the mayor is trying to sell the taxpayers on another $10 million in debt to reconstruct the golf course and relocate the clubhouse. And today's article is pretty obviously part of a campaign to convince us that drastic measures are again necessary.
It shouldn't be long now before we again start hearing the g-word spoken openly.
I have a rather naive question. Why would anyone from the Salt Lake City area want to move to Ogden?
Weber County has the reputation of basically annually being the highest taxed County in Utah. And the Weber County commissioners have traditionally had the reputation of the most corrupt of any in the State.
Please someone explain the "draw" to Ogden, with an additional reputation of being the highest taxed city in the highest taxed County, in the sixth highest taxed State in the entire Country?
Ogden, it is said at State levels, has traditionally had the highest taxes due to the number of RDAs, many of which end up having to be bailed out by taxpayers. Now, add the immigrant "invasion" which conues unabated, with families the size of the Mormons to pay to educate and/or incarcerate.
So, again, why would any "upscale Salt Lake City folks" want to live in Ogden so they can commute, via Frontrunner to Salt Lake City to work?
Something is just not adding up to me...? Please explain?
Seems to me the chickens are beginning to come home to roost and the mayor's non sense of building utopia for the grenola groupies is being to smell of BO...is that body order of bailout?
minor-
I had some yuppy friends sell their house in SLC and move to Ogden last month, as a matter of fact. The main reason why they moved here was because it is still relatively cheap. The fact that they could buy a historic home and that they are just as close to good ski resorts as they were when they lived in SLC factored into too. Ogden is a nice place to live, I've been happy here (w/out a gondola even).
I won't touch your immigrant rant, other than I think you're way off target.
Why Mr. Machman it is obvious you just are not with it, you do not even begin to understand the cool factor that our dear mayor has worked so hard to bring about.
You ask why would someone forsake cosmopolitan democratically run Salt Lake for Ogden?
Well I'll tell you partner, it's for the day glow golf, it's for the pin ball machines in our very own penny arcade, it's for the bumper cars, it's for the loud and lively bowling, it's for the wonderful gourmet meals at Costa Vitae, it's for the parachute ride, it's for the rock climbing wall, it's for the chance to be near a year around ice climbing gizmo, it's for the security of living in a society where you don't have to have an opinion or think cause our mayor covers all that nonsense for you, it's for the privilege of sharing in a hundred million of debt that is just around the corner from bearing fruit, it's to be able to brag to your friends that your mayor and chief of police lie and cheat to fire police officers that cross them, and most of all it is so you can finally reach fulfillment in your otherwise empty life by getting to live in the shadow of a gondola to nowhere.
Just relax and count the many blessings that come to those with faith that live in Ogden. Salt Lake can't even begin to match these great benefits.
What a convenient excuse for Godfrey! Someone has to investigate this guy! Surely there is some dirt on him that someone could come forward with.
anon:
Yes, there's plenty of dirt on Godfrey. He's told countless lies that are easy enough to document, but the Standard-Examiner and the people who voted for him don't seem to care. He's come very close to breaking the law in some of his financial shell games, but nobody seems to have quite enough evidence to prosecute. He almost certainly broke the law when he allowed Envision Ogden to use the Salomon Center for a political fundraiser, but nobody seems interested in that either.
Accountability in government requires an independent media and an independent prosecutor. Unfortunately we have neither.
Anon and Dan S.,
Yes, to echo what Dan said. The local media and judiciary have been incurious, to say the least, about some of Mayor Godfrey's misdeeds.
Having said that, to my non-expert eye, I would say that many of his schemes and out-and-out lies are in general deeply unethical and perhaps not criminal. But they come awfully close to the line sometimes, and need to be looked at carefully.
There is something I have found that I modestly call the Monotreme Collision Principle: Assholes never follow parallel paths. At some point, their paths converge and there is a collision.
Unfortunately, it often takes a while, but Mayor Godfrey will certainly one day meet someone with more political power, or more money, or more juice, or more cojones than he, and he will be destroyed.
That's my prediction. I just hope Ogden is not irreparably damaged by the process, 'cuz it may take a long long time.
maestro...
"Now, add the immigrant "invasion" which continues unabated, with families the size of the Mormons to pay to educate and/or incarcerate."
Didn't know that was a "rant". Thanks Maestro, for pointing that out. Really!
I thought it more like a "fact" given the percentages of "Hispanic" population located within Ogden and the increases over the past 3-4 years. And the nationally recognized statistical demographics which have Mormon family size in Utah ranking the highest (most) by far of any State or even third world Country on earth.
Anectdotal evidence of "hispanic" invasion... A crew worked on a local construction contract in town. Only one of the 5 spoke any English much like the crew which reroofed our home. The 26 yr. old, we'll call Ramirez, looked to be about 20, five feet tall and maybe 115 lbs. We BS'ed in shade while on a protracted "lunch break", lasting a couple hours. Ramirez worked for minimum wage plus 50 cents, had been married three times and had 19 "nios".
I've known the family of a very popular Mexican Resturant chain for 20 years. Each time we meet family members they have grown exponentionally. About Lincoln or Grant and 30th is a small brick house with a separate garage to the south. A professionally made sign pronounces "Parking for Mexicans Only. Other vehicles will be towed at owners expense".
Perhaps I have my head buried in denial or fail to understand the drawing powers Lionel so satirically shared. Ogden could be a great place to live except for the nightly news reports of gang killings, robberies, beatings and driveby shootings.
Now it is taxes and infrastructure...seems the Mayor and his leadership is on some other planet already. But that is just a casual outside and personal opinion. We seem to eat and shop in Riverdale and Layton to avoid all the holes in our vehicles.
But very happy to hear one SLC yuppy couple recently moved up to life elevated in Ogden. Hope they survive.
It is not that we hate Ogden. Quite the contrary. We want Ogden to be a "normal" and safe place to live in and shop in again. And without looking over our shoulders all the time while the mini mayor is on his other planet. A planet with virgins listening to the siren songs of intergalactic opportunistic developers without a master plan of urban development which makes any sense.
The whole situation seems sad really. Ogden does have such potential and only needs mature adult leadership with basic core values and management skills.
Talk to just about any business owner in Ogden and ask what they think of the current administration and how they are treated. They will tell you. And the stories they tell aren't very complimentary or pretty I'm sad to report.
So you folks who actually ive in the heart of Ogden tell me where I have mis spoken or formed an incorrect opinion. Maestro did. And I respect his opinion and everyone's.
MM:
Gotta tell ya, Ogden seems to me is a pretty attractive place to live. Still affordable housing compared to say The Avenues or similar neighborhoods in SLC. Access to great skiing as easily as in SLC, though not as varied [number of resorts]. Access to the mts. better than in SLC for hiking, biking etc. Fewer of the problems [crime, etc] of a major urban area, many of the same amenities, and those not available here a 45 minute ride away on frontrunner.
Nationally, the move back to cities comes not so much from those already in downtowns, but those in the burbs, who with kids gone, don't much see the advantage of long commutes on crowded roads, twice daily, and again to reach city center amenities. They're moving back in, close to transit. It's a national phenomenon. Maybe I should have said "SL area" rather than SL per se.
But I think you're selling Ogden short. It has much to make it an attractive place to live for middle class folk. Of course, Ogden has a Republican Mayor and SLC has a Democratic one. I'll give them that.
Our late and great friend Dian spent a lot of time last year researching and documenting many illegal and highly questionable activities of Little Lord Godfrey and his circle of incompetent henchmen. She and several other honest and true citizens of Ogden took this well prepared and documented material to the State Attorney General's office in Salt Lake where they received a class A shine on. The Attorney General assigned the lowest para legal in his office to the case and it of course was soon swept under the rug and then shit canned. The AG's office took no action, they spent zero time investigating any of it themselves, they merely shined Dian and the others on for a while and then buried it altogether.
There is no justice in NeoCon Republican Utah if the perpetrator's of criminal conduct are Republicans. This incident proved it without question.
This is in contrast to a recent case where some apparently disturbed young woman in Salt Lake sent some harassing emails to the Attorney General and one of his staff. The AG's office had several of his top attorneys spend many hours and huge amounts of money investigating and hounding this young woman and vowed to bring her to justice. Just shows to go you where their priorities are.
Thanks Curm,
Thinking of moving myself. But away from Utah after 30 years. "Had Enough". Don't see a very bright picture for Utah considering the factors I've pointed out. I see frustration over higher and higher taxes with more and more excuses which do not make any sense to the common man.
And the primary reason is Utah has 67% of its land mass controlled in one way or the other by the Federal Government, leaving only 33% in the public and private sector.
To the Outlook 2008 - Growth is expected to continue at a slower pace as economic indicators are expected to soften. Employment growth will move from 4.0% in 2007 to 2.0% in 2008, while the unemployment rate should tick upward from a low of 2.7% in 2007 to 3.7% in 2008. Residential construction is expected to weaken further, though overall construction employment should be buoyed by strong growth in
nonresidential building.
The above economic forecast is saying get ready for a double whammie. To make up for falling sales tax revenues the rate will increase even higher. To make up for the falling valuations in real estate the Certified Tax Rate or "Mill Levy" will increase. And to make up for the shortfalls in school district funds to pay administrators and teachers bonus' and pay raises, plus the non layoffable County and City employees who expect CPI and COLA increases again, well now just add in the 80% who got under market valuations on their homes for the past four years and "stand by for ram!". And if that is not enough, estimate the "hispanic" population of Ogden which was in the neighborhood of 18,000 eight years ago. Now consider how much of their incomes are either illegal and thus not reported or sent back to Mexico and not paid into County or city "services" via "education/income taxes", or property taxes, nor sales taxes in Utah.
The economy is going bust big time and the few left to pay will be tasked and taxed more and more. The state already has laws which subsidize large (Mormon) families. The Mexicans have caught on to it and are flocking into the State and bringing their large "Catholic" families with them or producing them.
This puts Utahans in a moral bind given their own history and they will be particularly slow to react to it. Thus further purturbating the problems many caucasian California "immigrants/refugees" are all too familiar with...grossly overwhelmed social services underfunded to meet the needs of expanding demands.
Like I said, the future of Utah is not good and the way I know this is the hype and spin being put out by the Governor's office. After living here for 30 years, I have learned that what is being said publicly is almost always exactly the opposite of the truth. 180 degrees out...
Like I said, the chickens are coming back to the henhouse to roost. And I don't see any golden eggs in sight.
Machman
Add to that the state is in the death grip of the Republican party with their arrogant, single minded greed and incompetence. There is no integrity anymore in our politicians, they are all on the take and for sale to the highest bidding special interest groups.
Maybe I can hitch a ride with you on your way out of town?
Albert, Oh, if only you knew just how spot on you truly are!
"I've got people who are on county commissions, mayors, state senators," Kyler says."Our lieutenant governor was president of our state association about 20 years ago. Our people are involved in the parties, too. We've got precinct chairs and vice chairs and county delegates throughout the state." Chris Kyler, CEO and CFO of the Utah Realtor Association (10,000+ in Utah) is one of three top lobbyists, all lawyers and who "draft laws" favorable to their "business interests" and that of the developers. Their mantra is "we defend private property rights", and it is a bald faced lie.
They have about 40 wanna-be legislators who are Realtors and who meet about twice a month to go over every hint of legislation which might effect their "business interests" and holy grail---their 6% commissions. Kyler goes on the say they have sucessfully either killed all the propsals, bills, or legislation, or at minimum made them neutral in about 95% of the cases over the past six years (more now since it was an 06 article).
With rumored more than a million dollars in their PAC's, some PACs disguised as Coalition for Private Property Rights, etc., they spread bribe money to virtually every legislator they think will be "in their corner" and vote the way they pay them to vote, or sponsor laws they "draft". Hundreds of thousands in "campaign bribery/donation" money a year and in gifts, trips, boon doggles, expensive dinners, tickets, you name it. The locla District Representative, for example, is a Realtor/Developer who previously recently served as President of the Utah Realtor Association and does not have enough in him to accurately fill out his Conflict of Interest Declaration for example. He is either too stupid or too ignorant, in either case he should not have been allowed to even take an oath. Subsequently he has consistently represented only his own business interests and those of his association not the people's interests. And this is more typical than an exception, so much so it is either just laughed off or accepted as the Utah status quo.
And with office or committee chairmanship, speaker or president or majority whip duties etc. comes more and more money. So much money that the legislators themselves have begun to use hundreds of thousands in tax free excess campaign donation money to literally buy chairmanships and offices. More money to influence votes by "donating thousands to each other". To old BYU classmates or U of U cronies, to GOP legislator's campaigns in political hot water or trouble based upon stances taken or spears taken for the good of the closed door caucuses...for the "team". And with 85% GOP closed caucuses decide law in effect without public debate, sound familiar?
Albert, ent al, it is so much worse than you can imagine, I almost hate to be the one to tell you about it. But then Kyler virtually bragged about it in 2006 in Governing Magazine, a National periodical which focused on the nefarious activities of the National Realtor Association. The National Realtor Assocation, led by none other than Uthan Al Mansell, ex Utah President of the Senate, A guy who would not know a direct conflict of interest if it bit him in the ass. Al Mansell who took a leave of absence to become the National Realtor Association President. And now we have his hand maiden replacement, Senator Wayne Niederhauser in his stead. He paid what - $137,000 -for his seat. But money is what money does. And money is what it is all about, make no mistake about that. There is no public service or altruistic or philanthropic motivations here. Not in this corrupt core of legislators dedicated to lining their own pockets at all our expenses. I only wish I could report it otherwise.
No. The future of Utah is not bright. Because these low life ethically challenged people have infiltrated Utah government at virtually every level, just as Kyler brags about.
We even have the Association of Utah Counties and the Utah League of Cities and Towns with these people controlling essentially the entire State. They are so arrogant, they hire lobbyists using our tax dollars, to lobby against our own constitutionally guaranteed rights. Don't belive it, check out the history of House Bill 466. Or HB 220 or any number of "Developer Dream Bills".
Want to discover why I say the future of Utah is not bright? I just had a Democrat, a Bill Hansen, unethically use my blogspot to post his campaign annoucement, without even having the decency or ethical chutzpa to ask for permission. Another candidate, a Steve Olsen, said he would take all the campaign donation Energy Solutions money he could get, for example. So where is any hint of moral terpitude or ethical standards, any sense of decency or integrity in the candidates? Are we to simply replace proven crooks with potentially more of the same? It is as if immorality and dishonesty are endemic to this culture, leaving no real hope for the future.
We see it in Ogden, we see it at the County level and in every segment of government,it is pervasive and persistent with only very few bright rays of hope which are marginalized and minimized from local "Ace reporters" to the big money paid for seven page (or more) color Real Estate advertisement spreads in surviving newspapers.
It is like the "current market value" based (by Utah Constitution wording thus requiring a 2/3 majority of Realtor Association corrupted legislators, followed by a majority of popular vote to change it) Property Tax Scheme.
And it IS a scheme that is near perfect.
It benefits those who protract or promote it while skimming off unfair and inappropriate tax monies from those who can ill afford it, all the while allowing the parasitic "other taxing agencies" into the game skimming off windfall profits.
Its late - too late. I've "Had Enough!"
Minor Machman
I just wonder, What ever happen to that Don Bell guy that said and announced that he was running against gage froerer? Is he just another one of those that complain about everything and when it comes time to do something about it he hides his ass is some dark corner. well i can see why you would be so upset but I don't see your name on any of the ballots, so just quityourbellyachen.
Oh Wow
Is it your position that one should have no voice if they are not a candidate for office?
I believe Bell made the right decision in choosing not to run. He is much more effective, as an incredibly well studied and knowledgeable voice on ethics and tax reform, outside of office than he would be in office where he would be marginalized by the Republican leadership.
As a minister of the truth without portfolio it is impossible for the Republican NaBobs to muzzle him, where as if he were to take office he and this important message would be buried in their legislative bull shit.
I for one hope that he keeps telling it like it is to as many people as possible. Only when the truth about the corrupt nature of Utah politics becomes public knowledge will we have a chance to throw it over board.
Free Utah from special interests!
oh wow man,
Call me and I will tell you the ungarbled/unabridged truth I had just as soon not print on any blog or put in writing.
You are correct in assuming what you assume, based upon only what you perhaps have read. But you are way off base if you "assume" I am one who only bitches without trying to change things or without paying my dues.
"Assume" makes an "ass" out of "u" and "me", like they say. Give me a call and I will fill you in on what I probably should not write about... OK?
Wow:
Oz got it right. We all get the complain whenever "our" governments screw up. Whether we're running for office or not. Whether we vote or not. Kind of comes with the territory, in free counties. Part and parcel of what being a citizen means.
And as for criticizing someone for deciding to run, or deciding not to... given what running requires these days, not only in terms of time and money, but in terms of the amount of personal abuse and scrutiny you have to submit to --- I don't think I'd criticize anyone however they decided the matter.
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