Eugene Hart, business administrator for the Ogden School District and also a member of the city taxing entity committee, said the mitigation payment proposal is fair.
“Anything is better than nothing,” he said. “It’s a good option.”
Royce Van Tassell, vice president of the Utah Taxpayers Association, said the Ogden School District should strongly oppose extending The Junction’s tax increment district.[...]
The school district isn’t getting anything in return. They are giving money away (by not being able to collect property taxes from The Junction while the RDA is effect).
The Standard-Examiner follows up on our earlier WCF discussions, with this morning's Scott Schwebke story, reporting that the fix may be in for Boss Godfrey's proposed Junction tax increment bailout. The Ogden School board, which has been offered a $300 thousand annual "mitigation payment," in exchange for supporting the Godfrey administration's bailout plan, appears to be colluding with the Godfrey administration, splitting up its already pennies-on-the -dollar payoff, and throwing a few bones to the smaller special service districts, just to bring them along. Read all about it here:
• Ogden juggles tax increment districtingRoyce Van Tassell, vice president of the Utah Taxpayers Association, is absolutely right in arguing that the Ogden School District should strongly oppose extending The Junction’s tax increment district; and Mr. Eugene Hart, business administrator for the Ogden School District, and sitting member of the city taxing entity committee, is absolutely wrong.
We'll present a couple of graphic representations to show why Mr. Hart possibly needs to go back to school for some remedial math. Here's the graphic from this morning's Std-Ex story, which represents the proposed payoffs to the various entities whom Mr. Hughes, for unknown reasons, is apparently trying to rope into going along with the Mayor's bailout plan:
And here's a helpful table, embedded within an earlier WCF article, showing what all the taxing entities represented by the Ogden RDA TEC Committee can reasonably expect to receive once tax increment moneys begin to flow under terms of the existing junction financing, provided they don't bend over for Godfrey's bailout plan (Click to enlarge image):
Examining these numbers, we're still scratching our heads wondering how any conscientious member of the Ogden RDA Taxing Entity Committee could possibly consider the Mayor's plan to be in any way "fair," or "a good option." As a matter of fact, if any voting member of the TEC is to go along with Boss Godfrey, and accept pennies on the dollar under this knuckleheaded plan, we believe such an act would constitute a clear breach of fiduciary duty, as it would be an act blatantly contrary to the economic interests of the taxing entity he or she is appointed to represent, (along with taxpayers such committee member is supposed to competently serve.)
Compare the numbers yourselves, gentle readers; then ask yourselves what Mr. Hart (and maybe a few others) have been smokin'. Hopefully they'll all have their heads screwed on straight in time for Wednesday's noon TEC Committee meeting.
And don't let the cat get your tongues.
