These were my comments regarding the CDA last night: I appreciate that we as a board are taking the time to discuss the University CDA. I appreciate the discussions that have occurred with the Woodbury Corporation, and the City of Orem. This board has history of offering tax relief to certain companies when it seems to benefit. It’s no wonder that the Woodbury Corporation (or any other business) would petition this board for tax relief. They have almost nothing to lose and potentially millions to gain. As someone who has been in finance for over 20 years, it makes perfect business sense. To clearly understand my point, it’s critical for this board to realize that almost all of our money comes in the form of property taxes. In fact, as many of you that just ran elections know, the ASD accounts for almost 70% of the property taxes in our district. When we offer benefits like this CDA, we are simply telling everyone that except for these wealthy few, everyone else must pay 100% of their property tax. When we as Board, offer relief to any business for any duration, we, in effect, are giving a benefit to that business. A benefit that is unequal, unfair, and in my view, unethical, regardless of the business. I’ve heard the argument that this district won’t lose any money by giving this benefit to business. This is justified by saying that we will get the same amount of money as if this development hadn’t occurred. But this ignores the facts. This development is already occurring, and if we choose not to accept this CDA, the District will receive more in property taxes as a result of this development. However, If the board accepts this agreement, we are reducing the amount of property taxes that Woodbury has to pay for 20 years. Now, if we approve the CDA, whether or not we would receive more money after twenty years is pure speculation. If we as a board can predict what will happen in twenty years, we should really be investors, because not even the most savvy investor can tell you with surety whether or not the stock market will go up and down tomorrow. So, what basis does this board have to predict that this investment will pay for itself after 20 years? None. Twenty years is a long time. Especially, when we’re discussing education. But more than that, we as a district have immediate financial needs. This extra property tax revenue could have some real significant impact. It could help to put more teachers in the classroom. It could help to put more technology in the classroom. It could help us fund more pay-as you go projects, instead of incurring more debt. As a member of the budget committee, I’ve seen all the needs our schools have, and how many of those needs go unmet because of lack of funds. I also understand that the district is considering asking for another bond of over $100 million. If we are in such need to continue to burden our citizens with more debt why do we as a board feel like getting less money in property taxes during the next 20 years is a good thing? In business, there is a term called the present value of the dollar. Basically, this means that a dollar today is worth more than a dollar tomorrow. Before the CDA is taken to a vote, I hope that we can see this analysis, and have time to review it as a board. In regards to this CDA, our District is considering paying the most out of all the other entities combined. How does it make sense to build a mall on the backs of our children when we don’t even have enough money to make sure the buses that transport our kids are safe? In summary, I want to make it clear that I’m completely supportive of Woodbury Corporation or any other business that chooses to build within our District’s boundaries. However, this should be done without having to ask for a government handout or tax benefit that comes at the expense of our children or taxpayers.
Posted on: Wed, 12 Nov 2014 14:58:37 +0000
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