 |
TAX ALERT! |
| From The Utah Taxpayers Association | |
|
|
|
| 1578 West 1700 South #201, Salt Lake City, Utah 84104 PH 972-8814 FX 973-2324 | |
December 5, 2002
To: All Members in Granger Hunter Improvement District
Re: Proposed 54% Tax Increase
Granger Hunter Improvement District is proposing a $1.1 million, 54% property tax increase. If approved, the tax on a $100,000 residence will be $44, an increase of $15.45. The tax on a $100,000 business property will increase from $51.90 to 80.00. If approved, Granger Hunter Improvement District’s property tax revenues will increase from $1.89 million to $2.98 million, and the property tax rate will increase from 0.000519 to 0.000800.
The proposed budget includes 3% cost-of-living increases and 2% merit pay raises for district employees.
The district’s proposed 2003 budget calls for $4.6 million in water projects, including $1.8 million for the fluoride project. The district also intends to spend $4.9 million for sewer projects.
District officials attribute the need for the tax increase to the fluoride project and have indicated that the tax rate may be reduced once the project is complete. The district intends to pay for the project with cash instead of bonding.
The Taxpayers Association recommends that the district consider bonding for the fluoride project instead of paying in cash. Frequently, local governments argue that pay-as-you go budgeting for capital projects is fiscally more prudent than bonding, but that is generally not the case. The fluoride project will affect district customers for decades, but only current property owners will be paying the cost if the district decides to pay in cash. Additionally, local governments too often use pay-as-you-go as a means to permanently raise tax rates, even after the project is completed.
Granger-Hunter will be conducting a Truth-in-Taxation hearing on December 9, 2002, at 7:00 p.m. at the district’s office located at 2888 South 3600 West, West Valley City. The Utah Taxpayers Association encourages district residents to attend the hearing and make their opinions heard.