TAX ALERT!
	From The Utah Taxpayers Association
	1578 West 1700 South #201, Salt Lake City, Utah 84104 PH 972-8814 FX 973-2324

May 11, 2005

TO: Ogden City Residents

RE: Ogden Rec Center

Taxpayers Should Sign Petition to Require Vote on Ogden Rec Center

A grassroots activist group, Citizens and Businesses Concerned for Ogden ’s Future, is collecting signatures for a citizens’ petition that will require taxpayer approval before Ogden City can issue bonds to finance a recreation center. The Utah Taxpayers Association encourages Ogden taxpayers to sign the petition. Contact information is found below.

Will the Ogden City RDA recreation project increase jobs, tax revenues, and economic growth?

No. This project simply shifts existing economic activity, including jobs and tax revenues, from other parts of Ogden and the surrounding area to downtown. Household expenditures in Ogden and the rest of the state will not increase nor will high-wage jobs from out of state relocate to Ogden just because government is subsidizing recreation and retail activity. Household savings rates are already less than 1%, and bankruptcy rates are at historic highs which means that households will simply shift existing spending instead of increasing spending. Retail and recreation businesses react to consumer demand and disposable income and therefore do not need to be subsidized or incentivized.

Where does the RDA “haircut” money come from and will it really be “lost” if the city does not act now?

RDA “haircut” money is NOT free money. These are property taxes that local governments would normally collect from the private businesses being subsidized by various RDAs. If the project does not go forward, these “haircut” funds will revert to Weber County , and other local governments – where they belong in the first place. Therefore, the funds are not really “lost”.

Utah cities have been using RDAs – which this year will divert nearly $100 million in property tax dollars from local governments to subsidize developers and other businesses – in order to steal economic activity from other Utah cities. Recognizing that RDAs do not increase economic activity in the state but rather simply shift and subsidize existing economic activity from one part of the state to another while reducing tax revenues for local governments, the Utah Legislature recently passed a law (SB184) curtailing these abuses. After this year, cities will no longer be able to use RDA “haircut” money for recreation facilities, and Ogden City is trying to approve the project before the Legislature’s reform measure becomes effective. Ogden City is already one of the largest abusers of RDAs in Utah .

Will the bond create new taxes?

When RDAs divert local property tax dollars from local governments to subsidize economic activity that is already occurring in Utah like retail and recreation, then local governments are forced to either reduce services or raise tax rates on all property owners. Last year, Weber County Commissioners attributed their tax increase to RDAs diverting property taxes from the county to subsidize businesses.

You can sign the petition at the following locations – deadline: 5:00 pm , May 14th

Idlewire Pet Care – 5583 Harrison Blvd

Two-Bit Street Club Café – 126 Historic 25 th St

Ligori’s Pizza & Pasta – 4421 Harrison Blvd

Trends & Traditions – 201 Historic 25 St

Platinum Image Salon & Day Spa – 4421 Harrison Blvd

Taco Taco – 2931 Washington Blvd

Maple Garden Chinese Restaurant – 3798 Washington Blvd

Pizza Runner – 3017 Harrison Blvd

Harvest Health Foods Inc. – 341 27 th St.

Ben Lomond Lanes – 329 Washington Blvd

For more information contact: Citizens and Businesses Concerned For Ogden’s Future at 399-3279 or the Utah Taxpayers Association at (801) 972-8814. For more information on RDAs, go to www.utahtaxpayers.org.