This updated data debunks the notion that becoming a city will inevitably lead to tax increases or decreases in services.
(PRWEB) October 16, 2012
Residents of Millcreek Township in Salt Lake County will vote on November 6, 2012 to incorporate as Millcreek City or remain a township. Neighbors are strongly divided on whether incorporation is a good idea that will lead to better local control and lower taxes or more bureaucracy and higher taxes.
A recent study by a 20-year Millcreek resident and public finance expert, Dave Miner, suggests that incorporation will deliver direct and local representation, more money to invest in the community, and—most important—no tax increases.
Miner wrote the report, "Why Millcreek City Will Experience Surpluses, Not Deficits," after analyzing the 2011 Millcreek Township Incorporation Feasibility Study, and determining that the study should be updated to more accurately reflect current economic and tax conditions.
With nearly 30 years of municipal finance experience and a master’s degree in public finance from Harvard, Miner is no “armchair city planner.”
“Voters can’t make good decisions with bad information,” said Miner. “In October 2012, the Feasibility Study estimate of sales taxes is now off by nearly 20% from original projections. Someone had to shine some light on that fact.”
Miner sees two changes that have occurred since the feasibility study was completed that swing the city’s budget from borderline feasible to tremendously strong. Those changes include resurgent sales tax revenues and how the Unified Police Department (UPD) is funded.
“Sales tax revenues in the unincorporated area of Salt Lake County are up 15% over 2011 for the first six months of the year,” Miner reported. “The County even increased their 2012 sales tax budget in June by $2.2 million and that figure now looks too low. Plus, since January 2012, the UPD is funded by a separate service area and property tax. That cost should be eliminated from the feasibility study.”
Miner’s analysis suggests that the proposed City of Millcreek could experience 20% surpluses if created, a difference of over $3 million per year compared to 2011 projections—without tax increases.
“This is terrific news for the City of Millcreek. This updated data debunks the notion that becoming a city will inevitably lead to tax increases or decreases in services,” said Anna Clare Shepherd, spokesperson for the Future of Millcreek Association.
“We are confident that if residents vote YES for the City of Millcreek, we will have adequate funds to manage start-up costs, implement a locally controlled city government, and handle the challenges all new cities inevitably must face.”
Learn more about the City of Millcreek by visiting cityofmillcreekut.org