Guest opinion: Largest bond ever on ballot while inflation rages
Courtesy photo
Dave YoungAlpine School District wants to pass a $595 million bond, the largest school bond in Utah history. Orem taxpayers would be directly responsible for $116 million. Ultimately, Orem schoolchildren would only receive two multipurpose rooms worth $16 million.
NET, that means Orem taxpayers would be responsible for paying $100 million and receive nothing in return for their schools or children.
How is this possible? Earlier this year, the Orem City Council learned that Alpine School District was likely to try and pass a huge bond. As a result, we voted 7-0 to conduct a feasibility study to see how that would affect our citizens.
Immediately, on February 8th, six weeks before the city had even hired anyone to do a study, friends of Alpine went to work. First, they opposed doing a feasibility study. Then they opposed the firm that was hired. Next, they opposed the results of the study. After that, they opposed allowing the citizens of Orem to vote on the issue. In short, they were very organized and opposed all initiatives to explore a district split.
What were they afraid the study would find? It turns out that the feasibility study showed that Orem taxpayers had paid $174 million dollars into Alpine School District over the previous 20 years, for which taxpayers and Orem schoolchildren received nothing in return. That news was shocking.
In order to change the subject, friends of Alpine then put out false information stating that “if you vote to split the district, then your taxes will go up 56%.
The independent, highly respected Utah Taxpayers Association evaluated both sides. It stated that the projections showing a tax increase created by those against the split were “Patently False.” They went even further and told Orem citizens to Vote Yes on Prop 2.
At that point, friends of Alpine then decided to say the same thing another way. They claimed that Orem had an operating deficit of $29 million, which they later changed to $21 million. Opposing research shows the actual number is a surplus of $8 million. So what is the number? It doesn’t seem to matter; confusion appears to be the objective.
This confusion stops meaningful conversations about the actual problems. It prevents people from looking at the accurate numbers and interest associated with the bond. Instead, we should discuss the quality of our children’s education. Why are we still okay with significantly declining test scores, crowded classrooms and seismically unsafe schools?
Common sense tells you not to go into debt for 20 years for something you don’t receive. That doesn’t make any sense.
It would make even less sense to take out a new loan when interest rates have recently doubled with no signs of slowing down. That is why new home mortgage applications have plummeted in the last six months.
Why would we collectively, as a city, double the debt of our friends and neighbors at a time when no rational person would consider taking out a mortgage?
The voices from the past have taken us down this road before. Prior controversial financial decisions include UTOPIA, the University Mall RDA, and bonding for Midtown Village. The same group that brought you those are pushing this current debt.
I continue to speak out because, as Mayor, I am not willing to oversee the most significant financial mistake and liability in Orem’s history. I’m not willing to quietly watch Orem taxpayers borrow $100 million in new debt, effectively doubling their debt while interest rates are at all-time highs.
Friends of Alpine keep saying a split is inventible, and they want to split … but not right now. If we split now, Orem citizens currently owe $83 million on existing bonds. If Orem citizens vote not to separate from Alpine and the bond passes, Orem citizens will be responsible for $200 million in debt, which does not make sense.
All that Orem will see from that added debt are two multipurpose rooms….
Obviously, our taxes will go up a lot if we get tied into a $595 million bond for which we receive virtually nothing. Within this 14-city school district, we have no control over our future. The only way to guarantee that we avoid this debt bomb, at these sky high-interest rates, is to VOTE YES on PROP 2.
David Young is the mayor of Orem.
