Bountiful City Raising Your Power Rate To Maintain Politician Play Fund (Update)

About a week ago, I noted the city had come out with its annual spin on bilking you on your power rates. This week, they doubled down and are sending you a glossy four page ad (with more ridiculous “investing” spin) about your rates going up $4/month. As I noted last week, the city is already transferring $2.45 Million from the city power department (by overcharging you on power). So what does $4/month come out to per year in extra cash the city politicians can play with?

Well, per the 2010 census, Bountiful had 14,504 households in it (since that’s seven years ago, but I’ll be conservative and stick with that number). Therefore, $4/month X 12 months X 14,504 households = $696,192 extra cash flowing to the city.

That’s a minimum figure as the city has grown since 2010 and I believe rates will also go up for churches, charities, and businesses in Bountiful. Supposedly, the increase will go to infrastructure improvements but don’t be surprised if next year’s transfer from the city power dept. magically increases as well. So rather than use part of their $2.45 annual fund, they’ll take at least $696K more from families, churches, small businesses…etc. Priorities, priorities.

The city admits they use the power company in lieu of taxes for a revenue stream. Thus, by playing with rates, they can do two things: 1) Evade truth-in-taxation law and 2) Claim the city has the lowest taxes for its size the state (AKA bait-and-switch).

If the city wants to continue to manipulate your power rate, they should be brought under Public Service Commission oversight and if they want to continue the laughable claim that you’re an “investor” and this is a “dividend” they should also comply with SEC filings just as Rocky Mountain Power must. Personally, I would rather see this entire ‘municipal power as de facto taxing entity’ practice banned.

For all posts related to Bountiful Power, click here.

UPDATE: It just sunk in that this power rate hike is permanent (I’m not the sharpest tool in the shed…). The increased revenue is an annual income to the city. That means the city is really effectively raising taxes on everyone (to the tune of at least $696K per year). With that juicy new revenue stream, I find it much harder to believe we won’t see the power fund transfer to city coffers jump (even if the funds are initially used for infrastructure improvements).

Next, on the pamphlet, under the new solar customer rates section (bottom of last page), it appears solar customers will have a 9.25 cents/kWh rate when they use power. The concern that raises for me is 9.25 cents/kWh is the current rate. Does that mean everyone else will face a higher rate (due to the increase) while solar folks get the old (current) rate? That sounds like they’re getting an additional subsidy. I am not cool with that at all IF that is the case but the pamphlet unclear.

Finally, I find it a ironic and annoying that I got the information which encourages citizen feedback after the city council meeting (on Tuesday) was held and the vote taken. I’m willing to bet the rate increase was approved. I’ll update this post when I find out.

Chamber Of Commerce Front Group “OurSchoolsNow” Employs Math Spin For Tax Increase (Update)

I’ll keep this brief. First, OurSchoolsNow is yet another in the litanny of Salt Lake Chamber of Commerce political front groups bent on raising economic burdens on Utah families. The latest gambit will be yet another “why do you hate school children?” guilt trip against those opposed to the tax increase. They’ll couple this with a quiet bit of math spin on the actual percent tax increase and neglect to mention the increase doesn’t apply to them (surprise!). They spin it as a 7/8% increase on you. No it’s not:

The first shot in this effort to raise individual income taxes by a whopping 18% from 5% to 5.875% while leaving all business taxes, including the 5% corporate income tax, unchanged was fired when the elites formally announced a petition drive to raise the individual income tax…

The real math equates to: 5.875/5 = 18% increase in rate. Again, note that the Chamber was sure to exempt the business tax rates*. People caught on to that and now they’ve moved on to a “1/2% increase” on two taxes (sales and income) still exempting themselves from an increase. The 1/2% is, yet again, a misnomer. Here’s the breakdown:

Income tax rate increase: 5.5/5 = 10% increase
Sales tax increase (5.95% is the State base rate and 6.45% would be the new rate) = 6.45/5.95 = 8.4% increase

Interestingly, added together thats about 18% again, however, the actual burden of the sales tax increase depend on how much you spend. Futhermore besides exempting themselves from the tax, Parents for Choice in Education (PCE) caught on that the Chamber didn’t appear all that willing to get rid of tax subsidies they gorge on…funds that could’ve gone to schools (#ourschoolsnow stop campaigning to increase tax burden & focus on multiple subsidies robbing Ed budget”):

All this does is heap additional burdens on Utah families to keep the crony capital trough full, while virtue signalling they caaaare so much about children. The Utah swamp could use some draining.

UPDATE: Libertas is also calling out the Our Schools Now bunk and Libetas’ Connor Boyack also makes note of the “politically connected insiders” pushing this boondogle.

*FWIW: I’m not a big fan of raising corporate rates – those are essentially just passed on to consumers anyway via increased product cost which can reduces sales (hence why the Chamber of Crony Capitalists exempt themselves).

Happy Anniversary! Its Time For Bountiful City To Spin Ripping You Off On Power

Good news: Your anniversary present comes dressed in a beautiful evening gown with stunning lipstick…too bad it’s a pig.

Exactly a year ago, I posted my annual note about Bountiful flimflamming residents on residents getting overcharged for power. This year, the city sent out the same, boiled over sophistry ($2.45 Million in overcharges the city keeps = a “dividend”/”investment”) in a letter that came with your power bill. [Edit: Be sure to look at my 2015 post on the investor/dividend distortion]

This year I’m going to save my limited free time and not rehash how the city’s spin is phony. For that, look at last year’s post (and the year before that…and the year before that…) or click on the Bountiful Power tag for all things related to the city’s (ab)use of their power department as a surrogate taxing entity to skirt truth-in-taxation (and yes, even in the letter, the city admits “…what otherwise would be a significant increase in property taxes”).

‘Till next year.

Time For Utah To Declare Entitlement Addiction A Public Health Crisis?

I recently stumbled across this article by Dennis Prager:

Entitlements: The Most Dangerous Addiction

There is one addiction, however, that might be more difficult than any other to escape – in part because it is not even regarded as an addiction. It is Entitlements Addiction, an addiction to getting something for nothing.

One indication as to the power of Entitlements Addiction is that, while great numbers of people have voluntarily given up – almost always at great pain – drugs, alcohol, gambling, etc., few give up an addiction to entitlements. For the majority of able-bodied people who get cash payments, food stamps, subsidized housing, free or subsidized health insurance, and other welfare benefits, the thought of giving up any one of those and beginning to pay for them with their own earned money is as hard as giving up alcohol is to an alcoholic.

Politicians know this, which is why it is close to impossible to ever reduce entitlements. And, of course, the Left knows this, which is why the Left almost always wins any debate over entitlements. Every American who is the beneficiary of an entitlement backs entitlements, and many who are not beneficiaries of entitlements would like to be.

Read the whole thing.

Anyway, the article got me thinking: Last year, Utah State Senator Todd Weiler passed a bill declaring pornography a public health crisis which was subsequently signed by Governor Herbert. This year, Herbert signed Weiler’s bill passed by the legislature allowing you to sue porn makers if a minor has been injured.

Any chance a Utah Legislature and the Governor would support a bill identifying entitlement addiction as a public health crisis or is that an approved addiction so long as the GOP/Democrats are acting as a dealer?…

No More Entitlement And Fiscal Irresponsibility, No To RyanCare

Unacceptable.

RYANCARE: 5 Serious Problems With The Republican Replacement For Obamacare

1. It Retains Requirements That Insurance Cover People With Pre-Existing Conditions.
…nonsensical notion that government could force insurance companies to cover those with pre-existing conditions. This turns insurance companies into piggy banks rather than insurance companies…

2. It Creates A Back Door Mandate.
…allow insurance companies to charge an elevated 30% fine for those whose insurance lapses…

3. It Creates Individual Healthcare Subsidies.
[Tax credit is just another name for subsidy]

4. It Subsidizes Medicaid
…allow the feds to cover Obamacare Medicaid expansion…

5. It Subsidizes High-Risk Pools On The State Level.
…sends $100 billion to states over the next ten years…This, of course, won’t be nearly enough…

This bill would just, maybe, delay Obamacare’s implosion but it too will financially implode on our backs.

As an added bonus it also appears to give benefits to illegal immigrants. Further, the “phase” thing is a dead end road. As I understand it, the first bill can pass under reconciliation whereas any others can (and will) be blocked by Democrats. So much for a repeal.

No mention of buying insurance across state lines (and hopeful breaking the employer-insurance link to shift things to something like the auto insurance system we have). No, that’ll be in the ‘next phase’…to nowhere.

Mike Lee and Rand Paul, among others (like Tom Cotton), are on the right track:
Lee Statement on American Health Care Act

As one Gab user stated:

2009: Barry does O’Care.
2010: R’s promise to repeal O’Care if they get House; R’s get House
2011: nothing
2014: R’s promise to repeal O’Care if they get the Senate; they get the Senate
2015: nothing
2016: R’s promise to repeal O’Care if they get the presidency; they get presidency
2017: RINOcare™

 

Bountiful Halts City Hall Project For Now, Looks To Keep Plaza Boondoggle

Some good news. The Bountiful City Council has pulled back and stopped the new city hall project and will shortly cancel the contracts for it. From the Better Bountiful group that opposed the project:

The Better Bountiful Committee and its many supporters welcome the Bountiful City Council’s decision to cancel their plans to build a new city hall.  The City Council and Mayor have heard the voices of the people and will now invest funds to properly maintain our current City Hall rather than abandon it.  That is a decision we welcome.   We particularly appreciate those City leaders who took the time to listen and discuss the matter with us.

All major plans involving taxpayers’ money are always best accomplished when citizens are allowed a voice at the ballot box. We assume the City Council will apply that principle to the proposed Downtown City Plaza, major infrastructure improvements, and all other similar plans going forward.

The city council also sent out a release citing the reason for the cancellation was to “promote community harmony over the new building.” Hopefully that’s the case but I doubt the motives are so pure. As Fox 13 notes: “The lawsuit was the tipping point for the city.” The city council also held a special (previously unscheduled) closed session meeting to discus “pending litigation” on February 21 (6 days before the release).

The city council plans on continuing with the next pet project (the plaza) and certainly doesn’t appear to embrace Better Bountiful’s request that residents be able to vote on it: “The Downtown Plaza will also remain a priority, and will require a new contract to complete.” They continue to justify this by saying it’ll ‘revitalize Main Street’. People aren’t going to go shop there because of a cute plaza or gleaming city hall and Main St. isn’t in disrepair (it’s a pretty, quaint area). Besides locals, Main St. is a hassle to get to and doesn’t have any store(s) to draw significant traffic to the area. It will remain a local shopping area unless something drastic happens (think huge project redeveloping a massive area and road infrastructure). The constant pet projects gambits justified by saying “revitalize Main St.” are tiring.

I’ve said it many times. Politicians don’t give up on pet project easily. They won’t hear either. I’m glad the new city hall was stopped but one to point one last thing out: Milton Friedman continues to be proven right, these unnecessary pet projects rarely fail despite opposition. As Better Bountiful notes:

This outcome is a reflection of many hundreds of hours of hard work, many thousands of dollars, and some of the best community teamwork…

Read the above linked post and you’ll understand why that quote proves Friedman right despite this being one of the rare successes by “diffused interests”. If you don’t see the connection, drop a comment or use the contact page.

In the meantime, enjoy the success. Ultimately, the only way to have a lasting success is to elect local/state/national representatives who respect limiting government to core functions.

Food: A New Sin Tax For Utah?

That’s right. I’m going to say it again: Food is perfectly eligible as a sin tax.

…and by sin, I’m referring to the politician’s and crony organizations’ sin.

Utah legislators are contemplating raising taxes on food because they’re worried about a budget shortfall. It’s funny how that may be the case after we’ve spent, bonded and redirected who knows how many millions or billions on crap outside the proper role of government. I guess all those cute ‘it only costs a tenth/half percent of the budget or it’s just a few dollars a day’ projects add up and you start to fall short for important stuff…like more useless projects government shouldn’t be involved with.

Rather than just slapping everyone with another tax hike, maybe they should look at cutting some of the crony capital junk (UTA, Salt Lake Chamber of Commerce front group boondoggles come to mind, among others). How about also ditching wasteful incremental budgeting with all it’s skunks, while your at it?

On the local level, we keep hearing that RDAs for a new, unnecessary city hall building won’t raise taxes. As I said in the past, it’s robing Peter to pay Paul and the piper will come calling when taxing entities find they’ve fallen short of money because the RDA etc. ate some of it up. The above is another example of the fallacy of the city council’s argument.

Finally, politicians don’t own all the guilt. The public (you and I) will band together to form groups demanding stuff like recreation centers, theaters, RAP taxes which impose on budgets and, ultimately, on families. Hopefully, we’ll consider the propriety and whether it’s a core governmental function or not next time we want something, else we’re our own worst enemy.