UTOPIA Cities want to entangle you in one of the WORST boondoggles in Utah history.
And how do you suppose they plan to pay for it?
YUP. A $1.8 BILLION TAX INCREASE. In June individual UTOPIA city councils will be voting to join 10 other cities in creating the worst government boondoggle in the history of Utah and imposing the LARGEST MUNICIPAL TAX INCREASE EVER in the Beehive State.
Where do they get off? The UTOPIA Macquarie deal will mean:
A new tax to be imposed on all citizens of participating cities – whether or not they want UTOPIA service – and whether or not residents can afford to pay it.
UTOPIA enforcers will be granted the power to cut off your water if you don’t pay for UTOPIA in full and on time every month.
UTOPIA will require a tax increase exceeding $1.8 BILLION over 30 years and policies and penalties are placed in the hands of unelected bureaucrats.
CLICK HERE: NOpia Petition-1
AND RETURN IT TO:
UTAH TAXPAYERS ASSOCIATION
656 EAST 11400 SOUTH SUITE R
DRAPER, UT 84020
Sign this petition to call on your duly elected City Council and Mayors to vote AGAINST continuing to UTOPIA’s Milestone 2:
Whereas, The American economy was built on the principles of a free market, and keeping government out of the business of business; and
Whereas, Private telecommunications companies have invested billions of dollars in Utah to provide broadband telecom services; and
Whereas, The market has a demonstrated record of providing all the bandwidth people are willing to pay for; and
Whereas, Municipal telecom systems like UTOPIA have repeatedly failed in Utah and across the country; and
Whereas, optimistic predictions that UTOPIA would generate millions of dollars annually for its member cities have repeatedly crashed on the rocks of reality; and
Whereas, The largest tech companies to invest in Utah over the last 10 years (eBay, Twitter and Adobe) have opted for non-UTOPIA cities; and
Whereas, Xactware, one of the largest Utah-based tech companies just moved its headquarters from Orem, a UTOPIA city to Lehi, a non-UTOPIA city; and
Whereas, While revenue from subscribers was supposed to pay for UTOPIA’s bond payments, taxpayers in UTOPIA cities are already paying more than $10 million per year to pay for UTOPIA’s bonds; and
Whereas, the UTOPIA debt and interest taxpayers are already carrying is more than $600 million; and
Whereas, UTOPIA’s latest taxpayer bailout would impose a new $1.8 billion tax on every resident in UTOPIA’s 11 cities, whether or not they want UTOPIA services; and
Whereas, taxpayers in one UTOPIA city have already rejected by referendum a smaller property tax hike to bail out UTOPIA;
Whereas, two other UTOPIA cities have raised property taxes to pay for UTOPIA; and
Whereas, the proposed UTOPIA bail out would give cities the ability to cut off residents’ water or power if a resident doesn’t or can’t pay their UTOPIA tax; and
Whereas, UTOPIA’s board of directors have shown time and again that they do not understand the telecom industry; and
Whereas, It is wrong for government to be in the business of business; and
Whereas, It is even worse for a government to compete against an industry that it regulates; and
Whereas, Utah cities should embrace transparency and openness and not conduct business and make decisions behind closed doors;
Whereas, Rather than issuing an RFP, and seeing who may buy or operate the UTOPIA network without a taxpayer bailout, UTOPIA’s board of directors recently voted against considering any other options until this $1.8 billion bail out is settled; and
Whereas, Utah law prohibits the kind of cross-subsidization contemplated in this latest UTOPIA bailout; and
Whereas, Existing state and federal law prohibit the kind of preferential treatment this latest UTOPIA bailout would enact;
Whereas, Unelected bureaucrats are trying to strong arm into supporting this latest UTOPIA bailout the Mayors and City Council members We the People elected; and
Whereas, UTOPIA has never even managed to break even on their operations, let alone cover their debt service; and
Whereas, UTOPIA’s decade of failure is sufficient proof that no amount of tinkering or bailouts will make UTOPIA successful;
Now therefore Be It Resolved, We the undersigned residents, voters and taxpayers of UTOPIA cities oppose this $1.8 billion UTOPIA bailout;
Be It Further Resolved, We hereby call on our duly elected City Council and Mayors to vote AGAINST continuing to UTOPIA’s Milestone 2.
CONTACT YOUR ELECTED OFFICIALS
D. Blair Camp
GET THE FACTS HERE:
CLICK TO READ THE
Econowest Analysis of Utopia Proposal
For Immediate Release For More Information Contact:
June 10, 2014 Doug Macdonald, Econowest Associates, Inc.
Royce Van Tassell, Utah Taxpayers Association
New UTOPIA Proposal Is Bad For Utopia Residents and Cities
According to New Economic Analysis
An economic analysis of the new financing and build out proposal from UTOPIA, the troubled 11 city Utah broadband consortium, and Macquarie, the Australian investment banking firm, is fraught with risk and problems according to an economic analysis by the Utah economic consulting firm Econowest Associates, Inc.
“The Macquarie proposal to UTOPIA’s 11 member cities will be a significant new burden on taxpayers in those cities,” said Econowest economist and study author Doug Macdonald. “If UTOPIA cities approve this deal, it will be adding significant debt increases to residents and businesses in the form of a mandatory fee. It’s hard to justify such a high cost venture that has such a low probability of success.”
The analysis by Econowest Associates points to several major questions about the proposal. Among the issues highlighted in the Econowest study:
- New Debt Obligations for UTOPIA cities and residents will be as high as $1.8 Billion over 30 years.
- A new mandatory fee or tax will be required of every household and business in UTOPIA cities even if they have an existing service or do not want the new service.
- The mandatory fee or tax will cost each resident on average over $12,000 over the life of the project.
- Households will be subsidizing business connections due to the pricing structure.
- The probability of success in reaching the projected usage or utilization goal by residents is low, based on the historic use of the system in most UTOPIA cities.
- The current UTOPIA debt of $355 million has a small chance of being repaid.
- The complexity of the proposed plan and the poor track record by UTOPIA managers and officials should make residents and elected officials wary of the current promises.
“Econowest Associates, Inc. has done a thorough and independent review of the UTOPIA and Macquarie Milestone 1 proposal. It raises many questions, and points out the risk and uncertainty of this very expensive proposal,” said Royce Van Tassell, President of the Utah Taxpayers Association. “Given the rapid changes in the technology industry, and the lack of expertise by government in this business, the prudent course of action is to let the private sector, not cities and residents of Utah, provide this service and finance it from private funds.”
For the complete Econowest Associates, Inc. report CLICK HERE: Econowest Analysis of Utopia Proposal
ATTEND A PUBLIC MEETING AND MAKE YOUR VOICE HEARD:
Intermountain Medical Center
Doty Education Center, Building 6
5121 South Cottonwood Street, Murray
Orem Senior Friendship Center
93 North 400 East, Orem
Orem Senior Friendship Center
93 North 400 East, Orem
Orem City Council Chambers – Voting
56 North State Street
Centerville City Hall
250 North Main Street, Centerville
Layton City Council Chambers
437 North Wasatch Drive
Layton City Council will be voting
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