Does $$ transfer hide realities of Bountiful budget?

Published: Monday, June 5 2006 6:00 a.m. MDT

A local watchdog group is protesting a plan by Bountiful city to transfer $2.2 million from its power department budget to the city's general fund.

The transfer of money "allows politicians to avoid responsibility for higher spending," according to Ron Mortensen, co-founder of CitizensForTaxFairness.org. City officials can hide their spending and avoid tax increases by making the budget transfer, he said.

His group says the money should be given back to the public through rate reductions. Bountiful Power and Light currently charges slightly more than Utah Power and Light. In 2004, the power department increased rates by 10 percent.

Bountiful never raises taxes, "but what they do is continually raise the power-company rate," said Mortensen. "They use the power company as a means of keeping revenues up instead of the tax rate, which is unpopular to do."

Mayor Joe Johnson said Friday that the city has been making the transfer for at least 25 years.

"We could obviously go another route and leave that money in the power department and reduce rates a little bit and increase the property tax," he said. " But most people would much rather have it out of the power department."

Last year, Mortensen's tax group ran a similar campaign against the transfer of power money to the city's general fund. It has also opposed construction of the South Davis Recreation Center in Bountiful, saying that the building wasn't needed and spending has been "irresponsible."

The center will serve five cities in south Davis County. It is anticipated to be open by the end of the year. Johnson defended the facility as a "very positive happening" in south Davis County.

On Tuesday, Bountiful will hold a budget hearing. The transfer of power department money will be voted on during the meeting. It begins at 7:15 p.m. and will be at Bountiful City Hall, 790 S. 100 East.


E-mail: nwarburton@desnews.com

Get The Deseret News Everywhere

Subscribe

Mobile

RSS