Below are the comments I made in today's American Fork City Bond Hearing as public input:

Why the Bond is a Bad Idea

Fellow Citizens, Mayor, City Council, Staff, "Only a dead fish goes with the flow."

Those who argue for the bond say we must continue borrowing, and continue raising taxes now, or raise taxes even more in the future.  I would like to point out that over the last five years, this city has borrowed 38 million of the 56 million currently owed, more than half, in a short period of time.  During this same period, utility rates have skyrocketed.  Now the city is seeking to borrow even more, 20 million dollars more, and increase taxes yet again.   Higher taxes and massive new borrowing is the wrong direction for our city to go and is not a viable solution.

No one disputes the need for road improvements.  The question is how road improvements will be paid for.  Those who argue for the bond want you to think the only answers are more debt and higher taxes.  But more debt and higher taxes are not the only answer!  There is another way, a harder way, but a better way.  It's called, living within our means. 

Let me give you an example of how this would work.  There was $500,000 dollars more in June of 2013 from Sales Tax revenue, than the city had originally planned on.  There was 2.7 million dollars more revenue than originally planned on, from our high utility fees.  American Fork City recently paid off the internet bond.  The money that had been spent on that, can now be spent on roads.  Combined, that's more than 4 million dollars, and that's without digging.  That's just looking at the surface.  That 4 million is 40% of the 10 million the city wants to borrow next year. 

I would like to point out that no matter what the interest rate is, money borrowed via a bond will not be paid back for 20 years.  That's a long time.  And even with low interest rates, there is still interest due, in this case more than a million dollars (corrected to $400,000) a year in interest.  We can save that money by simply not borrowing, living within our means, and using our existing means to fund our priorities.

What  will our city do, if a true emergency comes up in the future?  Having already maxed out our card, so to speak?  The city will be in an even more difficult position, being highly leveraged with debt.  This bond pays for less than 15% of the urgent road needs identified.  Does the city plan to borrow a bunch more two years down the road, and raise taxes again?  This is the wrong direction for our city to go. 

Some arguing for the bond will say that it will cost more on down the road, if we don't borrow now.  But that assumes that we are not addressing the road issue now, and that's not what I'm advocating.  I'm saying, we can address our road needs now, without massive new borrowing, and without higher taxes.  I know it's not as easy to live within our means.  It's much easier to just whip out the credit card.  But anyone who has done that knows that it hurts later on, when the bill, including extra money for interest, has to be paid. 

I urge this community to not saddle our future generations with our bad spending habits now.  We can effectively address this current need now, with our existing means.  It is not the easy solution, but it is the right solution.   It's the best solution to help keep our great city great. 

We cannot continue this devastating path of borrow borrow borrow, tax tax tax.  It will ruin our city.  Higher taxes and more debt are not the solution, and is the wrong direction for our city to go.  Being fiscally responsible, living within our means and keeping taxes low is the right direction.  I, like many, vote No on the bond.

I became overly defensive in the August 15, 2013 American Fork City Council session, when some of my facts were challenged by some City Council members, and even mocked by one member.  While I stand by my facts, which have since been proven sound, and by my policy position against higher taxes and more public debt, I did feel badly about the contentious atmosphere of the meeting.  I thought about what went wrong and about what I could have done better.  I therefore made the following apology as public input during the August 27, 2013 American Fork City Council meeting:

"City Council members, Mayor, citizens of our great city and state, I believe in treating all people fairly and with respect.  While I was taken aback in the last city council session, where the bond proposal was being considered, when some members of the City Council challenged my assertion that the city was deeply in debt and had a tax surplus, clearly the City Council didn't realize that I was referring to the June 2013 Fiscal Year End Budget Amendment, where the size of the budget was increased from 45 million to 53 million dollars. This budget amendment lists additional revenue sources for the amount of the budget increase, totaling 7.6 million dollars, and this is what I was referring to as a "tax surplus".

I want to apologize though to the City Council, Mayor, and to any in the public and staff, who may have been offended by the contentious atmosphere of the last City Council session. While we may disagree from time to time on the best path forward for the city, I recognize that as individuals each one of you care deeply about what is best for our city, as do I. I recognize that as a council body you have put much consideration and effort into trying to do what is best for our city. I think we can all agree that there is a serious need for road and capital improvements, even if we may disagree on the best way to fund that need. I want the City Council members, Mayor, the public and staff to know that whatever the disagreement on policy, we can and should interact with dignity, respect and decorum towards one another. I didn't do a very good job with that last City Council meeting, and I apologize to you for that."

Sincerely,


Carlton Bowen