TRANSFER FROM THE BOUNTIFUL POWER FUND TO THE GENERAL FUND NOW EXCEEDS PROPERTY TAX REVENUES

Ronald Mortensen, Ph.D.

Co-Founder, Citizens for Tax Fairness

August 28, 2020

Note: On August 25, 2020, Ronald Mortensen, Ph.D. and co-founder of Citizens for Tax Fairness gave public comment on a proposed transfer of funds from the Bountiful City power fund to the city’s general fund. Below are the key points that he covered in his comments. An expanded version of his comments can found below. Following the public comment period, the Council voted unanimously to approve the transfer of funds.

Key Points:

Power fund transfers necessitate higher electric rates and customer charges

Power fund transfers are an attempt to indirectly tax non-profits, governmental and other non-taxable entities

Bountiful routinely increases power rates and fees to avoid truth-in-taxation hearings

Bountiful’s power rates once were 25% - 40% below commercial power rates

Bountiful’s power rates are now roughly equal to or even higher than Rocky Mountain Power rates

2020 Customer Charge up by 20%; power rates up 10.5% for 68% of customers

Customer Charge hits small power users and poorest members of the community the hardest—75% or more of electricity bill  

Transfer from the power fund to the general fund increased by 11% in 2020—$2.5 to $2.8 million

Power transfer now contributes more to the general fund than do property taxes

Power transfer hides the true cost of city government 

Power transfer allows elected officials to promote higher property taxes to fund a bond by arguing that property tax rates are among the lowest in the state

Bottom Line is that the both power bills and property taxes are paid by Bountiful residents

Kaysville stopped power fund transfers to the general fund

Is it time to consider ending the power transfer in order to to enhance transparency and control government spending in Bountiful?

For details on each of these key points, click here.