Please Blame Proposition 5 in Kaysville:
• For saving our Electric Utility Enterprise Fund from bankruptcy. For Seven Years the city had been depleting the cash reserves of the electric company by taking $500,000 a year from the utility fund to buy the Flint Property. Cash Reserves had dropped to approximately $1,000,000.
•Proposition 5 forced the City to recognize that they needed to have $7,,500,000 in their cash reserves. With the return of $4,500,000 to the Electric Utility Enterprise Fund, from the sale of the Flint Property, we are still $2,000,000 short of the amount we need to have in the Cash Reserve Fund. It will take another 12 to 18 months to reach the required level.
Blame proposition 5 for cutting off the City’s ability to take Electric Utility Enterprise Funds and use them as hidden taxes.
Blame Proposition 5 for preventing a huge increase in electric rates to bring the Reserve Fund up to $7,500,000 needed if they had been able to take the $4,500,000 from the property sale and use it for the police station.
Blame Proposition 5 for cutting off the city’s ability to use the Electric Utility Enterprise Fund to supplement taxes for non-electric uses. In the budget planning meeting Councilman Garlick stated, “It used to be that when road improvements or other emergencies came along we could tap power funds.” The power fund was the cash cow that was apparently milked frequently without informing the public.
Do Not Blame Proposition 5 for the 102 percentd tax increase. Last year, in an election year, they paid for police officers from the General Fund, the correct source. Why is it one year later because of Proposition 5 that they have to raise taxes to pay those police officers?
A Report from the State Auditor’s Office stated, the city may no longer pay their electric bill using money from rates paid by electric company customers. Stopping this long time practice comes from the State Auditor’s Office and not proposition 5.