Cody Deeter, Lewis , Gave the Presentation on the SP Incorporation Feasibility Study

Stansbury Park PH

Commissioner Bitner opened the public hearing. Those in attendance were: Jay Harwood, Bruce Steadman, Larry Biddle, Joseph M. Sweat, Melven J. Sweat, Michelle ricks, Julie Powelson, Tanya Seegmiller, Brenda Magdiel, John w. Wright, Gregory Copeland, Ryan Jones, Mike Hansen, Robert Bigelow, Vonda Bigelow, Rachelle Pehrson, Nate Pehrson, Michelle Labrum, Judy L. Warr, Charles R. Warr, Richard Wall, Suzann Wall, David Robertson, Jill Robertson, Heather Kitchen, Chad Kitchen, Jeff Thacker, Ken Luke, Lisa Millis, Matt Millis, Chad Marden, Laurel Marden, Brian Holostock, Tammie Maier, Brian Maier, Fred Benson, Ray Park, Teresa Tate, Chris Watson, Justin Petersen, Brett Palmer, Rich Reed, Brent Ririe, Fred D. Simns, Bob Frandsen, Selby Hatch, Karen McCullough, Brandon Reece, Jamie Lindsay, Crystal White, Nicole Skousen, Ben Skousen, Rachelle Serrao, David Dix, Brittney Dix, Debbie Chapman, Carmen Wilson, Todd Gillies, JoAn Coon, Travis Elder, Heather Gresham, Brandon Gresham, Nancy Black, Craig Black, Jim Haggart, Maria Haggart, Stephanie Rogers, April Warby, Garth Tyler, Roberta Cole Lader, Ryan Wilden, Cassandra Ray, Randy willden, Noall Clarke, Mike Denman, Sean Eggett, Emily Eggett, Marilyn Redington, Glenn Oscarson, Kami Jones, Randall Jones, Kristian King, Tristin King, John Torsak, Gene Bauman, Sandy Bauman, SmanthaBurila, Kirk Arnold, Marie Arnold, Tronce Arnold, Brent White, Julie White, Kami Porter, Sandy Howard, Quinn Howard, Jeff Terry, Marvin Rogers, Bettie Rogers, Wade Hadlock, Jeff Pashley, tim Gillie, Brett Mecham, Jim Hanzelka, Carol Hanzelka, Kim Clausing.

Cody Deeter, Lewis...... , gave the presentation on the SP Incorporation Feasibility Study.

John Corsack- IF we don't incorporate we won't get the msf, but we'd be our own masters. If we don't incorporate, we will get scenario 3 or 4.

Cody - this is what would happen if SP incorporates.

John - if we don't incorporate and LP does, our taxes will go up.

Jed Pashley - related to the boundaries. who drew the boundary? Wade and Michelle Ricks, the sponsors.

Michelle Ricks - she and some others in the community drew the boundary. She reviewed the process that went through to begin this study. Most of the boundary follows the Stansbury Park Improvement District boundary. They also included area's that had been deannexed from the Erda Township. The map can be changed up to 20% without having to start over.

Jed - up north, across the road to Grantsville, it includes all of the new development and comes southwest and stops so there is plenty of room for residential development.

Cody - the shaded area is the SP Improvement District. The red area are parcels that were large and the boundaries cut them in half.

Jody War - owns about 1600 acres south and west of the SPID. He does not want his land included in SP.

John Wright - it shows the money that is used to receive services from the county now. The amount of taxes we collect is a very small portion to pay for those services. If I take that same amount of money, I only get that amount of money to put together my city government and pay city officials. About $80,000?

Cody - it would be a much bigger number than $80,000. Now it would $643,625.

John - Then right now we are sending that amount to the county.

Cody - the first year of incorporation you will be paying the extra amount that will add up to that amount.

John - so you're short funds to start with, then you will need people to run the city for less than what the county is being paid.

Cody - you will have a different form of government.

Jeff Terry - what he understands is this study takes the costs that are being spent in the county and applying it to this table. If we decide to do any municipality services in SP, he doesn't see any expense of infrastructure, no police department, no road department. Where is the money to pay for the trucks, backhoes, snow plows, etc.

Cody - we looked at several similar sized cities in Utah, what are they spending per person in those cities. There will be line items for trucks, buildings, etc. We think SP will have a Mayor, Council. Those numbers are in this study, but we don't have them broken out.

Jeff - comparing to other cities is fine, but they have the infrastructure already in place.

Cody - we compared it with center lines, how much money are those cities spending on their center line roads. Those numbers are included in these line items.

Quin - expenditures are higher for five years, is that to account for some of these hard assets to build up, then it will be down to a normal amount.

Cody - the reason the taxes go up over time in the msf is because the pilt money that is building into the msf will gradually be reduced and the msf will be funded by property tax.

Greg Copeland - when you're looking at the difference between the projected msf fund and the difference in revenue in the incorporation scenario. Under a worse case scenario and pilt were to stay the same as it did and incorporation were to occur, the first year amount would continue and not go to zero. The overlap into LP, how is that going to be resolved by the County Commission.

The $170,000 house, there was a reassessment done in 2014, assessed values was done in 2013, there has been an increase in 20-30% in value. How did you get to $170,000?

Cody - it's a reference point, it's really just a way to come to a tax rate.

Put in the discussion about whether it is registered voters or property owners. Also, since LP and SP boundaries cross, which one takes precedence?

Cody - could have done more research taking out primary and commercial property.

Shawn - Greg brought up a really good point, commended Cody and his staff for the work they did on the study. The state statute is pretty direct about the time they have to do the study. Zions Bank was hired to access different scenarios including the msf. They made certain proposals back to us, they made a recommendation assuming the PILT moneys would cease to exist at some point in time. Allocated more from PILT than was recommended into the msf.Since this was done, the msf is already extended.

Wade Hadlock - one of the five sponsors that turned in the petition. First - he reviewed the law on this public hearing. Heard concerns about the taxes and tax rates. That's part of what caused them to go down this road as sponsors. SP has the highest tax rate in the county, and approaching the highest in the state. The way we're set up, economic engineering, roads and public safety.The rest are already set up and serving in Stansbury Park. It's important to look at the whole picture. We are currently paying into the msf and the county is paying the county employee's with our money. Originally the county wanted to pull all of the money out of the msf, after discussion and fighting they left more of PILT in the msf. The reason they are doing this is because of representation.

Wade Bitner - one of the reasons that we have the PILT money is because of the kindness of the federal government, according to them. It has been very difficult to get it each year. That PILT money is very tenuous, the msf was implemented to replace the PILT money in case it was lost in continuing years. We as Commissioners represent Stansbury and are willing to go to bat for you. We recognize that we as a county do not have a dog in this fight. Our purpose is to give you the opportunity to go through this , it is your choice, not ours, whether you go ahead and incorporate.

Michelle Ricks - on page 3 of the study it says the county will have to cut services or raise taxes to maintain services?

Cody - that refers to if the county were to lose the PILT money.

Shawn - PILT is still not funded for 2015, but it has been added to the county's budget. If PILT goes away the county would be back in the same situation we were in 2013. We still don't know whether we will get PILT this year or not.

Bruce Steadman - Sp is getting PILT funds because they get it through the Recreation Board. They have received a lot of PILT funds. Really concerned with a couple of things in the study, you are comparing us to cities that are established. We are looking at starting brand new. That is not a fair comparison. Grantsville City and Tooele City are in major law suits. If SP got into a situation like that, those numbers are not included in your study.

Cody - even though you don't see those start up costs are in the study, they really are. The County could get sued as well as anyone else.

Tristin King - If LP incorporates, what would happen with our taxes.

Cody - yes, the taxes will go. If you both incorporate, you would both be better off.

Shawn - If they incorporate, what would happen to the boundary dispute, they would have to negotiate - MARILYN

Sandra? the houses here were assessed very high, which meant taxes went up on the last taxes. Some of that was taxes based on the school board, but if you think about what they are proposing with PILT, we will have higher taxes, it is coming. If her taxes increase every year from now until 2020 to the proposed rate, she will not live here any longer. It's not fair that they don't have equal representation. They are paid $64,000 + benefits, that is more than the average person in Tooele County makes. If we decide to incorporate we will have more of a say on what happens. Based on the study incorporation is feasible, it's up to us whether we want it to happen.

Brenda Madgill - her concern when she looks at the map is that it's residential and there's not alot of room for commercial growth so it's going to be based on residential taxes, not commercial. Without having a commercial area in the map, we will be dependent on residential taxes. Did they look at commercial areas of growth at all.Without commercial area's we will be supporting a city on residential taxes.

Cody - no it is based on the property going to be the same, based on the commercial they have.

Mike Hansen - if LP goes ahead and incorporates, can they start annexing commercial property in the SP area?

Cody - the annexation statute is property rights driven.

Wade Hadlock - asked what was said at the LP Incorporation.

Scott - it would be up to the property owner, if they want to be part of the city.

Shawn - state law does not allow creation of a peninsula.

Quin - take about revenue that the county gets in, about 4.5 million in property taxes. Where do we stand, what percentage of the property tax total comes from SP, what is the total cost that the county is spending toward our area.

Shawn - Cody mentioned very briefly, for most of us, we own only one residence which means we get a 45% reduction on property tax. Businesses pay taxes on 100% valuation. What you pay to your city or county as a residential property owner does not cover the cost of the services you receive. The businesses pay the balance of the services residents receive.

Cody - how much is coming back to this community - they did not look into those specific numbers.

Quinn Howard - he would have thought that would be part of the study, including residential and commercial, what is the % of population, houses and the amount of roads.

Cody - on the revenue side we have that information, on the expenditure side, they did an estimate.

Quinn - what was the number on income?

Cody - showed the slide that showed 2 million.

David Nicks - with respect to the boundaries, LP and SP boundaries overlap. Gentlemen owns property at the south and west of SP, the property owners have no say on which area they would be incorporated by.

Wade - If both area's decide to incorporate would the property owner be able to choose which one would incorporate them.

Jay Harwood - they talked earlier about his property pulling out of the Erda Township. The gravel pit is included in the boundary right now, if the zoning is going to stay the same, he needs to know if he wants to opt out now can he, or if things go the direction he doesn't like, how do you get out of it.

Wade - when the boundaries were designated, the sponsors had to decide where they were. The process of these hearings is to make a determination as to what fits and what does not. We are amiable to the boundary changes. Regarding the zoning, there is a process to change zoning. The responsibility of the county is to maintain what's there, if the land owner wants a change, they make a petition and then follow the process.

Michelle - if it's going to be incorporated would it take care of the noise on 36?

Wade - that is a state road.

Ray Park - the point was made in the newspaper how many people travel to WVC to sped money, do you think a commercial property will want to be built in this area, that has 10,000 people? Why don't we just join with LP?

Wade - any big stores they talk to are looking at rooftops. We have alot of opportunities. He appreciated the dialog and the excellent questions. Get information that is based on fact and not emotion.

Mel Sweat - what is the county budget vs. what will the county lose when we incorporate.

Cody - IF SP incorporates about 2.2 million will come out of the county in taxes.

Mel - it's been said the county doesn't have a dog in the fight, but I think they do have a dog in the fight if they are going to lose 30% of their budget.

Wade - We will adjust.

Mel - PILT is payment in lieu of property taxes. He felt the PILT money is part of the budget, money the county has not yet received, which is poor budgeting. They said the unincorporated part of the county is not paying their part of the msf. The issues are - taxation without representation - local control over our own community - future growth can happen when the timing is right.

Shawn - SAMANTHA - this community is important to me, I take exception that you don't have taxation without representation. All of us have passion for SP, I know because they showed up tonight. All three Commissioners are here and don't have to be. It's good budgeting to have money before you spend it, but if we did that we would have to raise taxes. We are dependent on the federal government for things like PILT. This is proof that the system works, you showed up tonight and all three of your County Commissioners showed up too. He invited everyone to show up at the County Commission meetings.

Wade - thanked everyone for coming. This type of dialogue gives us the opportunity to understand each other a little better. He thanked Cody for his presentation, it was excellent. He closed the public hearing at 9:09 p.m.

Marilyn Gillette

Tooele County Clerk