There's some confusion and alarm among Brigham City citizens about a card sent out in the mail last week from the Utah Taxpayers Association. We can understand the association's disapproval of Brigham City's decision to join UTOPIA (Utah Telecommunications Open Infrastructure Agency) six years ago. Any guardian of taxpayers' interest would balk at the city's pledge of future sales tax revenue for any purpose.
The pledge is a done deal. Brigham City made the pledge (twice) for the next 30+ years to the tune of $17+ million. The city took an additional step last month and decided to build the fiber optic infrastructure throughout the city at an estimated cost of $4.8 million, with the bulk of it to be paid by the individuals and businesses who signed up for UTOPIA because they want fiber optics in their homes and businesses.
That's where the mailer from the Utah Taxpayers Association comes in. The association is asking Brigham City citizens to stop UTOPIA by demanding the city council reverse its course. Let's say the city council decides tomorrow night to do just that. In that situation it wouldn't bond for the $4.8 million needed to build the fiber optic infrastructure throughout the entire city. There would be no fiber optics to homes or businesses. But Brigham City would still be bound by its earlier pledge. How would that be a benefit to Brigham City taxpayers?
As we see it, we'd get nothing for a lot of something ($17+ million). That seems counter to what the Utah Taxpayers Association should want for us.
What is the Utah Taxpayers Association and why would it ask Brigham City to fail? The association was created in 1923 when seven businessmen met and formalized a process of taxpayer advocacy. Today, the association has a membership of over 2,500 businesses and individuals, according to its website. It is led by association President Howard Stephenson, who is also a state senator. The association is a non-profit corporation. The mailer was paid for out of the association's special projects fund.
In a telephone interview Monday, Stephenson said he is concerned that Brigham City citizens were lied to and he also wants people to know that this “Soviet style” of getting fiber optics installed in the city is a scam by UTOPIA. When asked for a list of the association’s membership Stephenson said he wouldn’t release that information.
There are some alarming statements in the mailer, such as:
· “If you do not pay the monthly assessments your house may be sold at a foreclosure sale.”
Who remembers the special improvement districts (SID) the city had for curb and gutter improvements throughout the city? When 50 percent of the residents in a specific area wanted to put in curb and gutter an SID was created and everyone in that area had to participate whether they wanted to or not. A lien was placed on each property with the standard wording that if the money wasn't paid an individual's home could be sold at a foreclosure sale.
Brigham City completed eight SIDs over several decades. Some individuals paid the cost up front but most were unable to. Brigham City bonded for the remaining amount and paid off the debt for installation of the curb and gutter. The individuals still owing repaid the city for their portion. About 4-6 percent of the citizens didn't pay off their debt when the SIDs were completed. Brigham City Council made a deliberate decision not to pursue foreclosure on those properties. That same sentiment has been expressed by council members in regard to UTOPIA. No homes will be sold for delinquent payments.
· We agree with the association's statement that “UTOPIA initially promised that for the amount of the original bonds guaranteed by the city, every resident in Brigham City would get services if they wanted them. That promise was not kept.”
The mayor and council, along with all citizens, have seen this situation drag on for years with nothing happening and then watching UTOPIA morph into something scarcely recognizable. Along the way there have been some poor management practices and decisions by UTOPIA, some bad luck (the current economic situation) and some horrendous walls put up, as Mayor Lou Ann Christensen said.
Let's consider Brigham City's rebuttal to the mailer, which states, “The Utah Taxpayers Association is very well aware that under legislation it advocated and lobbied for, Brigham City was prohibited from guaranteeing bonds to construct the entire network. While this was the original intent of Brigham City and UTOPIA, the Taxpayers Association was successful in convincing the Utah Legislature to prohibit it. Had this not been the case, it is likely that the network would have been completed and operational in all of the UTOPIA member cities today. It is disingenuous for the Utah Taxpayers Association, a prime mover of this and all other legislation intended to kill UTOPIA, to pretend that it does not understand this.” See the rebuttal in full online at www.brighamcity.utah.gov.
The city council is trying to salvage a bad situation and at least get the original value (fiber optic infrastructure throughout the city) since we'll be paying for it either way.
· Another interesting comment in the mailer was that private communications companies would be unlikely to invest in Brigham City. In November's meeting when the council voted to proceed with the special assessment area a local internet service provider Ken Sutton said he was originally an opponent of UTOPIA but then he learned more about it. He said because it is an open network he can finally compete with the big companies because everyone pays the same price to use the network.
And what about the 10 service providers who have already signed up to use the UTOPIA infrastructure to bring internet, television and telephone services to Brigham City? On the residential side you've got Sutton's company Brigham.net, Xmission, Fuze Core, Veracity, Nuvont , Prime Time Communications and Fibernet. Business application providers are Integra, Mozy and Voonami. Others are under negotiation.
· The mailer states the city council agreed to pay another $665,000 to subsidize the 1,604 homeowners who did sign up for UTOPIA's 20-year lien.
We beg to differ. As we understand it, the 1,604 individuals who already signed up for UTOPIA are paying for their own installation. The $665,000 fronted by Brigham City is paying for individuals who will sign up for UTOPIA in the future. A portion of that installation cost, paid by the homeowner, will be reimbursed to the city.
Let's find some hope in Brigham City Corporation's situation when it makes the switch from Qwest to the UTOPIA network. Mayor Christensen told citizens at last week's city council meeting that the city will save $1,000 to $3,000 each month. Isn't that one of the promises we were given years ago by UTOPIA, incomparably fast and superior service for less money?