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Show - CAR-R- UTAH 467 SALT T SORT B fr''10? f prf' rtiuifi) V OO PRESS ASSOCIATION E 300 S LAKE CITY UT 50 Cents Tuesday, November 27, 1990 Volume 91 - No. 48 Board approves bond to meet UP&L payment, other district needs By LARRY W. DAVIS Progress editor The HUNTINGTON dilemma over repaying Utah Power & Light over $300,000 in overpaid taxes, has resulted in the approval of a bond restructing program by the Emery School Board. In a meeting Tuesday, Nov. 20, the board voted to approve a resolution authorizing the district to enter into a general obligation debt refunding package which will bring the district $4,355 million while extending the districts bonded indebetedness by two years to 1996. The new money to the district will be used to pay UP&L the $351,880 in overpaid taxes while giving the district some operating capital to pay for several projects over the next three years. (See separate story). In presenting the proposal to the board, Business Manager Randy Jensen began the discussion with a presenta- tion of trends in state-assesse- d property in Emery County. These trends, he noted in a bar graph, have been very erratic since 1983. Mr. Jensen also reported that the Utah Tax Commission employee who conducted the assessment on utilities in Emery County said that miscalculations in revenue on properties locfor some of would account ally the erratic trends. Also, he h said that the new facility at the Hunter plant had not been fully included in the assessment. However, the spokesman from the Tax Commission indicated that the state-assesse- d coal-was- state-assesse- evaluations d will become more stable in the future. In looking at the school districts tax rates, Mr. Jensen pointed out that tax rates have declined over the last two years after reaching a high mark in the 1989-9fiscal year. That was the year, he said, that the district levied a recreation tax to make up for lost revenue due to the 0 transfer of local funds to state coffers. In discussing the option of obligation bonds, Mr. Jensen said that the board could go in any one of serval directions. He pointed out that the board could pay off the principal on some or all of its debt service and still have operating capital left. He said that the bonding agency would have to approve a projects list to justify the funding. A graph showing the existing and proposed debt structure for the district points out that the bonds would free up over $3 million to the district for the current school year while about $2 million would be available next year. Marie Guyraon, board member, pointed out that it might be more beneficial to the district to pay off a lesser amount of the debt service while still getting some operating capital yet not getting as far into debt. Emery Superintendent A. Ernest Weeks said that by paying off the largest debt service, more money would become available to the district and thus give the district more flexibility in meeting some of its needs. Mrs. Guy-mo- n suggested that such a move might limit the districts flexibility in the future. Mr. Jensen said that while the board will have to decide on the direction to go, there are numerous projects in the district which need immediate attention and if left unattended will cost more in the future. Board member Phil Nelson said that the bottom line regarding finances is meeting the needs of the students. To that, Board President Wes Curtis added that the board must also consider the taxpay- ers in the county and make every effort to meet the needs of the students while not overburdening the taxpayers. lie said that the debt restructuring would accomplish that. Mr. Curtis also asked Mr. Jensen what measures the district could take to cover itself in the event of future tax protests. Mr. Jensen said that while the district would use much of the money that would become available to it through the restructing program, not all of it would be spent on projects but rather some of it w ill be carried into future budgets where possible. It then became apparent that the board wrns in agreement on supporting the issuance of general obligation refunding bonds, and Mr. Curtis called for a motion which came from Royd Ilatt. All members voted in favor of approving the resolution while leaving the exact sum up to Mr. Jensen. er The board is to sign the papat a meeting Tuesday in Huntington. The board also authorized Mr. Jensen to select the bonding agent, but members suggested that the board give strong consideration to the districts present bonding agent, Smith Capital Markets. County, school district consider tax options By LARRY W. DAVIS Progress editor HUNTINGTON Emery the and County Emery County School District are continuing to set strategy as a means of dealing with tax protests and tax overpayment refunds to UP&L At a meeting at the school district office last Tuesday, Nov. 20, board members, dis- trict administrators and Emery County Attorney Scott Johansen discussed the matter. School Superintendent A. Ernest Weeks told the board that he had been asked by several citizens why the district did not maintain an escrow account for the purposes of repaying overpaid taxes as ordered by the Tax Commission. Dr. Weeks said that the district knew that it had other options as a means of getting money to reimburse UP&L, but moreover, he said that the district would have to speculate as to the amount of the settlement and that such an amount could be as much as the original protested amount. Business manager Randy Jensen added that if the district put the full amount into an escrow account, it would have to come up with operating capital from some other source, such as an increase in taxes. He also said that the district was not spending money it didnt have by including the protested taxes in its budgets, but rather spending taxes which were paid to the district by UP&L. Dr. Weeks reviewed with the board and Mr. Johansen a conversation he recently had with State Senator Lyle of the Revenue and Taxation Legislative Committee which has been working on a legislative solution to the numerous protests and lawsuits being filed d businesses by and industries. According to Dr. Weeks, the committee is working on a Hill-yar- d, an state-assesse- package which would give the property owners the 20 percent rollback as ordered in the AMAX case, but at the same time one which would not impact the Uniform School Fund or increase residential property taxes. Furthermore, the package would give local taxing entities, including the school district, the option of levying taxes on state-assesse- state-assesse- d d which businesses would help locals recoup some ofthe lost proper- ty tax revenue. For example, local governments equipment. Dr. Weeks said that Madge Guymon Becomes UAC leader Receives USU award Karen Truman, Auditor of mery County, was elected id sworn in as president of le Utah Association of Coun-e- s at its 67th annual conven-o- n in St. George, Utah. Mrs. ruman had served previous-a- s the 1990 1st Vice Presi-jn- t and Budget Officer. The Utah Association of ounties (UAC) is an associa-o- n comprising all twenty-in- e Utah Counties, and icludes all county elected Its purpose is to better county governpromote ment and is dedicated to maintaining the essential role officials. county government plays in the state political structure. The UAC provides means for elected officials of member counties to exchange ideas and experience, and obtain technical assistance and training. County officials work together with the help of (Continued on Page 2A) An Emery County woman has been awarded the 1990 Friend of Extension by Utah State University, recognizing several decades for sendee in behalf of the Utah Cooperative Extension Service. Madge Guymon of Hunting-to- n was presented the annual award during a special awards banquet program of the 1990 USU Extension Annual confemce Nov. 7. The Friend of Extension d state-assesse- d state-(Continu- on Page 14 A) award is given each year by Extension and Epsilin Sigma Phi to an individual who has provided extraordinary service to neighbors, community and the state of Utah in working with extension for common goals, said Dr. R. Paul Larsen, vice president and director of USU Cooperative Extension. Madge Guymon has been exceptional in her service to (Continued on Page 2A) Hill-yar- informed him that the committee wants some kind of legislation which will do something to stop the growing number of tax protests by businesses and that one step which might hel p in that regard would be to force the Tax Commission to reveal how it arrives at r Karen Truman could impose a sales tax on mining Madge Guymon ed |