On March 14, 2012, Councilman Gary Gygi and Scott Jackman, requested a meeting with Ken Cromar, Jerry Dearinger, Paul Sorensen and Russ Fotheringham, to discuss their proposed $5 per month tax increase and seek their support for it.  The meeting was at Jerry Dearinger’s home, and audio was recorded with the knowledge of all.

The following day, Ken Cromar documented the key points of the meeting via email to all attendees, and read as follows:

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From: Ken Cromar

Subject: Thank you for inviting us to hear your bond payoff proposal

Date: March 15, 2012 10:25 AM MDT

To: ggygi@cedarhills.org, Scott Jackman <sjackman@cedarhills.org>

Cc: Jerry Dearinger, Russ Fotheringham, Paul Sorensen

Gary & Scott,

May I compliment you for your request to meet at Jerry Dearinger’s home yesterday afternoon to discuss your proposal.

Speaking for myself, the following are the key points I believe were discussed:

1.)  You would like to pay off the Pressurized Irrigation bond within 7 years, if possible, with a proposed $5 per month tax / fee (increase paid by citizens to City).

2.)  We (Jerry, Paul, Russ and I) thought an effort to payoff any of our bonds to be a good idea, but that raising taxes / fees to do so is not recommended.

3.)  We offered alternative approaches that included:

– Use the Civic Center funds for payoff,

– Use taxpayer monies currently routed to the golf course instead for payoff,

– Use any new revenue streams from new businesses (Hart’s gas station, etc.) for payoff.

4.) Generally speaking, our position is that CH taxes / fees are too high, and that the continued growth trend should be stopped, and preferably reversed.

I believe that covers the main points discussed, though you and the others may want offer your review of the meeting.

Additionally, I personally was gratified to learn that you agree that fees, or any other increase in amounts required of CH residents is akin to a tax increase and undesirable.  I was also pleased to learn that at least Scott was surprised to learn from Konrad Hildebrandt’s explanation November 22, 2011 of the $1.7 million diversion of funds, speaking of which we look forward to learn of the answer to your question from that day.

While you did not need to share with us your thinking regarding the proposed P.I. pay off, as you are the City Council members with those powers, it was thoughtful of you to do so.  Thank you.  We are counting on you and the Council to help the city get its financial house in order, offer a more open and transparent government, and reduce the size and financial burden of government for Cedar Hills families.

To That Success, Most Sincerely,

Ken Cromar

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Later that same morning, Mar 15, 2012, at 10:25 AM, Paul Sorensen added:   

Gary and Scott,

I realize that I am piggy-backing on Ken’s letter, but I wanted to add a couple of comments.

There was one thing that I stated that was not stated in Ken’s letter:  I proposed that since the Civic Center’s funds appear to have been fully funded, that tax/revenue stream could/should be diverted to cover the circa $120K per year needed to payoff the PI bond within 7 years.

Lastly, a point that I should have made but I would suspect that you already know: refinancing makes sense when the present value of the interest savings exceed the cost of refinancing (in this case, bond penalties and costs to refinance).

Thanks for your time, consideration, and desire to get our feedback.

Regards,

Paul Sorensen

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These two emails documented a meeting that occurred at the request of Councilmen Gygi and Jackman, but received no known response refuting or correcting the meeting points.

Fortunately, the tax increase was tabled a few weeks later when it was discovered it would not be cost effective to change the PI loan arrangement.  But, it is important to point out the fact that a tax increase was Councilman’s Gygi & Jackman’s first proposal on how to reduce financial debt, rather than using existing Civic Center funds (a proposed new city hall type building), future Hart’s gas station revenue, or reducing number of city employees.  Note:  The approx. $500K of existing funds, is instead being considered for use to buy exercise equipment for the golf clubhouse basement.

On March 17, 2012, Councilman Scott Jackman & then Mayor Eric Richardson exchanged secret emails on personal email accounts and illegally not provided to the public record as required by law, but obtained by Cedar Hills Citizens for Responsible Government by ORDER of Utah State Records Committee.  Please note Jackman’s telling comment, “Why are we having a review/action on fees?  This look (sic) very bad in light of the discussion with Ken Cromar et. al.”  Appearances appeared to be important to them.

(see PDF… Secret Email – regarding tax increase proposed by Councilmen Gygi & Jackman )