Daily Herald Article on the $5 million Bond

Higland residents protest road bond

Caleb Warnock - DAILY HERALD
Some Highland residents are looking to stop the city from borrowing up to $5 million for new roads. Saying Highland should not be taking on large debt in uncharted economic times, a group of the city's residents has been going door to door to encourage other residents to call council members and protest the move.

Now the residents say they are putting together a petition asking the council to put the debt on the ballot for public approval, rather than a vote of the council.

Last month, council members voted to authorize the sale of up to $5 million in municipal bonds toward road work. That vote sets the process in motion, but a final vote as early as Feb. 15 will set the final amount of the bonds, according to city staff.

Residents said on Wednesday that they are confident they can convince the council and other residents that taking on debt right now is the wrong move. They are asking all concerned residents to contact council members.

Councilwoman Claudia Stillman said the council may discuss taking out $3.3 million in debt, rather than $5 million.

In the February issue of the city newsletter, Mayor Jay Franson argued that the city should take on the debt now because there are other government funds available to help match road building expenses.

"Because of the favorable construction climate, low interest rates and pressing road needs, I have recommended to the City Council that they consider borrowing money for the purpose of building new roads and improving other roads that are in need of improvement," Franson wrote in the newsletter.

The mayor said he would like the money used to fix 6000 West and to match Utah County funds to build an east-west connector linking the west part of Highland to 4800 West with a direct connection to the freeway and State Road 92.

"This connection will make southbound travel much more convenient and avoid the congestion of 100 East and State Street in American Fork," Mayor Franson said. "It is unlikely that such an opportunity will come again soon."

Not so fast, say some residents. "Their logic is that it would be dumb not to go into debt now because it is such a good deal, but I don't think that holds," said resident Cathy Smith. "I think Highland already has a lot of debt per citizen."

In a meeting with the Daily Herald, about a dozen residents said they want the council to listen to their concerns and stop the bond from ever happening.

"I think it is possible to turn this around," said resident Janet Wadsworth. "I think it is possible there could be no bond, or a small bond."

Residents said they have been going door to door to gather opposition to the mayor's proposal. At the very least, they said, they would like the bond issue dropped until the economy is much better off.

Residents need more information, they said. Franson, in the city newsletter, said the city would use about $500,000 of state road funds that it receives each year to pay the annual principal and interest on the bonds, but residents speaking to the Daily Herald said that historically that money has not been enough to even maintain existing Highland roads and questioned how the city would continue maintenance on existing roads when state road money is committed to bond payments.

"We are opposed to going into debt," Wadsworth said. "They should maintain the roads they have before they create more to maintain."