311 P.3d 1035
Utah2013Background
- Orem City Council adopted Resolution R-2012-0014 on Aug. 15, 2012, raising property tax revenues by $1,700,000 and adopting the FY 2012–13 budget.
- A significant portion of Orem’s budgetary pressure stemmed from a $2.8 million UTOPIA debt-guarantee obligation; UTOPIA is a multi-city fiber network with member cities guaranteeing bonds.
- Petitioners collected sufficient referendum signatures challenging Section 1 (the tax increase) and triggered a voter referendum under Utah law.
- The Orem City Attorney prepared a ballot title statement (<=100 words) describing the tax adjustment as raising $1.7M for “municipal operations,” with illustrative dollar impacts on a $187,000 residence ($50) and business ($90).
- Petitioners challenged the ballot title in Utah Supreme Court, arguing it (1) failed to mention UTOPIA, (2) biased voters by using truth-in-taxation figures that minimized business impact, and (3) was otherwise “unsatisfactory” by hiding the causal link to UTOPIA.
- The Court considered statutory requirements for ballot titles and applied an abuse-of-discretion standard to the content (truth/impartiality), with no deference to timing/word-limit compliance.
Issues
| Issue | Petitioners' Argument | City of Orem's Argument | Held |
|---|---|---|---|
| Whether the ballot title must mention UTOPIA to be a true and impartial statement of purpose | Title is incomplete and misleading because it omits that the tax increase primarily funds UTOPIA obligations | Resolution’s stated purpose is to defray municipal expenses; "municipal operations" accurately summarizes that purpose and UTOPIA is not referenced in the Resolution text | Court: No abuse of discretion — "for municipal operations" is true and impartial; omission of UTOPIA does not render title untrue |
| Whether including truth-in-taxation example figures creates an argument favoring the measure by minimizing business impact | Use of the $187,000 business example understates business burden and biases voters | Figures were required by truth-in-taxation statute and provide an apples-to-apples comparison; they are factual and permissible | Court: No abuse of discretion — inclusion of the mandated truth-in-taxation language is factual, not argumentative |
| Whether the statute’s term "unsatisfactory" creates a separate, broader review standard | "Unsatisfactory" implies a free-standing ground to reject titles that obscure causal links (e.g., to UTOPIA) | "Unsatisfactory" must be read in context as noncompliant with statutory content requirements (truth/impartiality, word limit, timing) | Court: No separate standard; "unsatisfactory" means failing statutory requirements, and the title met them |
Key Cases Cited
- Stavros v. Office of Legislative Research & Gen. Counsel, 15 P.3d 1013 (Utah 2000) (interpreting ballot-title truth/impartiality and drafting instructions)
- Walker v. Weber County, 973 P.2d 927 (Utah 1998) (discussing review of ballot titles and drafter capabilities)
- Kendell v. N. Ogden City (In re N. Ogden Ballot Title), 84 P.3d 1134 (Utah 2003) (stating court will not tamper with initiative wording absent compelling reason)
