Recovering from iProvo Losses
When the city council voted in favor of iProvo, they crossed the bounds of proper government. They wasted millions of tax payer dollars competing against local business (money that could have gone to parks, schools, and public safety). Even worse, the city may soon be on the hook for iProvo’s $39.6 million dollar bond.
The Facts:
- The Provo City Council started high speed internet venture iProvo without a vote from the people. (See: Daily Herald)
- iProvo lost the city money every year and garnered national criticism. Over $8 million was wasted. (See: Reason Foundation)
- The council “sold” iProvo to a for-profit company, agreeing to take back responsibility for the service and the massive $39.6 million dollar bond if the company was unsuccessful. (See: Salt Lake Tribune)
- The for-profit company hasn’t been able to make their $207,505.55 monthly payments since last November. (See: Daily Herald)
- If the dwindling surety deposit runs out, Provo will be responsible for the $39.6 million dollar bond. (See: Salt Lake Tribune)
The Sterling Solution
The iProvo fiasco is such a serious issue because it took much-needed funds away from our neighborhoods.
As a council member, I’ll work to grow Provo by encouraging private enterprise rather than spending your tax dollars on speculative ventures. I will never vote in favor of a wasteful, irresponsible venture like iProvo. I will always remember to protect the taxpayer’s money and respect the proper role of government.
If the city is forced to take back iProvo and its accompanying debt, I will work to see that a more secure sale is made. I will fight to make sure that Provo is protected from the millions of dollars that may be lost if the city remains responsible for payments and continues to re-negotiate the terms of the transfer.
