Debt | Financial FAQs
What does our debt situation look like? Is it improving?
Orem’s debt has reduced by nearly 40% since 2008, and 27% in the last 3 years. This has happened by refinancing debt for better rates, paying off outstanding debt, and smart financial decisions by our City Council.
The State sets a limit regarding the amount of debt a city is allowed to have. The City of Orem’s debt is 8% of that cap.
Where do my tax dollars go?
Nearly 50% of your taxes go to public safety (police and fire). Other money is spent to pay for roads, parks, library, and other administrative needs. “Non-Departmental”, as shown on this graph, accounts for expenses that are not easily attributed to one department such as debt service on roads/parks, UTOPIA payments, etc.
Is the city saving for a rainy day?
The City has a policy that to maintain a fund balance (savings account) of 15% of general fund revenues. This policy strikes a balance between saving for a rainy day and ensuring that necessary improvements are being made in the community.