City financing powers amendment makes it out of committee 

A constitutional amendment that would make it easier for cities, counties and other local government agencies to get financing was passed by a Senate committee this morning. The amendment would provide exceptions to Idaho laws that forbid local government from going into debt for more than a year without a two-thirds voter approval.

If the amendment passes, local governments wouldn’t need voter approval for county hospital expenses, long-term power purchase agreements, or lease-to-own agreements for up to five years for equipment or vehicles. They would only need a majority vote instead of a two-thirds vote for parking garages, airport expansions or other projects paid for with user-fees.

The measure passed the Senate State Affairs Committee unanimously, but must be approved by two-thirds of the full Senate and House and a majority of Idaho voters to go into effect.

David Frazier, who runs the Boise Guardian blog and whose lawsuit against the city of Boise tightened financing restrictions on cities, tried to convince Senators to vote against the amendment.

“The only need is for local governments to understand that it’s the citizens who hold the purse strings,” he said.

A two-thirds vote is necessary to keep governments in check, Frazier said. Without a two-thirds requirement, in resort areas like Blaine County or Valley County where many property owners live out of state, a minority of the population could actually impose a tax on the majority, he said.

Most exceptions in the proposed amendment deal with revenue bonds. Property taxes cannot be used for repayment, said Sen. Bart Davis, R-Idaho Falls, only user fees.

The exemptions would allow local governments to be more efficient, said Steve Millard, president of the Idaho Hospital Association. If a county hospital must hold an election to buy a new CAT scanner or a city has to hold an election to buy a new road grader, things won’t be done quickly and citizens will be forced to spend money on elections, he said.

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