For the week of November 5 - 11, 2003

Ketchum says 'yes' to power-line relocation

By GREGORY FOLEY
Express Staff Writer

Ketchum voters on Tuesday, Nov. 4, approved a proposal to increase from 1 percent to 3 percent the Idaho Power franchise fee added to monthly electricity bills.

With all votes counted Tuesday night, 383 Ketchum residents voted in favor of the proposal, while 234 voted against the measure, Ketchum City Clerk Sandra Cady reported.

Of 1,896 registered voters, 639 cast ballots in the city election Tuesday, Cady said.

The ballot measure required approval of only a simple majority of voters-more than 50 percent-to be formally approved.

The franchise-fee increase was proposed primarily to raise funds for the city to put overhead power lines in the downtown area underground and out of sight.

The ballot measure proposed that at least 2 percent of the revenue from the franchise fee would be designated specifically for relocating-under streets and sidewalks-overhead electric facilities at the city's southern entrance and in its commercial core.

The measure also proposed that "up to 0.5 percent" would be dedicated "to the maintenance, operation, and conversion of street lights to comply with the Dark Sky Ordinance" and "up to 0.5 percent" would be dedicated "to improvements in residential areas."

For the improvements in residential areas, the city will reserve up to 0.5 percent of fee revenues to assist interested residents in establishing local improvement districts, in which neighborhood power-line relocation projects could occur.

The burden of the franchise-fee increase-which can be equated to a value-added tax-will ultimately fall on Ketchum ratepayers. Idaho Power for nearly two years has paid the city 1 percent of its gross revenues from Ketchum accounts for a non-exclusive right to supply electricity to city residents. The fee is simply added to ratepayers' bills each month.

The revenues from the existing 1 percent tax-which have equated to approximately $50,000 per year-have been earmarked specifically for putting overhead power facilities in the city underground

Ron LeBlanc, Ketchum city ad-ministrator, said last week that the city has established a reserve fund of approximately $70,000 through the existing franchise-fee program. With the fee increase, the city will now expect to receive approximately $150,000 per year from the tax.

The fee increase was strongly advocated by City Council President Randy Hall, who was re-elected Tuesday.

With the franchise fee now approved, the city might seek voter approval of a bond issue that could fund a series of so-called "undergrounding" projects at once-which is generally more cost effective. The bond issue would be supported by the revenues from the 3 percent franchise fee.

Because of the uncertain-but always high-costs of relocating power lines, city officials have warned that the fee increase will not likely raise enough funds to immediately plan for putting all power lines in the city center underground.

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