Wednesday, November 1, 2006

Should Ketchum replace aging equipment?

Voters to decide in Nov. 7 bond election


By REBECCA MEANY
Express Staff Writer

Part-time Ketchum resident Neil Nighman checks out a 1957 snow blower the city of Ketchum has put on display in the town plaza. Nighman and city officials think the snow blower is outdated. The city wants to replace it and other pieces of major equipment. A bond election Nov. 7 will determine if the city should borrow money from itself to buy the equipment or if it will have to find the money elsewhere. Photo by Chris Pilaro

Express Staff Writer

Back in 1957, when Eisenhower was president and there were only 48 states, an Oshkosh snow blower rolled off the assembly line. It was delivered to the state of Idaho and provided years of service—many more than it should have, according to its current owner, the city of Ketchum.

A timeline of the 1957 machine, provided by the city, shows the history of the well-used piece of machinery. The history includes being pulled out of retirement in 1983 after it was declared surplus by the state of Idaho and purchased by Ketchum.

Ketchum officials have determined that the snow blower, and three other pieces of major equipment, are way past their prime.

Voters on Nov. 7 will determine the fate of a $1.5 million bond to pay for replacing two snow blowers dating from 1957 and 1985, a 1988 grader and a 1985 loader, plus related costs.

"Today's equipment can remove twice as much snow per hour as the 1957 model," City Administrator Ron LeBlanc said in a news release. "In addition, the older equipment is becoming difficult to maintain and parts are not always readily available. The new designs also will increase safety by giving the drivers better visibility."

The current City Council has promised not to raise taxes to pay for the bond. Rather, the city would borrow money from its own debt services account.

A future council, however, could potentially raise taxes since a sitting council cannot bind a future council.

Municipalities and counties have typically relied on lease-purchase agreements to buy major equipment. The Idaho Supreme Court this summer determined those financial arrangements to be illegal.

In the decision, City of Boise v. David Frazier, the court said government entities could not go into debt without voter approval, unless the purchase is both ordinary and necessary.

Ketchum plans to spend $75,000 to $100,000 in city reserves to buy a used snow blower to handle this winter's white.

"We expect that we can get through the winter with the additional snow blower plus our existing equipment," LeBlanc said. "Assuming that the bond issue passes, we can order new equipment for delivery in the fall of 2007. When new equipment arrives, we can sell the older equipment and offset the cost of this year's purchase."

Although last winter's snowfall total of 300 inches was uncommonly high compared with the average of about 200 inches, the city wants to be prepared for whatever the season has in store.

"The reasons for clearing the streets promptly and efficiently are self-evident," LeBlanc said. "We need ambulances, firefighters and police to be able to respond quickly, and we need to alleviate dangerous driving conditions for everyone. In addition, our winter economy is based on the ability of visitors to reach ski areas easily."

The city anticipates repaying the bonds over nine to 20 years, depending on which option offers the best interest rate when the bonds are issued. The equipment typically has a useful life of 25 to 30 years or more, but city officials believe a longer payment plan would result in excessive interest payments.

If voters reject the bond, and a worst-case scenario ensues with equipment and weather, the city could seek an alternate acquisition method.

"If it deteriorates to the point that there is a major impact on public safety, the city could seek judicial approval to purchase new equipment even without voter approval," LeBlanc said. "However, the council prefers to have the consent of the voters and to purchase new equipment before we reach a crisis situation."

The general obligation bond would have to be approved by two-thirds of voters.

The polling place for all city of Ketchum residents will be at Ketchum City Hall, 480 East Avenue North. The polls will be open from 8 a.m. to 8 p.m. Nov. 7.




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