The city of Sun Valley is holding a special election Tuesday, May 22, to ask the electorate for permission to lower a portion of its local option tax. A separate ballot question also asks voters to approve a $4.357 million water bond for proposed construction in the Sun Valley Water and Sewer District.
The City Council is looking to move its collection of local option taxes closer to parity with the city of Ketchum. If approved, the LOT on defined hard goods would be reduced from 3 percent to 2 percent, a rate closer to Ketchum's 1 percent retail tax.
The 1 percent drop in LOT on select hard-good retail sales would represent an estimated $89,000 loss for the city. To fill a small portion of the revenue gap, the city proposes to subject to LOT collections mountain lift ticket sales that originate in the city of Sun Valley. This is expected to bring in approximately $7,400 for the city.
Mayor Jon Thorson said he suspects growth of the community would increase LOT revenue naturally over time.
In order for the council's proposed change to the LOT to go forward, a 60 percent voter approval is necessary. If passed, the new tax cut would go into effect Oct. 1 and remain in place for 10 years.
The Sun Valley Water and Sewer District is asking voters to OK a $4.357 million bond for construction projects. The bond represents a three- to four-year plan, said Water District Manager Jack Brown.
In a mailer sent to voters, Brown said, "It would be cumbersome and expensive to present a bond issue each year for that year's proposed construction. Therefore the district has elected to package the needed projects under one issue."
In order to pass, the bond requires approval by a two-thirds majority.
The proposed changes under the bond include:
· The drilling and construction of two additional wells in the district estimated to cost $600,000 each. One would be located at Bitterroot and Silverweed. This well has been tested at 600 gallons per minute and would be used as potable water on the Sun Valley side of the system. The second would be located on the west side of state Highway 75 and is tested at 1,200 gallons per minute. The water would service Lane Ranch and the lower end of the system.
· A Lane Ranch reservoir (a concrete holding tank located above Weyyakin subdivision estimated at $700,000) to service the lower end of the system and to enhance transmission to Elkhorn. Brown said that the tank should not be visible from the homes below. "We set them in place and build an earth berm around it," making visibility difficult, Brown said. The lift station at the Lane Ranch reservoir would also be replaced at an estimated cost of $600,000.
· Facilities to transport re-use water to the Elkhorn golf course, for snowmaking on Dollar Mountain, and possibly to Weyyakin and the Idaho Parks Foundation pastures, estimated at $1.8 million. In 2004, the Sun Valley district and the city of Ketchum each passed a $3.7 million bond for the reconstruction and enhancement of the cities' shared wastewater plant, including filtration and ultraviolet disinfection facilities. Under the new bond proposal, the district would build pipelines and facilities necessary to transport the water to where it can be used.
