Hailey officials are investigating changes that were made to a tax levy ballot question on the Nov. 4 ballot.
At a town hall meeting Wednesday, Hailey Mayor Rick Davis charged that the changes were made intentionally to confuse voters and dissuade them from supporting a countywide tax levy increase to pay for the newly consolidated emergency dispatch service.
The meeting was intended for the discussion of several issues, capital improvement planning, local option tax revenue, development impact fees and business license fees.
"I believe the changes were made intentionally," Hailey Mayor Rick Davis said in an interview Thursday.
Davis said he had discovered the wording changes Monday.
"We don't know how this happened or who is responsible, but we are looking into it," he said.
Hailey City Attorney Ned Williamson said the city had proposed ballot language to the county earlier this month, calling for a one-time increase in property taxes to pay for the dispatch service.
"The wording was consistent with Idaho law and similar to language for an open space initiative question on the same ballot," Williamson said.
The language proposed by city officials read: "Shall the Blaine County Board of County Commissioners be authorized to permanently increase the Blaine County Budget ..."
But the official ballot language question reads: "Shall the Blaine County Board of County Commissioners be authorized to annually increase Blaine County taxes permanently in the amount of $835,000 ... ?"
The official ballots cannot be changed and are already in use by absentee voters.
"It's too late to unring this bell," said Williamson. "The county made these changes. The word 'annually' has the impact of confusing voters. The ballot question reads as though voters could be voting for an increase every year. We want to hear from the county commissioners about this."
County Administrator Mike McNees said he understands the confusion. He said the intent is for a $835,000 tax increase that would be raised only once and remain permanent,
"It will not compound," he said.
Davis and City Council members addressed other financial matters during the meeting Wednesday night at Wood River High School. About 40 people attended, asking questions and making policy suggestions to city leaders.
"The financial health of the city is excellent, even though we may be in a recession," Cocuncilwoman Carol Brown said.
She pointed out that the city has cut its budget by 10 percent this year due to the downturn in the economy. In addition, she said, the city has been conducting monthly budgetary analyses since January to head off any unexpected economic crises.
"More annexations are not necessary for our financial health," said Brown. Annexation fees can bring money to city coffers.
The city is operating on a $4.5 million annual budget, with $450,000 held aside for operating expenses. In addition, under state law, the city is allowed to issue up to $28 million in bonds for capital improvements.
Despite the city's rosy financial picture, Brown and others on the council pointed out the importance of development-impact fees for long-term capital planning, a presentation which drew several comments from Bob Wiederick. Wiederick is a Hailey metalworker who successfully petitioned the city to place measures on the November ballot to repeal development-impact and business-license fees.
Development-impact fees are generated from new residential and commercial developments, and generate $200,000 to $500,000 annually. They are expected to pay about $2 million of the $3.3 million, five-year capital improvement plan, paying for fire stations, parks and trails systems, and transportation infrastructure.
"Development-impact fees penalize those of us who have waited to develop," Wiederick said. "Power Engineers is an international company that operates in Woodside. They built a new building recently and never had to pay these fees. They pay the same amount in business license fees as does a small art studio in Hailey. Is that fair?"
Business-license fees amount to $125 initially and then are set at $50 annually. They are used to pay for business safety inspections.
Wiederick said it takes a lot longer to inspect thousands of square feet of space at Power Engineers than it does to inspect an art studio. Councilman Don Keirn said development-impact fees have generated about $320,000 in revenue from 46 building permits granted over the past 15 months. If passed, the ballot measure requires that that money, along with $11,000 to $15,000 in interest, be refunded to developers.
Councilwoman Martha Burke, who has lived in the valley since 1972, said development-impact fees were implemented so that new growth pays for itself.
"There are other ways (than Wiederick's) of looking at this," she said.
The council also addressed future growth.
Hailey planning and zoning officials have estimated that the city could see 10,000 new residents by 2025. Hailey currently has 6,500 residents.
These estimates were made several years ago, based on a very different local and national economic situation.
Councilman Fritz Haemmerle said he has seen the population of Hailey grow four-fold during his lifetime.
"We can handle growth," he said, adding that a water study being conducted by the U.S Geological Survey may eventually set population limits in the valley.
"Water could very well be the limiting factor," he said.
Hailey City Attorney Ned Williamson has taken issue with the wording of a question on the November ballot seeking a permanent county tax levy override to pay for emergency dispatch.
Photo by David N. Seelig
