Sun Valley Mayor Wayne Willich has accused the Blaine County School District of "bait-and-switch" tactics in its plan for borrowing on future revenues from a 10-year, $59.8 million plant facilities levy approved by the electorate last October.
Willich was one of several county residents who spoke in opposition to the school district's plan at a judicial confirmation hearing Monday in Blaine County 5th District Court.
He said the school district failed to clarify prior to the levy election that it intended to borrow on future levy revenues and that school authorities claimed instead that levy money would only be collected and spent if needed.
"The acceleration of the monetizing, as one taxpayer said, seems like a bait and switch to them," Willich said.
Willich said he was not representing the city of Sun Valley but was instead representing Sun Valley taxpayers, who he claimed will pay approximately $13 million of the levy funds.
Nonetheless, Willich told Judge Robert J. Elgee that he will seek Sun Valley City Council approval to file a formal objection to the school district plan. Elgee gave Willich until May 3 to file, and further said that if the city does not file an objection, he will likely make a decision on the school district plan at the next court hearing, scheduled for 9 a.m. on Wednesday, May 5.
Blaine County voters approved the levy on Oct. 29 to fund new construction, safety and security upgrades, new technology, building and site improvements, geothermal energy development and new heating, ventilating and air conditioning systems for many of the district's aging school buildings.
In December, the district initiated a judicial confirmation process, which is required under Idaho law for borrowing on future revenues. A public hearing was held on the issue on Jan. 13, followed by school board approval of the plan on Feb. 9. A "petition for judicial confirmation" was filed in court on March 8.
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The judicial confirmation process allows for formal objections to be filed by affected parties, but no formal objections had been filed prior to Monday's court hearing.
District Business Manager Mike Chatterton told the school board at the Feb. 9 meeting that spending funds now instead of later will save the district $4.7 million.
School District attorney Brad P. Miller said at Monday's hearing that the district can save money by taking advantage of current low interest rates, federal economic stimulus funds and low construction costs.
"There are numerous economical advantages to leveraging this money now," Miller said. "This is not a school board that is running amuck—we find ourselves in a very favorable economic climate now.
"In our case, the levy has already passed, so it doesn't change the amount taxpayers will pay."
Opposition to the plan was expressed by Hailey resident Elizabeth Schwerdtle, who said that the school district failed to make its plans clear to the public prior to the levy election.
"I believe the term bait and switch does apply here," Schwerdtle said. "This was a violation of the public trust. I feel that the school district needs to be more forthright."
Schwerdtle accused the district of "circumventing normal procedures" in its plan for borrowing on future levy funds.
"The only purpose that you would circumvent normal procedures is if you're not in line with the wishes of the public," she said.
Hailey resident Diane Barker alleged that the district had not proven that its proposed spending plan, specifically for geothermal resource development, was "ordinary and necessary."
"It would be far more ordinary for the district to collect the taxes before they spend it, as they said they would," Barker said.
She also contended that the district had overestimated future energy costs in its calculations of savings by switching to geothermal energy for heating. She said revised energy projections from the U.S. Department of Energy show the payback period for geothermal conversion will be "hundreds of years," rather than the 50 projected by the school district.
Terry Smith: tsmith@mtexpress.com
Wayne Willich
