Idaho bill would require public approval before counties enter certain leases

BOISE — Nez Perce County’s plans for financing a new courthouse building could be affected by legislation requiring a public vote for certain long-term leases.

The measure, which doesn’t yet have a bill number, was introduced in the House Local Government Committee on Wednesday.

The sponsor, Rep. Bruce Skaug, R-Nampa, noted that Idaho law currently restricts indebtedness for both state and local governments.

“If they want to go into debt, they have to do a (voter-approved) bond,” he said.

There’s a long-standing exception in state code, however, for county jails and courthouses. Long-term leases for those facilities can be entered into with the approval of two out of three county commissioners.

That doesn’t sit well with Skaug, who says it effectively obligates taxpayers for the entire term of the lease, which could last up to 30 years.

“I want a simple majority vote on it,” he said. “If you’re going to put me in debt for 30 years, then you’re going to have to get a public vote on it.”

Skaug’s bill only applies to county jails and courthouses. It would allow commissioners to enter into lease agreements of up to five years on their own authority. Anything longer than that, though, would require a majority vote.

If approved, the legislation has an effective date of July 1.

That could affect Nez Perce County’s plans for the new courthouse.

The commissioners want to finance the project with certificates of participation, a type of funding option in which investors pay for the construction and then own the building. The county would then lease it back, at an estimated cost of $2.6 million per year. At the end of the 30-year lease, ownership would revert to the county.

Skaug said if the commissioners enter into a lease agreement before July 1, the county is good to go. Otherwise, his bill would force a public vote.

“I don’t want to take the tool away from local governments, but I want taxpayers to have a little more say,” he said.

Nez Perce County Commissioner Doug Havens said he expects the bill to fail in the Senate, even if it passes the House.

If that doesn’t happen, he said, “I still think we’ll secure our financing before July 1.”

It might be a close shave, though. The county has a coming meeting with nearby business owners, during which it will try to finalize an agreement on the use of some land it needs near City Hall.

Until the county secures title to the land, Havens said, it can’t move forward with the certificates of participation.

“Zions Bank tells us it’s about a four-month process,” he said, which would push the lease agreement into June.

Havens agreed that a public vote should be required if a county has to raise taxes to cover the lease payments. That isn’t the situation with Nez Perce County, however.

Skaug’s bill “seems to penalize counties that have tried to be good stewards,” he said. “That’s disappointing to me. I think it’s an indication that representatives don’t understand local government.”

Rep. Mike Kingsley, R-Lewiston, told the Lewiston Tribune last week that he supports Skaug’s bill. Like Havens, however, he didn’t think it would pass the Senate.

Kingsley sits on the House Local Government committee and voted to introduce the bill. He did not immediately return a voice message seeking comment.

Skaug’s bill could come back to the committee for a public hearing as early as next week.

Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.