Franchise fee to go on the ballot

The Lewiston City Council voted unanimously to ask residents to decide on a franchise fee from Avista, which will be used to fund construction, reconstruction and maintenance of city streets.

Mayor Dan Johnson presented the resolution to the council at its Monday meeting which will be placed on the May 16 ballot. The franchise fee can increase up to a 3% fee from Avista customers. The fee will need to be approved by a majority of the voters in the city of Lewiston.

Johnson explained that many cities in Idaho, including Moscow and Coeur d’Alene, have franchise fees, but Lewiston doesn’t collect as much as those cities. Currently, Avista customers in Lewiston pay a fee of 1% from the amount billed to them. For example, if a customer’s monthly bill is $100, the customer would pay $1 in fees. The fees are collected monthly by Avista and given to the city.

Johnson said with the 1% fee the city collects $400,000 a year, and with a 3% increase the number would triple.

“I know we’re asking the public to trust on this,” Johnson said. “I believe if we have the tools where we can help our economy, it’s going to bring a good return for us.”

According to the resolution, the city pays for streets with different revenue sources including property taxes and franchise fees, but the funds from the franchise fee comes from all Avista customers, which includes homeowners, renters, businesses and governments.

Councilors Rick Tousley and Kathy Schroeder both supported the resolution because it doesn’t place the burden on homeowners, but spreads out the cost among all Avista customers.

Councilor Kassee Forsmann said she hoped the move would help ease the high property taxes for homeowners. Although the franchise fee would increase customers’ electricity bill, she hopes residents will see the long-term benefits.

“We kind of have to look beyond today,” Forsmann said. “I suggest you really look into it thoroughly to see if this is the right move.”

According to the resolution that was approved, “many of the City’s streets are in need of significant maintenance or reconstruction, and failing to complete this work in a timely manner most likely will result in higher costs to the City in the future.”

The annual budget for the city streets exceeds $6 million and the budget is expected to increase — the franchise fee can help pay for the costs, according to the ballot resolution.

Before the resolution was approved, Public Works Director Dustin Johnson presented the Transportation Capital Improvement Plan that includes road projects that are a priority for the city. The public was able to comment on the priority of the projects they wanted to see. Some of the projects were also prioritized because they have some federal funds already in place, including Bryden Avenue from Seventh Street to Thain; Snake River Avenue from Main Street to 11th Street; and Snake River Avenue from 11th Street to Southway Avenue.

Another set of projects with plans in place include building a roundabout at 10th Street and Burrell Avenue and a total reconstruction of 21st Street. The plan for 21st Street would include a repavement plan using a higher quality pavement intended to last 10-12 years.

Council President Hannah Liedkie voted to approve the improvement plan with amendments to the priority list to include projects on Main Street and Thain Road within the top 10.

During the discussion Kleeburg said he disagreed with changing the prioritization, saying that changing the list at this point was wrong and would mean giving up funding. However, Dustin Johnson said the projects that are already funded will continue to go forward. The prioritization list only changes what future project the city seeks funding for.

“We just lost a water reservoir, I don’t want to lose Main Street. I’m not making a motion to take anything off the table for current funding,” Liedkie said. “I want to go after the biggest projects that house the businesses that serve our community.”

The council then approved the plan with Kleeburg being the only no vote.

In other business, the council heard that an audit by Presnell Gage of the city finances received a clean report.

Brewster may be contacted at kbrewster@lmtribune.com or at (208) 848-2297.