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The City Café

For those interested in sharing ideas and perspectives regarding local government.

What happens when a city owes $6.2 million to a wastewater treatment company and only has a $300,000 reserve? Ask the city of McCall in Idaho. The options are pretty grim for this small Idaho resort town:

  • Take out a loan — challenge: can’t get a loan quickly enough
  • Double property taxes — challenge: state law caps property tax increase at 3%
  • Sell off city property — challenge: may be illegal and requires public approval
  • Raise sewer rates — challenge: Idaho supreme court has ruled rate increase
  • Declare bankruptcy — challenge: the debt will still be owed.

It will be interesting to see how this unfolds. You can read the Idaho Statesman article here: Residents Balk at Tax Hike for McCall debt

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