City Council

JULY 20 , 2015 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Budget Session), Monday, July 20, 2015, at the City Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 2:00 p.m. There were present: Mayor Rebecca L. Noah Casper Councilmember Ed Marohn Councilmember Michael Lehto Councilmember Barbara Ehardt (arrived at 2:30 p.m.) Councilmember Tom Hally Councilmember Sharon D. Parry (arrived at 2:45 p.m.) Councilmember David Smith Also present: Randy Fife, City Attorney Craig Rockwood, Municipal Services Director Thane Sparks, Controller Kenny McOmber, Treasurer Chris Fredericksen, Public Works Director Mark McBride, Police Chief Dave Hanneman, Fire Chief Kerry McCullough, Public Information Officer Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 2:05 p.m. with general announcements. She stated the Idaho Innovation Center (IIC) has announced Brian Magleby as the new Executive Director and she informed the Council of an upcoming presentation regarding the City branding project. Mayor Casper then turned the meeting to Councilmember Lehto. Agenda items from the Municipal Services Department include; Employee Compensation and Fund Balance Reserves Policy: Councilmember Lehto requested brief discussion from the Council regarding the proposed 3% COLA. Councilmember Smith stated he is in favor of the 3%. Councilmember Hally indicated if the City receives the anticipated growth amount, he would be favorable of the 3%. Councilmember Marohn indicated he approves of the 3%, knowing the employees will be responsible for covering the increase in health costs. Discussion was held regarding the General Fund. Director Rockwood stated the General Fund balance is adequate. Councilmember Lehto stated, as in the past, any decrease to the General Fund balance would be replenished within a few years and currently believes the largest project to fund at the present time is the fire station. Agenda items from the Parks and Recreation Department include; Recreation Fund Levy, Parks Capital Improvement Fund, and Employees: The Recreation Fund Levy would increase with the 3% Levy increase. Councilmember Lehto stated a portion of shelter rental fees, approximately 10%, could be allocated to the Parks Capital Improvement Fund, and indicated approval of the Parks and Recreation Director for such allocation. Councilmember Lehto indicated a similar fund could be established for the Idaho Falls Library. Councilmember Hally 1  JULY 20 , 2015 recommended the addition of the requested Parks and Recreation employee upon anticipated allocation of growth money. Agenda item from the Police Department include; Additional Patrol Officers: Councilmember Lehto believes a one-time shift from the General Fund reserves should take place to fund additional officers. This would allow the Police Chief to begin a hiring process to help alleviate the overtime costs as well as any personnel eligible for retirement, as indicated by Chief McBride. Chief McBride stated there would also be additional equipment costs for new officers. Agenda item from the Public Works Department include; Street Capital Planning: Director Rockwood stated the Street Department will receive a $1 million transfer from the General Fund, $350,000 from Anheuser Busch, a portion of state sales tax revenue, and an additional increase of $600,000 from the state gas tax. Director Fredericksen stated the projected revenue is $4.895 million with proposed expenditures of $5.473 million, leaving a continual shortfall. Councilmember Lehto stated all street projects may not be completed this year. A brief discussion was held regarding Impact Fees, Franchise Fees, and General Fund reserves related to funding of future projects. Miscellaneous agenda item include; Capital and Employees not included in Proposed Budget: Director Rockwood stated Capital is becoming an on-going expense and will be a continual increase on a yearly basis. Councilmember Marohn explained the categorized requests for additional personnel from all departments. The proposed budget approval would include personnel for the Fire Department, Police Department and a possible Parks and Recreation Department employee. Agenda items from the Fire Department include: Fire Station Funding, Ambulance Fund, additional Fire Fighters: Fire Chief Hanneman appeared to explain the Ambulance Fund. The City would be receiving $335,000 from the Swan Valley contract in addition to the negotiated 3% increase. Bonneville County’s allocation to the City would increase from $1.7 million to more than $2.3 million. The City would also receive revenue from generated ambulance calls as well as user fees. Chief Hanneman stated Bonneville County approached the City regarding the Swan Valley contract and indicated Swan Valley can no longer sustain the service with current funding. Swan Valley currently has two (2) ambulances; one (1) ambulance would stay in Swan Valley, the second ambulance would be relocated to Idaho Falls and staffed accordingly. Councilmember Lehto requested clarification of part-time staff and volunteers. Chief Hanneman stated part-time staff would still require benefits. He also stated volunteers are good for fire situations but not medical situations. He indicated dispatch personnel will evaluate staff and equipment required for emergency calls. Councilmember Parry requested total revenue versus total expenditures. Chief Hanneman stated total revenue will exceed expenditures and he would have final amounts once funds are received from Bonneville County. He stated due to the Swan Valley contract, it will be necessary to hire 10 (ten) additional medic personnel as soon as possible and he will be formally submitting such request for the Council’s approval in the near future. Chief Hanneman indicated he will report to the Council on a quarterly basis regarding the Ambulance Fund and the overtime costs to the General Fund. Councilmember Marohn reminded the Council that the City of Idaho Falls is in contract with Bonneville County for all ambulance services and requires approval on a yearly basis. Councilmember Lehto summarized the proposed budget discussion with the following items:  3% COLA, requiring employees to absorb the health care cost increase  3% Levy increase 2  JULY 20 , 2015  Growth money - $400,000 potential  $1 million Fire Station funding  $500,000 reserved for a splash park  Recreation Fund Levy  Parks Capital Improvement Fund  Parks and Recreation Department employee  Additional officers for Police Department  One-time shift of General Fund reserves Councilmember Smith requested future discussion of proposed 15% salary increase for seasonal employees in the Parks and Recreation Departments, Police Department equipment storage, and Christmas tree light installation cost. Councilmember Parry and Councilmember Ehardt stated they are not in favor of the 15% salary increase for Parks and Recreation Department seasonal employees. Director Rockwood will confirm the cost amount for the proposed salary increase. Councilmember Marohn read the following statement from the Municipal Services Department Citizen Review Committee (CRC) – “In the conclusion by not increasing the property tax in prior years, the city has deferred problems to future administration and next generation of voters. Presently a fully responsible budget and tax levy will solve some of the city problems, increase capacity and while may not create economic growth right away, it will not prevent it”. He also stated the Police Department CRC has submitted support for the levy increase. Councilmember Marohn commented the city has good General Fund reserves but cannot continue to use the reserves for projects. He stated the citizens expect the Council to make proper financial decisions as well as provide good quality of life and infrastructure. Councilmember Parry indicated she is not in favor of the levy increase and would like to see a plan/specific capital improvement projects to rebuild the General Funds. She stated she has always been in favor of the new growth money. Mayor Casper believes the decision by previous administration to exclude levy increases for several years has created a significant backlog for Operations and Maintenance (O&M) which makes it difficult to save money while maintaining the current infrastructure. Councilmember Ehardt would like to have future conversation regarding the COLA and benefit increases. Mayor Casper stated the average City salaries are below the competitive market rates and the proposed COLA is for salary increase only, no portion is being applied to benefits. Councilmember Smith stated each budget needs to be reviewed individually and should progress to a long-term planning stage. Councilmember Lehto stated if any Councilmember would like to see decreases in the proposed budget then a follow-up solution is needed. He believes any decrease should not include the employee COLA. Brief discussion was held regarding future budget work session dates with possible inclusion of annual donations and contributions. There being no further business, it was moved by Councilmember Marohn, seconded by Councilmember Ehardt, that the meeting adjourn at 5:32 p.m. 3  JULY 20 , 2015 _______________________________________ _____________________________________ CITY CLERK MAYOR 4