City Council

JULY 31, 2015 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Work/Budget Session), Friday, July 31, 2015, at the City Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 8:00 a.m. There were present: Mayor Rebecca L. Noah Casper Councilmember Michael Lehto Councilmember Sharon Parry Councilmember Ed Marohn Councilmember David Smith Councilmember Thomas Hally (by phone) Councilmember Barbara Ehardt Also present: Craig Rockwood, Municipal Services Director Thane Sparks, Controller Kenny McOmber, Treasurer Melanie Marsh, Human Resources Director Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 8:05 a.m. with some brief announcements. She stated the Water Facility Plan presented by the Public Works Department has been approved by the Department of Environmental Quality (DEQ). All Councilmembers are encouraged to attend the War Bonnet Rodeo. Mayor Casper invited available Councilmembers and Department Directors for the City Identity and Re- branding Proposal presentation at the conclusion of this Work/Budget Session. Mayor Casper then turned the meeting to Councilmember Lehto. Councilmember Lehto stated after discussion with Fire Chief Dave Hanneman it was recommended to remove Fire Department agenda items 1-Formal Approval of 2015/2016 Bonneville Ambulance Service Contract, and 2-Authorization to hire personnel, from the agenda. It was moved by Councilmember Lehto, seconded by Councilmember Parry, to place the previous mentioned items on the August 13, 2015, Work Session agenda. Roll call as follows: Aye: Councilmember Smith Councilmember Hally Councilmember Parry Councilmember Lehto Councilmember Ehardt Councilmember Marohn Nay: None Motion carried. It was moved by Councilmember Lehto, seconded by Councilmember Parry, to remove the Executive Session from the agenda. Roll call as follows: Aye: Councilmember Parry Councilmember Ehardt Councilmember Smith 1  JULY 31, 2015 Councilmember Marohn Councilmember Lehto Councilmember Hally Nay: None Motion carried. Councilmember Lehto then turned the meeting to Craig Rockwood for summary of previous Council discussions regarding the proposed budget. Director Rockwood stated the budget process has been very similar to previous years. Over the course of the past year, accomplishments include:  Public safety in the form of dedicated policemen, firemen, and paramedics  Hundreds of cultural and recreational opportunities  Implementation of a new comprehensive software program  Major sanitary sewer upgrades  Implementation of an autoload sanitation system  Completed payment of long-term electrical light debt  Reduced cost of city phone system  Doubled internet capacity  Administered a City newsletter  Major greenbelt improvements  Implemented a signage and branding program  Construction of a new fire station  Major improvements to Hitt Road and Woodruff Avenue  Managed a self-insured workman’s comp program  Commenced a strategic long-term plan  Major Airport improvements  Continued maintenance to streets Director Rockwood believes that existing services cannot continue without increasing revenues and stated the City has not taken any new revenue or growth money for the previous six (6) years, deferring an excess of $30 million. He indicated the employees have provided the same services to a growing community. Critical building maintenance and infrastructure projects have been delayed and will continue to be more costly. Director Rockwood recommends the Council approve the 3% Levy increase as well as the new growth money to assist with balancing the proposed budget. These funds would allow increases for Operations and Maintenance (O&M), Capital, maintenance projects, and a 3% Cost of Living Adjustment (COLA) for employees to assist with their increased health care costs. He stated the growth money received from Bonneville County was approximately $150,000 lower than anticipated, therefore, his recommendation would be delay hiring of a new employee for the Parks and Recreation Department and believes a splash park should not be funded by the increase of taxes but rather by the option of various grants. He proposed funding for the signage and wayfinding program to extend over the course of two years, with a cost saving of $100,000 and also proposed the Water Department fund a portion of the water pump designated for Ryder Park, with a cost saving of $50,000. Director Rockwood distributed the following information received by Bonneville County: CITY OF IDAHO FALLS PROPERTY TAX CALCULATION 2015-2016 2014-2015 Certified Property Tax Revenue $27,575,663 2  JULY 31, 2015 New Growth – Net Taxable Value Add 2014 New Annexations into City: $417,645 0.009257535 3,866 Add 2014 New Construction in City: $38,853,400 0.009257535 359,687 2014-2015 Certified Property Tax With Current Growth: 27,939,216 Add Statutory Allowable Increase – (3% of the highest of the last 3 years certified property tax) $27,575,663 3.00% 827,270 Prior years foregone amount: 6,749,150 Total amount that can be levied: 35,515,636 Amount of available tax revenue not levied: (6,749,150) 2015-2016 Property Tax Revenue $28,766,486 Actual Budget Allocation Percent 2014-2015 2015-2016 Increase G/F Street Transfer Actual $350,000 $350,000 - General Fund 87.9211 22,010,478 23,077,466 1,066,988 Recreation Fund 2.0057 490,708 515,048 24,340 Mun Cap Imp Fund 2.8818 705,051 740,024 34,973 Cap Imp Savings Actual - 850,000 850,000 Library Fund 7.1914 1,759,423 1,846,697 87,274 G/F Fire Retirement Actual 1,244,712 361,250 (883,462) G/F Liability Ins Actual 613,767 624,477 10,710 G/F Fire Station Bldg Actual 401,524 401,524 - Total Property Taxes $27,575,663 $28,766,486 $1,190,823 Levy Rate 0.009257535 0.009566468 General Fund Increase 1,044,236 Taxable Market Value $2,978,726,308 $3,007,012,298 0.9496% Fire Retirement equals 5.00% of sworn fireman’s wages Prior to January 2015 the FRF rate was 17.24% Liability ins equals premiums paid ins co’s Foregone amount available (prior years) 6,749,150 Foregone amount from (to) 2015-2016 budget - Remaining foregone amount $6,749,150 Director Rockwood distributed the following information regarding the proposed 3% Levy increase and stated due to the Homeowners Exemption increase, most City taxes would not increase. City of Idaho Falls Tax Rates with 3% increase Budget FY2015/2016 Current Year Residence Residence Business Assessed Property Value 2014 $200,000.00 $250,000.00 $100,000.00 Homeowners exemption $(83,920.00) $(83,920.00) - Net Taxable Value $116,080.00 $166,080.00 $100,000.00 2014 City Tax Levied $1,074.61 $1,537.49 $925.75 FY2015/2016 – 1% Growth Assessed Property Value 2015 $200,000.00 $250,000.00 $100,000.00 Homeowners exemption $(89,580.00) $(89,580.00) - 3  JULY 31, 2015 Net Taxable Value $110,420.00 $160,420.00 $100,000.00 2015 City Tax Levied $1,056.33 $1,534.65 $956.65 Mr. Sparks distributed the following adjustments of General Fund Revenues due to the reduced growth amount: City of Idaho Falls General Fund Revenues 2015-2016 2014-2015 2015-2016 Increase Description Actual Budget Estimated Budget (Decrease) TAXES & FRANCHISES $25,568,981 $26,613,217 $1,044,236 LICENSES & PERMITS 675,900 678,550 2,650 INTERGOVERNMENTAL 11,923,764 12,417,691 493,927 MISC. CHARGES FOR SERV. 519,100 473,050 (46,050) PARKS FACILITIES 563,900 676,500 112,600 FINES & FORFEITURES 431,792 360,500 (71,292) MISCELLANEOUS 1,599,246 1,113,123 (486,123) TOTAL $41,282,683 $42,332,631 $1,049,948 Discussion followed regarding the funding of the water pump for Ryder Park. Councilmember Parry believes the Parks and Recreation Department should fund the entire amount. Councilmember Ehardt believes the Parks and Recreation Department has excess costs and would like to see some reduction. Councilmember Parry reminded the Council she is not in favor of the 15% salary increase for the Parks and Recreation Department seasonal employees. Councilmember Lehto requested specific Council recommendations for any decreases to the proposed budget. He stated the Council’s responsibility is to set the budget, not to micro-manage and the Department Directors should be able to proceed with anticipated plans and projects. He stated the General Fund will continue to replenish. Councilmember Ehardt requested discussion of the 3% COLA increase. She believes there are additional ways to reward employees such as flex schedules and additional hours for holidays. Councilmember Lehto believes the employees should be allowed the proposed COLA due to the cost increase of benefits. Councilmember Smith reiterated the majority of employees will not see a salary increase with a 3% COLA due to the benefits increase. General discussion regarding the COLA followed, including a brief discussion for consideration of increasing the Mayor and Council salaries. Director Marsh indicated the advisory committee is researching health care options for the future. She stated the City benefits are no longer considered a ‘Cadillac Plan’ but believes the benefits package is important for hiring and retaining employees. Councilmember Parry believes a Councilmember should be included on the Advisory Committee. General discussion followed regarding the proposed benefit options for employees. Mayor Casper stated a balance of salary and benefits for employees is needed. She believes some current salaries may not be adequate but the benefit package is very generous and contributes to good recruiting. Prior to ending his phone connection Councilmember Hally stated he in favor of the 3% COLA to salaries and is also in favor of the 3% Levy increase. Councilmember Smith believes the City is not extravagant but stated previous Councils have neglected costs and funding for items and projects. Councilmember Marohn stated previous Council guideline has been to maintain 25% General Fund balance which can vary on a year-to-year basis. 4  JULY 31, 2015 Councilmember Lehto distributed the following information and indicated the 2014-2015 Contribution is currently included in the proposed budget. Community Support City of Idaho Falls FY 2015-2016 Recommended 2013-14 2014-15 2015-16 Totals by Category Entity Contribution Contribution Request Recommended Category Intergovernmental $132,854 Arts & Culture $89,000 Business/Economic Development $62,500 Youth and Seniors $10,950 Utility Write-off/Social Safety Net $37,000 Total $321,342 $337,842 $475,204 $332,304 Councilmember Lehto requested all Councilmembers thoroughly review the Community Support contributions for future discussion, including monies allocated to Community Development Block Grant (CDBG). Brief discussion was held regarding future budget work session dates and the process of approving the tentative budget. There being no further business, it was moved by Councilmember Lehto, seconded by Councilmember Marohn, that the meeting adjourn at 10:23 a.m. CITY CLERK MAYOR 5