City Council

SEPTEMBER 3, 2015 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Work/Budget Session), Thursday, September 3, 2015, at the City Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:30 p.m. There were present: Mayor Rebecca L. Noah Casper Councilmember David Smith Councilmember Tom Hally Councilmember Michael Lehto Councilmember Sharon Parry Councilmember Barbara Ehardt Councilmember Ed Marohn Also present: Randy Fife, City Attorney Craig Rockwood, Municipal Services Director Thane Sparks, Controller Robert Wright, Library Director Brad Cramer, Community Development Services Director Melanie Marsh, Human Resources Director AJ Argyle, American Family Insurance Representative Dave Hanneman, Fire Chief Chris Fredericksen, Public Works Director Mark McBride, Police Chief Greg Weitzel, Parks and Recreation Director Jackie Flowers, Idaho Falls Power Director Hollie Pettingill, Deputy City Clerk Mayor Casper called the meeting to order at 3:30 p.m. with some brief announcements. She distributed information regarding the Hydro Heritage Event. She stated a grant for obtaining bullet-proof vests for the Police Department was received. Idaho Falls was selected to be the first location for the traveling Humanities Council Waterworks display, recognizing Councilmember Marohn’s leadership with this presentation. Mayor Casper distributed written testimonies regarding the upcoming public hearing for the budget. She also explained the process for the fore-mentioned public hearing. Councilmember Lehto stated the benefits rate did not increase as previously anticipated and turned the meeting to Director Marsh and Mr. Argyle for further explanation of agenda item: Discussion of Employee Health Insurance Plan - Director Marsh stated there will be a 4% increase with employees absorbing the costs. Mr. Argyle explained the One Way Retention Plan with Blue Cross regarding quarterly reporting and rates associated with those reports. The lower rate required a change with prescription drugs to a 30-day supply and the Blue Cross formulary. The prescription drug change would be effective April 1, 2016. Mr. Argyle does not anticipate any issues with this change. The rate adjustment also adjusted the employee premiums, stating the 3% Cost of Living Adjustment (COLA) will cover the premiums for the majority of employees. Brief discussion was held regarding the COLA and increase of benefits. Councilmember Parry stated she is not in favor of the 3% COLA. Councilmember Lehto stated it would be disingenuous to reduce the 3% COLA at this point. The benefit rate increase will be effective October 1, 2015. Mr. Argyle stated the City benefits, although not considered a ‘Cadillac Plan’, are one of the best plans. Mayor Casper stated the benefits package is an attractive feature for employment but did not want the benefits package to be the only factor for obtaining quality employees. 1  SEPTEMBER 3, 2015 Councilmember Lehto moved to agenda item: Discussion of 1) General Fund Spending; 2) Fund Balance; 3) Fee Increases; 4) Consideration of Compensation. Councilmember Smith stated the Council has received several public comments with regard to bike pathways and noted those community members are willing to have tax increases to have such services provided. Councilmember Lehto stated he has also received comments from the community regarding the bike pathways and believes the Council will hear several comments at the public hearing. He stated the Parks and Recreation Department receives several grants to assist with the pathways. Councilmember Smith stated the Fund Balance will not recover in one year and believes the City needs to strive to increase that balance as it is too low and too dangerous. Councilmember Smith is opposed to the 3% COLA across the board, stating those employees on the lower end of the pay scale cannot afford the benefit increase. He prefers to have a dollar increase rather than a percent increase. Director Marsh stated a dollar increase would create challenges with the step and grade process as well as the higher- paid employees. Councilmember Lehto believes future discussion should include the distribution of COLAs. Councilmember Marohn stated employee evaluation training is currently being scheduled which could assist in determining future merit increases. Councilmember Hally would like to see the City move toward a ‘range’ versus a ‘step’ increase and believes a range would offer incentives. He favors the 3% COLA for this year but would like future discussion of merit increases. Councilmember Ehardt is not in favor of COLAs but does agree with merit increases. Director Rockwood stated the 10-year average COLA is 1.87%. Councilmember Parry distributed information regarding the proposed 3% tax increase stating the valuation will change as the County information changes. She believes the tax increase will mostly affect those homeowners with valuation of $175,000 or less and business owners. Brief discussion followed. Councilmember Lehto stated the tax increase will have an effect on all citizens. Brief discussion was held regarding the protocol of the public hearing, stating it will be for public comments only and no discussion or dialogue from the Council. Mayor Casper reminded the Council of future meetings with regard to approving the budget. There being no further business it was moved by Councilmember Hally, seconded by Councilmember Marohn, that the meeting adjourn at 4:53 p.m. CITY CLERK MAYOR 2