City Council

JULY 7, 2016 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Budget Session), Thursday, July 7, 2016, at the City Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 10:00 a.m. There were present: Mayor Rebecca L. Noah Casper Councilmember Michelle Ziel-Dingman Councilmember David M. Smith Councilmember Ed Marohn Councilmember Barbara Ehardt Councilmember Thomas Hally Councilmember John B. Radford Also present: Pam Alexander, Municipal Services Director Mark Hagedorn, Controller Kenny McOmber, Treasurer Jackie Flowers, Idaho Falls Power Director Stacy Scott, Accountant II Craig Davis, Airport Director Chris Fredericksen, Public Works Director Dave Hanneman, Fire Chief Robert Wright, Library Director Hal Peterson, Library Chair Brad Cramer, Community Development Services Director Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 10:02 with the following: Opening Remarks: Mayor Casper briefly reviewed the agenda and expressed her appreciation for the presentations to this point. She then turned the meeting to department presentations. Idaho Falls Power: Director Flowers presented the following information with general discussion throughout: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Charges for Services $ 47,714,248 $ 45,306,170 $ (2,408,078) Property and Franchise Taxes State Shared Revenues Inter-Governmental $ 2,711,000 $ 2,626,045 $ (84,955) Payment In-Lieu of Taxes Grants Miscellaneous $ 120,500 $ 308,500 $ 188,000 Total $ 50,545,748 $ 48,240,715 $ (2,305,033) Director Flowers believes the reduction in revenue, approximately 5% decrease, is due to customers becoming more energy efficiency as well as bringing bulb turbines back to load. She stated the IFP budget is based on worse- 1  JULY 7, 2016 case scenarios to eliminate re-opening the budget during mid-year. Fiber revenues and expenses are included in the Electric Fund Budget although they will be separated in the future. Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $8,629,786 $8,792,631 $162,845 Operational Expenses $39,995,309 $38,412,425 $(1,582,884) Capital Outlay $15,606,000 $5,574,000 $(10,032,000) MERF Contribution $389,200 $305,800 $(83,400) Debt Service $0 $0 $0 Inter-Fund Transfers (In-lieu of tax) $3,519,210 $3,477,333 $(41,877) Total $68,139,505 $56,562,189 $(11,577,316) Director Flowers stated expenses have been reduced by approximately 17%, largely due to capital projects. Rate Review: Cost of Service Model Cost Current FY2016 FY 2017 Budget Power Cost Adjustment (PCA) $0 -.043 Cents per kwh $0 Residential & Temporary Service $19.90 per month $15.00 per month $16.00 per month Charge Commercial Demand $8.21 per KW $6.25 per KW $7.25 per KW Industrial Demand $7.04 per KW $6.50 per KW $7.00 per KW Projected Revenue: $2,863,214 Director Flowers briefly reviewed sums and forecast sums of Operating Expense, Salaries and Benefits, Capital Outlay, and MERF (Municipal Equipment Replacement Fund) Depreciation. Budget Priorities: Priority One-Time Cost Ongoing Cost 1. Rate Adjustment $0 $0 2. Capital Investment $4,987,800 $0 3. Enhanced System Integration $742,000 $40,000 4. Power Supply Scheduling Enhancements $300,000 $0 5. Fiber Optic Network Expansion of Service $50,000 $0 Department Community-Oriented results as follows: Rate Adjustment – Reliable Public Infrastructure and Effective Transportation and Mobility Capital Investment – Strong, Stable, and Healthy Economic Growth and Vibrancy; Reliable Public Infrastructure and Effective Transportation and Mobility; and, Safe and Secure Community Enhanced System Integration – Reliable Public Infrastructure and Effective Transportation and Mobility Power Supply Scheduling Enhancements – Reliable Public Infrastructure and Effective Transportation and Mobility Fiber Optic Network Expansion of Service – Strong, Stable, and Healthy Economic Growth and Vibrancy After brief discussion, it was noted all budget priorities could fall under Environmental Sustainability and Resource Preservation as well. Idaho Falls Airport: Director Davis stated the motto of the Idaho Falls Airport is “To serve the traveling public by providing and maintaining a safe, secure and efficient airport operating environment” which is accomplished by balancing airport operations between providing a public service and a business enterprise, competing forces between National Policy, 2  JULY 7, 2016 Government Oversight, Airline Service, General Aviation, Capital Infrastructure Development and Airport and Community Needs. He presented the following information with general discussion throughout: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Charges for Services $2,765,437 $2,762,737 $-2,700 Property and Franchise Taxes $0 $0 $0 State Shared Revenues $0 $0 $0 Inter-Governmental $0 $0 $0 Payment In-Lieu of Taxes $0 $0 $0 Grants $3,549,750 $5,053,750 $+1,504,000 Miscellaneous $0 $0 $0 Total $6,315,187 $7,816,487 $+1,501,300 Director Davis stated the proposed grant increases will be used for Capital Improvement Projects which include: Modify/Rehabilitate Terminal North (Design), Rehabilitate Taxiway A and C (Design), Planning Study - Runway 17-35, and to acquire Land/Easements. Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $1,060,378 $1,112,335 $+51,957 Operational Expenses $1,761,645 $1,758,785 $-2,860 Capital Outlay $4,258,760 $6,246,850 $+1,988,090 MERF Contribution $24,300 $25,800 $+1,500 Debt Service $0 $0 $0 Inter-Fund Transfers (In-lieu of tax) $0 $0 $0 Total $7,105,083 $9,143,770 $+2,038,687 Director Davis stated decreases in Operational Expenses are due to multiple recognized efficiencies, including repair of outdated building systems. Capital Outlay increase is due to potential FAA grant monies received as well as carryover of funds from current fiscal year, which is necessary to apply for FAA grant funding. Current Airport reserves total approximately $3,400,000. Director Davis briefly reviewed Capital Improvement Plan projects through Fiscal Year 2022. Budget Priorities: Priority One-Time Cost Ongoing Cost 1. 2016/17 Capital Improvement Projects – Rehab Taxiway A&C $310,546 $0 and Magnetic Variance Change Runway 2/20 2. New Employee Request – Airport Administration Manager $0 $55,000 + Benefits 3. New Employee Request – Ground Operations Specialist $0 $39,520 + Benefits 4. Expanded Aircraft Rescue and Firefighting (ARFF) Service $0 $100,000 Coverage - 24 hours/day Department Community-Oriented results as follows: 1. The Airport is an economic driver – Strong, Stable, and Healthy Economic Growth and Vibrancy 2. Maintain the highest level of Safety and Security for the traveling public – Reliable Public Infrastructure and Effective Transportation and Mobility; and, Safe and Secure Community 3. Systematically Improve Facility Infrastructure – Manage, Well-planned Growth and Development 4. Balance the role of operating the Airport between a public service and business enterprise = financially self-sustaining – Strong, Stable, and Healthy Economic Growth and Vibrancy; Reliable Public Infrastructure and Effective Transportation and Mobility; Safe and Secure Community; and Manage, Well-planned Growth and Development 3  JULY 7, 2016 Public Works: Director Fredericksen stated Public Works Department includes both General Fund and Enterprise Fund expenditures. He indicated payment in lieu of taxes are established at 5% actual revenue from the three (3) divisions within the Enterprise Fund; Sanitation, Wastewater, and Water. Budget Priorities: Priority One-Time Cost Ongoing Cost 1. Street Division Funding Shortfall (Franchise Fees) $0 $90,000 2. Increased Funding for Street Maintenance $0 $3,000,000 3. 17th St & Hitt Road Intersection Improvements $1,800,000 $0 4. Water Facility Plan Implementation $0 $125,000 (2 - Employees-Rate Reclassification-5% Increase) 2 New Staff 5. Wastewater Treatment Plant Improvements $12,000,000 $0 Department Community-Oriented results as follows: Director Fredericksen believes all priorities fall into every category with Community-Oriented Results. He is requesting Franchise Fees be allocated to the Street Fund, versus the current allocation to the General Fund, due to the direct Right-of-Way impact. He stated there is a continual annual shortfall with Street Maintenance and briefly reviewed the anticipated maintenance costs. He indicated discussion regarding the 17th Street and Hitt Road intersection project is continuing with the City of Ammon, the requested amount is the City portion to continue the Capital Improvement Project. Brief discussion followed. 2016-2017 Proposed Public Works Budget with general discussion throughout: 2015-2016 2016-2017 % Change Expenditure Expenditure Revenue Expenditure Revenue Public Works $454,727 $491,000 108% GIS $151,100 $153,200 101% Street Administration $525,000 $525,000 100% Engineering $1,505,321 $1,480,500 98% Sanitation $5,021,619 $3,856,000 $4,944,400 $3,860,000 98% Sewer $24,938,140 $9,795,000 $23,901,300 $9,700,000 96% Street $5,697,738 $4,895,000 $6,110,185 $5,657,000 107% Water $9,390,154 $8,460,000 $10,193,500 $8,700,000 109% $47,683,799 $27,006,000 $47,799,085 $27,917,000 100% Sanitary Sewer Capital Improvement $650,000 $140,500 $650,000 $155,000 100% Municipal Capital Improvement $0 $718,711 $500,000 $740,000 - Street Capital Improvement $4,050,000 $2,240,000 $4,500,000 $2,150,000 111% Bridge & Arterial Street $220,000 $100,000 $220,000 $110,000 100% Water Capital Improvement $1,200,000 $180,500 $1,200,000 $270,000 100% Surface Drain Improvement $60,000 $12,000 $60,000 $12,000 100% Traffic Light Capital Improvement $823,000 $436,500 $925,000 $875,000 112% $7,003,000 $3,828,211 $8,055,000 $4,312,000 115% Total: $54,686,799 $30,834,211 $55,854,085 $32,229,000 102% 4  JULY 7, 2016 Further discussion followed regarding the possibility of a levy for street maintenance. Mr. Hagedorn stated, as previous practice, a portion of any levy increase to the General Fund was then transferred to the Street Fund. Unlike the General Fund, there would be no cap limit to establish a street levy. This potential new levy would lower the General Fund rate and would allow the City to proceed with a future street plan. Fire Department: Chief Hanneman stated the Fire Department budget consists of General Fund and Ambulance Fund. He presented the following information with general discussion throughout: Budget Overview General Fund: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Charges for Services $2,000 $66,625 $64,625+ Property and Franchise Taxes State Shared Revenues Inter-Governmental $1,596,000 $1,596,000 Payment In-Lieu of Taxes Grants Miscellaneous $0 $40,200 $40,200+ Total $1,702,825 $104,825+ Chief Hanneman stated the most significant revenue funding is through the Bonneville Fire District contract. Charges for Services have increased through uncollected established fees, primarily new construction fees. Miscellaneous funding includes monies received from the Bureau of Homeland Security for regional response teams. Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $8,755,397 $9,004,979 $249,582 + Operational Expenses $817,890 $754,433 $63,457 - Capital Outlay $216,726 $232,155 $15,429 + MERF Contribution $220,000 $230,000 $10,000 + Debt Service $0 $0 $0 Inter-Fund Transfers (In-lieu of tax) $412,623 $573, 844 $161,221 - Expenditure Total $50,333 + Increased Revenue $104,825 – General Fund Liability $54,492 - Chief Hanneman stated increase to Wages and Benefits includes request for additional staff. Inter-fund transfers reflect transfers from the Ambulance Fund, Idaho Falls Power, and the Airport. Department Community-Oriented Results: 1. Increase training and safety capacity of Department through Training Officer and effective training. Assist Power Department with Training and Safety. 2. Provide for a safe community through code enforcement of “Target Hazards”. 3. Provide 24/7 ARFF coverage at the Airport to increase safety and provide more effective transportation opportunities – Stable and Healthy Economic Growth and Vibrancy, Reliable Public Infrastructure and Effective Transportation and Mobility. 4. Improve Fire Insurance Rating (ISO) from 3 to 2, supporting economic growth. 5  JULY 7, 2016 Chief Hanneman believes all priorities pertain to Safe and Secure Community. He reviewed the Insurance Service Organization (ISO) rates, indicating the Idaho Falls Fire Department is currently Class 3 rating but is striving for Class 2 rating, which could reduce overall taxpayer insurance rates by approximately 10%. He stated an approval of increased staff request could raise the rating. Budget Priorities General Fund: Priority One-Time Cost Ongoing Cost 1. Training/Safety Officer position $0 $79,199 2. Fire Inspector position $0 $79,199 3. Probationary Firefigher/EMT $0 $69,820 4. Increase overtime for training $0 $100,000 Chief Hanneman indicated it is anticipated that overtime expenditures will be categorized as ‘reimbursable’, ‘training’, or ‘regular’ in the new software system. Budget Overview Ambulance Fund: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Charges for Services $ 3,019,145 $ 3,477,663 $ 458,518 + Property and Franchise Taxes State Shared Revenues Inter-Governmental $ 2,526,700 $ 2,674,678 $ 147,978 + Payment In-Lieu of Taxes Grants $10,000 $ 548,779 $ 538,779 + Miscellaneous $1,000 $ 190,000 $ 299,000 Total $6,891,720 $ 1,144,875 + Chief Hanneman stated the Bonneville County Commissioners recently approved new contract for services which supports an additional ambulance. He indicated proposed charges for services include a 3% increase in user fees. Inter-governmental includes 3% increase for the Bingham, Jefferson, and Bonneville County contracts. Grants will offset overtime use. Miscellaneous funding includes MERF reimbursement for the recent purchase of an ambulance. Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $ 3,756,128 $ 5,155,134 $1,399,006 + Operational Expenses $1,207,112 $ 1,217,807 $ 10,695 + Capital Outlay $ 453,605 $ 278,779 $ 174,826 - MERF Contribution $220,000 $230,000 $10,000 + Debt Service $0 $0 $0 Inter-Fund Transfers (In-lieu of tax) $412,623 $573, 844 $161,221 - Expenditure Total $50,333 + Increased Revenue $104,825 – General Fund Liability $54,492 - Department Community-Oriented Results: 1. Increase Safety and Security of community by providing additional in service ambulance – Safe and Secure Community 2. Collaborate with Idaho State University on Paramedic program in Idaho Falls – Safe and Secure Community 6  JULY 7, 2016 Budget Priority: Priority One-Time Cost Ongoing Cost 1. Firefighter/ EMT (5 Positions) $0 $349,101 Chief Hanneman briefly reviewed emergency medical services response times within Bonneville County and Idaho Falls areas. Budget Overview Fire Station 1: Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits Operational Expenses Capital Outlay $ 3,668,861 $ 4,183,206 $ 514,345 + FFE (Furniture, Fixtures, and Electric) $300,000 Landscaping and Change Orders $300,000 Inter-Fund Transfers Total $ 4,783,206 Idaho Falls Library: Mr. Peterson stated the Library is requesting a $200,000 increase in the Library levy. He reviewed increase of Library programs, circulation, and downloadable electronic materials. Director Wright and Mr. Peterson presented the following information with general discussion throughout: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Charges for Services $877,523 $878,123 $600 Property and Franchise Taxes $1,846,697 $2,046,697 $200,000 State Shared Revenues $97,000 $97,000 $0 Inter-Governmental $0 $0 $0 Payment In-Lieu of Taxes $0 $0 $0 Grants $41,000 $180,500 $139,500 Miscellaneous $70,300 $80,300 $10,000 Total $2,932,520 $3,282,620 $350,010 Mr. Peterson stated Miscellaneous funding includes fines received from patrons. Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $1,865,087 $1,813,386 ($51,701) Operational Expenses $1,144,798 $1,428,236 $283,438 Capital Outlay $18,828 $122,198 $103,370 MERF Contribution $1,800 $1,800 $0 Debt Service $0 $0 $0 Inter-Fund Transfers $30,000 $17,000 ($13,000) Total $3,060,513 $3,382,620 $322,107 Director Wright stated the decrease in Inter-Fund Transfers was for Information Technology (IT) support, which can be accomplished in-house. Mr. Peterson briefly reviewed sums and forecast sums of Operating Expense, Salaries and Benefits, Capital Outlay, and MERF Depreciation. Budget Priorities: Priority One-Time Cost Ongoing Cost 7  JULY 7, 2016 Meet citizen demand for electronic materials $0 $200,000 Maintain citizen demand for traditional materials $0 $650,000 Improve & maintain Library programming $25,000 $70,000 Create outdoor reading area $125,000 $0 Maintain reader’s advisory skills/ outreach / customer service training $0 $30,000 Mr. Peterson believes all priorities fit within all Department Community-Oriented Results. Mr. Peterson reviewed increases for proposed Library levy as follows: Taxable Value of Property Current tax for Library Proposed tax for Library Increase Per Year $50,000 $27.94 $33.25 $5.31 $100,000 $55.89 $66.50 $10.61 $200,000 $111.77 $133.00 $21.23 $300,000 $167.66 $199.50 $$31.84 Future Capital projects being discussed as a Library Board: -Expand Children’s Library - $100,000 -Meeting room move to basement - $1.5 million (includes updating Heating, Ventilation, Air Conditioning (HVAC) for entire building) -Carpet replacement - $70,000 -Outside reading area with public art - $250,000 Community Development Services: Director Cramer expressed his appreciation from the elected officials for support to his staff. He reviewed the budget per the three (3) scenarios requested by Mayor Casper and stated the ‘3% decrease’ would be extremely difficult and would result in decrease of staff. The ‘flat budget’ is very workable and the department could continue to operate at status quo. The ‘3% increase’ would allow planning growth. He presented the following information with general discussion throughout: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Charges for Services $698,650 $730,000 $31,350 Property and Franchise Taxes $0 $0 $0 State Shared Revenues $0 $0 $0 Inter-Governmental $0 $0 $0 Payment In-Lieu of Taxes $0 $0 $0 Grants $635,200 $690,400 $55,200 Miscellaneous $0 $40,000 $40,000 Total $1,333,850 $1,460,400 $126,550 Director Cramer indicated although Community Development Services is not an Enterprise Fund, revenues are received for several construction and construction-related fees. Revenues are expected to exceed revenue projections. Grants include scanning of documents which are currently housed at the Library. Miscellaneous funding includes reimbursement from the Redevelopment Agency. Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $1,560,802 $1,697,527 $135,725 Operational Expenses $442,297 $530,702 $88,405 Capital Outlay $360,327 $276,181 -$84,146 8  JULY 7, 2016 MERF Contribution $0 $0 $0 Debt Service $0 $0 $0 Inter-Fund Transfers $(36,750) $0 -$36,750 Total $2,326,676 $2,504,410 $177,734 Director Cramer stated expenditures include the anticipated grant as well as re-allocation of non-departmental funds for Targhee Regional Transit Public Authority (TRPTA). Professional Services are being reduced for small-scale projects. Budget Priorities: Priority One-Time Cost Ongoing Cost Dumpsters for Code Enforcement Neighborhood Cleanups $15,000 $0 Planner I Position (mid-year hire) $0 $28,317.68 (mid-year hire) $56,635 (full-year hire) Department Community-Oriented Results: 1. Dumpsters for Code Enforcement Neighborhood Cleanups – Attractive, clean, livable, and family- oriented community; Strong, stable and healthy economic growth and vibrancy; Managed, well- planned growth and development. 2. Planner I Position – Attractive, clean, livable, and family-oriented community; Strong, stable and healthy economic growth and vibrancy; Environmental sustainability and resource preservation; Managed, well-planned growth and development; Reliable public infrastructure and effective transportation and mobility; Safe and secure community. Director Cramer reviewed Code Enforcement, Long-Range Planning, and Short-Range Planning staff. Human Resources (HR): Director Alexander presented the following information with general discussion throughout: Revenue Expenditure Request Total Human Resources $0 $329,759 $92,000 $421,759 Requests/adjustments include:  $5000, American Insurance Services Annual Fee  $1,000, Drug Testing  $16,000, Employee Assistance  $26,000, Employee Costs  $92,000, HR Analyst Position  $110,000, HR Director replacement and step and grade for current staff  $20,000, City picnic/Holiday  $10,000, Civil Service testing for Fire and Police Departments – transfer from Non-Departmental Funds. Brief discussion followed regarding eliminating the Civil Service testing There being no further business, it was moved by Councilmember Radford, seconded by Councilmember Hally, to adjourn the meeting at 5:00 p.m. which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 9