City Council

JULY 8, 2016 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Budget Session), Friday, July 8, 2016, 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 Barbara Ehardt Councilmember John B. Radford Councilmember David M. Smith Councilmember Ed Marohn Councilmember Michelle Ziel-Dingman Councilmember Thomas Hally Also present: Pam Alexander, Municipal Services Director Mark Hagedorn, Controller Kenny McOmber, Treasurer Mark McBride, Police Chief Greg Weitzel, Parks and Recreation Director Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 8:00 a.m. with the following: Opening Remarks: Mayor Casper briefly reviewed the agenda and stated an updated summary report will be prepared upon completion of all Department presentations. She believes in the importance of public safety, and all resources and training should be provided for officer safety and protection. She encouraged the City leaders to be thoughtful and smart. She then turned the meeting to department presentations. Police Department: Chief McBride believes the Police Department officers continually work toward the motto/vision of “A Community Safe from Crime and Disorder”. He stated six (6) pillars recently identified include: building trust within the community; policy oversite; technology and social media; community policing for crime reduction; training and education; and, officer wellness and safety. 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 (fingerprints/reports) $12,034 $16,221 $4,187 Property and Franchise Taxes State Shared Revenues Inter-Governmental Payment In-Lieu of Taxes Grants $55,844 $125,482 $69,638 Miscellaneous $678,018 $600,749 $(77,269) Total $745,896 $742,452 $(3,444) Chief McBride stated the majority of anticipated grants are on-going. Miscellaneous funding is indicating a reduction although costs are being reallocated. Funding Sources does not include General Fund monies. 1  JULY 8, 2016 Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $12,024,452 $12,430,620 $406,168 Operational Expenses $1,284,497 $1,327,103 $42,606 Capital Outlay $444,002 $130,121 $(313,881) Municipal Equipment Replacement Fund $334,200 $370,700 $36,500 (MERF) Contribution Debt Service $0 $0 $0 Inter-Fund Transfers $672,194 $663,219 $(8,868) Total $13,414,957 $13,595,219 $180,262 Chief McBride stated total increase is due to reallocation of grants and utilities as well as anticipated overtime costs for the upcoming Airshow. It was noted Airshow expenditures are included in Council budget and should not be included in Department budgets. The increase of Wages and Benefits includes request of two (2) permanent officers to replace anticipated retirees. Capital Outlay decrease is due to allocating costs to Records Management System/Storage Area Network (SAN). MERF includes Information Technology (IT) component for equipment required in vehicles. Inter-Fund Transfers include Airport security and Fire Department dispatch services. Chief McBride briefly reviewed sums of Interfund Transfers, Operating Expense, Salaries and Benefits, Capital Outlay, and MERF Depreciation. Budget Priorities: Priority One-Time Cost Ongoing Cost 1. Staffing Retention $131,336 $131,336+ 2. SAN Expansion – digital storage $56,136.66 $3,987 3. Consultant – New Building Professional Services $150,000 4. Locker Room Remodel $67,120 Department Community-Oriented results as follows: Staffing Retention – Safe and secure community SAN –Safe and secure community; Good Governance Consultant – Good Governance; Safe and secure community; Managed, well-planned growth and development; Attractive, clean, livable and family-oriented community Locker Room – Good Governance, Safe and secure community Chief McBride briefly reviewed other requests stating additional requests are low priority or based on grant funding. Parks and Recreation: Director Weitzel stated comparison of FY2015/16 vs. FY2016/17 budget - $711,989 in revenues which reduces expenditures of $1,952,500. The Department’s operational activities are separated into: Administration, Parks Maintenance, Recreation, Idaho Falls Zoo, and Golf Divisions. He expressed his appreciation to the staff within the department. He reviewed number of volunteers and hours of donated time - estimated value of $721,000. He presented the following information with general discussion throughout: Funding Sources 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease General Fund without Capital $5,314,420 $6,084,475 $770,055 Recreation Fund $495,801 $645,801 $150,000 User Fees and Charges $1,736,995 $2,034,840 $297,845 2  JULY 8, 2016 Golf Revenues $2,585,003 $2,596,827 $11,824 Grants, Donations, Miscellaneous $717,450 $388,500 $-333,950 Recreation Fund Reserves $183,785 $0 $-183,785 Total $11,033,454 $11,745,443 $+711,989 Director Weitzel stated the Parks and Recreation Department recovers 48% of operating expenditures through User Fees and Charges. Expenditures – General Budget Overview 2015/16 Approved 2016/17 Department Increase or (includes Administration, Parks Maintenance, Budget Requested Budget Decrease Recreation, Zoo and Golf Divisions) Wages and Benefits $8,085,408 $8,275,749 $190,341 Operational Expenses $4,130,462 $4,464,797 $334,335 Capital Outlay $3,289,954 $524,900 $(2,765,054) MERF Contribution $391,300 $531,600 $140,300 Debt Service $0 $0 $0 Inter-Fund Transfers $(711,578) $(564,000) $(147,578) Total $15,185,546 $13,233,046 $(1,952,500) Director Weitzel briefly reviewed sums of Interfund Transfers, Operating Expense, Salaries and Benefits, Capital Outlay, and MERF Depreciation. Budget Priorities: Priority One-Time Cost Ongoing Cost 1. Approve Weed and Environmental Control Maintenance $38,000 $48,862 ($29,869 + Operator / 1-ton Extended Cab Truck $18,993 Benefits) 2. Approve Idaho Falls Zoo Keeper $0 $48,118 ($32,600 + $15,518 Benefits) 3. Increase percentage for the Recreation Fund levy (from 2.0057 $0 $150,000 to 2.5898) = $150,000 in additional revenue 4. Transfer Shelter Rental revenues (approx. $40k annually) to $0 $40,000 the Parks Capital Improvement Fund 5. Develop MERF for park facilities including playgrounds, TBD shelters and restroom replacements Department Community-Oriented results as follows: Director Weitzel believes all Budget Priorities fall within all categories of Department Community- Oriented Results. Brief review of budget priorities: 1. Approve Weed and Environmental Control Maintenance Operator / 1-ton Extended Cab Truck  Idaho Falls = 2,115 acres with 33 full-time employees (FTE) (64 acres per FTE)  National Standard = 12-39 acres per FTE 2. Approve Idaho Falls Zoo Keeper  Currently 6 FTE Zoo Keepers  Recent United States Department of Agriculture (USDA) and Association of Zoos and Aquariums (AZA) inspections strongly recommend additional keeper staff  License and Accreditation 3. Increase Levy for Recreation Fund  The Recreation Fund Property Tax allocation was raised from $499,000 to $515,000 in 2015. This was the first increase in more than 10 years.  Current Allocation: 2.0057% = $515,048  Request Levy Increase to 2.5898 = +$150,000 3  JULY 8, 2016  The Recreation Fund balance has decreased from just over $400K to $120K. The Recreation Fund Reserves are used as a savings account for emergencies. Without a means of recharging the fund balance, the Recreation Division will have no emergency reserves. 4. Transfer Shelter Rental revenues to the Parks Capital Improvement Fund (PCIF)  The goal of the PCIF is to develop a strategic fiscal plan to advance a sustainable capital maintenance and replacement program.  We propose that revenues from shelter rentals (approximately $40,000) be set aside for the PCIF which is currently funded through $1 Surcharges.  PCIF = $250,000 Available for 2016/17 Budget Director Weitzel indicated the priority for Capital Improvement Projects (CIP), through community requests, is to approve funding for the Priority Trail Development and Maintenance Projects. He reviewed CIP requests, with total CIP request = $4,420,000. He stated the parks system is for individual, community, environmental, and economic benefits. He reviewed 2016-17 proposed park plans. Mayor Casper stated Mayor, Council, and Legal Department budgets will be presented at the July 18, 2016, Council Budget Session as well as follow-up review and discussion of Wages and Benefits. Per Council request, Mr. Hagedorn briefly reviewed additional benefits option. Option 2, revised, calculated half of the 6% increase being incrementally absorbed by employees over the course of years with City paying 90% and employees paying 10% of Total Plan Cost. Option 5, revised, would eliminate the entire Preferred Provider Organization (PPO) plan. This option would be more expensive, in long term, to the City. Councilmember Marohn recommended the Councilmembers thoroughly review all requests. He believes growth money should be taken. Brief discussion followed regarding one-time costs versus on-going costs, it was noted that on-going cost requests may exceed any levy increase. Mayor Casper indicated monies, saved through self-insurance or MERF, may be available for the City to borrow against. Mr. Hagedorn recommended any use of such funds should only be used for capital or related one-time costs. In closing, Mayor Casper stated Relay for Life, a cancer fundraiser, is being held on July 8, 2016. There being no further business, it was moved by Councilmember Dingman, seconded by Councilmember Marohn, to adjourn the meeting at 11:05 a.m. which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 4