City Council

JULY 18, 2016 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Budget Session), Monday, July 18, 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 Ed Marohn Councilmember Michelle Ziel-Dingman Councilmember Barbara Ehardt Councilmember Thomas Hally Councilmember John B. Radford (arrived at 8:06) Councilmember David M. Smith Also present: Pam Alexander, Municipal Services Director Mark Hagedorn, Controller Kenny McOmber, Treasurer Kami Morrison, Executive Assistant to the Mayor Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 8:00 with the following: Opening Remarks/Announcements: Mayor Casper recently attended consent-based siting meeting conducted by Department of Energy (DOE) in Boise. Councilmember Smith, along with Idaho Falls Power Assistant Director Bear Prairie, recently attended American Public Power Association (APPA) in Washington, DC, and was able to meet with members of Congress from the western states regarding Bonneville Power Administration (BPA) rates. Mayor Casper indicated additional time may be required for budget discussion. After brief discussion, it was decided an additional Budget Work Session will be scheduled for Tuesday, July 26, 3:30-6:30 pm. In order to use allotted time wisely, it was moved by Councilmember Marohn, seconded by Councilmember Hally, to modify the agenda to move Mayor and City Council Budget Presentations prior to Legal Services Presentation, which motion passed following a unanimous vote. Mayor: Director Alexander and Ms. Morrison presented the following information with general discussion throughout: Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $330,529 $352,806 $22,277 Operational Expenses $26,004 $159,377 $133,373 Capital Outlay $8,000 $2,000 ($6,000) MERF Contribution $3,600 $2,400 ($1,200) Debt Service $0 $0 $0 Inter-Fund Transfers ($205,703) ($275,189) $69,486 Total $162,430 $241,394 $78,964 1  JULY 18, 2016 Director Alexander stated the MERF (Municipal Equipment Replacement Fund) Contribution has been reduced due to the newer vehicle assigned to Mayor Casper. There is also a shared vehicle between the Human Resources (HR) Department and the Public Information Officer (PIO). The increase in wages is due to a previous partial year of the Economic Development Coordinator. Operational Expense increases include the transfer of non-departmental funds. Priorities- all governance goals. 1. Integrate non-departmental funds into appropriate Departments and accounts. 2. Provide City representation at conferences, meetings, seminars, etc. 3. Encourage training and educational opportunities for personnel development. All priorities fall within all Department Community-Oriented Results Budget Analysis Worksheet was reviewed including brief discussion regarding Sister Cities organization, and Economic Development allocations as a base for REDI (Regional Economic Development Eastern Idaho). General discussion of REDI followed including the benefits of REDI’s ability to market eastern Idaho for attracting businesses. Mayor Casper indicated the City’s Economic Development Coordinator, Dana Briggs, relies on REDI for City marketing aspect. Legal Services: Mr. Fife stated there are no funding sources for Legal Services as the department serves as a support department for the City. Proposed FY2016/17 Budget = $300,000 received from Inter-Governmental. Mr. Fife presented the following information with general discussion throughout: Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $607,714 $656,001 $48,287 Operational Expenses $45,243 $445,719 ($400,476) Capital Outlay $1000 $0 ($1000) MERF Contribution $0 $0 $0 Debt Service $0 $0 $0 Inter-Fund Transfers ($219,550) ($238,495) ($20,180) Total $434,407 $861,989 $427,582 Mr. Fife stated he has worked with HR regarding salaries with the proposal to place the attorneys into the step and grade calculations, which would be comparable to their current wages/job descriptions. Brief discussion followed. He indicated benefits increased as well to reflect actual costs. The increase in wages affects six (6) of the total seven (7) staff in Legal Services. He stated the costs for the courts system is the City’s share of court services, including processing of criminal matters and infractions. Mr. Fife recognized the three (3) attorneys for their hard work and highest standards of integrity. It was noted the Legal Services Citizen Review Committee (CRC) report will be presented to Council later in the year. City Council: Director Alexander reviewed the Council Budget, stating the Council is a support function as there are no funding sources. She presented the following information with general discussion throughout: Expenditures 2015/16 Approved 2016/17 Department Increase or Budget Requested Budget Decrease Wages and Benefits $149,366 $964,365 $814,999 Operational Expenses $15,915 $3,355,873 $3,339,958 2  JULY 18, 2016 Capital Outlay $0 $0 $0 MERF Contribution $0 $0 $0 Debt Service $0 $0 $0 Inter-Fund Transfers $(88,809) $(81,419) $7,390 Total $76,472 $4,238,819 $4,162,347 Director Alexander indicated the Wages and Benefits increase is due to an Ordinance passage in August, 2015, as well as a placeholder (previously in non-departmental funds) for any inflation increase, Fire Union Negotiations, and, Health Insurance and Benefits changes. Director Alexander stated Department Director compensation discussion has been occurring with HR regarding potential adjustment per professional market value/pay performance. Mayor Casper believes the Department Directors are an asset to the City and prefers a regular compensation strategy available to Directors to avoid unexpected turn-over. Director Alexander stated the addition of City-wide Dues/Subscriptions was previously located in non-departmental. She stated the $3million encumbrances, previously located in non-departmental, allows the spending authority for projects already in process. Municipal Services has requested an additional $2million encumbrance, from the general fund balance, for Public Works projects. Brief discussion occurred regarding the appropriate department placement of Targhee Regional Public Transportation Authority (TRPTA) funding. Community Giving: Mayor Casper reviewed the Community Support Grant process for the previous few years. She stated discussion occurred between Ms. Briggs and Lisa Farris, Grant Administrator, to follow a similar grant process. She believes tax dollars should not be used for utility bill write-offs, which had been previously occurring. Current community support allocation of $110,400, minus the approximate amount of $102,000 approved as a one-time commitment for the Airshow, leaves a balance of approximately $8,000. Total community support requested amounts = $257,899. Each request was briefly reviewed. Several entities are non-profit and rely on assistance and/or grants where possible. Discussion followed regarding eliminating or reducing community support funds. Any increase for this allocation would require additional funds from the general fund balance. It was noted there has been no reporting system from City-supported entities of previous allocation of community support grant funds. Mayor Casper recommended Council review each request for future discussion. After further brief discussion, it was moved by Councilmember Radford, seconded by Councilmember Marohn, to increase the Community Giving budgeted amount to a total amount of $177,000, with $102,000 allocated to the Airshow, as a place holder only for the FY2016/2017. Roll call as follows: Aye – Councilmembers Smith, Radford, Hally, Marohn, Nay – Councilmembers Ehardt, Dingman. Motion carried. Benefits and Wages: Director Alexander indicated the Health Insurance Benefits are anticipated to increase by 6%. Council will be required to determine the City and employee contribution. Options for consideration as follows: City Contribution Policy Option 1 $9,796,258 Shared burden Option 2 $10,265,299 Employee Recruitment/Retention City 100% Option 2 $9,984,593 50%-50% split of increase 90% City, employee 10% (revised) Option 3 $9,831,087 Long-term consumer driven Option 4 $9,726,439 Short-term consumer driven Option 5 $9,606,113 Immediate financial savings Option 5A $10,220,517 Consumer driven plan; City 93%, employee 7% Option 6 $9,673,986 Balanced 3  JULY 18, 2016 Two (2) additional options were requested by Council. Employee PPO (monthly *) Employee HSA (monthly *) Policy Option 1 $78.70-$260.75 $7.17-$74.56 Shared burden Option 2 $41.00-$154.00 $0-$52.52 Employee Recruitment/Retention Option 2 $57.10-$203.46 $14.34-$96.59 50%-50% split (revised) Option 3 $94.71-$303.16 $0-$52.52 Long-term consumer driven Option 4 $86.61-$280.18 $0-$52.52 Short-term consumer driven Option 5 $73.20-$252.91 $ -- Immediate financial savings Option 5A $-- $28.68-$140.66 Consumer driven plan; City 93%, employee 7% Option 6 $76.40-$258.47 $18.64-$109.81 Balanced *Ranges estimated based on plan selection Councilmember Dingman indicated she prefers Option 2, revised, as it shares the burden of increased costs. Councilmember Smith concurred. Councilmember Ehardt is also leaning toward Option 2 revised. Mayor Casper prefers a plan that would encourage additional employees to enroll in the HSA (Health Saving Account) plan. Councilmember Hally prefers Option 3 as it includes elements of consumer-driven and would ease the burden of PPO (Preferred Provider Organization). Follow-up discussion of Option 2, revised, will occur at the July 19, Council Budget Session. There being no further business, it was moved by Councilmember Dingman, seconded by Councilmember Marohn, that the meeting adjourn at 11:05 a.m., which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 4