City Council

JULY 26, 2016 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Budget Session), Tuesday, July 26, 2016, 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 Ed Marohn Councilmember Michelle Ziel-Dingman Councilmember Barbara Ehardt Councilmember Thomas Hally Councilmember John B. Radford (by phone, arrived at 5:53) Councilmember David M. Smith Also present: Pam Alexander, Municipal Services Director Mark Hagedorn, Controller Kenny McOmber, Treasurer Dave Hanneman, Fire Chief Chris Fredericksen, Public Works Director Kerry Hammon, Public Information Officer Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:35 p.m. with the following: Opening Remarks/Announcements: Mayor Casper stated over the previous two (2) years it has been good practice to adopt the fee resolution at the same time as budget approval. The fee resolution process involves a public hearing, which contain different parameters than the public hearing for the budget process. Due to unforeseen circumstances, the public hearing for fee increases will require a special meeting. After brief discussion, it was decided to hold a special meeting on August 18, 2016, for the public hearing related to the proposed fee increases. This special meeting will then allow the fee resolution and the budget approval to simultaneously occur at the August 22, 2016, Work Session. Follow-up Discussion of Proposed Fiscal Year 2016/2017 Budget: Councilmember Marohn believes the Council has reached a point for tentative approval of the proposed budget at the July 28, 2016, Council Meeting. The tentative approval requires two (2) publications prior to the final approval, which is scheduled for the August 22, 2016, Council Work Session. The approved budget ordinance will then be submitted to the Secretary of State by the August 31, 2016, deadline. He stated the tentative budget will determine a maximum cap amount, which cannot be increased. Councilmember Marohn reviewed the FY2015/2016 budget in comparison to the FY2016/2017 requested budget items, stating all requested items would require allocation of foregone money, which is not a realistic option. He indicated the Enterprise Fund is balanced due to the fee-based revenue stream. He reviewed the General Fund amounts, with recommendation to allocate $3 million into the Street Fund. Other requests, totaling approximately $1.4 million, would require the 3% levy increase, annexation and growth money, and cash reserves. He stated, due to property valuation increases, any levy less than 3% would decrease the revenue to the General Fund. Mr. Hagedorn reviewed the homeowner values as follows: 1  JULY 26, 2016 Net Taxable Market Value: 3,089,953,275 Current Property Tax Dollars: $28,766,486 Current Levy Rate: 0.009561859 Current Foregone: $6,749,150 Amount that can be Levied: $36,821,799 Levy % Levy Rate Tax Increase Tax Dollars % Tax Dollar Foregone $ Change Increase (Decrease) Increase Amount per 100K Current year dollars -2.637% 0.009309683 $0 $28,766,486 0.000% $8,055,313 (25.22) Current year levy 0.000% 0.009561859 $799,212 $29,545,698 2.709% $7,276,101 0.00 3% Statutory 0.284% 0.009588974 $862,995 $29,629,481 3.000% $7,192,318 2.71 allowable increase Keep Foregone the 1.784% 0.009732396 $1,306,163 $30,072,649 4.541% $6,749,150 17.05 same Mr. Hagedorn stated due to the increased homeowner value, some homeowners will actually pay less tax. Councilmember Marohn reviewed additional options regarding levy rates, growth and annexation, and foregone amounts. He believes the City should always take growth and annexation money. He stated the 3% levy increase will assist with the budget without utilizing a large amount of General Fund reserves. Best practice has been to retain 25% of reserves in the General Fund, Association of Idaho’s (AIC) recommendation is to retain 17% of reserves. General Fund requests recommended for approval, in the amount of $1,427,522, were reviewed as follows with general discussion throughout: Council –  Encumbrances, $2,000,000 Municipal Services –  Building Improvement Fund Seed Money, $100,000 (on-going fund) Community Development –  Adjust Planning Clerk Wages, $28,350  Dumpster, $15,000 (one-time cost) Human Resources –  Human Resources Analyst, $92,000 Police –  Building Consultant, $150,000 (not to exceed authority)  Driving Simulator, $4,370 (mostly funded by grant)  Locker Room Remodel, $67,120 (allocated over five (5) years, $13,424 each year)  Ammo Disposal Trailer, $30,000 (anticipated grant)  SANS (Storage Area Network System), $56,136 (top priority) Fire –  Training Officer, $79,199 (collaboration with Idaho Falls Power)  Fire Inspector, $79,199 (funded by Fire Prevention fees)  Fire Fighter/EMT, $69,820 (Airport)  New Firefighter PPE (Personal Protective Equipment), $39,000 (operating budget)  Electric & Airport Contribution, (($168,652) – revenue will offset) Zoo –  Zoo Keeper, $48,118 (to maintain AZA (Association of Zoos & Aquariums) Accreditation) Weed & Snow –  Weeds & Environmental Control Specialist, $48,862 2  JULY 26, 2016  4 X 4 Pick-Up Truck, $38,000 After further brief discussion, it was consensus of the Council to fund a partial year of the Human Resources Analyst in the amount of $69,000, and to allow the Recreation Fund request of a scoreboard and timing system for the Aquatic Center in the amount of $35,000. These amounts modified the overall General Fund requests to a total of $1,385,826. Parks and Recreation Department Director recommendations include the following:  Installation of Park Signage & Wayfinding, $200,000 (final phase)  Idaho Canal Trail, $35,000  Taylors Crossing Bridge Painting, $25,000  East Side Bank Stabilization Restoration, $50,000  Bleachers, Roping Area, $30,000  Sealing Asphalt Parking Lots, $100,000  Seal Pathways, $145,000  Zoo, Software & Ipads for Vet/Keeper Records, $8,000  Zoo, Four (4) New Computers, $6,000  Zoo, Digital X-Ray Machine, $40,000  Zoo, Asphalt Replacement (Main Area), $20,000 Street Fund request recommended for approval:  Street Funding, $3,000,000 Street Capital Improvement Fund request recommended for approval:  Hitt Road and 17th Street Project General Fund Funding, $1,800,000 Director Fredericksen reviewed annual street expenditures and reports. He indicated there is lack of support from the State level. He is in favor of an annual street levy versus transfer of General Fund reserves. He believes the Hitt Road/17th Street intersection is the most important project as discussion has been occurring for several years. He stated the public will recognize the immediate benefit of this project. Airport Fund requests recommended for approval:  Airport Administration Manager, $75,000  Grounds Specialist, $57,250 Ambulance Fund request recommended for approval:  5 Fire Fighters/EMT’s, $349,100 Further general discussion followed. Mr. Hagedorn stated by taking the 3% levy increase, annexation and growth, and $1.8 million transfer from the General Fund, the proposed budget would amount to $195,194,467, which is a 1.85% increase from FY2015/2016. It was moved by Councilmember Marohn, seconded by Councilmember Hally, to tentatively set the budget at $195,194,467. Roll call as follows: Aye – Councilmembers Dingman, Radford, Marohn, Smith, Hally. Nay – Councilmember Ehardt. Motion carried. Updated information regarding departmental requests will be distributed to the Councilmembers for future discussion. Community Support distribution discussion will be scheduled for a future Work Session. 3  JULY 26, 2016 Mayor Casper expressed her appreciation to the Council for their thorough deliberations and also to the Municipal Services Finance Team for their ability to refine and improve the budget process to deliver the expectations of transparency. There being no further business, it was moved by Councilmember Marohn, seconded by Councilmember Dingman, to adjourn the meeting at 6:47 p.m., which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 4