City Council

July 18, 2017 Budget Session The City Council of the City of Idaho Falls met in Special Council Meeting (Council Budget Session), Monday, July 18, 2017, at the City Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:00 p.m. There were present: Mayor Rebecca L. Noah Casper Councilmember Michelle Ziel-Dingman Councilmember David M. Smith (by telephone) Councilmember Ed Marohn Councilmember Barbara Ehardt Councilmember Thomas Hally Councilmember John B. Radford Also present: Pamela Alexander, Municipal Services Director Mark Hagedorn, Controller Kenny McOmber, Treasurer Derick Sorensen, Accountant Greg Weitzel, Parks and Recreation Director David Pennock, Idaho Falls Zoo Superintendent Dave Hanneman, Fire Chief Chris Fredericksen, Public Works Director Brad Cramer, Community Development Services Director Randy Fife, City Attorney Kerry Hammon, Public Information Officer Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:00 p.m. with the following: Opening Remarks: Mayor Casper announced Councilmember Smith is attending the meeting by phone as he is attending American Public Power Association (APPA) in Washington, DC. Councilmember Marohn reminded the Council that the tentative budget will be approved on July 27, 2017 to allow for adequate publications prior to the public hearing scheduled for August 17, 2017. Parks and Recreation: Director Weitzel stated this is his sixth year as the Parks and Recreation (P&R) Director. He stated Revenues = $1,769,667 while Expenditures = ($75,232). He reviewed the P&R Mission Statement as well as the five (5) divisions with the P&R Department as: Administration; Parks and Cemeteries Maintenance; Recreation Division; Municipal Golf; and, Idaho Falls Zoo. Director Weitzel reviewed major FY2016/17 accomplishments, including the east and west side Snake River Greenbelt Parkway redesign, record attendance at the Idaho Falls Zoo, completion of Tautphaus Park and Heritage Park Master Plans; hosting of Montana and Idaho Parks and Recreation Conference; several park projects; improvements to the Aquatic Center and Ice Arena; Signage and Wayfinding; and, Farmers Market relocation to Memorial Drive. He reviewed the number of staff and volunteers, stating the estimated value of volunteers to the City = $1,157,000. Director Weitzel stated the P&R Department represents 4.58% of all City budget expenditures, and 19% of all General Fund expenditures. He also stated the P&R Department will recover 61% (approximately $7.7m) of revenues from user fees, grants and donations, which is an increase of 13% (approximately $2m) from the previous year. Director Weitzel stated fee increases will be proposed for the Municipal Golf Courses, Cemeteries, Idaho Falls Zoo, and Recreation Divisions. 1  July 18, 2017 Budget Session Department Overview Funding Sources 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $5,983,848 $7,753,515 $1,769,667 Director Weitzel stated the majority of increase is due to grants and donations. Department Overview Expenditures 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $12,707,520 $12,632,288 ($75,232) Administrative Division Expenditures 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $429,322 $744,207 $314,885 Director Weitzel stated the increase is due to an unnecessary Inter-fund transfer within the department. Idaho Falls Zoo Expenditures 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $1,769,179 $1,781,591 $12,412 Golf Division Expenditures 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $2,602,503 $2,558,171 ($44,332) Director Weitzel stated revenues for 2017/18 are projected at $2,642,200, which is $84,029 in revenues over expenditures. Recreation Division – includes West Deist Aquatic Center, Joe Marmo/Wayne Lehto Ice Arena, the Recreation Center, the Activity Center, athletic leagues, programs, and special events. Expenditures 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $1,987,292 $1,946,988 ($40,304) Parks Division – includes Parks Maintenance, Horticulture and Urban Forestry, Weed and Environmental Control, Irrigation Management, and cemeteries. Expenditures 2016/17 Budget 2017/18 Proposed Budget Increase or Decrease Total $5,924,224 $5,601,331 ($322,893) Director Weitzel stated the majority of increase in operational expenses are due to repair and maintenance of buildings and maintenance work order transfers. Director Weitzel reviewed the Capital Improvement Plan (CIP). The CIP is a five to ten year plan identifying capital projects, providing a planning schedule, and identifying options for financing. CIP projects are separated by department divisions and facilities with estimated expense for priority projects identified by each year. Priorities: One-time Cost Ongoing Cost 1. Approve funding to develop Phase One of the Heritage Park $2,200,000 $60,000 upon Master Plan $1,200,000 in 100% completion anticipated grants and donations Discussion followed regarding electrical line bury and relocation for Heritage Park Phase I Development. It was noted this request was also included in the Idaho Falls Power (IFP) budget. Director Alexander indicated follow-up discussion with IFP and P&R will occur for clarification. Additional brief discussion followed regarding Heritage Park Development. 2  July 18, 2017 Budget Session 2. Approve funding to develop Zoo Education Center $1,000,000 Maintenance fund $850,000 in in place anticipated grants and donations Director Weitzel stated approximately $100,000 of the Perpetual Capital Improvement Fund (PCIF), which collects $1 Zoo surcharges, along with $100,000 in the Tautphaus Park Zoological Society (TPZS) Maintenance Fund, has been dedicated to be used for the Maeck Education Center. Mr. Pennock stated the location for the education center is top priority and indicated discussion is occurring to transfer/purchase the Bonneville County 4H property. He believes this is a critical decision for the zoo. Director Weitzel requested Council make a decision regarding the 4H property/911 Dispatch Center in the next few months so the zoo will have a direction to proceed. He expressed his appreciation to the Maeck family and the TPZS. 3. Approve funding to begin Phase One Tautphaus Park Master $1,420,000 $5,101 per acre Plan Director Weitzel stated one of the greatest challenges in Tautphaus Park is the confusing circulation system and lack of parking. He indicated the engineering and construction administration will be provided by the Public Works Department. 4. Approve funding request for playground replacement program $75,000 None $25,000 in anticipated donations Director Weitzel stated the City has 24 playgrounds. He recognized the Idaho Falls Civitans who have agreed to donate $25,000 for the playground replacement program. The goal is to replace one (1) playground per year. 5. Transfer 50% of cemetery fees (approximately $50,000 annually) $50,000 $50,000 to Parks Capital Improvement Fund for cemetery capital improvements Director Weitzel stated several hundred thousand dollars will be needed to upgrade the City cemeteries as improvements are much needed. He indicated approximately $100,000-$120,000 in revenues will be collected from the two (2) cemeteries. Brief discussion followed regarding allocation of cemetery fees and the PCIF. At the request of Mayor Casper, Mr. Sorensen briefly explained the allocations of fees. Director Alexander stated any transfer request of cemetery revenue to the PCIF will be allocated from the General Fund. Director Weitzel indicated the General Fund has previously subsidized the cemetery. 6. Approve one (1) Full-time employee (FTE) Weed and $30,388 + $19,323 $91,276 Environmental Control Specialist and one (1) part-time Public Benefits = $49,711 Information Officer $34,219 + $7,346 Benefits = $41,565 Director Weitzel reviewed acres maintained per the number of employees. He believes the salary scale for seasonal employees may need to be evaluated as the number of applications for seasonal employees has decreased. 7. Approve Funding for Priority Trail Development $150,000 Director Weitzel stated P&R will be applying for a $500,000 Transportation Alternative Program (TAP) grant in the near future. The TAP Grant = $465,000 in Federal grant, and $35,000 in City match. Total CIP requests = $8,610,000. Budget priorities are not included in the CIP requests. He believes these requests should be completed one project at a time. Director Wetizel stated in order to be certified for the Commission for Accreditation of Park and Recreation Agencies CAPRA Accredited, a Comprehensive Parks and Recreation System Master Plan would need to be completed. This plan would include a Facility Needs Assessment, with input from community members for priorities and funding. Brief discussion followed regarding accreditation. 3  July 18, 2017 Budget Session 2017-18 Fees: Director Alexander briefly reviewed proposed fees for Municipal Services including those related to Child Care, and Civic Auditorium. She stated the fee for delinquent utility accounts will remain. Discussion is occurring regarding short-term suspension for utilities to accommodate those residents who travel south for the winter months. Director Alexander stated this particular item will be discussed at a future Work Session. At the request of Mayor Casper the following directors appeared to briefly reviewed proposed fees: Chief Hanneman stated the proposed Ambulance fees will be increasing 5% to cover cost of medications. There are no other proposed increases. Director Fredericksen stated the proposed Public Works fees include County landfill, rental fees, water and sewer service, and wastewater service connection. Director Cramer stated proposed Community Development Services fees include violations for Code Enforcement. There are no proposed changes to permits and applications. Director Weitzel stated proposed Parks and Recreation fee increases include seasonal golf passes and golf cart rentals, cemetery burial and disinterment, zoo rental, and recreation. Councilmember Dingman requested clarification of Ice Arena, Recreation Center, and Aquatic Center admission fees. Other Budget Matters: Mr. Hagedorn stated due to an error in the calculation system for FTEs, previous Fire and Police Department increases for wages and benefits were incorrect. He indicated after review of the Firefighters Union contract, there was a decrease to the Fire Department. The Police Department also decreased by approximately $150,000. Councilmember Marohn stated the Enterprise Fund and Capital Improvement Fund (CIF) are balanced. Special Revenues Fund is also balanced due to surplus revenue. Additional expenditures should not occur within these funds, although additional revenue may occur. He stated the total requested budget amounts to $204m, compared to $195m in the previous year. Mr. Hagedorn stated approximately $150-$160m is estimated to be spent within the current budget before the end of the current fiscal year. He also stated the City is very conservative when funding revenues. Councilmember Hally stated the General Fund balance tends to fluctuate. He briefly reviewed several accomplishments the City has completed over the previous several years. At the request of Councilmember Smith, Mr. Hagedorn stated projected fund balance is currently being reviewed and will be presented at the July 24 Work Session. Councilmember Marohn requested all Department Directors review their operational expenses. He also requested review from the Department liaisons for any savings in the operational budget related to the General Fund. He believes cash reserves, which are available, should not be used to balance the budget. Councilmember Marohn stated a 3% levy increase will amount to approximately $900k-$1m, and new growth will amount to approximately $500k. He believes the levy is needed for future reserves. Councilmember Radford stated if the 3% levy increase is utilized, the City would be eligible to request foregone monies, in the amount of approximately $6.2m, although he believes the foregone concept is bad governance. He suggested taking the foregone in incremental amounts for future planning for business and property owners. Brief discussion followed. Councilmember Hally believes by not taking the 3% levy, this is kicking the can down the road for future debt. Mr. Hagedorn stated operating expense has increased $3m over the course of two (2) years. This is the highest increase of all categories. Operating expenses do not include wages and benefits, Municipal Equipment Replacement Fund (MERF), and capital expenses. He indicated capital expenses, less than $10,000, have been reallocated. Director Alexander briefly reviewed the Budget Session calendar for July 25 and July 26. She reiterated the tentative budget, which sets the ceiling amount, is scheduled to be approved at the July 27, 2017 Council Meeting. Mr. Hagedorn stated, per discussion with Bonneville County, property tax information will not be available until August 1, per State mandate. Therefore, property tax valuations will be unknown prior to approving the tentative 4  July 18, 2017 Budget Session budget. He stated the valuation allows the City to compute the levy rate as the City certifies whole dollars. The State determines the maximum levy amount at 3% increase of the previous year amount certified. Director Alexander briefly reviewed State statutes related to the budget calendar. Councilmember Marohn stated the final budget will be approved at the August 24, 2017 Council Meeting. There being no further business, the meeting adjourned at 6:00 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 5