City Council

February 23, 2024 Budget Planning Meeting The City Council of the City of Idaho Falls met in the Budget Planning Meeting, on Friday, February 23, 2024, at the College of Eastern Idaho located at 600 S. 25th East, #306 Building 3 in Idaho Falls at 8:30 AM. Call to Order and Roll Call There were present: Mayor Rebecca L. Noah Casper Council President Lisa Burtenshaw Councilor John Radford (Joined at 8:41 AM) Councilor Michelle Ziel-Dingman Councilor Freeman Councilor Jim Francis Councilor Kirk Larsen (Joined at 8:45 AM) Also present: Dr. Rick Aman, President, CEI (College of Eastern Idaho) Dr. Lori Barber, Vice President of Academic and Student Affairs, CEI Pam Alexander, Municipal Services Director Mark Hagedorn, Finance Manager / Treasurer Margaret Wimborne, Chief of Staff Eric Grossarth, Public Information Officer Catherine Smith, Economic Development Administrator Carla Thinnes, Assistant, Mayor's Office Michael Kirkham, City Attorney Corrin Wilde, City Clerk Mayor Casper called the meeting to order at 8:30 AM with the following items: Guest Presenters - "Futuring" Presentation and Q&A, Dr. Rick Aman, President, CEI, and Dr. Lori Barber, Vice President of Academic and Student Affairs. Mayor Casper introduced Dr. Rick Aman and Dr. Lori Barber from the College of Eastern Idaho to share their insights on “Futuring” as an approach to long-term planning. Dr. Rick Aman began the presentation by comparing strategic planning and futuring. He explained that strategic planning often looks to the recent past to predict the near future, while futuring takes a longer view by considering emerging trends. Dr. Lori Barber then provided further details on the differences between the two approaches. She noted strategic planning typically has a 1–5-year horizon, while futuring looks 5-10 years ahead. Futuring also takes a more proactive stance through scenario planning and back-casting techniques. The speakers emphasized there are three potential futures for organizations: plausible, probable, and preferable. Intentional futuring allows organizations to shape their preferred future. Environmental scanning of factors like politics, technology, and demographics was highlighted as important for futuring. Rapid technology adoption rates were given as an example of how trends can quickly change industries. The speakers stressed the value of creating a culture of inquiry through open questioning. Failing fast through iterative initiatives was presented as another key futuring principle. In closing, Dr. Aman discussed how their community college practices futuring twice yearly. He highlighted predicting trends to adjust current actions and having an annual "Nostradamus Award" for accurate predictions. 1  February 23, 2024 Budget Planning Meeting City Council Members - Presentation, Consideration, and Discussion: 2024-25 City Priorities and Aspirations by City Department. Public Works: The Council Members discussed setting priorities for the Public Works Department. They considered implementing a high-capacity roadway loop around the city, addressing safety issues on county roads within city limits, developing multi-year capital project plans aligned with funding sources, making public transportation financially sustainable, building a new water department headquarters, seeking innovative recycling solutions, preparing residents for upcoming water metering through conservation education, pursuing sustainability initiatives for natural resources like water and methane recapture, and implementing trails, streetscapes, and other projects to reduce resource use and improve safety. The Council Members aimed to coordinate infrastructure projects and funding through strategic planning while improving transportation options and traffic issues. Council members discussed implementing the high-capacity roadway loop around the city. The discussion was about building a loop road to alleviate traffic congestion by providing an alternate route and reducing traffic passing through the city. The Council agreed this high-capacity roadway study and implementation should be a key infrastructure project for the public works department to pursue. The Council members highlighted two key priorities for the Public Works Department: creating a financially viable public transportation plan and ensuring the sustainable management of resources, which encompasses recycling, water, water meters, water use messaging, and streetscapes. Fire Department: Council Members engaged in a thoughtful discussion to establish clear priorities. Their considerations included Training, Fire Prevention Resources, constructing a fire training center, and establishing a Northside station. Additionally, they emphasized the importance of maintaining a 5-minute and 40-second response time citywide. The Council expressed interest in strengthening relationships with the union and explored the idea of a regional training center. Notably, their key priorities for the Fire Department are the establishment of a Regional Training Center, which could potentially include amenities shared with the Idaho Falls Police Department and the development of a comprehensive plan for the Northside Station. Police Department: The Council Members engaged in a comprehensive discussion regarding the priorities for the Police Department. Their deliberations encompassed several key areas, including patrol, community policing, and public information dissemination. They emphasized the importance of making community policing a top priority and establishing a dedicated traffic enforcement system. Additionally, they sought to expand code enforcement efforts and prioritize neighborhood policing plans. Ensuring a balanced approach between leadership/management and patrol/detectives was a central consideration. The Council Members emphasized the need to be visible and engaged within the community. Furthermore, they aimed to enhance the public perception of code enforcement, recognizing their hard work, and addressing misconceptions. Integrating parks, recreation, and public works into code enforcement and community policing initiatives was also discussed. A multi-year capital budget plan was proposed, along with addressing specific incidents related to code enforcement. Lastly, the Council Members advocated for community proactive policing, backed by measurable metrics, to effectively prevent petty crimes and respond to incidents. The Council members highlighted two key priorities for the Police Department: Community Neighborhood Policing, and Code Enforcement - develop messaging to make the community aware of City’s standards. Parks and Recreation: The Council Members engaged in a comprehensive discussion to establish clear priorities for the Parks and Recreation department. Their considerations included: Implementing a master plan for Tautphaus Park. Developing capital improvement plans for the entire parks system, encompassing Tautphaus Park, the zoo, trail systems, and Heritage Park. Creating a plan to introduce splash pads in various sectors of the town. 2  February 23, 2024 Budget Planning Meeting Designing a community recreation center. Seeking a balanced approach when collaborating with private entities. Addressing water conservation. Promoting accessible sports, such as pickleball. Exploring the need for an RV park at Sandy Downs. Considering the establishment of another ice arena. Developing community-building programs. The Council members emphasized three key priorities for Parks and Recreation: 1. Community Center: Focusing on amenities that foster community engagement beyond mere fitness. 2. Right-sizing user fees: Ensuring a fiscally responsible approach. 3. Implementing existing plans: Including facilities like Heritage Park, Tautphaus Park, the Zoo, Funland, and the trail network. Community Development Services: The Council Members engaged in a comprehensive discussion regarding the Community Development Services Department’s priorities. Their considerations spanned several critical areas, including housing diversity, business vitality, and community engagement. They emphasized the need to address missing middle housing, enhance affordable housing options, and promote increased housing availability. Additionally, they encouraged a vibrant mix of businesses, neighborhoods, and public spaces, emphasizing the importance of winter activities and festivals. To streamline processes, the Council Members proposed formalizing an expedited plan review and permitting system, involving collaboration with public works, fire, and power departments. Building stronger relationships within the development community and improving the timeliness of building plan reviews were key objectives. The Council Members also aimed to educate the public about multi-family housing and enhance the overall permitting and inspection speed. Ultimately, their vision was to redefine the residential and commercial development process within the City of Idaho Falls. The Council members emphasized two key priorities for the Community Development Services Department: 1. Expedite and improve permitting and review process. 2. Improve housing options in Idaho Falls Human Resources and Legal Department: The Council Members engaged in a comprehensive discussion about setting priorities for the organization. Their considerations spanned several critical areas, including salary structures, employee learning and development, and human resources practices across major departments. They emphasized the need for innovative health insurance solutions, long-term benefits planning, and effective communication of exit interview data. Additionally, they aimed to foster a culture of accountability, motivate high performance, and encourage a sense of public service among employees. The Council Members also advocated for maintaining consistent salary schedules while limiting collective bargaining to existing departments. These priorities collectively contribute to the organization’s vision of efficient and effective governance. The Council members emphasized two key priorities for the Human Resources and Legal Department: 1. Promote culture of accountability and public service 2. Develop a health insurance and benefits sustainability plan. Municipal Services: The Council Members engaged in a comprehensive discussion to establish clear priorities for the Municipal Services Department. Their considerations included: • Citywide accounting. • Creating a financially sustainable policy for impact fee waivers to support affordable housing. • Commitment to the full costs through a Maintenance Plan. • Ensuring accountability within departments during budget processes. • Developing and implementing a building stewardship program. • Conducting further research to refine housing-related fee waiver/reduction ordinances. • Completing the Frontier Center’s lobby construction, scheduled to begin in 2024. 3  February 23, 2024 Budget Planning Meeting • Exploring the role of a Tech Czar within the Tech Department. The Council members emphasized two key priorities for the Municipal Services Department: Budget Process Improvements and Develop a Building Stewardship Plan. City Finance Team: Presentation, Consideration, and Discussion: 2024-25 Budget Forecast of Revenues and High-level Expenses. Mark Hagedorn and Director Pam Alexander presented the 2024-2025 Budget Forecast. Mr. Hagedorn begins the presentation with the 2025 Budget estimate – City-Wide Revenue. He says that they do predict that taxes will go up. He says intergovernmental Revenue was higher last year jumping from 41 million to 72 million partly due to some anticipated larger grants throughout some of the enterprise funds and doesn't know how that will work out this year and is the reason it has been adjusted down. Mr. Hagedorn presented the following slides: Sales tax from the state is in the intergovernmental and can include grants, state funds, and agreements for ambulance services from Bonneville County it is from one government to another government. Mr. Hagedorn then talked about the general fund having a slight increase in taxes and pointed out that a little less than half of the general fund intergovernmental Revenue is state sales tax specific such as Alcohol, and state share revenue, and includes anything that comes from the state. In preparation for the upcoming Financial Year 2024-2025, the preliminary property tax calculations have been outlined below: 4  February 23, 2024 Budget Planning Meeting 2024-2025 Property Tax Levy Calculation: Mr. Hagedorn outlined how the calculation for the 2024-2025 property tax be presented (see Below). He discussed new construction and annexation as amounts that the County would furnish and the amounts he has presented as estimates. The allowable statutory amount of 3% is presented as well as not presenting any amounts coming from foregone. Total amount Mr. Hagedorn is estimating is $46,991,361. 2022-2023 Property Tax Levy $ 44,838,088 2022-2023 Personal Property Replacement & Agriculture Equipment 469,411 Total 2022-2023 Property Tax Revenue $ 45,307,499 New Growth - Net Taxable Value Add 2023 New Annexations: $ 4,000,000 0.005156153 20,625 Add 2023 New Construction: $ 150,000,000 0.005156153 773,423 2023- 2024 Personal Property Replacement & Agriculture Equipment (469,411) 2023 - 2024 Certified Property Tax With Current Growth: 45,632,136 Add Statutory Allowable Increase - (3% of the highest of the last 3 years certified property tax) $ 45,307,499 3.00% 1,359,225 Prior years foregone amount: $ 6,511,393 Total amount that can be levied: 53,502,754 Amount of available tax revenue not levied: (6,511,393) Property Tax Revenue $ 46,991,361 2025 budget estimate for city-wide expenditures: 1. Total Projected Expenditure: o The budget estimate for the year 2025 is set at $321,750,000. o This comprehensive figure encompasses various categories of expenses critical for the functioning of the city. 2. Breakdown of Expenditures: o Wages and Benefits: An allocation of $97,000,000 is earmarked for employee compensation. o Operating Expenses: The city expects to spend approximately $120,000,000 on day-to-day operations. o Capital Outlay: Investments in infrastructure and development are estimated at $100,000,000. o MERF Allocation: The Municipal Equipment Replacement Fund (MERF) will receive around $9,500,000. o Debt Service Payments: The city plans to allocate $3,250,000 for servicing existing debts. o Miscellaneous Expenses: An additional $8,000,000 is set aside for various other needs. o Transfers: There will be a transfer of $(16,000), reflecting an outflow. Total Expenditures $321,750,000. 5  February 23, 2024 Budget Planning Meeting 2025 budget estimate for General Fund Expenditures: 1. Total Projected Expenditure: o The budget estimate for the year 2025 is set at $74,700,000. o This comprehensive figure encompasses various categories of expenses critical for the functioning of the city. 2. Breakdown of Expenditures: o Wages and Benefits: An allocation of $54,500,000 is earmarked for employee compensation. o Operating Expenses: The city expects to spend approximately $26,600,000 on day-to-day operations. o Capital Outlay: Investments in infrastructure and development are estimated at $1,000,000. o MERF Allocation: The Municipal Equipment Replacement Fund (MERF) will receive around $6,000,000. o Debt Service Payments: The city plans to allocate $2,000,000 for servicing existing debts. o Miscellaneous Expenses: An additional $600,000 is set aside for various other needs. Health Insurance increased by 20% o City-wide 3.1 million o General Fund 1.9 million Wages o City-Wide Step and Grade Costs- 1.6 million o General Fund Step and Grade Costs- .97 million 6  February 23, 2024 Budget Planning Meeting Major Expenditures (Governmental Funds) o Police Complex Debt Payment (Police- Offset by Impact Fee Funds) o Lease Payments (MERF Funds) o ERP Software Project o ARPA Funds Discussion: • Budget Planning Assumptions • Councilor Burtenshaw sought clarity on assumptions for a 3% budget increase and a 20% insurance cost buffer. Mayor Casper and Councilor Radford agreed on the direction but wanted maximum certainty in budget planning. Councilor Burtenshaw explained salary savings could stabilize finances. • Councilor Francis expressed difficulty with using stabilization funds that cannot be replaced when needed. • City Budget, Insurance, Reserves • Mark Hagedorn clarified capital funds are used for capital purchases, not reserves. He explained efforts to accumulate funds to offset bad insurance years. Mr. Hagedorn focused on reducing city risk rather than lobbying for employees only. • Budget Process and Reallocation • The Council discussed the budget process and the Council's decision-making role. Councilor Burtenshaw provided direction on potential salary savings and a 20% insurance increase. Mr. Hagedorn clarified the health insurance plan is a 10% increase. • Direction to Staff • The Council directed staff to review the salary savings policy. Conduct a deep dive into insurance plans and options and update the budget assumptions. Staff will bring recommendations on the actual insurance rate increase and use of stabilization funds. Eighty percent of police impact fees will pay for a portion of the payment on the Police Complex. The discussion concluded with staff understanding the budget planning assumptions and direction provided by the Council. The next steps are for staff to update the budget model and return to the Council with recommendations. City Elected Officials - Consideration and Discussion of Citywide Priorities, Aspirations, and Capacities: 1. Community Engagement and Relationships: o Improve county relationships: Strengthen collaboration with neighboring counties for mutual benefit. o Foster a positive employee culture: Create an inclusive and supportive work environment. 2. Infrastructure and Technology: o Enhance IT and CYBER security programs: Safeguard critical systems and data. o Invest in data and technology: Leverage technology for efficient governance. o Aging infrastructure: Address maintenance needs for pipes, poles, wires, and concrete. 3. Community Development and Well-Being: o People-centric development: Prioritize pedestrian-friendly corridors and neighborhoods. o Combat loneliness: Invest in community events and social experiences. o Revitalize communities: Transform neglected areas into vibrant spaces. o Expand library services: Promote education and access to knowledge. 4. Strategic Planning and Vision: o Define growth trajectory: Plan for sustainable and balanced development. o Strategic plan dissemination: Communicate our vision to the public. o Innovation District and Tech Hub: Foster creativity and economic growth. o Develop Drought Resilience: Prepare for water scarcity challenges. 7  February 23, 2024 Budget Planning Meeting 5. Effective Governance and Transparency: o Collective bargaining clarity: Ensure fairness and transparency. o Impact fee administration: Manage fees efficiently for infrastructure development. o City of Kindness: Promote compassion and community spirit. o Grant management expertise: Secure funding for essential projects. 6. Environmental Stewardship and Sustainability: o Mitigate legislative risks: Monitor legislation impacting our city. o Connect our Community: Maintain and enhance our community plan. o CUSP implementation follow-through: Execute our sustainability plan. o 1-15 Connector: Improve transportation connectivity. Council members discussed how these priorities can be implemented and will bring this information to the Directors for their evaluation. Further planning and recommendation discussions will be forthcoming. Council President Burtenshaw pointed out that Council members thought about these priorities and wrote them down over a week on their own and upon coming together have found that there is great consensus making these priorities a meaningful direction. There being no further business, the meeting adjourned at 3:52 PM s/Corrin Wilde s/Rebecca L. Noah Casper Corrin Wilde, City Clerk Rebecca L. Noah Casper, Mayor 8