City Council

April 26, 2024 2024-25 Budget Kickoff The City Council of the City of Idaho Falls met in the Budget Planning Meeting, on Friday, April 26, 2024, at the Police Complex training room at 775 Northgate Mile in Idaho Falls at 8:00 AM. Call to Order and Roll Call There were present: Mayor Rebecca L. Noah Casper Council President Michelle Ziel-Dingman Councilor John Radford Councilor Kirk Larsen Councilor Jim Freeman Councilor Jim Francis Councilor Lisa Burtenshaw Also present: Pam Alexander, Municipal Services Director Mark Hagedorn, Finance Manager / Treasurer Margaret Wimborne, Chief of Staff Catherine Smith, Economic Development Administrator Carla Thinnes, Assistant, Mayor's Office Michael Kirkham, City Attorney Corrin Wilde, City Clerk PJ Holm, Parks and Recreation Director Bryce Johnson, Police Chief Ian Turner, Airport Director Darin Jones, Human Resources Director Micheal Kirkham, City Attorney Wynn Whitmeyer, Captain, Fire Department Amanda Alberton, Administrative Assistant, Fire Department Wade Sanner, Community Development Services Director Chris Fredericksen, Public Works Director Catherine Smith, Economic Development Administrator Margaret Wimborne, Chief of Staff Carla Thinnes, Administrative Assistant Brooks Slyter, Assistant Finance Manager Robert Wright, Library Director Jessica Clements, Police PIO Admin (10:00 a.m.) Bear Prairie, General Manager Idaho Falls Power (11:00 a.m.) Mayor Casper called the meeting to order at 8:00 am with the following items: Mayor and Council President. Council President Burtenshaw discussed the importance of staying on schedule during the department presentations and avoiding side conversations to keep the meeting productive. Council Priorities by Department: Each listed Department had 25 minutes to present and discuss priority plans. Public Works: Director Fredericksen discussed the Public Works budget priorities. He began by emphasizing transportation and sustainability as key focus areas. For transportation, initiatives included developing a financial 1  April 26, 2024 2024-25 Budget Kickoff sustainability plan seeking an additional $250,000 in funding for GIFT. Other initiatives were making streets more multimodal through changes to the subdivision ordinances and preserving right-of-way for future road projects. Regarding sustainability, he discussed developing a water metering and conservation communications plan working with the PIO (Public Information Office). This would include graphics and messaging with a $75,000 identified budget. He also mentioned exploring recycling and composting partnership opportunities through attending relevant trainings. Director Fredericksen then discussed developing a smart landscaping and streetscape plan for city properties. This would involve $75,000 from streets budget and $60,000 from parks budget. The plan would aim to reduce maintenance costs and water usage. In closing, he noted the importance of partnerships across departments and other entities to coordinate on addressing the city’s infrastructure and planning needs. He provided budget details for the various proposals and emphasized leveraging federal funding opportunities. Council members had questions for Director Fredericksen. Councilor Radford asked for clarification that the requested $250,000 for transportation projects would be ongoing if added to the budget this year. Fredericksen confirmed this was an ongoing request. Councilor Larsen asked if the $215,000 for smart landscaping would come from reallocating existing budgets or requiring new money. Director Fredericksen explained it would be reallocated from other areas and not new money. Councilor Freeman asked about coordination with other entities on the high-capacity roadway study. Director Fredericksen said the study is already funded and will identify routes, with individual projects coming later. He emphasized working through the planning process. Councilor Burtenshaw discussed the importance of identifying routes to allow for proper planning and zoning around future roads. There was discussion around the county’s role in transportation planning and their strategic meeting. It was noted the County seems to be driving planning discussions for the beltway route. Community Development Services: Director Sanner reported that improving housing options across the city is a key priority identified in Imagine IF. A Plan to Move Idaho Falls Forward Together. This priority is supported by seven focus areas: diversifying housing options, expanding capacity to address housing issues, promoting infill, meeting specific community needs, improving development form, preserving historic areas, and ensuring appropriate locations for new housing. No major operational changes are expected, but staff and City Council will need to refocus efforts on housing needs, and some code updates may be required. Staff will revisit the 2020 Opticos Study to determine if an update is necessary. The Director advised Council to consider creating an Affordable Housing Impact Fee Waiver Fund to support ongoing interest in affordable housing development. The Director noted that the CityWorks software rollout will improve tracking of housing types, though IDAPA restrictions may limit some missing-middle housing, potentially requiring a code change to allow duplexes in R-1 zones. Additional items under consideration include a Duplicate Plan Fee and more coordinated review timelines across departments. A 2–3-year timeline is expected for plan evaluation, code revisions, and progress monitoring. The Director confirmed alignment with Imagine IF goals to be business-friendly and manage growth effectively. Cityworks implementation requires no new funding but will require staff time, training, and certification maintenance, especially in the Building Division. Strong interdepartmental coordination and communication with the development community will be essential. Cityworks is set to go live April 1, after which staff will improve permit monitoring, transparency, and tracking of affordable and missing-middle housing outcomes. Parks and Recreation: Director PJ Holm discussed the city's plans to build a new community recreation center. The community center project is a top priority for the council, with the goal of providing a facility that would increase quality of life and community engagement. The council is interested in modeling the center after Provo's successful recreation center. Funding for the project would likely require a bond measure of around $64 million, with the city planning to allocate funds for a feasibility study, design, and construction over the next several years. The council discussed the importance of community support and addressing potential opposition from local businesses. 2  April 26, 2024 2024-25 Budget Kickoff The parks department also discussed plans to increase user fees for existing recreation programs and facilities to reach full cost recovery, as well as continued annual funding to implement existing park master plans and make improvements to roads, lighting, playgrounds, and irrigation. The council discussed raising fees for non-city residents using city facilities. They emphasized the need to end subsidies for non-residents, as city residents have been carrying this financial burden for years. The council highlighted a pricing model based on annual facility expenses for residents, eliminating subsidies for non- residents. They also noted that extended operating hours increase costs due to overtime and employee retention needs. Overall, the council agreed that fee increases, and pricing adjustments are necessary to cover facility expenses and remove subsidies for non-city users. Municipal Services: Director Alexander outlined the city’s budget priorities and requests for the 2024/2025 fiscal year. The key areas of focus include enhancing budget accountability and expenditure processes, upgrading the city’s financial system with a new Enterprise Resource Planning (ERP) platform, and addressing building maintenance and infrastructure needs. Specifically, the city plans to restructure accounting departments to enforce budget expectations, update personnel policies, and implement new metrics for financial literacy and budget oversight. Additionally, the city aims to issue an RFP (Request for Proposal) for a new ERP (Enterprise Resource Planning) system, estimated to cost $5 million over 5 years, and develop a building stewardship plan to improve the maintenance of city facilities. Cost-sharing agreements with the county and a focus on building maintenance funds for long-term infrastructure upkeep are also part of the city’s strategy. Police Department: Director Chief Johnson discussed several priorities for the police department, including staffing and crime rate growth. Chief Johnson outlined a plan to increase police hiring and transparency, to reduce the crime rate as the city's population grows. There was discussion around police staffing levels, response times, and budget needs, including a request for a 3% cost-of-living increase. The group discussed code enforcement strategies to improve their operations, such as upgrading the online reporting system and collaborating with other city departments. Challenges around quantifying success metrics for code enforcement were raised. The group also explored potential approaches to address chronic code violations, including exploring options to criminalize certain offenses. Overall, the discussion focused on ways to enhance public safety and community engagement through a multi-pronged approach across the police and code enforcement functions. Human Resources: Director Jones led the discussion focused on several HR initiatives to improve employee engagement, training, and benefits. Director Jones emphasized the critical role of supervisors in driving employee engagement and productivity and proposed running a series of 6-month training cohorts to equip supervisors with the necessary skills and tools. There was discussion around hiring an additional HR analyst to support hands- on supervisor coaching, as the current staff member is working significant overtime hours. The group also addressed the challenge of rising health insurance costs, with Director Jones outlining various options being explored, such as joining a group plan, exploring self-funded models, and reviewing brokerage services. Council members expressed support for the supervisor training program, highlighting the benefits of cross-departmental collaboration and camaraderie-building. There was also discussion around the potential cost and department contributions for a new performance management software system, with the Mayor noting positive feedback from department directors during prior budget workshops. Roundtable Discussion-Identifying additional budget and cost considerations related to both priority implementation and ongoing general fund department operations. Chief of Staff Margret Wimborne initiated the discussion, emphasizing the need to avoid overlooking crucial aspects. Department directors shared their implementation plans for council priorities, focusing on inter- 3  April 26, 2024 2024-25 Budget Kickoff departmental collaboration. Catherine Smith will incorporate these plans into the budget draft, which the council and directors are currently reviewing for financial impacts and potential adjustments. The primary focus was on implementing the city council’s priorities while managing limited financial resources. Discussions covered specific budget items, including police body cameras and employee leave payouts. Concerns about budget constraints were expressed, and the possibility of freezing employee salaries and benefits was debated. Despite these challenges, potential solutions and cost-saving measures were identified within the city’s fiscal limitations. Councilor Francis raised the question of involving social workers in code enforcement. Chief Johnson responded that social workers are not typically part of code enforcement but could be involved for follow-up through CIT detectives. There were significant concerns about the city’s budget constraints, with a debate on freezing employee salaries and benefits. Some council members emphasized prioritizing essential services despite difficult decisions. Councilor Radford warned about the unsustainability of the city’s financial situation due to revenue growth constraints and increasing costs. He suggested a hiring freeze or reduction in force, but other council members were reluctant, citing potential impacts on departments and services. The group discussed specific budget items, such as police body camera costs and employee leave payouts, highlighting the importance of planning for these operational costs as the city balances priorities within fiscal constraints. City Finance Team: Financial Review and Debt Overview. Mark Hagedorn announced that the PERSI rate will change in January, affecting the employer side, and will be implemented over the next few years. The new rates, effective from July 2024, will start at half a million and increase thereafter. Hagedorn emphasized the challenge of balancing capital and employee costs. Mr. Hagedorn outlined the city's needs, including more employees, additional capital, and addressing aging capital assets. He highlighted the upcoming PERSI rate changes affecting both public safety and general employee groups, with rates increasing over the next couple of years. Hagedorn discussed financial constraints, explaining that focusing on increasing employee counts limits funding for necessary capital projects. He provided updates on several open capital projects, including water tower and wastewater expansion. Director Alexander discussed various funding mechanisms for capital projects, noting challenges with accessing federal loans due to interest rates and requirements. Director Alexander outlined options such as impact fees, rates and fees, property taxes, bonds, and savings funds. She explained that impact fees can only be used for police, fire, and transportation related to growth. Alexander also covered funding sources like grants, donations, public auctions, and real estate sales. The group discussed clarifying the temporary override percentage for public facilities and identified the next steps for researching tax overrides and impact fee eligibility. The group discussed potential funding options for capital projects in the city's park and recreation master plan. Mayor Casper suggested prioritizing specific projects like trails and bridge repairs. Chief Johnson noted the fire station as a priority. Councilor Francis inquired about using redevelopment funds for certain facilities. The group discussed funding mechanisms for projects like the peaking plant expansion and wastewater treatment plant upgrades, including state loans. They also discussed impact fees potentially funding parks and recreation indoor facility planning. The meeting concluded with identifying next steps like researching tax override eligibility and amending the impact fee study. 4  April 26, 2024 2024-25 Budget Kickoff There was discussion throughout the meeting on balancing financial priorities, funding mechanisms, and addressing city needs while managing limited resources. Group Discussion- Funding, planning, developing, and managing current and future capital plans. Council President Burtenshaw and Public Works Director Chris Fredericksen led the discussion on moving forward with major capital projects. The discussion was designed to proactively discuss major city projects and anticipate potential questions from community members and employees. City leaders gathered to review and discuss several key infrastructure and community development projects, including the Frontier Center, Peaking Plant, Airport Terminal Expansion, Rec Center, North Fire Station, and Library. Facilitators used a role-playing approach, acting as community members and department directors, to anticipate questions and concerns about city projects. This encouraged participants to consider public and employee perspectives and to develop clear, consistent messaging while understanding each project's details. Key projects discussed included the Frontier Center, a renovation funded largely by donations to enhance accessibility and community use; the Peaking Plant, a power facility designed to lower costs and reduce carbon emissions; the Airport Terminal Expansion, a project addressing rapid passenger growth and TSA improvements; the North Fire Station, aimed at improving emergency response in northern Idaho Falls; and the Rec Center, focusing on partnerships and community recreation needs. Discussions emphasized clear communication, addressing public skepticism, balancing financial considerations with community benefits, and proactively responding to potential concerns. Leaders demonstrated a collaborative approach to planning, prioritizing transparency, and tackling the challenges of managing complex municipal projects. Wrap – Up, Next Steps, Calendar. Mayor Casper led a discussion with city council members and department directors to discuss and prioritize upcoming city projects within the limits of available financial resources. They focused on planning, funding, and executing key initiatives, with particular attention on two major projects: a recreation center and a training facility. The mayor introduced a project evaluation matrix covering funding, planning stages, feasibility studies, design, construction, and maintenance. Participants emphasized community engagement, interdepartmental cooperation, and transparent financial planning. They explored ways to prioritize projects, including public input and assessing fiscal impacts, while recognizing that some initiatives may need to be phased out or delayed due to budget constraints. The meeting concluded with a review of the city's priorities and a call for continued collaboration to refine project plans, secure funding, and ensure alignment with community needs. Action items included creating detailed project plans, scheduling follow-up discussions, and engaging community stakeholders to maintain transparency and trust. The discussion reflected a shared commitment to thoughtful municipal governance. 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 5