City Council

CITY OF POCATELLO, IDAHO SPECIAL CITY COUNCIL MEETING BUDGET RESTRUCTURING DECEMBER 17, 2015 AGENDA ITEM NO. 1:The City Council Budget Restructuring meeting was called to ROLL CALL order at 9:04 a.m. by Mayor Brian Blad. Council members present were Steve Brown, Craig Cooper, Jim Johnston, Gary Moore and Eva Johnson Nye. Council member Michael L. Orr was excused. CITY DEPARTMENT PRESENTATIONS- It was announced that Department presentations would be given at this time. Presentations will include the following: 1. Employees; 2. Total Budget; 3. Activity or service the department provides; 4. Percentage of city services supported by taxes and percentage that are supported by user fees; 5. Ideas to increase city revenues; and 6. Future needs. RECREATION John Banks, Parks and Recreation Director, provided DEPARTMENT information regarding the City’s Outdoor Recreation, Team Sports, Community Recreation Center, Ross Park Aquatics Complex, Golf Courses, Fort Hall Replica/Frontier Village/Summer Productions of the Parks and Recreation Department. Mr. Banks reviewed the budget actuals for Fiscal Year 2015. He reported the figures budgeted vs expended were within 98% of projected amounts. The estimated revenue was at 100% of projected amounts. He reviewed the organizational chart for the Recreation Department and explained there are 4 full-time, 3 half-time and 110 - 120 part-time employees. Mr. Banks stated the mission of the Recreation Department is to serve all residents of Pocatello and surrounding communities by providing quality recreation and education programs, as well as safe, well maintained parks and recreational facilities; striving to enhance the quality of people’s lives, provide the benefits of leisure and open space, and serve as a source of community pride. -OUTDOOR Mr. Banks and Lance Clark, Outdoor Recreation Program Manager, gave an RECREATION overview of the Outdoor Recreation Division. It was noted there is one full- DIVISION time employee and 5 part-time employees in the division. Mr. Clark stated his division provides a variety of programs including: Fun Run Series, Just Cuz ½ Marathon, Triathlon, Rock Climbing (both indoor and outdoor) and Middle School Summer Programs. Specialty recreational facilities include: equipment rentals, East Mink Creek Nordic Center; City Creek Management Area (40,000 to 50,000 annual users); and two Disc Golf Courses which are heavily used. Mr. Banks reviewed a chart showing services provided by the Outdoor Recreation Division broken down by expenses and revenues and how the resources are being utilized. BUDGET – Mr. Banks noted the Fiscal Year 2015 budget was $276,312.00 of which 49% is Fee Supported and 51% is Tax Supported. A portion of this is from the lack of snow in 2014-2015 to support Mink Creek Nordic Center.  2 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING DECEMBER 17, 2015 FUTURE NEEDS – Top 3 Outdoor Recreation Division Needs are: No. 1 Vehicle Replacement. Budget $10,000 per year toward a vehicle. No. 2 Fun Run Timing System Upgrade. Estimated cost $20,000. No. 3 Permanent Lodge at Mink Creek Nordic Center (ticket office/rentals/classroom/lodge with power and heat) Estimated cost $75,000. -TEAM SPORTS John Banks, Parks and Recreation Director; and Brian DIVISION Lowman, Recreation Supervisor, gave an overview of the Team Sports Division. BUDGET – Mr. Banks noted the Fiscal Year 2015 budget was $459,735.00 of which 43% is Tax supported and 57% is Fee supported. There are 2 full-time employees and 25 – 30 part-time employees. SERVICES PROVIDED – Mr. Lowman explained his division provides a wide variety of year- round youth and adult sports programs. Youth Programs include: Flag Football (16 total teams 342 participants), Bannock Baseball (41 total teams 468 participants); Basketball (165 total teams 1,558 participants); and Volleyball (26 total teams 265 participants). Adult Programs include: Softball (124 total teams 2,125 participants); Basketball (37 total teams 330 participants); Volleyball (23 total teams 196 participants) and Soccer (19 total teams 285 participants). Mr. Lowman feels staff is doing a professional job with the different teams and helping youth learn and excel in the sports program they choose. Ideas were shared of how to assist with creating a program similar to the Junior Jazz Basketball Program for Bannock Boys Baseball. Mr. Banks reviewed a chart for Team Sports outlining the services provided, expenses and revenues. Council discussion followed regarding fees being charged by School District No. 25 for the City to use school gymnasiums for Team Sports Programs. Council shared their frustration regarding the gymnasium fees being charged even though the City provides multiple services at minimal or no cost to the District. TEAM SPORTS FUTURE NEEDS – No. 1 Material storage area for NOP Park Softball/Baseball fields. Estimated cost $4,000.00 No. 2 Replacement of spectator bleachers at Watkins Softball Complex (NOP). Estimated cost $42,000.00.  3 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING DECEMBER 17, 2015 No. 3 Lighting of Yellow and Blue ballfields at Watkins Softball Complex (NOP). Estimated cost $200,000.00. Council discussion followed regarding adding a capital charge to the user fees for City ballfields to help pay for lighting of the fields. It was mentioned each team pays a one-time fee and the capital charge could be included at that time. Mr. Banks agreed the charges could be spread out across the user fees for baseball fields. He will research this concept as a way to increase funds needed to purchase materials such as lighting for the fields. -COMMUNITY John Banks, Parks and Recreation Director, and Stacie VanKirk, RECREATION Community Recreation Center Manager, gave an overview of the CENTER Recreation Center. SERVICES PROVIDED – Ms. VanKirk stated the facility is a complete family recreation center. Facilities include: swimming pool, cardio/weight room, multi-purpose activity room, hot tub, dance studio and more. The facility is open daily throughout the year. A breakdown of the Center’s demographics for Fiscal Year 2015 was reviewed. The number of participants that utilized the facility in 2015 totaled 127,116. Mr. Banks reviewed a chart outlining the services provided and expenses/revenues for the Center. He stated the Center is at a 65% cost recovery for the services they provide and this is a good percentage for this type of facility. BUDGET – Mr. Banks noted the Fiscal Year 2015 Community Recreation Center budget was $531,529.00 of which 36% is Tax supported and 64% is Fee supported. He explained revenues are derived from facility memberships, daily and punch card use fees and other program fees. Mr. Banks reported there is 1 full-time, 3 half-time and 25 – 30 part-time employees in the division. COMMUNITY RECREATION CENTER FUTURE NEEDS – Ms. VanKirk stated the top future needs for the facility are: No. 1 Heat exchanger (current air handling system has deficiencies in heating and humidity control.) Estimated cost $100,000.00. No. 2 Lighting upgrade (Idaho Power incentives could reduce overall cost.) Estimated cost $25,000.00. Mr. Banks encouraged Council to visit the Center to see the new lighting in the weight room and upgrades to the boiler. Staff could show them the upgrades and provide a walk-thru of the facility.  4 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING DECEMBER 17, 2015 -ROSS PARK John Banks, Parks and Recreation Director, and Stacie VanKirk, AQUATIC Ross Park Aquatic Complex (RPAC) Manager, gave an overview of COMPLEX the RPAC. BUDGET – Mr. Banks noted the Fiscal Year 2015 RPAC budget was $494,301.00 of which 33% is Tax supported and 67% is Fee supported. (Summer weather in 2015 was cooler so attendance was lower.) He reported there is 1 full-time and 55 part-time employees in the division. SERVICES PROVIDED – RPAC is open seven days a week (weather permitting) from Memorial Day until Monday of the Labor Day weekend. Some of the RPAC amenities/attractions include: 8 lane 50 meter main pool, zero depth wading pool, activity pool, lazy river, large water slide, and concessions. Summer programs are Splash Dances for teens (average 300 youth each night) and Family Nights with ½ price admission (2,787 total participants). Mr. Banks reviewed RPAC chart outlining the services provided and expenses/revenues. He noted the outcomes are very good when compared to other cities. ROSS PARK AQUATIC COMPLEX FUTURE NEEDS – No. 1 Replacement of water heaters in shower areas. Cannot open the facility to the public without warm water for attendees. Estimate cost $35,000.00 No. 2 Replacement of water slide. Entering its 17th season at Ross Park. The water slide was brought in from Westwood Mall and is over 30 years old and has reached its useful life span. Estimated cost $500,000 (+) Design/Demo/Install. No. 3 Lock replacement of 62 lockers bays - 2 tier coin operated locks with keys. Doors are missing on many lockers and no replacement parts are available. Estimated cost $35,000.00. No. 4 New attractions and amenities. Complex is entering its 17th season and upgrades in amenities at the facility are needed to remain competitive in the market to retain current patrons as well as draw new customers. Estimated costs unknown. -HOW DOES THE POCATELLO RECREATION DEPARTMENT COMPARE? A significant measurement of agency performance is the ability to fund their operations through revenues from memberships, classes, team registrations, event entry fees, etc. Mr. Banks reviewed revenues as a percentage of operating costs and revenues per capita. Pocatello has excelled in costs recovered 67% and revenue per Residents $22.55 as compared to other areas. These are very high marks for Pocatello when compared to other cities. PROPOSED COST RECOVERY POLICY– Cost recovery for the Recreation Departments is a complex subject with many different variables to consider. There is no recognized national standard or target for cost recovery percentages. Mr. Banks outlined the recommendation of staff for a cost  5 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING DECEMBER 17, 2015 recovery policy. 1) MOSTLY COMMUNITY BENEFIT: programs, services and facilities that benefit the community as a whole shall be priced at a minimal/nominal costs to Residents and the community; 2) COMBINATION-INDIVIDUAL AND COMMUNITY BENEFIT: programs, services and facilities provide recreation skill development for generally beginner to intermediate instructional levels shall be priced at a moderate cost to Residents and the community; 3) MOSTLY INDIVIDUAL BENEFIT: programs, services and facilities providing specialized services and/or a competitive focus for specific groups and individuals shall be priced at a higher cost to Residents and the community; 4) FEE STRUCTURE shall be developed and implemented based on the following: a) a target Cost Recovery Level of 70% of total Recreation Department operating costs; and b) a yearly analysis of fees charged by other local communities who provide comparable programs, services and facilities. In response to questions from Council, Mr. Banks explained Fun Runs are a combination-individual and community benefit. The City Creek Management Area is mostly a community benefit. Joyce Stroschein, Chief Financial Officer/Treasurer supports the concept to weigh the costs and fees charged in order to budget correctly. She agreed staff should determine if the service provided is for an individual or for the benefit of the community. Property taxes should be used to support community areas and not individuals. INCREASE REVENUES AND DECREASE COSTS – No. 1 Adopt Cost Recovery policy No. 2 Golf Contract Renewal No. 3 Verizon Wireless Site, etc. (if approved by Council, potential revenue) No. 4 Department Branding Effort (Play Often, Live Better!) TEAM SPORT DIVISION – Offer “Tot-Lot” Division Basketball Program, assess practice facility fees to competitive “D” League youth basketball teams, combining Bannock Baseball with the Chubbuck Baseball League, slight fee increase for Youth - Flag Football, Basketball, Volleyball and Baseball. Slight increase in adult Soccer fees. OUTDOOR RECREATION DIVISION – Have good snow season (2015 had a only 2 week season), fully develop Outdoor Recreation Division Rental Equipment Website (add credit card processing), slight increase to Fun Run fees; selling City Creek parking passes (enforcement issues). CRC DIVISION – offer classes and services for new exercise trends, explore Facility Party Packages, school break camps; and consider minor increases to dance/gymnastics class fees.  6 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING DECEMBER 17, 2015 RPAC – promote facility to School District No. 25, develop promotional campaign to solicit corporate/employee events, New Programs, minor increases to concession sale items and/or consider outsourcing RPAC concessions to private vendor. General discussion to create a “swim bus” to transport individuals to Ross Park to swim, etc., followed. A small fee could be charged to provide this service. The number of City parks and how much they are being utilized was reviewed. It was noted there are different seasons and/or hours the parks may not be utilized. However, the parks are being used by individuals of various ages and the open space is also beneficial in neighborhoods. Mayor Blad called for a recess at 11:44 a.m. Mayor Blad reconvened the meeting at 11:59 a.m. -FINANCE Joyce Stroschein, Chief Financial Officer/Treasurer, provided information DEPARTMENT regarding the Finance Department. Ms. Stroschein stated she would review the following: Summary of Budget and Employees; Organizational Chart; Services Provided; Tax Versus Fees; Finance Department Future Concerns and Budget Savings. BUDGET AND EMPLOYEES: Ms. Stroschein explained the total Finance Department budget for Fiscal Year 2016 is $782,599.00 of which 29.72% is fees, 69.66% is property taxes and .62% is other taxes. She reported there are currently 6 full-time, 1 half-time and 1 unfilled position in her department. Each position was reviewed and it was noted that an Accountant position should progress to a Senior Accountant position. Ms. Stroschein would then like to promote a Senior Accountant to a Deputy Chief Financial Officer position. She shared her concerns with upcoming retirements in her department over the next 2 to 5 years. SERVICES PROVIDED – Ms. Stroschein gave an overview of daily operations such as: REVENUES - 1) cash deposits (15 individual deposits received from department); 2) daily credit card deposits; 3) validate deposits and record information into accounting system; 4) identify ACH wire and record; and 5) challenges include records received with little or no documentation. ACCOUNTS PAYABLE - 1) process 3 demand check groups each month of 34-38 checks per run, 2) process major vendor cycle at the end of each month, 3) positive pay submittal for all checks issued; and 4) groups are reviewed by staff and coding/details are evaluated. EXPENDITURES - 1) Purchase card process was reviewed. Once information is received, verify documentation on all active p-card transactions; 2) update and download transactions in financial system; and 3) monitor fraud review by Wells Fargo. Payroll processing was reviewed. Finance staff processes 26 bi-weekly payrolls and supporting reporting documents. Grant Administration process: monitors compliance on reimbursement and  7 CITY COUNCIL SPECIAL MEETING- BUDGET RESTRUCTURING DECEMBER 17, 2015 assist with drawdown reimbursements. Ms. Stroschein explained it is important to facilitate the accounting processes since grant agencies have increased compliance and reporting requirements. It was noted that deficiencies can impact future grant revenue opportunities. Ms. Stroschein mentioned Finance staff is playing a more active role in all grants received by City departments. City Treasury Management include: 1) Review monetary needs for the City operations each week with Deputy Treasurer. 2) WPC Bond (construction fund) and 3) Diversified Bond Fund reserves long term investments; and 4) Police Retirement (currently 22 participants) and processing of benefits. Other Financial Responsibilities are: Union Negotiations, leasing, bonding, working with consultants to create an enterprise rate study; Pocatello Development Authority responsibilities; internal and external reporting requirements are met; and annual Fiscal Year Budget Development. A critical new step is for Finance staff to meet with Mayor and Council to decide budget strategies prior to moving forward with developing a budget. FUTURE CONCERNS – Ms. Stroschein shared her concerns regarding proposed changes to employee’s performance pay structure and health benefits. She feels the work load for Finance staff will increase as a result of the proposed changes. BUDGET SAVINGS – RFP for Banking Services and merchant services within the next two years to ensure competitive fees. Restructure staff positions and change unfilled position to an Accounting Technician for potential savings and to create a more robust department with cross- training. There being no further business, Mayor Blad adjourned the meeting at 12:51 p.m. APPROVED BY: BRIAN C. BLAD, MAYOR ATTEST AND PREPARED BY: RUTH E. WHITWORTH, CITY CLERK