City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL MEETING - BUDGET DEVELOPMENT MARCH 10, 2016 Council President Steve Brown called the City Council meeting for budget development to order at 2:05 p.m. Council members present were Roger Bray, Jim Johnston and Gary Moore. Mayor Brian Blad joined the meeting at 2:16 p.m. Councilmember Michael L. Orr was excused. Nicole Harms, Human Resources Consultant, and Kim Smith, Human Resources Director, reviewed current medical benefit costs for the City. Ms. Harms gave an overview of Fiscal Year 2017 Health Benefit costs for the following providers: Mercer Marketplace (does not include Fire Department employees) would be approximately $5,301,720.72 (0.2% increase, $12,838.49); Blue Cross of Idaho (does not include Fire Department employees) would be $5,914,012.56 (11.82% increase, $625,130.33). In response to questions from Council, Ms. Harms would need to research what the difference in premium rates would be if the City chooses the Marketplace plan and Police Department employees leave the group coverage. She reminded Council that the City budgets $2,000.00 per employee for the Health Reimbursement Arrangement (HRA) Volunteer Employee Beneficiary Association (VEBA). If premium costs do increase, Council could increase an employee’s HRA-VEBA amount. Council discussion regarding different methods to provide funds for medical insurance coverage continued. Mayor Brian Blad joined the meeting at 2:16 p.m. Council President Brown turned the chair of the meeting over to Mayor Blad. Ms. Smith explained if Council would like to move forward with the Marketplace option, a Letter of Intent to Mercer Marketplace is due by March 25, 2016. The letter of intent has been prepared for Council’s consideration on March 17, 2016. Council determined that additional information regarding the Marketplace option could be presented during the 9:00 a.m. Budget Development meeting on March 17. Council will able to make their decision regarding the Letter of Intent during the March 17 Regular Council meeting at 6:00 p.m. Mayor Blad announced that Joyce Stroschein, Chief Financial Officer/Treasurer would provide information related to developing the City’s Fiscal Year 2017 budget. Ms. Stroschein was joined by Ashley Linton, City Accountant, and stated Finance staff is seeking Council’s direction for initial budget building guidance for the following items: GENERAL FUND LEVY LIMITATION – move Zoo Division to Recreation Fund, Add Legal and Mayor/Council Departments to Administrative Support Calculation, Move Magistrate Court Revenue to Police Department, Add Administrative Support items from Non-Department to  2 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING MARCH 10, 2016 Administrative Support calculation, Electric Franchise Fee revenue to General Fund, Risk Management Insurance General fund – levy direct. COUNCIL DECISION – MOVE FORWARD WITH THESE LEVY LIMITATION OPTIONS. POLICY DECISION – Fund Reserves policy and the Union Negotiation policy. Legal staff will prepare resolutions to implement the policies for Council’s consideration. COUNCIL CONCENSUS TO CREATE FUND RESERVES POLICY AND UNION NEGOTIATION POLICY. PROPERTY TAX LEVY – Initial budget guidance (decrease or flat) a 3% increase can be taken for the property tax levy and Foregone Tax is available. It was noted at the previous week’s session Council did not wish to take an increase in tax at this time. As a result, Council will need to decrease expenditures in the tax supported portion of City’s budget by approximately $852,000.00. This is an initial build of the City’s budget revenues and can be changed later in the budget process. COUNCIL CONCENSUS TO TAKE ZERO ADDITIONAL TAX LEVY DOLLARS. PROPERTY TAX DISTRIBUTION – Council will need to determine how the decrease in expenditures should take place and what the distribution will be. It was suggested that Mayor Blad and Ms. Stroschein meet to create a distribution plan so that departments can base their budgets on the distribution plan. 100% FEE SUPPORTED FUNDS – Fee supported budgets are usually built according to the rate study. Plans have been made and projects need to be completed. Should these departments be allowed to build their budget according to the rate study? It was mentioned if the rates are altered, departments may not be able to accomplish the projects that have been planned. CONSENSUS OF THE COUNCIL TO CONTINUE FEE SUPPORTED FUNDS ACCORDING TO RATE STUDY EMPLOYEE COMPENSATION – Pay plan for Fiscal Year 2017 needs to be determined. Staff is currently working on salary projections. If Council would like to move forward with the proposed employee compensation plan, staff will need to begin working on the plan as soon as possible. It was mentioned that the City’s Fire and Police Unions have not determined if they want to include longevity as part of their wages. As a result, it will be difficult to determine costs at this time. Council discussion continued regarding the Compensation Plan. Various opinions were shared regarding implementation of the proposed compensation plan at this time. CONSENSUS OF THE COUNCIL TO BUILD WAGES WITH REGULAR STEP GRADE SYSTEM. General discussion continued regarding employee longevity pay and how this is applied per department. It was mentioned that once the initial five (5) years of service has passed, longevity pay begins. HEALTH BENEFITS – Insurance provider for Fiscal Year 2017 needs to be determined. MARCH 17TH MEETING - COUNCIL WILL DECIDE IF MOVING FORWARD WITH MERCER MARKETPLACE. It was mentioned that distribution of the employee’s share of health benefit costs will not be determined until April 14, 2016.  3 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING MARCH 10, 2016 There being no further business, Mayor Blad adjourned the meeting at 3:07 p.m. APPROVED: BRIAN C. BLAD, MAYOR ATTEST: RUTH E. WHITWORTH, CMC, CITY CLERK