City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL MEETING - BUDGET DEVELOPMENT APRIL 27, 2017 Mayor Brian Blad called the City Council meeting for budget development to order at 9:00 a.m. Council members present were Heidi Adamson, Roger Bray, Steve Brown, Jim Johnston, Gary Moore and Michael L. Orr. Mayor Blad announced the Council would review various topics regarding development of the proposed Fiscal Year 2018 Budget. Joyce Stroschein, Chief Financial Officer/Treasurer, stated that information regarding budgets for City departments would be presented. She gave an overview of the material that would be discussed to determine the Fiscal Year 2018 budget and announced that department briefings would be held at this time. Ms. Stroschein noted that personnel wages have increased in most departments because of the new pay plan and change in health benefit provider. -MAYOR AND COUNCIL Anne Nichols, Assistant to the Mayor, and Joyce Stroschein, Chief DEPARTMENTS Financial Officer/Treasurer, gave an overview of the estimated FISCAL YEAR 2018 Mayor and Council Department budgets for Fiscal Year 2018. BUDGET OVERVIEW Ms. Nichols gave an overview of the Department’s Mission Statement. Mission: Executive management of the municipal corporation, including vision, policy, service to constituents, stakeholder involvement and day to day management. She also reviewed the output of staff, multiple City advisory boards/ committees that office staff supports/tracks their meetings and minutes, etc. Measures of effectiveness - open meeting law requirements were met, requests for records timelines met and multiple trainings were held. Upcoming needs for the department are: electronic records management conversion, office vehicle replacement, photocopy machine, and service request program replacement. Ms. Stroschein explained the general fund expenses and a requested increase for legal publication costs. She gave a brief overview of Council’s direction given to staff to come in “flat” for their budget. In response to a question from Council, Mr. Stroschein explained the increase in medical benefit costs. She explained the increase in Professional Services is for potential changes for the upcoming mayor/council election. The health benefit is budgeted with the anticipation of family coverage for 3 council seats and mayor’s seat. This cost will be reevaluated after the election and the individuals’ needs are known. Ms. Nichols gave an overview of requested increases to the Fiscal Year 2017 budget. The item regarding Mayor/Council raises was discussed. Council discussion was held and it was the consensus of the Council to raise City Council salaries by 6.13% and Mayor’s salary by 6.13% to be in-line with past raises received by employees. The  2 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 increase will be effective January 1, 2018. Council would like to designate an account for the funds being set aside for a mayoral run-off election. If the “run-off” election does not occur this year, the funds will be available for future elections. -FINANCE Ms. Stroschein, Chief Financial Officer/Treasurer gave an overview DEPARTMENT of the estimated Finance Department budget for Fiscal Year 2018. FISCAL YEAR 2018 BUDGET OVERVIEW Ms. Stroschein gave an overview of the department’s mission statement. Mission: We provide timely and accurate financial information, account for city assets, invest city funds, prepare annual budgets and financial reports and conduct analysis. She explained that Finance staff also provides administrative services for the mail room, copy center and central supply; processed 26 City payrolls and 12 retiree payrolls. Ms. Stroschein reviewed the City’s annual reports and monthly activities. Measure of effectiveness and Key Accomplishments were reviewed. Department was recognized by the Government Finance Officers Association (GFOA) for excellence in reporting. Concerns were shared and structuring changes within the department were reviewed which includes the development of cross-training of Finance staff. With upcoming retirements, the cross-training will assist with the plan for replacement. Ms. Stroschein mentioned the department has been down one employee since 2014 and she hopes to fill this position in 2017. Finance Budget for Fiscal Year 2018 was reviewed. Increase requests: supplies for central supply and paper; professional services; cost savings as the City is no longer required to put a quarterly finance report in the newspaper. Ms. Stroschein will notify the public that the information can now be found on City’s website. Mr. Orr was excused from the meeting at 10:02 a.m. Council discussion regarding budgeting practices and supporting individual departments followed. It was mentioned they should consider: a) looking at the expenses as a whole once revenues and expenses are known; and b) determine the actual needs and/or what services will not be provided if the budget is cutback. The different reporting dates for individual governmental districts cause difficult circumstances for cities to make informed decisions. The necessary figures are not known until the end of the decision making process. Discussion continued regarding City services and employee pay/benefits. Creative ideas are needed to keep up with inflation and earn adequate revenue for the City. Council would like to become more of the leaders/visionaries of the expectations for the City and what level of service will be provided. A special meeting will be scheduled so the Mayor and City Council can set new goals and expectations for the City.  3 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 -CITY HALL Lynn Transtrum, Building Official, and Joyce Stroschein, Chief FISCAL YEAR 2018 Financial Officer/Treasurer, gave an overview of the estimated BUDGET OVERVIEW Building Department and City Hall budgets for Fiscal Year 2018. Mr. Transtrum reviewed the City Hall mission statement. Mission: Provide cleaning and maintenance for the facility housing City Hall – Police Department, additional city owned facilities as requested by specific departments (Transit, Sanitation, Zoo, PPD substations) and city owned buildings, including buildings we lease out. Mr. Transtrum explained they clean and maintain 150,000 square feet 52 weeks of the year and clean the Police Department 7 days per week. He reviewed recent upgrades to City Hall. His staff responds to service requests in a timely manner and also provide special cleaning needs. Issues and concerns: City Hall structure is getting older and maintenance needs are growing. Some of the needs identified are: parking lot, upgrade/replace HVAC system, interior/exterior paint, carpet in City Hall, door and hardware replacement. Expansion of the number of custodial staff to care for larger City facilities may be necessary in the future. Budgeted amounts with expenses were reviewed by Ms. Stroschein. Increase to the budget is for personnel and medical health benefits. It was suggested any capital that may be left over at the end of the budget year be moved into a reserve fund. In response to questions from Council, Tom Kirkman, Interim Public Works Director, gave an estimate of repair costs to fix the parking lot of City Hall. He noted there is a stormwater issue with the parking lot and this will need to be addressed if the parking lot is torn out. If City Hall is going to be at this location for a long time, it would be more economical to tear out and replace the parking lot. Mayor Blad called a recess at 11:02 a.m. Mayor Blad reconvened the meeting at 11:16 a.m. -HUMAN RESOURCES Heather Buchanan, Human Resources Director, and Joyce FISCAL YEAR 2018 Stroschein, Chief Financial Officer/Treasurer, gave an overview of BUDGET OVERVIEW the estimated Human Resources budget for Fiscal Year 2018. Ms. Buchanan reviewed the department’s mission statement. Mission: Partner with City Operations to develop and maintain human resource services, programs, and policies that create the optional work environment for serving the citizens of Pocatello. She shared there is a fluctuation in the number of employees. Ms. Buchanan reviewed the measure of effectiveness and key accomplishments: City-wide classification and compensation study completed and presented to Council; performance evaluation system task force created new system; implemented change to Aetna for city-wide health insurance; negotiated a one-year Police contract and a four-year Fire contract; and completed hiring process for a new Human Resources Director and HR consultant.  4 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 Issues and Concerns – Employee compensation and recruitment of Police officers is still an issue. Are also having problems attracting applicants to professional level positions; employee morale is low due to uncertainty and rumors of lay-offs. General discussion followed regarding the employee compensation plan and keeping up-to-date with the plan. It was mentioned dialogue will continue regarding the plan and structuring of employee positons. -WELLNESS Anne Butler, Safety and Wellness Coordinator; and Joyce Stroschein, DIVISION Chief Financial Officer/Treasurer; gave an overview of the estimated FISCAL YEAR 2018 Wellness Division Budget for Fiscal Year 2018. BUDGET OVERVIEW Ms. Butler reviewed the department’s mission statement. Mission: An organized worksite program that is intended to assist employees and their family members in making voluntary behavior changes that reduce their health and injury risks, improve their health consumer skills and enhance their individual wellness, productivity and well-being. Ms. Butler reviewed the department’s key services and a service summary. It was mentioned that changes to the wellness program will be based upon the City’s new health provider. Discussion regarding ideas to help encourage individuals who are not participating in the wellness program followed. It was mentioned that the healthy group participating in the program is getting bigger and Ms. Butler is working to continue this trend. -LEGAL Tiffany Olsen, Attorney Assistant, and Joyce Stroschein, Chief DEPARTMENT Financial Officer/Treasurer gave an overview of the estimated Legal FISCAL YEAR 2018 Department’s Budget for Fiscal Year 2018. BUDGET REVIEW Ms. Olsen reviewed the mission statement for the department. Mission: Prosecute misdemeanor and infraction citations; represent the City in legal proceedings, negotiations and other matters; provide legal services to Pocatello Development Authority and other City boards and commissions as well as providing constant availability to Department Heads/Staff and Council members. Ms. Olsen gave a breakdown of the attorneys, administrative staff and key accomplishments for the department. Measures of effectiveness and key accomplishments were reviewed. Issues and concerns include: a) City growth will require additional legal services or a delay in service will be experienced due to a lack of available staff; b) loss of senior City staff depletes institutional memory; requires more research on issues; c) Bannock County Court scheduling dictates attorney availability for other duties and the public; and d) Water litigation requires legal resources and constant monitoring for years to come. Mayor Blad called a recess at 12:02 p.m.  5 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 Mayor Blad reconvened the meeting at 1:32 p.m. -RISK Kirk Bybee, Chief Civil Deputy Attorney, Andrea Henderson, MANAGEMENT Administrative/Deputy Risk Manager; and Joyce Stroschein, Chief FISCAL YEAR 2018 Financial Officer/Treasurer gave an overview of the estimated Risk BUDGET REVIEW Management’s Budget for Fiscal Year 2018. Mr. Bybee shared the Risk Management Division’s mission statement: Mission: To administer a risk management program that utilizes liability insurance, loss prevention and safety programs to prevent, reduce and minimize losses and liability exposure for the City. Mr. Bybee noted that 84 claims were filed in 2016 with 46 claims being paid. Total City paid claims in 2016 was $648,215.45. The premiums for Fiscal Year 2016 were $191,916.90. Measures of Effectiveness, key accomplishments: a) increase employee drivers’ awareness to reduce claims resulting from motor vehicle accidents, including backing accidents; and b) reduce City liability on all claims through reduction in preventable accidents. Issues and concerns: driving errors and lifting accidents continue to increase. Discussion regarding Fire Department staff participating in mandatory training that allows the City to receive a discount on insurance followed. It was mentioned that Intermountain Claims has an estimated increase in the amount of $2,400.00 and an added expense for outside legal costs in the amount of $100,000.00. Mayor Blad suggested that Council postpone hiring another attorney until later in the budget cycle. He feels the Legal Department’s need for an additional attorney should be re-evaluated at this time. -WORKER’S Kirk Bybee, Chief Civil Deputy Attorney; and Joyce Stroschein, Chief COMPENSATION Financial Officer/Treasurer; gave an overview of the estimated FISCAL YEAR 2018 Worker’s Compensation Budget for Fiscal Year 2018. BUDGET REVIEW Mr. Bybee reviewed the number of claims filed in 2016 and gave an overview of the number of days’ loss. Discussion regarding the types of workers compensation claims received by the City followed. It was mentioned that many of the claims were from first responders and Parks and Recreation employees. Measures of effectiveness and key accomplishments were reviewed. Issues and concerns with financial and training of employees were discussed. Historically, the 59.6% work class modifier is used to determine the necessary worker’s compensation funding. Discussion and ideas were shared to get the reserves up to $1.5 million followed. $300,000.00 was transferred from the risk fund to workers compensation on June 22, 2016. Developing a plan to  6 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 increase these revenues was discussed. Funds budgeted for Fiscal Year 2018 and Fiscal Year 2017 are the same amount. It was mentioned that the City’s union negotiations are not complete at this time. Budget Authority Increase request – Worker’s Compensation needs. Mr. Bybee shared his frustration with the City paying premiums for excess carriers. The excess premiums are necessary in case of a catastrophic event. Council asked Mr. Bybee to provide information regarding the City’s Worker’s Compensation plan at the June 8, 2017 Study Session. -INFORMATION Chris Sorensen, Chief Information Officer, and Joyce Stroschein, TECHNOLOGY Chief Financial Officer/Treasurer; gave an overview of the estimated FISCAL YEAR 2018 Information Technology Department’s Budget for Fiscal Year 2018. BUDGET REVIEW Mr. Sorenson reviewed the Information Technology department’s mission and vision statements. Mission: Enabling City operations by consistently delivering reliable and secure services, innovative solutions, and best-in-class customer service. Vision: A trusted steward of information technology and a catalyst for innovation. Measures of Effectiveness and Key Accomplishments were reviewed. Cyber security and trainings provided for employees were top priorities. Issues and Concerns – Cyber Security is a top priority, Network infrastructures, replace SIRE records management program (SIRE is no longer supported). City information backup requirement has exceeded current manageable capacity. -UTILITY BILLING Cindy Robbins, Utility Billing Director; and Joyce Stroschein, Chief FISCAL YEAR 2018 Financial Officer/Treasurer; gave an overview of the estimated BUDGET REVIEW Utility Billing Department’s Budget for Fiscal year 2018. Ms. Robbins gave an overview of the Utility Billing Department’s mission statement. Mission: Perform accurate reading of all water meters and provide timely and accurate billing and collection services for Water, Water Pollution Control, and Sanitation departments. Ensure the customer service needs of the City Utility customers are met. Output Summary and Measures of Effectiveness, Key accomplishments were reviewed. Accurate monthly billings and meter readings for approximately 18,000 accounts were processed successfully. In Fiscal Year 2016 the department had a reduction in revenue of approximately $29,724.00. Ms. Robbins feels this is directly related to better payment response by sending late notices earlier which reduced shut-off of services for nonpayment. Revenue receipted was increased over $2 Million for the City’s enterprise funds. Issues and concerns: Water Department had a shortage of staff last summer and a high volume of main line repairs. This delayed the installation of new meters.  7 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 -PUBLIC WORKS Tom Kirkman, Interim Public Works Director, and Joyce Stroschein, DIVISION Chief Financial Officer/Treasurer gave an overview of the estimated FISCAL YEAR 2018 Public Works Budget for Fiscal Year 2018. BUDGET REVIEW Mr. Kirkman reviewed the Mission statement for the Public Works Division. Mission: We support and enhance a high quality of life for the City of Pocatello residents, businesses, and visitors by providing well-planned, environmentally sensitive, cost effective infrastructure and services that will promote public health, personal safety, transportation, economic growth, and civic vitality. It was noted that the shared focus of a Public Works Director is for leadership, team building, and existing system’s understanding to increase the efficiency and to improve the work product of each Public Works Department. Key accomplishments: Olympus Drive Expansion, Benton Street Bridge, Lewis Street Bridge, Airport Water Tank and Well, phosphorus upgrade of the Water Pollution Control Facility. Needs: Public Works Director needs a dedicated vehicle. Previous directors used a vehicle from the Street Department which is needed for their operations. Ms. Stroschein reviewed the proposed Fiscal Year 2018 budget noting the revenues for this department are from Street, Sanitation, Water, and Water Pollution Control. It was clarified that the capital purchase of $30,000.00 being requested for the director’s vehicle is available under excess reserves. The purchase will be part of the June 2017 budget amendments. -NON-DEPARTMENTAL Ms. Stroschein, Chief Financial Officer/Treasurer, gave an overview BUDGET of the estimated Non-departmental budget for Fiscal Year 2018. FISCAL YEAR 2018 BUDGET OVERVIEW Ms. Stroschein shared the mission statement for the Non-departmental Division of the General Fund. Mission: To provide support to City functions and supporting organizations that cannot be identified within our existing fund and department structure. Key services include dues and memberships to Associated Taxpayers of Idaho, Association of Idaho Cities, Sister Cities, Chamber of Commerce, SICOG Dues, and other professional services. Issues and Concerns: Support to the Senior Center for utilities and cable service; utilities to the Free Clinic; Bannock Development Corporation has requested a small increase, but the actual increase has not been determined.  8 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING APRIL 27, 2017 Ms. Stroschein gave an overview of the items within the non-departmental budget. No labor is in this budget. Council discussion regarding funding requests for non-profit support continued. They recommended that non-profit support be given on a quarterly basis. This will show a yearly support. Ms. Stroschein will contact the entities supported by the City and let them know of the recommendation. She will report back to the Council once responses from the non-profits are received. Council also mentioned giving a flat amount to the Free Clinic and Senior Citizens and moving away from paying utilities for the facilities. Ms. Stroschein gave an overview of City departments scheduled to give presentations at the May 4, 2017 Budget meeting which will begin at 9:00 a.m. There being no further business, Mayor Blad adjourned the meeting at 3:17 p.m. APPROVED: BRIAN C. BLAD, MAYOR PREPARED BY AND ATTEST: RUTH E. WHITWORTH, CMC, CITY CLERK