City Council

CITY OF POCATELLO, IDAHO CITY COUNCIL MEETING - BUDGET DEVELOPMENT JUNE 1, 2017 Mayor Brian Blad called the City Council meeting for budget development to order at 9:04 a.m. Council members present were Heidi Adamson, Roger Bray, Jim Johnston, Gary Moore and Michael L. Orr. Council President Steve Brown arrived at 9:58 a.m. 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. Mayor Blad announced the Council would review various topics regarding development of the proposed Fiscal Year 2018 Budget. SANITATION Arlyn Rasmussen, Sanitation Superintendent; Joyce Stroschein, Chief DEPARTMENT Financial Officer/Treasurer, and Ashley Linton, Accountant; gave an FISCAL YEAR 2018 overview of the estimated Sanitation Department budget for Fiscal BUDGET OVERVIEW Year 2018. Mr. Rasmussen shared the Department’s mission statement. Mission: To improve the quality of life for the citizens of Pocatello providing efficient and cost effective refuse removal and recycling services. Mr. Rasmussen gave an overview of the Key Services Provided and output summary. Measures of effectiveness and key accomplishments for the department were also reviewed. He noted that a) the Yard Waste Program has been expanded by 100 residents with no increase in department personnel; b) increases in Residential, Commercial, and Roll-off divisions have all been absorbed using current personnel and equipment; c) request for service completed within 24 hours or less; and d) removal of improperly disposed of items such as: tires, paint, and appliances. Mr. Rasmussen also mentioned that additional services are provided at no charge to the customer. General discussion regarding the yard waste program and cost effectiveness of the program followed. The number of carts that can be distributed to residents is limited by Bannock County Landfill representatives. The number of carts should be around 1200 to make the program cost effective. Discussion of the possibility of the City taking over the Yard Waste program and potential composting issues followed. Alternative uses of the compost were shared. Staff will research and prepare information to bring to the Council for further consideration. Issues and concerns: a) keeping adequate manpower due to increased demand for services; b) maintaining competitive rate structure; c) funding capital replacement program; d) Bannock County may implement a $10.00 per ton yard waste charge; and e) customer cooperation (keeping recycling and yard waste programs clean of impurities).  2 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING JUNE 1, 2017 Ms. Stroschein explained budget comparisons for Fiscal Year 2017 to Fiscal Year 2018 for the department. The revenue anticipated for Fiscal Year 2018 shows a potential decrease. Ms. Stroschein also reviewed requests for capital items. Mr. Rasmussen reviewed proposed fee increases for sanitation services. He also noted that professional service costs have increased due to the removal and transport of liquids from the City’s sump system. Council discussion regarding capital reserve amounts for the department followed. It was noted that Council will need to have more discussion regarding Sanitation fund reserves and service fee amounts. Mr. Rasmussen shared his concern regarding an annual expense increase of approximately $120,000.00 because of additional tonnage charges implemented by Bannock County. The additional charges will be effective October 1, 2017. Council President Brown arrived at 9:58 a.m. Composting and recycling programs – Staff will research and come back to a Study Session to present their findings. An overall program to compost and provide recycling options to clean up the city as a whole was suggested. Cost effectiveness of the City offering additional programs was reviewed. The concern of available areas to store compost and the sale value of recyclable materials was discussed. WPC DEPARTMENT Jon Herrick, Water Pollution Control (WPC) Superintendent; Joyce FISCAL YEAR 2018 Stroschein, Chief Financial Officer/Treasurer, and Ashley Linton, BUDGET REVIEW Accountant; gave an overview of the estimated WPC Department budget for Fiscal Year 2018. Mr. Herrick shared the Department’s mission statement. Mission: To collect and treat wastewater at the lowest practical cost while meeting regulations and providing excellent customer service. Council discussion regarding Great Western Malting receiving a discounted discharge rate followed. The City’s utility rate fees and the process to determine whether a decrease in rates for economic development should be given were reviewed. Mr. Herrick gave an overview of the Key Services Provided and output summary. Measures of effectiveness and key accomplishments for the department were also reviewed. Mr. Herrick reported the following: a) treated an average of 6.97 MGD and reclaimed 2.55 Billion gallons of water to the Portneuf River; b) removed approximately 87% of the phosphorus entering the plant and averaged 48 pounds per day of phosphorus discharged; c) rehabilitated over 9543 feet of sewer  3 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING JUNE 1, 2017 pipe with “Cure in Place Pipe” (CIPP). Mr. Herrick gave a history and overview of the Phase One Phosphorus Project Key Accomplishments. Mr. Herrick reviewed the following issues and concerns for the department: a) replacing superintendent upon his retirement; b) aging WPC staff and infrastructure; c) NPDES Permit expires in September 2017; d) development causing capacity issue or jurisdictional issues; e) areas still needing sewer infrastructure are Johnny Creek, Mink Creek, and Kraft Road; f) reserves low due to phosphorus projects; g) EPA mandated items; and h) Financial plan needs updated. Council would like information regarding the WPC superintendent and class operator requirements/qualifications. If possible, Council would prefer the City offer the position in-house to a qualified candidate. Education, experience and qualifications of employees that meet the criteria needed to fill upcoming open positions at WPC were reviewed. Ms. Stroschein reviewed the Fiscal Year 2018 budget expenses and anticipated revenues for the WPC Department. She noted that an increase for debt services is to accommodate bond payments for improvements at WPC. Mr. Herrick reviewed proposed fee increases for WPC services. He explained the different purposes of capacity fees and collection fees and what the funds are used for. General discussion regarding distribution areas for sludge and associated costs followed. It was noted that there must be a demand for the product to make it cost effective/competitive. Staff will look at comparative studies to keep up-to-date on the costs of distribution. Mayor Blad called for a recess at 10:42 a.m. Mayor Blad reconvened the meeting at 10:54 a.m. SCIENCE AND Hannah Sanger, Science and Environment Division Manager; Joyce ENVIRONMENT Stroschein, Chief Financial Officer/Treasurer, and Ashley Linton, DIVISION Accountant; gave an overview of the estimated Science and FISCAL YEAR 2018 Environment Division budget for Fiscal Year 2018. BUDGET REVIEW Ms. Sanger shared the department’s mission statement. Mission: Manage the City’s federal stormwater permit and achieve permit requirements and water quality improvements. Ms. Sanger gave an overview of the output of staff, Measures of Effectiveness and issues/concerns. She reported on the following: a) Portneuf River Vision Study successfully involved thousands of community members in creating a community-driven vision for the Portneuf River in the Pocatello  4 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING JUNE 1, 2017 area; b) NPDES Stormwater permit (year 10); c) asset management (stormwater management); d) Community awareness, knowledge and engagement; and e) new development. Issues and concerns include: a) existing post construction program and erosion and sediment control program is difficult to manage with current staff levels once construction ramps up; b) significant deferred maintenance; c) Funding for stormwater management not tied to the services provided; d) Fiscal Year 2019 Stormwater permit; and e) Portneuf River Vision which will be costly to implement/not implement. General discussion regarding water quality of the Portneuf River followed. Marsh Creek is an issue for hurting water quality of the river within city limits. River Vision – Sacajawea Park is flooded and six inches of river mud is on the trails at this time. This will help determine the placement of new trails within the Park. It was mentioned that Utah State University students can help to evaluate Sacajawea Park and its part in the River Vision. NPDES Stormwater permits and how these are handled was reviewed. In response to questions from Council, Ms. Sanger explained that she is responsible for the City’s NPDES permit only as it relates to stormwater. She is now looking into the City’s stormwater discharge and making sure the City is in compliance. The dumping near Kraft Road was a historic practice and will be looked at in a new way. Ms. Sanger clarified that there is a need for more coordination between departments to identify environmental issues. Staff will develop stormwater protocols to help avoid future problems. General discussion regarding combining stormwater procedures between departments under one individual followed. It was suggested to consolidate the departments into one source so the processes can be closely monitored to meet DEQ guidelines. How the current Science and Environment Division is set up was reviewed. Ms. Sanger mentioned that she is researching ways to reach out to more citizens to educate them about waste going into the river and how to prevent this on-going issue. Ms. Stroschein reviewed the Fiscal Year 2018 budget expenses and anticipated revenues for the Science and Environment Division. In response to questions from Council, Ms. Sanger clarified a large portion of the stormwater permit is paid by WPC. She explained it was thought if stormwater was treated and dealt with before it the arrived at WPC it would be more cost effective. Breakdown of expenses for the City Environmental Fair were discussed. Major sponsors of the event and contributions were reviewed. No fee changes are being requested. Mayor Blad called for a recess at 11:55 a.m.  5 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING JUNE 1, 2017 Council President Brown reconvened the meeting at 1:19 p.m. Mayor Blad arrived at 1:20 p.m. at which time Council President Brown turned the Chair of the meeting over to Mayor Blad. FISCAL YEAR 2018 REVENUE FORECAST Ms. Stroschein explained that 10 fund revenue decisions will be presented for the Fiscal Year 2018 budget. SALES TAX REVENUE Association of Idaho Cities Fiscal Year 2018 estimate is $4,548,428.00 (increase of $148,428.00) Council guidance for Sales Tax Revenue: $4,548,428.00. HIGHWAY USER REVENUE Association of Idaho Cities Fiscal Year 2018 estimate is $2,450,074.00 (increase of $100,074.00) Council Guidance for Highway User Revenue: $2,475,000.00 BANNOCK COUNTY ROAD AND BRIDGE REVENUE Fiscal Year 2018 estimate is $690,000.00 (realistic expectation) Council Guidance for Bannock County Road and Bridge Revenue: $750,000.00. BUILDING PERMITS REVENUE Fiscal Year 2018 estimate is (2017 budget $675,000.00) Council Guidance for Building Permits Revenue: $675,000.00. NATUARL GAS FRANCHISE REVENUE Fiscal Year 2018 estimate is $365,000.00 (near FY12, FY13, and FY16 actuals) Council Guidance for Natural Gas Franchise Revenue: $365,000.00.  6 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING JUNE 1, 2017 STATE LIQUOR TAX REVENUE Fiscal Year 2018 estimate is $600,000.00 (FY2016 Actual) to $575,000.00 (FY2017 prior 12 months) Council Guidance for State Liquor Tax Revenue: $600,000.00. GENERAL FUND INTEREST REVENUE Fiscal Year 2018 estimate is average of Fiscal Year 2016 actual and prior 12 months of $225,000.00. Council Guidance for General Fund Interest Revenue: $225,000.00. CABLE FRANCHISE REVENUE Fiscal Year 2018 estimate is $230,000.00 to $240,000.00. (Last three quarterly payments have averaged around $57,000.00 to $60,000.00) Council Guidance for Cable Franchise Revenue: $230,000.00. MAGISTRATE COURT REVENUE Fiscal Year 2018 estimate is $243,000.00 (Fiscal Year 2016 actual) Council Guidance for Magistrate Court Revenue: $243,000.00. ELECTRIC FRANCHISE REVENUE Fiscal Year 2018 estimate is $440,000.00 (prior 12 months) Council Guidance for Electric Franchise Revenue: $440,000.00. CEMETERY CHARGES REVENUE Fiscal Year 2018 estimate is $346,000.00 (prior 12 months) Council Guidance for Cemetery Charges Revenue: $340,000.00. PROPERTY TAX Valuation for Fiscal Year 2017 is less than the previous year. Additional Property Tax Authority total $2,549,255  7 CITY OF POCATELLO BUDGET DEVELOPMENT MEETING JUNE 1, 2017 Council Guidance for anticipated New Construction Revenue: $221,231.00. SEE ATTACHMENT “A” FY2018 REVENUE ESTIMATES AND SELECTED OTHER TOPICS. Ms. Stroschein gave an overview of scheduled Budget Decision Sessions for the Fiscal Year 2018 budget. There being no further business, Mayor Blad adjourned the meeting at 2:04 p.m. APPROVED: BRIAN C. BLAD, MAYOR PREPARED BY AND ATTEST: RUTH E. WHITWORTH, CMC, CITY CLERK